1972 Volkswagen Beetle on 2040-cars

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VW budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun. For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany. In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe." Even Fiat, another automaker long considering a budget brand beneath its Fiat line-up, wasn't sure how to squeeze any extra money from lower-cost products but was sure that it couldn't be done by manufacturing in Europe. If VW hasn't yet made the math work with a joint venture in China, it will be interesting to see how it might build a European go-it-alone business case.

For emissions control suppliers, VW diesel scandal is good news

In the "making Lemonade out of lemons" department, European makers of emissions control and catalytic systems are seeing their stock prices rise in the wake of Volkswagen's diesel emissions scandal, Reuters says. Investment bankers and money managers are touting companies such as Johnson Matthey, Faurecia, Umicore and ElringKlinger. Shares of some of those companies jumped more than 25 percent since the scandal broke last month. Despite the scandal, demand for diesel-powered vehicles is expected to continue in Europe because of the powertrain's superior fuel economy. Additionally, a new version of nitrogen-oxide testing is slated to start in 2016, while prices for platinum, which is required for catalytic systems, have dropped. All of this put together is helping to make the emissions control companies more valuable. However much they may benefit, though, VW and other diesel-vehicle makers such as Mercedes-Benz and BMW may continue to suffer. That's because governments around the world are calling for heightened diesel-emissions testing procedures that better simulate real-world driving conditions. And according to the European Automobile Manufacturers' Association (ACEA), that alone could cause costs associated with making diesel vehicles to spike and negate the fuel-economy advantages that drive demand in the first place. Regulators in VW's home country of Germany have demanded a recall of 2.4 million vehicles whose software has been programmed to under report emissions level. Such "cheating" software has been installed in as many as 11 million vehicles worldwide. VW, whose CEO resigned last month because of the scandal, has set aside $7.3 billion to address the issue. Related Videos: News Source: ReutersImage Credit: AP Photo/Markus Schreiber Green Volkswagen Emissions Diesel Vehicles vw diesel scandal

Volkswagen shows off performance-ish Passat concept

As part of its 2013 Detroit Auto Show debut package, Volkswagen has rolled out a sportier version of the Passat sedan, though it's strictly conceptual for now. A small dose of go-fast visuals have been added to the handsome Volkswagen, including 19-inch wheels, carbon-capped mirrors, an advanced front lighting system, LED taillamps and dual exhaust. Some carbon bits and upgraded leather are found inside the cabin, as well.
But the real performance chops come in the form of a 1.8-liter turbocharged four-cylinder engine that sends 250 horsepower to the Passat's front wheels via a six-speed automatic transmission. That's a good boost in power over the 170 hp of the base 2.5-liter inline-five, but not quite as potent as the 3.6-liter VR6. A lowered sport suspension and revised electronic steering are also on hand, making things slightly more involving out on the road... we assume.
It's not quite the performance concept we were hoping for, but a more enthusiastic Passat isn't necessarily a bad thing. Scroll down for the press release.