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VW midsize crossover production headed for Chattanooga

Potential labor woes aside, it looks like Volkswagen's Chattanooga, TN factory must have done something that impressed the bosses in Germany, because it sounds like the three-year-old factory is set to score a second model.
The factory currently builds the Passat, and has been in the running alongside VW's Puebla, Mexico factory to build a new crossover vehicle, likely based on the CrossBlue Concept. According to Bloomberg, a pair of unnamed sources have confirmed that Chattanooga is the favorite ahead of an official announcement.
When last we heard about the CrossBlue Concept, word was that a production decision had been delayed over concerns about the three-row CUV's business case. That August 2013 story claimed that a decision regarding the CrossBlue would be pushed back until early in 2014, which means we're ripe for some sort of news, whether good or bad.

Dealers, owners feel betrayed by VW scandal

Bob Rand bought his Volkswagen Passat last year for its clean emissions and high gas mileage. He liked the car so much he convinced his son and a friend to buy one, too. Now, as Volkswagen comes clean about rigging diesel emissions to pass US tests, Rand is desperately trying to sell the fully loaded model with white leather seats for $10,000 below what he paid. His sole bite has been from a man who offered $7,500 on speculation that he could resell it in Mexico. "Volkswagen was somebody that you could rely on for cutting-edge products and quality and all those things and now you find out that they're not above lying just flat out," said Rand, who plans to join a class-action lawsuit against VW. "That's probably about as bad a thing as a company can do is lie to your face when you're buying a $35,000 car." Rand's anger at the world's top-selling car company was echoed Wednesday by private dealers, auto wholesalers and owners across the US as fallout from the smog test trickery mounted. The US Environmental Protection Agency first disclosed Friday that stealth software makes VW's 2009-2015 model cars powered by 2.0-liter diesel engines run cleaner during emissions tests than in actual driving. On Wednesday, CEO Martin Winterkorn resigned and took responsibility for the "irregularities" found by US inspectors - a scandal that has wiped out billions in the company's market value and raised the possibility of criminal investigations and billions more in fines. The revelations left dealers sitting on hundreds of diesel cars they could not sell. Many also dealt with a flood of angry calls, emails and tweets from Volkswagen owners who felt betrayed because they believed they had bought a car that polluted less without sacrificing the good gas mileage and performance that comes with a diesel engine. "I think their feet should be held to the fire." - Joe DeCarolis "I think their feet should be held to the fire. I think apologies don't mean anything when something is so premeditated," said Joe DeCarolis, of Cary, NC, who owns a 2012 TDI Jetta Sport Wagon — a car he bought after careful comparison shopping for its clean emissions and good gas mileage. Dealers can't give customers good answers because Volkswagen hasn't said a whole lot, said AutoNation CEO Mike Jackson, the leader of the largest auto dealership chain in the US.

Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification