Posted by Lorenzo at 10:22 pm
Text from WorldCarFans.com. Photos copyright by Lehmann Photo-Syndication.
The two joint venture off roaders, Porsche Cayenne and Volkswagen Touareg, are about to get a major facelift due for launch in 2007. Both cars came on the market for the first time in 2002.
While already numerous prototypes of the restyled Porsche Cayenne got caught on photo, the revamped future Touareg went unnoticed until now.
Here are first photos showing details of the upcoming Touareg facelift. The prototype was snapped during an overnight stop next to a hotel parking lot in Northern Scandinavia.
As can be seen from the photos, the Touareg gets new headlights and an altered front end as well as air intakes in the front skirt. The rear end has also different taillights, and – according to the shot of the dashboard - the car will also get an all new instrument panel and centre console. In the photo the engineers have put covers over the dashboard in conceal the new look.
Posted by Lorenzo at 7:18 pm
Text from MacNN. Image capture from CNET.
Volkswagen is developing a new system that provides a user-friendly interface to a number of electronic devices and software programs. It's called
Gypsy (click for video), and at the center of the system in a large LCD touch screen located in the car's center console. Most notably, it includes the ability to interface with many popular devices, such as the Apple iPod and Palm Treo. The prototype car has a slot for inserting an iPod. Once the iPod is connected, the user no longer needs to touch it. Instead, it can be controlled entirely via the touch screen interface. The car also appears to have a built-in iTunes player, but that was not previewed.
Posted by Lorenzo at 4:48 pm
Text from Volkswagen of America.AUBURN HILLS, Mich. – The robotic Volkswagen Touareg, nicknamed “Stanley,” that brought home the $2 million prize at the Defense Advanced Research Projects Agency (DARPA) Grand Challenge in October, will be featured on NOVA’s “The Great Robot Race,” airing on PBS March 28 at 8 p.m. ET. Stanley defeated 22 other unmanned vehicles in a rigorous, 132-mile championship race over rough desert roads, mountain trails, dry lake beds and tunnels, using only onboard sensors and navigation equipment.
The NOVA program will provide an in-depth look at the DARPA Grand Challenge and the technological innovations of the race contenders. The DARPA Grand Challenge is an annual competition and a field test intended to accelerate research and development in autonomous ground vehicles. Stanley performed flawlessly over the 132-mile Nevada course and achieved victory after six hours 35 minutes. Nearly 200 vehicles from around the world originally entered the competition. A series of semifinal competitions narrowed the final field to 23, including Stanley.
Stanford University, with the technological support and innovations of the Volkswagen Electronics Research Laboratory (ERL), transformed the Touareg to drive itself without human assistance. Stanley is built from a stock, diesel-powered Volkswagen Touareg R5 modified with full-body skid plates and a reinforced front bumper. It is actuated by a drive-by-wire system developed by the ERL. All processing takes place in six Pentium M computers and measurements are incorporated from GPS, a 6DOF inertial measurement unit, and wheel speed for pose estimation.
Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world’s largest producers of passenger cars and Europe’s largest automaker. Volkswagen of America, Inc. and its affiliates employ approximately 3,000 people in the United States and are responsible for the sale and service of Audi, Bentley, and Volkswagen products through retail networks comprising in total more than 900 independent U.S. dealers.
Posted by Lorenzo at 4:45 pm
Text from Volkswagen AG.Volkswagen Launches BlueMotion Sustainability Initiative
Polo BlueMotion needs just 3.9 litres of diesel every hundred kilometres
Innovative TSI engine in Golf GT
Concept A makes debut with first natural gas TSI driveWOLFSBURG / LEIPZIG, Germany - Volkswagen is launching its BlueMotion sustainability initiative at AMI 2006.
From 1 – 9 April, the Volkswagen stand in hall 1 will focus on new models like the Golf GT with TSI engine, the Concept A study and the Polo BlueMotion. BlueMotion is not just about low fuel consumption and reduced car emissions, it also stands for the whole company. “Blue”, the Volkswagen colour, represents the elements of water and air that have to be protected. “Motion” sums up the aspect of mobility heading forwards into the future.
The first production model bearing the new environmental trademark that Volkswagen will present in Leipzig is the Polo BlueMotion equipped with a particulate filter as standard. The 59kW/80hp subcompact consumes just 3.9 litres of diesel every hundred kilometres, but is no less agile than a “conventional” Polo with the same output. Saving: 0.5 litres. Reduction in CO2 emissions: about 16g/km. The consumption and emissions reductions have been achieved with a longer gear ratio, aerodynamic fine tuning and modifications to the engine. The Volkswagen comes with a manual five-speed gearbox. The Polo BlueMotion, which is built in Pamplona, Spain, will be introduced in Switzerland, Sweden, Austria and Germany this summer.
The Golf GT is the first car to feature a TSI. This dual-charged petrol engine delivers 125kW/170hp, 240 Newton metres of torque and allows a top speed of 220km/h. These values are coupled with an average consumption of just 7.2 litres. The GT is therefore leading the way in the Volkswagen engine campaign to ensure maximum power with minimum fuel consumption. A six-speed manual gearbox is used as standard in the GT. However, the unique DSG dual-clutch gearbox is also available as an option for this Volkswagen. The Golf GT TSI can now be ordered from Volkswagen partners for €22,500.
Visitors to Auto Mobil International will see another BlueMotion premiere under the bonnet of the Concept A study: It is powered by the first TSI to run on natural gas (CNG). This 1.4-litre engine (Twincharger), which is dual-charged by a compressor and a turbocharger, delivers 110kW/150hp and consumes just 5.0kg of natural gas every hundred kilometres on average.
High-powered engines like the TSI from Volkswagen are generally highly efficient. Using CNG (compressed natural gas, 130 RON) improves this again considerably. One of the positive consequences: The CO2 balance of the TSI engine running on natural gas is a further 20 to 25 percent cheaper than that of a TSI running on petrol. Furthermore TSI+CNG is becoming one of the important bridge technologies on the way to mobility that is independent from crude oil. For example, Synfuel, a harmless biologically degradable, liquid energy carrier that makes the CCS hybrid combustion method possible, can be produced by converting natural gas to synthetic fuel (gas-to-liquid).
The Concept A with a top speed above 200km/h sees the sports cars and off-road vehicles of tomorrow combined in an avant-garde way. Its front section also indicates how a future Volkswagen off-roader positioned below the Touareg could look. This study features rear suicide doors. The body overhangs are short and tidy, the bonnet is long and the C-pillars feature unique styling. 20-inch alloy wheels and 295 tyres fill out the striking widened wheel arches. The rear end communicates powerful elegance with its athletic shoulders. The tailgate is split in two. The section below the taillights folds down in the style of a pick-up and thus creates plenty of space for large objects.
Posted by Lorenzo at 6:24 pm
Text from and photo Volkswagen AG.
New Volkswagen convertible will be at the dealerships from 19 May
Wolfsburg, 23 March 2006 - Spring is just around the corner and so is the new Eos. Catching the first balmy rays of sun and enjoying the warm open air in Volkswagen's new convertible coupé is a dream soon to come true. Advance sales of the Eos have begun.
Volkswagen dealers in Germany are now taking orders for the new Eos, which will be launched in eight weeks time: from Friday, 19 May 2006 customers can take the Eos for a test drive in the sun.
The Eos will be on sale in five engine versions ranging from 85 kW/115 PS to 184 kW/250 PS. Its generous and luxurious standard specification includes details such as ESP, air conditioning, electric windows, alloy wheels, a leather-lined steering wheel, optimised-safety front head restraints, front airbags, especially developed head-thorax airbags, and a roll over protection system that deploys in a maximum of 0.25 seconds. The four-seater sports convertible can be ordered now in Germany and prices start at 25 950 euros.
Posted by Lorenzo at 6:41 pm
Text from AutoWeek. Image from Volkswagen AG.
Volkswagen brand Chairman Wolfgang Bernhard plans to launch two upscale niche cars within five years.
Bernhard plans a midengine, rear-wheel-drive roadster, which is modeled after the Concept R shown at the 2003 Frankfurt auto show, and a coupe-styled four-door car positioned between the Phaeton and the Passat.
The roadster and coupe are part of Bernhard's plan for 20 new vehicles in the next five years, including 10 in segments in which VW has no cars, a VW spokesman said.
Two VW insiders say Bernhard killed a production version of the roadster last year because the price of the car would have been too close to that of the Porsche Boxster, which starts at about $52,400 in Germany.
The new version is expected to be less technologically complex and cheaper to build.
The roadster "is something we want," Bernhard told Automotive News Europe. The newspaper, like Automotive News, is published by Crain Communications Inc.
The car likely would arrive "in the latter half" of the company's five-year product plant, a VW spokesman said.
The car will be aimed at Europe and overseas markets, especially the United States.
In addition, Bernhard plans to launch the coupe-styled four-door car by the end of the decade. The car is code-named the C1.
The C1 coupe would be positioned above the Golf-based, two-door Scirocco, which will arrive in 2008. Alastair Bedwell, senior manager of London-based J.D. Power-LMC, said the Concept R is in the market researcher's future product forecast as a 2009 vehicle.
VW must find a partner to help produce the roadster. Because it's a mid-engine vehicle, the Concept R does not fit the Golf IV or V platform.
According to German press reports, talks are under way with Magna Steyr as a possible partner in a joint venture. A Magna Steyr spokesman declined to comment.
Separately, VW plans to pull forward the launch date of its new Golf model to 2008, one year earlier than planned.
VW plans to lower the production costs for the new model, while keeping its price at the current level.
Posted by Lorenzo at 12:39 pm
Text from Volkswagen of America.AUBURN HILLS, Mich. – Volkswagen of America, Inc. today announced that it will offer SIRIUS Satellite Radio as its sole satellite radio provider for vehicles sold in this country through 2012.
Volkswagen will exclusively offer SIRIUS beginning with the introduction of its 2007 model year vehicles, and expects to equip approximately 80% with SIRIUS satellite radio receivers. Additionally, Volkswagen will offer three months of complimentary service.
“There is no doubt that the growth in popularity of satellite radio has been phenomenal and that SIRIUS is at the forefront of offering listeners an incredible breadth of creative programming,” said Steve Keyes, public relations general manager, Volkswagen of America, Inc. “The partnership of these two great brands makes our products more desirable to our customers.”
“We are very excited about Volkswagen of America’s decision to make SIRIUS the exclusive provider of satellite radio in Volkswagen and Audi vehicles in the U.S.,” said Mel Karmazin, CEO of SIRIUS . “Volkswagen of America has been an excellent non-exclusive partner during the past few years, and we are very pleased that they have decided to emphasize their belief in SIRIUS and increase their level of commitment through this new, exclusive agreement. We look forward to working closely with them in the future to offer their customers the best in-vehicle entertainment available.”
About Volkswagen of America, Inc.
Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world's largest producers of passenger cars and Europe's largest automaker. Volkswagen of America and its affiliates employ approximately 3,000 people in the United States and are
responsible for the sale and service of Audi, Bentley, and Volkswagen products through retail networks comprising in total more than 900 independent U.S. dealers.
About SIRIUS
SIRIUS delivers more than 125 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 67 music channels available nationwide. SIRIUS also delivers 61 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NBA and NHL and broadcasts live play-by-play games of the NFL, NBA and NHL.
Posted by Lorenzo at 1:39 pm
Text from Inside Line. Photos courtesy of Christa Lehman/Hidden Image
LOS ANGELES — At the recent Los Angeles auto show in January, Volkswagen had a most unusual concept car on display — a three-wheeler or trike called GX3.Until now it was a question of how the show car would be accepted by the public, and apparently the acceptance was good. Because here are first prototype pictures of the road-going version, caught during secret testing at Lotus in England, which is quite a sensation.
It is powered by a 1.6-liter, four-cylinder engine delivering 125 horsepower. Due to the light weight of the vehicle it is almost as fast as a Porsche 911. The GX3 accelerates from zero to 62 mph in 5.7 seconds, fuel consumption is 1.4 gallons/62 miles and top speed is 124 mph. It has rear-wheel drive and a six-speed manual transmission.
However, while a Porsche costs $71,300 in the U.S., the GX3 could be available at $17,000. A cooperation between Volkswagen and Lotus — the latter owned by Proton, Malaysia — could mean that the odd three-wheeler made by Volkswagen and Proton-Lotus is meant to be sold not only in the U.S. but worldwide.
The test car on the photos is in various ways different from the concept model. It is furthermore equipped with different types of alloy wheels for testing plus two extra supporting wheels on the side.
Posted by Lorenzo at 1:35 pm
Text from Volkswagen AG. Power train offensive: Maximum power with minimum consumptionWolfsburg, 16 March 2006 - Golf and Touran: new TSI and TDI with high performance and low consumption
Jetta: with the T-FSI-Engine from the Golf GTI a strong sports limousine
Touran: as a gas powered EcoFuel it cuts fuel costs in half
Volkswagen continues its power train offensive. First: the new Golf GT with 125 kW / 170 PS strong TSI takes off this spring. Second: parallel to that, Volkswagen will be launching an also 170 PS strong TDI for the Golf GT and the Touran. Third: the Touran will also be available with a double charged TSI engine which in this case achieves 103 kW / 140 PS. Fourth: if you are looking for an alternative to gasoline and diesel, Touran is an option as well. Because in the future, Volkswagen will cut fuel costs in half with its natural gas powered Touran EcoFuel. Fifth: the new Jetta T-FSI presents itself absolutely economical but also very sporty. With the 147 kW / 200 PS strong turbo FSI from the Golf GTI it reaches a maximum speed of 235 km/h.
TDI, FSI, T-FSI and TSI: Victory march of direct fuel injection
- Efficiency is fun: All new engines are extremely efficient, economical and sporty. Especially the double-charged TSI engines ring in a new power train era. Characteristics: maximum power with minimum consumption. And this with a system: TSI, FSI and Turbo FSI have long become synonyms for torque strong and economical Volkswagen engines. Whether its diesel or gasoline, they are all connected through a central technology: direct injection. This type of fuel supply carried out in different forms depending on the engine type started its career at Volkswagen in a turbo diesel. It is not a coincidence that TDI sounds like GTI – these sporty diesel were born 1993. After that Volkswagen expanded their spectrum of direct fuel injection to the gasoline engines with the fuel stratified injection. The first FSI engine debuted in 2000. In 2004 the Golf GTI followed and was the first turbo to be charged by gasoline direct injection which we have come to know as the turbo FSI. Now, two years later, the double charged direct fuel injection starts off again on a grand scale under the label TSI.
Torque strong twincharger (TSI) for Golf and Touran
- Golf GT / 125 kW: worldwide the Golf GT is the first automobile with TSI on board. This “little brother” of the Golf GTI brings 125 kW / 170 PS power and 240 newton meters torque which is achieved with an average consumption of 7,2 liters. Starting from 0, the sporty Golf flies past the 100 km/h mark in only 7,9 seconds. And the maximum speed is reached at 220 km/h. The Golf GT is fueled with Super Plus (98 ROZ) whereas the TSI version can also be driven with unleaded Super (95 ROZ).
- Touran TSI / 103 kW: Now Volkswagen introduces the Touran with a TSI feauring a higher comfort level. Its new aggregate is based on the Golf GT engine and in the most successful German van it turns out 103 kW / 140 PS (at 5,600 rpm). This engine also packs a punch. Because TSI stands for a new way of downsizing, for less cubic capacity, less fuel consumption, less emissions – but more power, more torque and more driving fun. The new TSI develops 220 newton meters torque at 1,500 rpm. It accelerates the Touran in 9,8 seconds to 100 km/h. This Volkswagen keeps up with today’s quick pace by reaching a maximum speed of 200 km/h. But with 7,4 liters average consumption the van’s engine which has a noticeably larger front surface than a Golf is very cost-effective. In the 103 kW strong Touran the TSI is generally satisfied with 95 ROZ (Super unleaded).
Strong turbo gasoline engine (T-FSI) for the Jetta
- Jetta T-FSI / 147 kW: In its youngest generation, the Jetta has completely emancipated itself from the Golf. In the USA, the limousine is the best selling car of European manufacturers. In Europe the new Jetta convinces more than ever with an independent and exclusive design, an outstanding 527-liters trunk volume, a high-grade interior and a large engine spectrum. Powered by the 147 kW / 200 PS strong T-FSI, the Jetta turns out to be a true sports limousine. Starting from 0, the front-wheel drive blazes through the 100-km/h mark in only 7,5 seconds and reaches a maximum speed of 235 km/h. In contrast to that is an average consumption of merely 8,0 liters Super Plus every 100 kilometers. Ex factory, the Jetta 2,0 FSI with turbocharger segments its power via a manual six gear transmission. Optionally available: the DSG which works with a double transmission.
Strong Turbo diesel (TDI) for Golf and Touran
- Golf GT TDI / 125 kW: As the strongest TDI power train of the series Golf, Touran and Passat, Volkswagen offers a completely newly developed 2.0 TDI with 125 kW / 170 PS (at 4,200 rpm). This four-valve TDI with piezo elements and standard diesel particle filter develops a maximum torque of 350 newton meters between 1,750 and 2,500 rpm. The strongest turbo diesel ever used in a Golf accelerates the best selling car in Europe in only 8,2 seconds to 100 km/h. The Golf GT TDI reaches its maximum speed at 220 km/h. The average consumption is extremely low: according to the norm 99/100/EG, 5.9 liters are a peak value for such an agile car. This GT is shifted via a manual six-gear transmission. Just like for the Golf GT TSI, the automatic double-clutch transmission DSG will be available optionally starting this summer.
- Touran TDI / 125 kW: it turns the Golf GT into a sports car, the Touran into a “sports” van: the 125 kW / 170 PS strong 2,0 liters TDI with piezo technology. In the Touran as well the new TDI is the strongest diesel since the inception of the series. With this engine, the van storms to 100 km/h in only 9,0 seconds. With a maximum speed of 214 km/h it belongs to one of the fastest large capacity limousines on the market. But at the same time its economy also marks an optimum value: 6,5 liters in combined operation.
Economical natural gas power (EcoFuel) for the Touran
- Touran EcoFuel: for the first time this summer, the Touran will be available as a natural gas vehicle. Its name: Touran EcoFuel. Performance 80 kW / 109 PS (at 4,500 rpm). The 180 km/h fast multi-talent can also be driven with gasoline. Laid out as a “quasi monovalent” natural gaas vehicle, the gasoline power serves primarily as a reserve and standby. Developed by Volkswagen Individual, the range of the Touran EcoFuel is approximately 310 kilometers when driven with natural gas – after that it’s on to gasoline or off to one of the roughly 650 German natural gas stations. Consumption of the Touran EcoFuel: just 5,8 kg for every 100 kilometers. In Germany a “natural gas kilometer” currently costs about half of a “gasoline kilometer”, in addition many power suppliers in Germany financially support the purchase of natural gas vehicles.
Posted by Lorenzo at 11:54 am
Text and images from Volkswagen AG.
Prototype with Google Earth generates photorealistic 3-dimensional images – online links provide more real-time data for the navigation system, making journey planning even easierWolfsburg, 13 March 2006 - Volkswagen and Google are working together to develop a revolutionary new navigation system. Together with the graphics card manufacturer nVidia, a revolutionary new navigation system is being developed in Volkswagen's Electronics Research Laboratory (ERL) in Palo Alto, California. This new system uses data from Google Earth to generate 3-dimensional images of the route. Moreover, the navigation system can gather online data to provide the driver with important real-time information, for example about the traffic situation or weather.
Volkswagen, Google and nVidia have been working on developing this new navigation system since October 2005. In January 2006 at the Consumer Electronics Show (CES) in Las Vegas, the partnership was able to present its first prototype, which comes closer to "virtual reality travel information" than any other system seen to date.
The central element is a touch-screen interface linked to Google Earth. Precise 3-dimensional maps, real-time traffic and route guidance updates and a search function set new standards in navigation technology. This so-called "open system" integrates the internet to meet the individual requirements of the driver and his passengers.
The prototype enjoys three important advantages over today's systems. Firstly: the 3-dimensional, photorealistic display of the surrounding area makes intuitive orientation easier for the driver and his passengers.
Secondly: important real-time data are fed into the system through a link to the internet. This means that, for example, traffic data and weather reports, but also any other information relevant to planning the journey such as filling stations, their opening times and current fuel prices are available, enhancing comfort, safety and reliability for the journey.
Thirdly: a further online link coupled to the search function allows the driver and his passengers to receive specific information about special features en route and at the destination – hotels, restaurants, cinemas and theatres are feasible examples. The driver and his passengers can even receive shopping data, right down to current prices, through the innovative navigation system. All such data is shown on the display.
At present, this innovative system is still in the development phase – no decision has yet been made about a possible series production launch.
Based in Palo Alto, California, the ERL is the Volkswagen Group's central research centre in the USA. In the heart of Silicon Valley, it is able to work directly with globally leading high-tech and start-up companies. The close working relationship between the ERL and these partners facilitates the design and development of innovative features and applications, which are then applied to test vehicles of the Volkswagen Group brands for further analysis.
Posted by Lorenzo at 3:50 pm
Text from Forbes.comFRANKFURT (AFX) - Volkswagen AG's new version of its Golf model will enter the market in 2008, a year earlier than the automaker had originally planned, chairman of the Volkswagen Brand Wolfgang Bernhard told Der Spiegel magazine.
The current model is burdened by high production costs, with each car taking 48 hours to be manufactured on the assembly line. Door construction alone costs about 300 eur in needless reworking. A new model will take both less time and money to produce, Bernhard told the magazine.
Rival car companies are able to produce comparable models in half the time, reported Spiegel.
Posted by Lorenzo at 5:13 pm
Text from Volkswagen of America.Volkswagen and Universal’s marketing alliance brings new meaning to “a thrilling ride”AUBURN HILLS, Mich. – As part of a new cooperative marketing agreement with Universal Studios, Volkswagen has tied itself to the psychological thrill ride “Revenge of the Mummy” at Universal Studios’ Hollywood and Universal Orlando theme parks.
A Volkswagen Touareg wrapped in mummy-like cloth greets visitors to the attraction which immerses riders in the ominous, spine-chilling world of Imhotep and his mummy companions. Innocent bystanders are drawn into an environment that has been cursed by the angry mummies, complete with menacing Scarab beetles, dramatic explosions and vengeful creatures intent on wreaking havoc. The wild, and exhilarating coaster ride begins as the passenger cars enter the mouth of a mummy. The thrill of the ride’s high-speed launches, startling drops and moments of being suspended in air are magnified in complete darkness.
“As a fierce competitor in the Dakar Rally, the Touareg is well-suited for high adrenaline, thrilling experiences,” said Clark Campbell, public relations manager, Volkswagen of America, Inc. “It presented us with a logical visual tie-in with this amazing ride.”
Last year, Volkswagen and NBC Universal announced the creation of a multi-year global marketing alliance. As part of the partnership, Universal will incorporate Volkswagen’s products and brand, in its film, DVD, worldwide theme parks, and other entertainment properties. Additionally, Volkswagen will support numerous media and entertainment related properties of NBC Universal through international marketing and promotional efforts.
Earlier this year, Volkswagen sponsored Universal’s “King Kong,” and a Volkswagen Touareg was used in the production of the film.
The Universal Orlando resort destination (www.universalorlando.com) includes two dramatically distinct and adjacent theme parks, the Universal Studios motion picture and television theme park and Islands of Adventure, Orlando's most thrilling and exhilarating theme park. Universal Orlando also includes CityWalk, a 30-acre dining, shopping, club and live-entertainment venue as well as premier on-site Loews hotels and world-class film and television production facilities.
Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world’s largest producers of passenger cars and Europe’s largest automaker. Volkswagen of America and its affiliates employ approximately 3,000 people in the United States and are responsible for the sale and service of Audi, Bentley, and Volkswagen products through retail networks comprising in total more than 900 independent U.S. dealers.
Posted by Lorenzo at 3:04 pm
Text from Volkswagen AG.Pischetsrieder: Further efforts necessary to safeguard the long-term future of the Group- Record deliveries at 5.24 million vehicles
- Profit before tax increased by 58.2 percent
- ForMotion target exceeded at €3.5 billion
- Automotive Division net cash flow increased by 30.3 percent
- No significant impulses from global economy in 2006
WOLFSBURG, Germany - The Volkswagen Group significantly increased its earnings last year thanks to the ForMotion program and a comprehensive new model initiative.
Profit before tax rose by 58.2 percent to €1.7 billion in 2005. Despite a continued difficult market environment, the Group was able to meet the forecasts, said Dr. Bernd Pischetsrieder, Chairman of the Board of Management of the Volkswagen Group, on Tuesday at the presentation of Volkswagen’s financial statements in Wolfsburg. “Overall, however, the level of earnings we achieved remains unsatisfactory”, he emphasized. “That is why we will continue our performance enhancement program in the form of “ForMotion plus”, and in particular systematically restructure the core Volkswagen brand. There is no alternative for our Group. Considerable efforts are still needed to safeguard the long-term future of Volkswagen AG”, Pischetsrieder stressed.
“Last year, we already made substantial progress in improving our competitiveness. Nevertheless, nobody in the Group can assume that we have already reached all our goals”, underlined the Chairman of the Board of Management. “Together with all involved, Volkswagen’s management must now prepare the way for ensuring the long-term survival of the Group. Only a successful company can safeguard jobs.”
The Group’s new model initiative in 2005 had been successful on world markets, said Pischetsrieder. A record 5.24 million vehicles were delivered to customers (+3.2 percent). “We continued our new product initiative with a total of 16 new vehicle models and derivatives in Europe alone, and extended our market share in the face of stiff competition, especially in Europe.” The large number of new models again underscores the Group’s innovative strength. Sales revenue rose by 7.1 percent to €95.3 billion.
Record new model rollout
Pischetsrieder announced that the Group would continue its new model rollout this year and in 2007. There will be 28 new models in Europe alone. “We are expecting worldwide Group deliveries to be slightly ahead of the previous year’s level, as all brands are lining up with new volume models”, said Pischetsrieder. Based on preliminary calculations, the Group delivered around 790,000 vehicles to customers worldwide in the first two months of 2006, representing an increase of approximately 15 percent year-on-year. The global passenger car market grew by approximately seven percent in the same period.
Pischetsrieder added: “Competitive pressure on global automotive markets remains high. The Volkswagen Group still has surplus capacity despite rising deliveries. But because this also applies to most of our competitors, price pressure in the markets is high.”
Outlook for 2006
The Volkswagen Group expects deliveries to customers and sales revenue to increase slightly in the current year on the back of a large number of new model launches. Operating profit before special items will increase year-on-year in 2006. In particular, the measures under “ForMotion plus” will help cut material costs and optimize production processes. It is not possible at present to put a figure on the expected impact of special items in the current year. In the Automotive Division, the capex/sales revenue ratio will remain at a competitive level of around 6 percent. In addition, a positive net cash flow that will enhance the liquidity position of the Automotive Division, as well as a further improvement in net liquidity, are expected for the automotive business.
Pischetsrieder reiterated the medium-term earnings forecast when he presented the consolidated financial statements. This projects a consolidated profit before tax of €5.1 billion for 2008, a €4 billion improvement as against 2004. “These goals represent a challenge”, said Pischetsrieder. “However, we are confident that we will achieve them with the support of our new products, the restructuring program and ForMotion plus.”
ForMotion target exceeded
At last year’s Annual Press Conference, the Group announced its intention to improve Group earnings by €3.1 billion through ForMotion measures. With an actual earnings contribution of €3.5 billion, this target was significantly exceeded, said Pischetsrieder. Well over 10,000 individual measures were implemented in the Group under this program. “The energy released by ForMotion in all areas and among all employees was tremendous”, said Pischetsrieder.
CFO Hans Dieter Pötsch added: “In particular the disciplined approach to investments improved net liquidity in the Automotive Division by €2.6 billion year-on-year, and at €0.7 billion, this returned to a positive figure for the first time since 2002.” It was particularly encouraging to note that investments were reduced without cutting back on the development of new models. Pötsch: “New cars are our future.”
Pötsch explained that consolidated sales revenue increased by €6.3 billion in 2005, with the automotive business accounting for €5.4 billion of this increase and the Financial Services Division contributing €0.9 billion. Of the €5.4 billion from the automotive business, €2.8 billion is attributable to volume effects, €1.0 billion to improvements in the product mix and €0.9 billion to price increases. In contrast to the previous year, exchange rates increased sales revenue by €0.7 billion in 2005.
Sales revenue development by region
Of the total €6.3 billion increase in sales revenue, €5.1 billion alone is attributable to what is termed the Europe/Remaining markets region (Europe as well as Turkey, Middle East, Africa excluding South Africa), whose sales volume rose by 7.9 percent compared with the previous year. Despite the exceptionally difficult market situation in North America, sales revenue growth of 3.1 percent was nevertheless generated there. An increase of 25.2 percent was recorded in the South America/South Africa markets. By contrast, the Group was forced to book a decrease of 10 percent in the Asia-Pacific region, due in particular to a decline in deliveries to the Chinese joint ventures.
Earnings development in 2005
“The cost of sales rose less than sales revenue, namely by 5.1 percent before special items. This again shows very clearly the effectiveness of our ForMotion efforts”, said Pötsch. Gross profit before special items improved correspondingly by 21 percent to €13.2 billion, and the gross margin rose by 1.6 percentage points to 13.9 percent of sales revenue. “This resulted in an operating profit before special items of €3.1 billion, a 54.3 percent improvement on 2004.” There was a disproportionate increase in distribution expenses due to the strained market situation. Earnings were also impacted by currency effects. Adjusted for the special items attributable to product measures and structural and process optimization, which were slightly lower than in 2004, the increase in operating profit was actually 70.0 percent.
The financial result fell by a total of €516 million because of a reduction in the result from investments accounted for using the equity method, attributable primarily to the Chinese joint ventures, and because of the interest result. The profit before tax was thus €1.7 billion, a 58.2 percent improvement compared with the previous year. The profit after tax generated in 2005 was thus €1.1 billion (+ 60.7 percent). “Based on sales revenue of more than €95 billion, this represents an after-tax margin of only 1.2 percent. It goes without saying that we are not satisfied with this figure”, said Pötsch.
Operating profit by market (before special items)
The South America/South Africa region recovered, with operating profit rising by €147 million to €171 million. “Europe/Remaining markets” recorded positive operating profit growth of 44.2 percent to €3.9 billion. The situation in North America remained very difficult with an operating loss of €843 million, due above all to the continued extreme price pressure in the USA. The exchange rate also deteriorated further. The decline in earnings to €-88 million in the Asia-Pacific region is due primarily to considerably stiffer competitive pressure since the Chinese market was opened up.
Operating profit by business line (before special items)
Pötsch said that financial services, including Europcar, had been a key earnings driver at €933 million. In the commercial vehicles business, break-even at operating level was achieved in 2005. It was, however, still “some way away” from generating an adequate return, stressed the CFO. The Audi brand group increased its already high prior-year figure by a further 14.8 percent to €1.4 billion. The only fly in this brand group’s ointment was the SEAT brand, “where a massive rise in the operating loss is forcing us to implement restructuring measures”.
The Volkswagen brand group’s operating profit of €638 million was a significant improvement over 2004, but was “still nowhere near good enough. Although the Škoda and Bentley product lines developed extremely well last year, Volkswagen Passenger Cars was just above operating break-even, despite considerable efforts”, said Pötsch. “Further restructuring of this business line is inevitable.” The recovery of the core brand is fundamental to returning the Volkswagen Group to an adequate level of earnings. “Unless in particular the traditional German plants are restructured, no long-term future for the Volkswagen Group would be conceivable, even if all the other parts of the Group reach their earnings targets.”
Restructuring
Pischetsrieder emphasized that the Volkswagen brand has considerable productivity deficits by international standards. “Some German plants are no longer able to export on competitive terms.” For this reason, the Board of Management and all involved are discussing a restructuring program with the following objectives to safeguard competitiveness:
- Competitive production and labor costs by focusing on designs that reflect production and assembly requirements, and by introducing differentiated working time models.
- Increased productivity, especially at the vehicle assembly plants, for example by using innovative working time models and accelerating part-time schemes for employees near to retirement.
- Full capacity utilization at plants, inter alia through capacity adjustments.
- Restructuring of component production.
The analysis of in-house component production facilities is guided by the following key questions: Is this a core competency, and can the component in question be produced at competitive costs? Pischetsrieder stressed: “As an automobile manufacturer, the production of engines and gearboxes is part of our core production competency and is not therefore covered by this review.”
As already announced, up to 20,000 employees directly and indirectly involved in the activities of the Volkswagen brand could be affected by the restructuring program over the next three years. The question of how productivity and structural improvements can be achieved and implemented in concrete terms is currently the subject of negotiations with the Works Council and the IG Metall trade union.
The Chairman of the Board of Management emphasized that “the restructuring program, coupled with the implementation of ForMotion plus, are necessary measures that will allow us to meet our long-term responsibility for the future of the Company and its employees. Making particularly good products is not enough: they must also be affordable for our customers and generate an adequate return to secure the future. That is the only way we can safeguard jobs at Volkswagen and ensure the survival of our Company.”
Posted by Lorenzo at 3:00 pm
Text from Volkswagen of America.Celebrities Autograph VW Touareg to Benefit Sundance InstituteAUBURN HILLS, Mich. – For the second consecutive year, Robert Redford kicked off the signing of the commemorative 2006 Sundance Film Festival Volkswagen on Thursday, January 19, that included signatures of Sundance filmmakers and talent. Now, the hood of the Touareg – complete with the 55 autographs listed below from Hollywood and independent film stars alike – will be auctioned on eBay at the beginning of March to the highest bidder. All proceeds from the auction will benefit the Sundance Institute. Click on the link below for access to the auction.
Volkswagen of America, Inc. rode high as the official vehicle of the 2006 Sundance Film Festival and one of four presenting sponsors at the Festival, which took place January 19-29, 2006 in Park City, UT. The Volkswagen Main Street Lounge was a focal point of the Festival, hosting film junkets by day and exclusive events by night.
“Here’s one case where it’s what’s on the hood rather than under the hood that counts,” quipped Heidi Korte, Brand Promotions Manager for Volkswagen of America, Inc. “We’re pleased to continue our tradition of gathering autographs to benefit the Sundance Institute. The attending celebrities and filmmakers support the cause, and the finished product is a work of art and enduring symbol of the talent and indie power that drive the Film Festival.”
The drive to support independent filmmakers didn’t end with the hood auction. The use of a Touareg for one year was awarded to filmmaker Kathryn Ann Busby as part of the VW Relentless Drive Award, which pays homage to the hard work and true dedication that goes into getting a movie made. Volkswagen Owners attending the Festival played Official Judge by choosing from seven distinct stories submitted by filmmakers that highlighted the use of a vehicle in their movie. Ms. Busby earned the most votes for her story about making the short film, Max and Josh.
“I’d heard of backstage goodies for movie stars and celebrities, but I’ve never heard of someone giving a car to an unknown struggling filmmaker. I am incredibly grateful to VW and all the people who voted for Max and Josh for putting me in a new Touareg,” said Kathryn Ann Busby of her win.
The Sundance Film Festival is the premier showcase for American and international independent film. Held each January in and around Park City, Utah, the Festival is a core program of Sundance Institute, a nonprofit cultural organization founded by Robert Redford in 1981. Presenting 120 dramatic and documentary feature-length films in nine distinct categories, and 80 short films each year, the Sundance Film Festival has introduced American audiences to some of the most innovative films of the past two decades, including sex, lies, and videotape, Clerks, Smoke Signals, In the Bedroom, American Splendor, Napoleon Dynamite, Born into Brothels, and Me and You and Everyone We Know.
Dedicated year-round to the development of artists of independent vision and to the exhibition of their new work, Sundance Institute celebrates its 25th anniversary in 2006. Since its inception, the Institute has grown into an internationally recognized resource for thousands of independent artists through its Sundance Film Festival and artistic development programs which provide a range of concentrated creative and financial support for directors, screenwriters, documentary filmmakers, composers, playwrights and theatre artists. The original values of independence, creative risk-taking, and discovery continue to define and guide the work of Sundance Institute, both with US artists and, increasingly, with artists from other regions of the world.
Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world’s largest producers of passenger cars and Europe’s largest automaker. Volkswagen of America and its affiliates employ approximately 3,000 people in the United States and are responsible for the sale and service of Audi, Bentley, and Volkswagen products through retail networks comprising in total more than 900 independent U.S. dealers.
Autographs:
1. Jennifer Aniston
2. Alan Arkin
3. Fairuza Balk
4. Leslie Bibb
5. Jessica Biel
6. Anna Boden
7. Abigail Breslin
8. Agnes Bruckner
9. Ty Burrell
10. Scott Caan
11. Steve Carell
12. Nick Cassavetes
13. Karen Chilton
14. Toni Collette
15. Stewart Copeland
16. Clayne Crawford
17. Paul Dano
18. Matt Dillon
19. Aaron Eckhart
20. Chiwetel Ejiofor
21. Shareeka Epps
22. America Ferrera
23. Joseph Fiennes
24. Ryan Fleck
25. Ben Foster
26. Judah Friedlander
27. Patrick Fugit
28. Kelli Garner
29. Greg Germann
30. Bent Hamer
31. John Heard
32. Emile Hirsch
33. Terrence Howard
34. Brad Hunt
35. Timothy Hutton
36. Jason Issacs
37. Raymond J. Barry
38. Brian Jun
39. Greg Kinnear
40. Paul Laverty
41. Justin Long
42. Anthony Mackie
43. Gabriel Mann
44. Simon McBurney
45. Heather McComb
46. Efren Ramirez
47. Robert Redford
48. Deborah Rush
49. Jay Sanders
50. Amber Tamblyn
51. Channing Tatum
52. Justin Timberlake
53. Jonathan Trent
54. Wilmer Valderrama
55. Anton Yelchin
Bid on the Autographed Volkswagen Touareg Hood from Sundance
Posted by Lorenzo at 12:48 am
Text and photo from Volkswagen AG.
Volkswagen displays study at the CeBITWolfsburg/Hanover, 06 March 2006 - At the CeBIT exhibition starting 9 March 2006, Volkswagen will be presenting a study on the Eos, in which tomorrow's multimedia and communication functions can be seen today.
The Eos study, which was created in collaboration with Microsoft, will be on display at the Microsoft stand in Hall 27, part of the new CeBIT special show "Digital Living"Digital consumer electronics make the Eos the mobile media centre of the road.
Based on a car PC from inperio Systems with an Intel Celeron Processor (650 MHz), a RAM with 256 MB and a hard drive with 20 GB the user enjoys all the functions that he has at home. The data processor is centrally located in the backrests of the rear seats. Both have 7 inch monitors installed in the head restraints of the front seats, as already known from rear seat entertainment.
The external keyboard or games consoles are connected via wireless LAN and the bandwidth of the car infotainment system can be utilised in full. In addition to a navigation system, pictures, videos, DVDs and music can also be played, even online work is possible. Emails can be sent and received, or you can communicate directly and in realtime with business partners and friends via a messenger. Information from the internet is accessed via the Internet Explorer
Starting at €25, 950 the Eos will be launched in summer this year
Posted by Lorenzo at 4:34 pm
Text and photo from Carpages.
Volkswagen’s Touran, the seven-seat compact MPV, has teamed up with The David Beckham Academy and been named as its official automotive partner. The three year sponsorship programme, which began in February, will support a series of initiatives designed to promote out-of-school sports activities for children, while encouraging parents to take an active role in the development of their children’s sporting aspirations.
By providing school children with free of charge transport to and from The Academy, Volkswagen hopes to give children of any ability the opportunity to participate in and train at The David Beckham Academy. In the first year alone, Volkswagen will transport 10,000 children from a variety of schools across the UK, between the ages of 8 to 15, to the Academy. The Touran is also helping to spread the reach of the Academy’s work by supporting a schools education programme online. Academy coaches have also been provided with Tourans.
To mark the launch, a national promotion will be taking place in which potential Touran or Volkswagen customers will have the chance to win a one off special day training at The Academy with David Beckham later in 2006.
The David Beckham Academy was opened in November 2005 and is the largest facility of its kind in Europe. The Academy has been built on the Greenwich Peninsula in East London, as part of a 12,000 sq foot redevelopment. The Academy comprises two indoor full size pitches and an extensive series of buildings featuring state-of-the-art classrooms, dining hall, training facilities and changing rooms. It is designed to provide a fun and interactive experience for boys and girls of all ability levels.
On the announcement of the sponsorship David Beckham said: ‘It’s great to have Volkswagen’s support for The Academy. They will play a crucial role in bringing children to and from schools to The Academy free of charge. I am excited about working with them over the next three years to help encourage children to be more active and take part in sport.’
Rod McLeod, Head of Marketing at Volkswagen said: ‘The Volkswagen Touran is the perfect vehicle for busy families with active lifestyles and this partnership with The David Beckham Academy underlines a joint commitment to promoting children’s participation in sport by providing the ideal transport service, making sport accessible for children in the UK, whatever their ability.’
Posted by Lorenzo at 6:09 pm
Text and photo from Volkswagen AG.
Volkswagen AG commemorates Ivan Hirst and its British roots
Lecture at Volkswagen AG Historical Communications on the occasion of Major Ivan Hirst’s ninetieth birthday.Wolfsburg, 03 March 2006 - Had he been alive, Ivan Hirst would have celebrated his 90th birthday on 1 March 2006. 60 years ago as a young British major he laid the foundation for Volkswagen’s success. In honour of the occasion, historian Ralf Richter of Göttingen’s Georg-August University gave a talk on British officer Ivan Hirst and outlined the period during which the Volkswagen plant was under the British government’s management. Richter was the first recipient of the Ivan Hirst Prize awarded by Volkswagen. Following a stay at Oxford, Richter came out with a biography of the British major.
“We were just the trustees”, stressed Ivan Hirst every time he was asked in interviews about his activity at Volkswagen in the early postwar years. He saw himself as a trustee temporarily responsible for looking after someone else’s property. In actual fact, the officer of the Royal Electrical and Mechanical Engineers Corps (REME) – which was responsible for the maintenance and repair of technical equipment – paved the way for Volkswagen to progress from what was in 1945/46 an operation with an uncertain future to become an exceedingly successful commercial enterprise playing a key role in Germany’s Wirtschaftswunder or economical miracle of the 1950s.
Born in 1916 the son of a family that owned a watch factory near Manchester, Ivan Hirst got to know everyday factory life at an early age, and also developed a passion for cars. He studied Optical Engineering Science in Manchester, in the course of which he joined an officer’s training camp organized by the university. He knew about Germany by way of his family’s business connections as well as a semester he spent there.
Hirst subsequently went to Germany with the REME Corps, and in early August 1945 the 29 year-old major was assigned to head the Volkswagen Plant for the Allies. On 22 August an order came in for 20,000 Volkswagen saloons; this heralded the start of a new era for the factory situated on the eastern fringe of the British occupied zone.
Hirst soon became very popular with the Volkswagen employees, as reflected in the lavish birthday card he received from them in 1946. He was seen by the people there as representing the hopes of a perspective, both for themselves personally as well as for the factory. “Hirst was a pragmatist”, is historian Richter’s assessment. “He was a highly motivated man of extraordinary capabilities, and he virtually lived for Volkswagen.” And that was reassuring for all concerned.
In the interests of making Volkswagen capable of competing and establishing itself in the world market, the British developed and put in place a quality policy, ensured a tightly knit sales and service network, enabled free elections for workforce representatives in November 1945 and gave Volkswagen its first chances for export activity. In his function as trustee, Hirst made it his objective to put the revived factory back into German hands at the earliest possible moment. On 8 October 1949 the British military government handed the trusteeship to the federal government and commissioned the federal state of Lower Saxony with the administration. Volkswagen went into the fast lane.
Hirst initially continued his professional career after 1949 with the British army before leaving to work for the Organization for European Economic Cooperation (OEEC) in 1955. In 1976 he retired from working life and, until his death in March 2000, lived in the vicinity of the town in which he was born, namely Oldham near Manchester.
Since then, Volkswagen AG Historical Communications has been awarding the Ivan Hirst Prize in commemoration of the trustee and company manager to young scientists involved with the topic of automobility. Ralf Richter, who gave the lecture, was the first winner of this award. His scholarly biography of the British officer who put Volkswagen on course for the future is entitled “Ivan Hirst – British Officer and Manager of Volkswagen’s Postwar Recovery” and published by the Historical Communications department as part of the Historical Notes series. It is available in German and English.
Posted by Lorenzo at 6:06 pm
Text from Volkswagen AG.40 million readers, experts and editors put the Passat on the winner’s rostrum for the second time alreadyWOLFSBURG, Germany - The Passat has just won what is one of Europe’s most prestigious and important readers’ polls, in which over 40 million readers of 24 European magazines published by the AutoBild Group took part. The final round of voting focussed on 13 models, and the 40-strong jury of editors, technology and motor sport experts placed the Passat way out in front of its rivals.
The Auto1 Trophy weighing 5 kg was presented to Dr. Wolfgang Bernhard, Chairman of the Volkswagen brand Board of Management, and Dr. Bernd Pischetsrieder, Chairman of the Board of Management of Volkswagen AG, yesterday evening – Wednesday 1 March 2006 – at a ceremony parallel to the Geneva Autosalon. “The Auto1 Award is the crowing point of a series of successes“, said Dr. Bernhard, thanking the readers and jury. He drew attention to the diversity of prizes won in recent times by the Passat, saying that this proof of the car’s “outstanding concept”. He continued by stressing that: “Fame and honours are a very good basis, but satisfied customers and sustained commercial success are the criteria by which we want to be judged”.
As far back as 1997 saw the Passat in its fifth generation win the Auto1 Award. Since its market launch in March 2005 (Variant: August 2005) the new Passat has established itself at the head of the middle-class saloon field and lost no time in continuing its predecessor’s winning ways, for example collecting the “Gelber Engel” consumer prize awarded by Germany’s ADAC automobile club and the “Goldene Lenkrad” presented by Bild am Sonntag, the German Sunday newspaper. The Passat has also been voted “Car of the Year” in several other European countries.
The statistics on new registrations compiled by the KBA (German Federal Bureau of Motor Vehicles and Drivers) for January 2006 show too that the car is number one in its segment, with no less than 10,264 newly registered Passats and a market share in Germany of 26.1 percent. The figures for 2005 as a whole were 98,136 new registrations and a market share of 17.3 percent.
Posted by Lorenzo at 11:43 pm
Text from CNW.AJAX, ON, March 1 /CNW/ - Volkswagen Canada sales totalled 1,906 new units for February 2006, compared with 1,724 units in February 2005, an increase of 10.6%. This total is comprised of:
98 New Beetles
260 Golf/GTIs
1,208 Jettas
296 Passats
43 Touaregs
1 Phaeton
Jetta and Passat sales continued to do well in February 2006, compared with February 2005, Jetta sales increased by 11.4%, while Passat sales climbed by 6.9%. Passat sales should continue to climb in March with the recent launch of the Passat Wagon, and GTI sales are also expected to climb, as the all-new 2007 GTI has started appearing in Canadian dealerships.
January Sales Results
Posted by Lorenzo at 11:26 pm
Text from Volkswagen of America.New GTI, Jetta and Passat help lead sales totalAUBURN HILLS, Mich. – Volkswagen of America, Inc. reported February 2006 sales of 16,329, an increase of 21.3 percent as compared to the same period in 2005 when sales were 13,457, making it the best February result for the brand since 2003.
Just recently launched, the new GTI recorded strong early sales, accounting for the majority of sales (1,303) in the Golf/GTI model line that was up a total of 105.2 percent from the previous year (1,785 versus 870 in February of 2005). Also of note, Volkswagen recorded a 10.6 percent increase and 47 percent increase, respectively, with its Jetta and Passat models. Attached is a breakdown of the models line for the Volkswagen brand in the U.S. for February of 2006:
January Sales Results
