2007 Volkswagen Jetta Sedan Wolfsburg Edition on 2040-cars

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Rimac is reportedly close to buying Bugatti from the Volkswagen Group

Croatia-based Rimac is finalizing a deal to purchase Bugatti from the Volkswagen Group, according to an unverified report. If the rumor is accurate, the sale would propel Rimac to the top of the automotive industry, guarantee that Bugatti's future is electric, and mark the beginning of Volkswagen's efforts to divest its empire. Executives in Wolfsburg gave the deal the green light in September 2020, according to anonymous sources who spoke to British magazine Car, but the company's supervisory board hasn't approved it yet. Selling the French company isn't as simple as sending company founder Mate Rimac an email with an account number. Insiders explained Volkswagen would likely trade Bugatti and all of its assets for a significant stake in Rimac that would be transferred directly to Porsche, which already owns 15.5% of the brand. Officials hope to increase that figure to about 49%, meaning Bugatti is theoretically worth about 33.5% of Rimac, which was founded in 2009. Bugatti told Autoblog it can't comment on speculation. Mate Rimac gave us a similar answer. Rumors of a Bugatti sale have hovered around the automotive industry for several years, and they've never materialized. In theory, spinning off the brand would be relatively easy because it's not as deeply integrated into the Volkswagen Group as its sister companies. It doesn't share its W16 engine with another carmaker, for example. And yet, Car speculates Lamborghini, SEAT, ItalDesign, Bentley, and Ducati will also be sold in the coming years, leaving Volkswagen with its namesake division, Skoda, Audi, Porsche, Scania, and MAN. Volkswagen is having an estate sale to fund the development of electric, autonomous, and digital technologies. Its downsizing will send ripples through the auto industry. Porsche could move upmarket if it doesn't have to worry about stepping on Lamborghini's toes, for example. Spinoffs are always risky, so some companies may not survive if they're not bolstered by economies of scale. As of writing, there's no word on who will pick up the brands being divested under this scenario. And, keep in mind none of this is official. Volkswagen hasn't commented on the report. We'll update this developing story as more information becomes available.

VW investigating Golf water leak discovered by car magazine

Volkswagen is in a spat with German magazine Auto Bild over claims that its new, seventh-generation Golf may already need a recall. The German weekly reports that new Golfs can leak water into front-passenger footwells due to a faulty drainage tube in their air conditioning systems.
And while the fix itself doesn't sound too terrible, because Volkswagen bases so many cars off the same platform as the Golf, Auto Bild is claiming that 300,000 models could be affected, including the Audi A3 and Seat Leon. That's a very bold claim. For its part, VW is vehemently denying that number, according to Reuters, saying it's aware of the problem and claiming only 46 Golfs need fixing. In addition, it denies that any Audi or Seat models are affected by the issue.
Either way, regardless of how pervasive this leak issue is, North American buyers should rest easy knowing that the problems ought to get fixed by the time the Mk VII Golf finaly reaches our dealerships.

Piech's dismissal from VW came after failed coup to oust Winterkorn

When the Volkswagen board ousted its chairman Ferdinand Piech over the weekend, we knew right away it had something to do with disapproval of chief executive Martin Winterkorn. And now we have more details of how that struggle reportedly came to a head. According to Reuters, Piech undertook a cloak-and-dagger campaign to oust Winterkorn as CEO, even after having publicly endorsed the top executive's leadership of the company. Piech reportedly focused on other members of his family – descendants of Ferdinand Porsche and majority stakeholders in Volkswagen – to install Porsche chief Matthias Mueller as group CEO in Winterkorn's stead. But Piech failed in his campaign, and was given an ultimatum by the board: either show yourself out or we'll kick you out. And so he resigned. A big part of Winterkorn's rescue and Piech's failure reportedly came at the hands of labor representatives on the VW board, like Berthold Huber who was appointed as acting chairman following Piech's departure. That may leave Winterkorn still in charge, but may leave him beholden to the unions even more than before. Winterkorn has been undertaking a concerted campaign to cut overhead costs at VW, but the trade unions have reportedly been blocking many of the steps the chief exec has proposed. The next big question is who will ultimately replace Piech in the long term at the head of the board table. Winterkorn could get the nod, leaving the company to find a new CEO to take his place. Another likely scenario, however, would be another member of the Porsche/Piech family taking the helm and leaving Winterkorn in place. Whether Ferdinand Piech ultimately sells his 13.2 percent stake in the company (likely to other members of his family) or holds on to it and exerts influence behind the scenes is an open question. One way or another, any major appointment at the head of either the management or supervisory board will require support from the Porsche/Piech family, from the works council of labor representatives and from the state government of Lower Saxony, so the process of filling Piech's vacancy will likely prove anything but straightforward. News Source: ReutersImage Credit: Thomas Kienzle/APN Hirings/Firings/Layoffs Volkswagen martin winterkorn