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Russian auto boomtown grinds to halt over Ukraine sanctions

Thousands of auto workers have been furloughed and food prices are soaring as Western sanctions pummel the small Russian city of Kaluga and its flagship foreign carmakers, with more sanctions likely to come. The Kaluga region, 190 kilometers (120 miles) southwest of Moscow, says it has attracted more than 1.3 trillion roubles ($15 billion) in investment, mostly foreign, since 2006. But Western sanctions imposed in recent weeks after Russia sent tens of thousands of troops into Ukraine have exacerbated lingering component shortages and halted production at two flagship car plants, Germany's Volkswagen and Sweden's Volvo. A third, the PSMA Rus plant that is a joint venture between Stellantis and Mitsubishi and employs 2,000, may halt production soon due to a lack of parts, Stellantis' chief executive said last Thursday. "It is not clear what will happen. They don't give us any concrete information," said Pavel Terpugov, a welder at the PSMA Rus plant. Terpugov said he needs twice as much money to buy groceries than before the sanctions. Analysts have forecast Russian inflation could soar to 24% this year, while the economy may shrink to 2009 levels. The United States and Europe are weighing more sanctions against Russia after Ukraine accused Russian forces of civilian killings in northern Ukraine, where a mass grave was found in Bucha, outside Kyiv. Russia calls its actions in Ukraine a "special operation" and the Kremlin categorically denied any accusations related to the murder of civilians, including in Bucha. One source of hope for some in Kaluga, with its 325,000 residents, is the West may be reluctant to hurt its own companies. "Does it make sense to impose sanctions on its own plant and lose money?" said Valery Uglov, an auto mechanic at the Volkswagen plant. "Does it make sense to lose the Russian market?" "We hope to return to work as soon as possible and everyone will have confidence in the future again," Uglov said. Volkswagen, whose factory employs 4,200 people, in early March suspended operations. A spokeswoman said production remained frozen. Volvo Group, which employs over 600 people to build trucks, also suspended production. Even before the sanctions, Russian car sales had contracted from 2.8 million units from when the Volkswagen factory opened in 2007 to 1.67 million units last year, damaged by both sanctions after the 2014 annexation of Crimea and the COVID-19 pandemic.

Volkswagen unveils sportier Passat Performance Concept ahead of Detroit debut

Ahead of its official unveiling at next week's Detroit Auto Show, Volkswagen has released some preliminary details and images of its Passat Performance Concept - a car that, as its name suggests, adds a little more spice to the automaker's midsize sedan formula. VW makes no mention of any production intent for this road-ready-looking sedan, simply stating that the Performance Concept is a way to "explore this practical four-door's sportier side."
It certainly doesn't look too sporty, the only visual upgrades being larger 19-inch wheels, dual exhaust, bi-xenon headlamps with VW's Advanced Front Lighting system, LED taillmaps and carbon-look mirror caps. Inside, there are carbon interior accents and two-tone leather upholstery. But no matter, the real upgrades for this mightier Passat are found below the sheetmetal.
Powering the Performance Concept is a 1.8-liter turbocharged four-cylinder engine, churning out 250 horsepower and sending its grunt to the ground via a six-speed automatic transmission. For reference, that's 80 more horsepower than the Passat's base 2.5-liter inline-five, but 20 horsepower less than the potent 3.6-liter VR6. As for other performance upgrades, Volkswagen has fitted the car with a lowered sport suspension and revamped electronic steering, which should indeed add a bit more dynamic feedback to the already nice-driving sedan.

VW rolls out new California camper van

Volkswagen introduced the sixth-generation Transporter van a few months ago, ushering in a new era for the once-iconic VW bus. But the Transporter isn't the only version Volkswagen Commercial Vehicles bases on its core van chassis. It also offers the Caravelle, the Multivan, and this, the new the California camper. Based on the T6, the latest California is now being rolled out for what you might call "outdoor recreation enthusiasts." Depending on which configuration you choose, it can fit up to seven people on the road and sleep up to five. VW has thrown everything into this van, literally including the kitchen sink. It's also got beds, a pop-top, and a dual-burner gas range. The new VW California can be had in three trim levels (dubbed Beach, Coast, and Ocean) and with a range of gasoline and diesel powertrain options. That is, where it can be had, because despite the name, the California (like the rest of VW's commercial vehicles) isn't actually offered in California or any of the other 49 states in the Union. Off on holiday – advance sales of the new California have begun - In three equipment lines: Beach, Coast and Ocean - Entry-level prices from just ˆ41,429.85 - New TDI and TSI engines – lower fuel consumption and stop/start function as standard - Modern infotainment, assistance systems and DCC suspension Hannover, 10 June 2015 – Advance sales of the new California have started at dealerships in Germany. Prices start at ˆ41,429.85 (Beach with 62 kW TDI). The California is now available in three equipment lines: Beach, Coast and Ocean. The California Beach is the entry-level model. It is the perfect combination of a 7-seat passenger car and a motorhome with up to five berths. Equipped as standard with a manual pop-up roof and two different layouts (double reclining bench seat with storage compartment or folding triple bench seat with multiflex board), it provides the ideal base for everyday life and travelling. Naturally, the integrated roller blinds enable the creation of privacy and shade, just as the ability to turn the front seats around enables driver and passengers to sit together in a cosy seating group. In combination with the removable camping table within the sliding door and the folding chairs in the tailgate, you are always equipped for outings of all kinds. New to the range is the California Coast.