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Jay Leno brings a rotary-powered VW Beetle to the garage

It takes something really unique or inventive to pique Jay Leno's interest. His show, Jay Leno's Garage, has featured everything from concours-worthy classics to completely custom, home-built machinery. How do you get Leno to feature one of more than 20 million Beetles on his program? Stick a turbocharged rotary engine under the hood. The Beetle's owner, Mario Markakis, swapped the car's stock flat four-cylinder for the Wankel engine from a 1990 Mazda RX-7 Series 5 Turbo. The engine's 250 horsepower are fed through a reinforced version of the Beetle's stock four-speed transmission. That's about five times the original engine's output. It works well, with the car putting down some impressive times at the drag strip. Markakis did most of the work to the Beetle in his garage. In addition to the engine swap, he's modified the car's brakes, suspension, and interior. Check out the video to hear all the details of this custom Wankel-powered Volkswagen. Related Video: Celebrities TV/Movies Mazda Volkswagen Classics Videos Jay Lenos Garage rotary mazda rx-7

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

VW Tiguan grows up, gets bigger

The compact crossover segment continues to do huge business around the world, and Volkswagen is showing just how important the niche is by debuting four versions of the all-new, second-generation Tiguan at the Frankfurt Motor Show. Now riding on VW's MQB platform, the latest version has had a growth spurt, but it has also shed 110 pounds in the process. The first of them will hit the international market in April 2016. While the design is still definitively a VW, the latest Tiguan looks more aggressive and expands to 2.4-inches longer, 1.2-inches wider, 1.3-inches lower. There's also three more inches of wheelbase than the outgoing generation. At the front, the grille stretches all the way across and connects with the headlights to visually widen the look even more. In profile and at the rear, things are now a bit more angular, but the changes give the model a more chiseled style. In Fall 2016, VW will debut an even longer wheelbase body for the Tiguan. According to the company, this version will be aimed directly at customers in the US and China that prefer larger vehicles. The added inches outside translate to more room for passengers and cargo inside. Even with the seats up, there's an extra 1.8 cubic feet for stuff in the back, and those sitting in the rear get 1.1 inches more knee room. As an added amenity, buyers can option a 12.3-inch Active Info display digital instrument panel. Europeans gets a choice of eight engines: four fueled by gasoline and four by diesel. They range in power from 123 to 237 horsepower. Expect far fewer options when the Tiguan eventually arrives on these shores. Both front-wheel drive and 4Motion are available, too. In addition to having standard, 4Motion, and R-Line variants on display in Frankfurt, VW also has the Tiguan GTE plug-in hybrid concept at the show. It combines a 1.4-liter TSI engine and an electric motor mounted to the six-speed DSG to offer a total system output of 215 hp. The 13 kWh lithium-ion battery also lets the PHEV cover 31 miles on electric power and get an estimated 124 miles per gallon on the European cycle. That's not too bad, but the roof also features solar cells that VW claims can add another 621 miles of driving range per year under ideal conditions.