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Automakers suspend some business in Russia following invasion

These Russian GAZ Tigr infantry mobility vehicles were destroyed by Ukrainian fighters in Kharkiv on Monday. (Getty Images)   Global auto and truck makers, including Sweden's Volvo Cars and Germany's Daimler Truck, on Monday suspended some business in Russia following that country's invasion of Ukraine. Russian forces invaded Ukraine last week, marking the biggest attack by one state against another in Europe since World War II. Many firms have idled operations in Russia following Western sanctions against Russia. Energy giant BP Plc, Russia's biggest foreign investor, abruptly announced over the weekend it was abandoning its 20% stake in state-controlled Rosneft at a cost of up to $25 billion. On Monday, Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international automaker to do so as sanctions over the invasion continue to bite. In a statement, the company said it had made the decision because of "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US." "Volvo Cars will not deliver any cars to the Russian market until further notice," it said. A Volvo spokesman said the carmaker exports vehicles to Russia from plants in Sweden, China and the United States. This came as Russia warned Sweden and Finland not to join NATO or risk facing “serious military-political consequences." Volvo sold around 9,000 cars in Russia in 2021, based on industry data. Earlier on Monday, RIA news agency reported Volkswagen had temporarily suspended deliveries of cars already in Russia to local dealerships, citing a company statement. VW had no immediate comment when contacted by Reuters. VW previously said it would halt production for a few days this week at two German factories after a delay in getting parts made in Ukraine. Daimler Truck said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz. Mercedes-Benz Group is also looking into legal options to divest its 15% stake in Kamaz as quickly as possible, the Handelsblatt newspaper reported. A Mercedes spokesperson told Reuters business activities would have to be re-evaluated in light of the current events. Mercedes-Benz Group, formerly Daimler AG, was the parent company of Daimler Truck before the truck maker was spun off.

Chrysler and Fiat offering $1,000 rebates to VW owners as Marchionne gets tough

The throw-down between Fiat CEO Sergio Marchionne and Volkswagen has heated up in earnest. According to Bloomberg, Fiat and Chrysler are now offering current Volkswagen owners in the US $1,000 rebates to trade in their ride. It's the latest in a series of shots Marchionne has taken at his German rival. As you may recall, the Fiat executive entered into a spat with Volkwagen board chairman Ferdinand Piëch and CEO Martin Winterkorn in October after the duo called for Marchionne's resignation from presidency of the European Automotive Manufacturers Association (AECA). At the time, the Volkswagen executives were quoted as saying Fiat would not survive the European economic downturn.
In response, Marchionne called the German executives "reprehensible," and accused Volkswagen of using a pricing strategy that has created created a "bloodbath" in the EU. Volkswagen has taken to steep discounting to carve out ever-larger slices of market share in Europe, but the company has a much smaller foothold in the US. Marchionne may be trying to hit Volkswagen where the manufacturer is weakest with the new Fiat new incentive program.
Late last week, the Fiat executive was voted to a second term as ACEA president.

Volkswagen bringing production GTI Clubsport to Frankfurt

"No plans for the car to be sold here." It's probably good I read that part of the email from Volkswagen before I looked at the photos and read the release for the car you see above. It's the production-spec GTI Clubsport. It's coming to the Frankfurt Motor Show. It's awesome. And I want one. I know, I'm kind of a GTI fanboy, but really, there's a lot to like here. The special-edition hot hatch is essentially a road-going version of the concept Volkswagen brought to Worthersee this year, complete with a more powerful engine. It produces 261 horsepower – a healthy increase over the 210 hp of the base GTI (or 220 if the car is fitted with the performance pack) – and can even crank out 286 hp for short bursts, thanks to an overboost function. Hitting 62 miles per hour takes six seconds flat with the six-speed manual gearbox, and that time is reduced to 5.9 seconds should you opt for the six-speed dual-clutch automatic. Even with these upgrades, VW says the GTI Clubsport will still return nearly 34 miles per gallon with the manual transmission. Volkswagen doesn't specifically mention any chassis upgrades, however. In its press release, VW simply says that the GTI Clubsport "has groundbreaking handling properties at high speeds and breathtaking cornering speeds." Cool. I'm sure it'll be a riot. A lot of the exterior is new: the front bumper, side sills, rear diffuser, roof spoiler, and aluminum wheels are all unique to the Clubsport. Buyers can choose between 18- or 19-inch rollers, the tailpipes are larger than those on a standard GTI, and the LED lights out back have a black/red, dark finish. Inside, the Clubsport comes with racing buckets covered in tartan fabric (of course) and there's Alcantara everywhere. Fellow GTI fans, get excited about this one – even if it's just another delicious piece of forbidden fruit. Still, I can't wait to see it live in Frankfurt next week. Related Video: VOLKSWAGEN TO UNVEIL MORE POWERFUL GTI CLUBSPORT AT THE FRANKFURT INTERNATIONAL MOTOR SHOW New anniversary model celebrates the GTI's 40th birthday - 265 PS special edition accelerates from 0 to 62 mph in 5.9 seconds - An overboost function increases power to more than 290 PS for a short time - Expressive exterior design features new front bumper, side skirts, rear diffusor and multi-part roof spoiler Wolfsburg, September 9, 2015 – At the beginning of 2016, the iconic sporty compact—the Golf GTI— celebrates its 40th birthday.