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VW confirms new TDI for second half of 2014 in Golf, Jetta, Passat and Beetle

Diesel lovers rejoice. Volkswagen is bringing the latest iteration of its 2.0-liter four-cylinder diesel engine - dubbed the EA288 - to the 2015 model year Golf, Jetta, Passat, Beetle (2013 model pictured above) and Beetle Convertible, and the cars will be on sale in the second half of 2014.
While it shares its moniker with the old diesel, the new engine produces 150 horsepower, a 10-hp boost, and 236 pound-feet of torque. VW promises improved fuel economy as well, but it hasn't announced specifically what amount yet. The company claims that despite the same displacement, only the bore spacing is shared with the previous version. The mill includes new features like exhaust gas recirculation, an intercooler integrated into the intake manifold and low-friction camshaft bearings.
VW Group of America has had great success with diesels in the US recently. Vee-Dub and Audi sold 105,899 diesel-equipped models in 2013. It was the first time the group ever sold over 100,000 diesels in a year, and they accounted for 24 percent of sales. Scroll down to read the full press release about the announcement.

VW sets aside $7.3B war chest for diesel scandal fallout

The crisis enveloping Volkswagen AG, the world's top-selling carmaker, escalated Tuesday as the company issued a profit warning following a stunning admission that some 11 million of its diesel vehicles worldwide were fitted with software at the center of a US emissions scandal. The German company said it was setting aside around 6.5 billion euros ($7.3 billion) to cover the fallout from the scandal that has tarnished VW's reputation, raised questions over the future of CEO Martin Winterkorn and battered its share price. The reputational damage to Volkswagen is implicit in the market's response. Volkswagen's share price slid a further 16.2 percent Tuesday to a near four-year low of 112 euros. The fall comes on top of Monday's 17 percent decline. The shockwaves from the scandal enveloping Volkswagen were being felt far and wide across the sector as traders wondered who else may get embroiled. Germany's Daimler AG, the maker of Mercedes-Benz cars, was down 6.5 percent, while BMW AG fell 5.4 percent. France's Renault SA was seven percent lower. The scandal is hugely damaging to a business that relies heavily on a hard-won reputation for quality and trustworthiness. "Brands are all about trust and it takes years and years to develop. But in the space of 24 hours, Volkswagen has gone from one people could trust to one people don't know what to think of," said Nigel Currie, an independent UK-based sponsorship and branding consultant. The trigger to the company's market woes was last Friday's revelation from the US's Environmental Protection Agency that VW rigged nearly half a million cars to defeat US smog tests. The company then admitted that it intentionally installed software programmed to switch engines to a cleaner mode during official emissions testing. The software then switches off again, enabling cars to drive more powerfully on the road while emitting as much as 40 times the legal pollution limit. "We have totally screwed up." - Michael Horn "In my German words: we have totally screwed up," the head of Volkswagen's US division, Michael Horn, told an audience in New York on Monday. In its statement Tuesday, Volkswagen gave more details, admitting that there were "discrepancies" related to vehicles with Type EA 189 engines and involving some 11 million vehicles worldwide. The number of vehicles involved is more than the 10 million or so cars it sold in 2014.

Carlex Criollo is a Volkswagen Multivan shrine to Alcantara, leather and... fish

A keen angler recently went to Polish tuner Carlex Design (the same folks who did that steampunk Mini Countryman a while back) for a revamp of his Volkswagen Multivan. What resulted is perhaps the most striking - yet fishing-unfriendly - interior we've ever seen in a van. Below the shoulder line, if a surface isn't covered in cross-stitched Alcantara, then it's covered in cross-stitched leather. Even the steering wheel airbag boss. And the seat supports. And the cupholders.
The brown hue of the Multivan's interior is called Criollo, named for an especially fine specimen of cocoa. The finishing touch on the overhaul is a fileting knife that Carlex made for the owner. We imagine he'll use the knife for the marine life, but keep his van far away from it.