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Volkswagen is not cool with a Fiat Chrysler merger

Volkswagen CEO Matthias Mueller shot down Fiat Chrysler CEO Sergio Marchionne's overtures for a merger in blunt fashion this week. Mueller told Reuters at the Geneva Motor Show, "We are not ready for talks about anything ... we have other problems. I haven't seen Marchionne for months." The unusually candid – and icy – response from one chief executive to another comes after Marchionne similarly pursued General Motors (again) this week. The FCA boss suggested GM might be looking for a new European partner as it prepares to unload its troubled Opel and Vauxhall divisions to PSA. A GM spokesman told USA Today that the company is not interested. Marchionne has been openly suggesting a GM merger since at least 2015, despite GM never reciprocating interest. VW's "other problems," as Mueller notes, include legal proceedings, fines, recalls, and other issues related to its long-running diesel scandal. Marchionne has long sought industry consolidation, arguing that automakers don't get a proper return on their investments in technologies, some of which are relatively similar. He's suggested sharing chassis and powertrain components could be a benefit to the collective auto sector. Skeptics argue FCA, which is smaller than GM, VW, Toyota, and others, needs a partner to survive, while its rivals already have the necessary scale to remain competitive. Related Video:

VW and Audi recall Tiguan and Q5 to replace Takata inflators

The Basics: Volkswagen and Audi will recall 734 examples of the 2015 Tiguan with production dates between January 15, 2015, and January 21, 2015, and the 2015 Q5 built between January 13, 2015, and February 3, 2015. The Problem: The vehicles have driver and passenger seat side airbag inflators from Takata that could rupture in a crash. Injuries/Deaths: A side airbag ruptured in a 2015 Tiguan in June 2015, and the driver sustained slight injuries under the left arm. The person didn't need to seek medical attention, Audi spokesperson Mark Clothier told Autoblog. This is the only reported injury. The Fix: VW and Audi dealers will replace the side airbag modules. If You Own One: VW and Audi will advise owners about the recall but don't yet know specifically when repairs begin. RECALL Subject : Seat-Mounted Air Bag Inflators May Rupture Report Receipt Date: JAN 28, 2016 NHTSA Campaign Number: 16V045000 Component(s): AIR BAGS Potential Number of Units Affected: 734 All Products Associated with this Recall Vehicle Make Model Model Year(s) AUDI Q5 2015 VOLKSWAGEN TIGUAN 2015 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Volkswagen Tiguan vehicles manufactured January 15, 2015, to January 21, 2015, and 2015 Audi Q5 vehicles manufactured January 13, 2015, to February 3, 2015. The affected vehicles are equipped with driver and front seat passenger seat-mounted air bag inflators that may rupture in the event of a crash. CONSEQUENCE: In the event of a crash necessitating deployment of a seat-mounted air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death. REMEDY: Volkswagen will notify owners, and dealers will replace the side air bag modules, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Audi customer service at 1-800-822-2834 or Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 69M1 (for Audi) and 69L9 (for VW). NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video:

VW launches cheaper 2016 e-Golf SE to challenge Nissan Leaf

Volkswagen is taking the fight to Nissan in the battle of EV hatchbacks for the 2016 model year with the new, less expensive e-Golf SE trim level. With a starting price of $29,815 (after $820 for destination but before incentives), the model undercuts the $29,860 2015 Leaf S (after $850 destination) by just $45. Lease rates are $199 a month. The 2016 e-Golf SEL Premium is $150 more than last year at $36,415, making the difference between the two trims a significant $6,600. VW isn't letting out much of the info on the SE yet, and the company's release simply says the trim "offers most of the features of the SEL Premium model." The new entry does come standard with a 3.6-kW onboard charger, and a 7.2-kW DC fast charging package is optional later in the year. Inside, there's VW's 6.5-inch MIB II infotainment system, versus an eight-inch version in the SEL Premium with the company's Car-Net App-Connect and Travel Link. The e-Golf is rated at an 83-mile range by the EPA, and it's electric motor produces 115 horsepower and 199 pound-feet of torque. The electric hatchback has already proven itself a moderate success in Europe through the first two months of 2015, and the VW actually beat the Leaf there in sales volume. In the US, the model has moved 1,831 examples through July, compared to 10,990 for the rival Nissan.