Convertible Vw New Beetle Bug on 2040-cars

Auto blog

VW will delay projects to cope with diesel scandal

Volkswagen's diesel emissions scandal will require the sacrifice of far more than just executives and money. It's also going to result in the cancellation of various projects, a process that new CEO Matthias Mueller said "won't be painless." "We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller said while addressing the embattled company's employees. The former Porsche boss also said the money set aside by the German giant – about $7.29 billion – won't be enough to cover recall expenses, fines from governments in affected countries, and the expected deluge of lawsuits from disgruntled TDI owners. According to Bloomberg, that figure probably won't even be enough to match the fines Uncle Sam is likely charge, pegged to be around $7.4 billion, according to one analyst. It's expected that VW could delay a further push for share in the North American market, which would include a $1-billion investment in its Puebla, Mexico, factory. But it will take more than cancellations and delays, analysts claim. "It's going to be tough to find projects they could chop that will actually move the needle," JPMorgan Chase's Jose Asumendi told Bloomberg. "What they really need to do is get costs under control." That, according to Bloomberg, is already setting up a showdown between management and labor. The latter wants a reduction in VW's $17.4-billion research-and-development budget – the world's largest and more than what Ford and General Motors spend combined – while the former wants to slash personnel costs. Bloomberg also spoke to analysts who claimed the company should look into reductions in purchasing costs as well as trimming sponsorships. It's impossible to know just how extreme Volkswagen will need to get with cancellations, delays, and cost-cutting, but it's becoming increasingly clear that the effects of this scandal will likely be felt far longer than the controversies that surrounded other automakers like General Motors and Toyota. Related Video: News Source: BloombergImage Credit: John Macdougall / AFP / Getty Images Earnings/Financials Green Plants/Manufacturing Recalls Volkswagen Diesel Vehicles vw diesel scandal matthias mueller

What the Volkswagen I.D. concept tells us about the post-TDI future

If you've been paying attention, 2016 hasn't been a great year for Volkswagen. The TDI scandal removed VW's last crutch between our internal combustion present and the electric future, and so the company found itself scrambling to shift resources to show what's next right now. It's naive to assume that this is truly the sort of fairytale comeback story that VW's spin doctors would have us all believe, but it's notable that instead of flinching or pointing fingers, the engineers got to work. What they've produced is the I.D. concept, the third wave in VW's volume car history after the Beetle and Golf. The transaxle Golf was more than simply an updated Beetle, and likewise the I.D. is more than an electrified Golf. VW says the I.D. won't replace the Golf, but they said the same thing about that car replacing the Beetle. It's only a matter of time. VW says the I.D. won't replace the Golf, but they said the same thing about that car replacing the Beetle. It's only a matter of time. The I.D. approach is refreshingly simple: no carbon fiber chassis, no exotic battery chemistry, no outrageous concept car styling. The MEB chassis (the German acronym for modular electric platform) is made out of a traditional mix of high-strength steel grades to save costs and utilize existing factories. The battery is integral, not swappable, to reduce complexity and increase structural rigidity. It's also uses lithium-ion chemistry because of a proven track record and an existing (albeit deficient) supply chain. Contrast that with the e-Golf, which shares its chassis with the conventional internal-combustion cars. Fitting the battery and its ancillary systems became complicated and expensive. The skateboard installation in the I.D. will allow the pack to be optimized for the space available, reducing costs. As we've already reported, MEB will be shared across all VW Group brands to achieve an economy of scale, and the modular platform can be stretched to the size of roughly a Passat and down to a car slightly smaller than the I.D. It can be given all-wheel drive, although VW's e-mobility chief Christian Senger is quick to point out that the standard rear-drive configuration provides plenty of traction because of optimal weight distribution achieved with battery in the middle of the chassis. It makes all-wheel drive more of a bonus rather than a necessity in bad weather.

Jay Leno takes a ride in Gabriel Iglesias' classic 1966 VW bus

We've seen Jay Leno driving all manner of vehicles, many of them epically fast. But few (this is side of his steamers, anyway) have been as slow – or quite as beautiful – as this classic 1966 Volkswagen Samba. While many of the vehicles featured on episodes of Jay Leno's Garage have actually been from Jay Leno's own garage, the former talk-show host has been known to feature some interesting rides from fellow comedians. A couple of weeks ago it was Adam Carolla's '68 Lamborghini Islero, and this vintage, pristine VW bus belongs to Gabriel Iglesias. It's in beautiful condition and is a sight to see, even if it has a little trouble making its way down the highway. Or starting up again after a quick snack break.