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VW delays new Phaeton flagship sedan

The Bugatti Veyron was a crusade begun by former Volkswagen Group CEO Ferdinand Piech. Even though the old patriarch is no longer with the company and the astonishing coupe is rumored to have never made a cash profit, everyone understands why the car remained in the family and why a successor is on the way. The same can't be said for the VW Phaeton, another one of Piech's pursuits. Thirteen years after the budget brand introduced the now 89,650-euro ($101,000) luxury sedan that competes with other in-house products, no one knows why it lives. Since VW made roughly 4,000 of them last year, the news that it's being delayed won't affect many people. The next-generation Phaeton developed on the MLB platform is apparently ready to go right now, but Bloomberg reports that the bosses have demanded lower production and material costs before it gets a final green light. At the moment the Phaeton is put together by hand by white-gloved technicians, which might sound like a great place to start counting pennies, but again, those technicians only built 4,000 sedans last year. That's fewer than the Eos, which is being retired for slow sales, and VW sold 3,411 Eos models in the US alone last year. Recent hire Herbert Diess is the VW exec in charge of the cost-cutting push. The Phaeton is a grain of sand - but a very important one - on the beach he's meant to conquer: Diess plans to raise VW brand profit to more than six percent by 2018 at the same time there's a group-wide push to save $5.5 billion. That number would more than double the brand's current 2.7-percent profit for 2015 so far, that current number being about half the profit over at struggling French maker PSA Peugeot-Citroen. The new Phaeton's on-sale date had been reported as 2017 or 2018 earlier this year. It isn't clear how long the sedan will be pushed back because of the production changes.

Volkswagen debuts MkVII-based diesel Golf GTD

As Volkswagen prepares for the launch of the seventh-generation Golf, it continues to show off some of the car's different variants. With the standard Golf and the ultra-efficient BlueMotion Concept out of the way, now we're finally starting to see some of the sportier versions planned for the hatchback. Confirmed for a debut at the Geneva Motor Show, Volkswagen has now given us our first glimpse at the Golf GTD.
Just think of the GTD as a diesel version of the GTI with all the handling and styling upgrades, and then add a torquey engine to the equation. (We had the chance to sample the current GTD over the summer, so click here to read more.) To go with the new body style, VW also gave the GTD a new TDI engine consisting of a similar turbocharged and direct-injected 2.0-liter inline-four layout but with an output of 184 horsepower and 280 pound-feet of torque - that's an increase of 14 hp and 22 lb-ft over the current GTD. That's a pretty good oomph, but the GTD won't be setting any acceleration records with VW quoting a 0-62 mile per hour time of 7.5 seconds thanks to the car's 3,036-pound curb weight.
The styling of the MkVII Golf lends itself quite well to the more aggressive body kit found on the GTD (and likely matching the GTI). The new front fascia and blacked-out grille give the GTD a sporty look up front, while 17-inch sport wheels, rocker panel extensions and smoked LED taillights finish off the visual changes. The GTD will only be offered in three exterior colors: Tornado Red, Black and Pure White. As expected, the interior gets the plaid seat inserts and flat-bottomed sport steering wheel, but the car also gets stainless steel pedals, a black headliner, ambient cabin lighting and a specific gauge cluster readout.

Volkswagen taps Porsche chief for board

Matthias Mueller was promoted to the top position at Porsche in 2010 after a successful stint of developing model lines during his 36 years with the company, mainly at Audi. Having shown the same prowess while overseeing Porsche for the past five years, German outlet Frankfurter Allgemeine Zeitung reports that Mueller will be promoted to the management board of the Volkswagen Group, according to a leaked copy of an agenda for the meeting. It's said that a new spot is being created for him, one that will put him in charge of "overseeing cooperation" among Audi, Bentley, Bugatti, Lamborghini, and Porsche. While other group executives are known to hold positions on the board and with brands, or across brands, it isn't clear yet whether Mueller will keep his spot at the CEO of Porsche after the promotion. One thing that is certain is the 61-year-old Mueller doesn't see himself in line for Volkswagen Group CEO Martin Winterkorn's job in 2016, having told FAZ this month, "It's no solution to put a 63-year-old at the head of Volkswagen." News Source: Reuters, Automotive News - sub. req.Image Credit: Geoff Robins/AFP/Getty Images Hirings/Firings/Layoffs Porsche Volkswagen Performance volkswagen group matthias mueller promotion