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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."

VW recalls 220,000 Atlases, Atlas Cross Sports for airbag defect [Updated]

[Update: Audi of America has confirmed that no U.S. models are among the recall population for plug-in hybrid fire issue.] Volkswagen has issued yet another recall for its Atlas SUV, this time for side airbags that may not deploy correctly in an accident due to a problematic connection in one of the vehicle's wiring harnesses. The campaign covers 222,892 Atlas and Atlas Cross Sport models built for the 2019-2023 model years.  The issue stems from a connection with the wiring harness that runs from the A-pillar into the door. VW says that harnesses produced by one of its suppliers were not built with additional measures to prevent movement at the connection point. Small movements can cause abrasion of the metal contacts which could lead to a whole host of electronic misadventures, including the potential for airbag deployment to be delayed in a crash.  "Micro-movement of the wire harness (terminal A-Pillar to front door) can result in damage to the wire terminal surface. Damage to the surface can [result] in fretting corrosion which may cause sporadic interruption in the electrical connection to the components of the front door," VW said in its defect notice. "The airbag warning light may illuminate if a malfunction is detected. Other symptoms of a sporadic interruption of the affected electrical connection can be: inadvertent rolling down windows, inadvertent park brake engagement at low speeds (below approx. 3km/h or 1.8mph), warning regarding faulty door sensor," VW said.  Not every model built within the range defined above is subject to the recall; terminals from other suppliers were manufactured with the necessary safeguards in place. If you own a 2019-2023 Atlas or Atlas Cross Sport, keep your eyes peeled for a notification from VW regarding the campaign, likely some time in early-mid May.  PHEV problems Across the Atlantic, the VW Group mothership confirmed that it will recall more than 100,000 plug-in hybrid models worldwide to address a fire risk. The recall was launched in response to 16 reported incidents of fires stemming from insufficient insulation of the PHEV battery pack that allows the engine cover to make contact if it is not completely secure. If that happens, the heat from the battery can ignite the engine cover. The recall will cover PHEVs build by VW, Audi, Seat and Skoda, Reuters reports, including the VW Passat, Golf, Tiguan and Arteon — plug-in variants of which are not sold in the United States.

Volkswagen iBeetle gets integrated iPhone dock, little else

Apple fans have been itching to see the tech giant flex the full muscle of its iOS operating system in an automotive infotainment system for years, which is why we turned all sorts of excited when we caught wind of the Volkswagen iBeetle. The machine is headed to the Shanghai Motor Show for a debut, and VW promised it would be one of the "first cars in the world to have a genuine integrative interface for the iPhone that was coordinated with Apple." Listen closely, and you can hear the contented sigh of a million wallets opening.
Go ahead and close those up, kids.
In reality, the iBeetle offers little more than a dash-mounted dock and a special app that shows a few vehicle functions, which is about as far from an infotainment revolution as you're likely to find. In fact, the setup is little more than a factory rehash of aftermarket items, and hardly worth a whole model debut at an international motor show. And that's to say nothing of the fact that Apple relishes in changing the shape and form of its darling handheld at every generation. Volkswagen better be prepared to keep pace with appropriate docking mechanisms for the upcoming iPhone 5S, 6, 6S, et al.