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2014 Volkswagen XL1 [w/video]

World's Most Efficient Car Impresses, Not Without Compromises
Among our many duties at the recent Geneva Motor Show, we were offered a pretty exclusive drive in the new Volkswagen XL1 hyper-efficient plug-in diesel hybrid. There is so much that is interesting about a car like this reaching production from a major automaker that it's tough to know where to begin.
First off, you should know that - at least for this generation - there is absolutely no chance in Albuquerque that this "1-liter vehicle" (i.e. a vehicle that can burn just one liter of fuel to travel 100 kilometers, or 62.1 miles) will ever make it into the hands of North American customers. We, too, were having trouble imagining an XL1 in typical American traffic, surrounded by comparatively massive pickups and SUVs. The driving experience had us recalling a couple of weeks in 1999 when we drove the then-revolutionary Honda Insight hybrid on US roads. We keenly remember the feeling of being very small and vulnerable, even as we felt proudly green in our 61-mpg Tochigi pod. Thing is, the Volkswagen is smaller still, and nearly as light despite its more complex drivetrain and safety features.

Volkswagen Golf Variant will make a lovely Jetta SportWagen

In addition to several other versions of the Golf, Volkswagen is debuting the new Golf Variant (read: wagon) here at the 2013 Geneva Motor Show. And if this bigger version of the Golf looks like it might fit right at home in the States, it's because we could possibly see some version of this car as the next-generation Jetta SportWagen here on our shores.
Volkswagen is debuting the Golf Variant with two efficient diesel engines, rated at 110 and 150 horsepower, the smaller of which is good for an impressive 71.3 miles per gallon on the European cycle (when mated to a six-speed manual transmission). The Golf Variant also gets a version of Volkswagen's 4Motion all-wheel-drive system, making it incredibly all-weather capable.
It's a handsome estate, and it wears the new Golf's design language well. We can't say for sure if this car will actually make its way Stateside, but given the fact that the current Jetta SportWagen still rides on the old Golf platform, the odds look to be in our favor.

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.