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VW and Renault end talks to develop affordable EV, sources say

PARIS/BERLIN – Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo subcompact car, three sources familiar with the situation said, in a setback for the EU carmakers' efforts to fend off Chinese rivals. The collapse of negotiations could mean the German carmaker may have to go it alone in developing its own affordable EV. Renault will continue designing its electric Twingo, scheduled to hit the market in 2026. Both had hoped that sharing the work would cut costs that represent a key hurdle for European carmakers in the face of cheaper cars from China. Volkswagen broke off discussions mainly because Renault had wanted to build the car in one of its plants at a time when VW is seeking to fully utilize its European production network, one of the sources said. Ampere, Renault's EV operation overseeing the Twingo program, declined to comment. A spokesperson for Volkswagen also declined to comment on the talks between the companies but said that the German carmaker was still studying its options on cheap EVs. The companies "did not succeed in finding an agreement" after several months of negotiations, one of the sources said. Another source said that an agreement had been very close, but that VW walked away from the talks and has decided to develop its own car. The sources declined to be named because the talks are confidential. VW sources said a decision on the EV plan is expected within weeks. Thomas Schaefer, CEO of the Volkswagen brand, has said he wants to launch a lower-priced EV by 2027. The second source said Renault would continue work on the Twingo without VW, but also remained open to other partners, for instance from the alliance with Nissan and Mitsubishi. It is also a blow for Renault CEO Luca de Meo's hopes for greater cooperation between European carmakers against their Chinese competitors, akin to Airbus which has stakeholders and operations across European countries. The VW-Renault tie-up for the Twingo could have formed the "basis" of an Airbus for autos, the second source said. China's automakers, the world's top EV producers, are making fast inroads in the European market, pressuring incumbents like Renault and VW to cut costs and speed up the time it takes to bring a new model to market. European automakers are aiming to produce smaller EVs that sell below 20,000 euros ($21,686) to help them compete with Chinese brands like BYD.

VW confirms new TDI for second half of 2014 in Golf, Jetta, Passat and Beetle

Diesel lovers rejoice. Volkswagen is bringing the latest iteration of its 2.0-liter four-cylinder diesel engine - dubbed the EA288 - to the 2015 model year Golf, Jetta, Passat, Beetle (2013 model pictured above) and Beetle Convertible, and the cars will be on sale in the second half of 2014.
While it shares its moniker with the old diesel, the new engine produces 150 horsepower, a 10-hp boost, and 236 pound-feet of torque. VW promises improved fuel economy as well, but it hasn't announced specifically what amount yet. The company claims that despite the same displacement, only the bore spacing is shared with the previous version. The mill includes new features like exhaust gas recirculation, an intercooler integrated into the intake manifold and low-friction camshaft bearings.
VW Group of America has had great success with diesels in the US recently. Vee-Dub and Audi sold 105,899 diesel-equipped models in 2013. It was the first time the group ever sold over 100,000 diesels in a year, and they accounted for 24 percent of sales. Scroll down to read the full press release about the announcement.

Leaked Audi product roadmap may confirm R8 with V6 engine

About a year ago, we reported that Audi was considering downsized engines for the new R8, which launched in V10 form. This is partially due to the Chinese market's desire for smaller displacement engines, and partially due to R8 technical lead Roland Schala's statement that a "V6 is a perfect engine for this car." This leaked upcoming product schedule, passed on by our friends at Autobahn.eu, seems to confirm these rumors. Based on the information in the image above, the R8 V6 is due in 2018. The rest of the product map seems to square with vehicles we know are in the pipeline. We spied the SQ7, A5, and R8 Spyder about a year ago, and the TT RS a few months ago. We told you in December a new Q5 is on the way, too. We just heard a credible rumor that the RS3 is on the way in 2017 as a 2018 model, and may even come to America, which squares with what we're seeing here. And we drove the Q7 E-Tron in 2015 – it's going on sale in Europe soon. This graphic puts the on-sale date as October 2017; that could be for the US market. Puzzlingly, this graphic doesn't discuss the Q2, which Audi just teased today. We're not sure what to make of that. Now onto the fun stuff. 2018 should be when Audi reveals a new A8 (featuring, most likely, a version of the futuristic Virtual Dashboard seen at CES) and A7, an RS 5 Coupe launching a few months after the A5/S5, a new A6, and the already-confirmed Q8 SUV. All expected or already confirmed. What about the cryptically-named "C-BEV?" If we extrapolate that to mean C-segment EV, if could be the Audi version of the stand-alone EV that VW is reportedly developing, and no, it's not the next E-Golf. We expected this MEB-based vehicle to debut in 2018, before the next-generation Golf, so again our rumors square nicely with what this roadmap tells us. Let's leave it at this: if you're an Audi fan, the next few years are going to be quite exciting. Expect some of these rumors to be confirmed in Geneva, so keep your eyes here for more Audi and VW info. Related Video: