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VW exec calls US ops a 'disaster'

Today in the Tell Us How You Really Feel file we have Bernd Osterloh, head of Volkswagen AG's Group Works Councils and member of the company's supervisory board, labeling the company's US operations "a disaster." Why? Because Osterloh believes VW of America doesn't have the models it needs to be competitive here, hasn't been decisive enough about its plans and German higher-ups still don't understand the US market.
In truth, the top labor rep at the German conglomerate is echoing sentiments we've heard from VWoA executives for years, and there's been the same commentary from dealers: Germany doesn't pay enough attention to what the US market really wants. Even ex-VWoA CEO Stefan Jacoby, who preceded the recently departed Jonathan Browning, said early in his tenure that one of his tasks was to get his German bosses to start delivering what the US market demanded. New CEO Michael Horn is saying much the same thing seven years later, telling Sky News that it has to increase "the speed at which we bring new models to the market and innovation to the market."
Osterloh wants to get "more models" here, including a pickup truck, but we'd wonder if the economics have changed from when Jacoby said they'd need to sell 100,000 per year to make money. Osterloh also wants a decision on where the CrossBlue will be built. Although it looked as if the Chatanooga, TN plant would get the call, the Puebla, Mexico plant is still in the running because of lower operating costs. No matter what happens right now, Osterloh thinks the situation won't get better for another two years when revamped models arrive, but at least the company can start taking the steps for a better US future.

Volkswagen Cross Up! headed for production after Geneva reveal

The last time we saw the Volkswagen Cross Up!, it was sitting out in the snow in prototype form, but the next time we'll see this slightly more rugged version of the diminutive Up! hatchback will be when it makes its production debut at the Geneva Motor Show next month. Looking like a micro-crossover with its raised ground clearance and black cladding, the Cross Up! will be the fourth "Cross" model for VW (after the CrossPolo, CrossGolf and CrossTouran) when it goes on sale this summer in mainland Europe (UK sales remain up in the air and US sales are highly unlikely).
Overall, the styling of the production Cross Up! has stayed fairly true to the 2011 concept car, including the front and rear fascias that offer a more rugged look, stocky 16-inch wheels and roof rack side rails. Inside, this model will get unique interior enhancements such as "Cross Up!" sill plates and an instrument panel available in red, black or silver. Like the regular Up!, the Cross Up! is powered by a 74-horsepower, 1.0-liter three-cylinder engine paired to a five-speed manual transmission, and it doesn't look like all-wheel drive will be part of the picture. For more details on the upcoming Cross Up!, check out VW's press release posted below.

Volkswagen Touareg hybrid axed for 2016

Volkswagen is axing the Touareg hybrid for the 2016 model year. At a starting price of $67,905 (after $910 destination), the 2015 version sat at the top of the Touareg range, but it didn't offer significantly improved fuel economy for the extra money. The hybrid was only three miles per gallon city and one mpg highway better than the base V6. Another hurdle for potential buyers: the entry-level diesel had even better highway mileage and cost over $14,000 less. Earlier this year, Nissan made a similar decision to scrap the Pathfinder hybrid, and the future for the QX60 hybrid is murky. Volkswagen has a few other adjustments in store for the 2016 Touareg. The biggest change is that the whole lineup sees about $2,000 sliced off the price. According to Car and Driver, the adjustment knocks $2,090 off the base price to bring things to $42,705. In addition, the Lux and Executive trims now get standard 14-way power adjustable and ventilated seats, and the two of them are also offered with new, 21-inch wheels. The Executive also now gets power adjustment on the steering column and a suite of safety tech, including adaptive cruise control, forward collision warning, autonomous emergency braking, and lane departure warning. Related Video: