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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.

Final Volkswagen Eos to leave the plant in May

Volkswagen has made no secret of its plans to wind down production of the Eos hardtop convertible, and the automaker has already celebrated the model's retirement in the US with the Final Edition (pictured above). However, the company now has an actual time for that end to come. The final Eos rolls off the line from the VW factory in Portugal in May, according to Germany's Automobilwoche, and European customers have until March 27 to get any final orders in. The company has no plans to offer a successor, it previously indicated. After about nine years of production and some 230,000 made, the Eos proved to be a success, at least in its home market of Germany. A VW spokesperson told Automobilwoche it was the country's bestselling hardtop convertible at one point, but customer preferences have changed toward preferring soft-top models. That switch spelled doom for the Eos. Drivers who want some wind in their hair still have some choices in the VW lineup. The Beetle Convertible remains on sale in the US, and Europeans also get the droptop Golf. Featured Gallery 2015 Volkswagen Eos Final Edition: Quick Spin View 18 Photos News Source: AutomobilwocheImage Credit: Copyright 2015 Jonathon Ramsey / AOL Plants/Manufacturing Volkswagen Convertible portugal

Golf tees up new sales for VW

If you consider the Passat and the CC two different lines, Volkswagen USA lists nine different models on its website, and they have sold a total of 238,074 units in the US this year through the end of August. The Golf, which was voted North American car of the year in 2015, and its variants account for 44,416 sales, an increase of nearly 150 percent compared to the same period last year. That's also the most Golfs ever sold in that time in the US, and almost 19 percent of this year's entire brand sales. This is compared to a compact car segment that has gained just 1.1 percent compared to 2014. A number of factors are responsible, according to a report in Automotive News: the MQB platform allows different powertrains to roll down the same assembly line; VW USA product planners can now configure vehicles to suit our market and they work with a selection of dealers to refine the retail offering; and the Golf maintains its proper European driving experience. The expanse of the Golf range has meant not only increased profits and new buyers, but more breadth in the buying demographic - expanding outward from the standard Golf to five different extremes, from the e-Golf to the Golf R. Room will be made for a new kind of consumer next year when the current Sportwagen model goes all-wheel drive with an Alltrack designation. Unsurprisingly, VW USA says, "Golf is a role model for the US for us. We want to learn from our success and implement those lessons in our future model planning." After decades of uneven effort, perhaps that formula plus a long-awaited range of crossovers can finally deliver on the promise of the US market. Related Video: