1970 Vw Bug Project Car on 2040-cars

Auto blog

Import pickup truck-killing Chicken Tax to be repealed?

After over 50 years, the so-called Chicken Tax may finally be going the way of the dodo. Two pending trade deals with countries in the Pacific Rim and Europe potentially could open the US auto market up to imported trucks, if the measures pass. Although, it still might be a while before you can own that Volkswagen Amarok or Toyota Hilux, if ever. The 25-percent import tariff that the Chicken Tax imposes on foreign trucks essentially makes the things all but impossible to sell one profitably in the US, which lends a distinct advantage to domestic pickups. Both the Trans-Pacific Partnership with 12 counties and Transatlantic Trade and Investment Partnership with the European Union would finally end the charge. According to Automotive News though, don't expect new pickups to flood the market, at least not immediately. These deals might roll back the tariff gradually over time, and in the case of Japan, it could be as long as 25 years before fully free trade. Furthermore, Thailand, a major truck builder in Asia, isn't currently part of the deal, and any new models here would still need to meet safety and emissions rules, as well. Automotive News gauged the very early intentions of several automakers with foreign-built trucks, and they weren't necessarily champing at the bit to start imports. Toyota thinks the Hilux sits between the Tundra and Tacoma, and Mazda doesn't think the BT-50 fits its image here. Also, VW doesn't necessarily want to bring the Amarok over from Hannover. There is previous precedent for companies at least considering bringing in pickup trucks after the Chicken Tax's demise, though. The Pacific free trade deal could be done as soon as this fall, while the EU one is likely further out, according to Automotive News. Given enough time, the more accessible ports could allow some new trucks to enter the market.

VW bringing fuel cell concept to LA Auto Show

Amid the flurry of hydrogen announcements from Toyota and Honda last night, Volkwagen has something to add: a new hydrogen fuel cell concept vehicle. This will be the first VW hydrogen fuel cell vehicle in many years – remember the Tiguan Hy-Motion back in 2008? – and it comes as a bit of a surprise. First written up by the German publication Wirtschaft Woche, VW is going to have the prototype car (not pictured) available at the ride and drive at the Los Angeles Auto Show later this week. We don't yet know what kind of vehicle will sport the hydrogen powertrain, but our money's on a Golf variant. We'll see soon enough when we get to Los Angeles. What's interesting is that there have been a number of not-so-mixed messages out of the VW executive ranks when it comes to hydrogen vehicles. VW's Japanese president, Shigeru Shoji, said in September that, hydrogen fuel cells, "may fly within Japan, but not globally." Last year, VW's electrification head Rudolf Krebs said that "hydrogen mobility only makes sense if you use green energy." Also last year, VW CEO Martin Winterkorn said it's basically impossible to build hydrogen vehicles at a "reasonable cost." Nonetheless, we're going to see a new VW H2 concept soon. Thoughts?

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.