Volkswagen Recalls 34,000 Passats

Text from Reuters.
FRANKFURT, June 28 (Reuters) - Volkswagen recalled 34,000 units of its Passat mid-sized car worldwide due to a potential problem with the clutch, the company said on Wednesday.

A spokesman said Passats built between April and May 2005 equipped with 2.0-litre TDI engines and six-gear manual transmissions were affected by the recall.

He declined to comment on the financial costs of potentially having to replace the parts, but said that VW was negotiating with suppliers over compensation for damages.

The compact-sized VW models Golf hatchback, Golf Plus, Jetta sedan and Touran minivan were also affected by the same problem in a previous recall.

Volkswagen brand chief Wolfgang Bernhard has made the issue of quality a top priority, but in a recent JD Power initial quality survey among U.S. drivers, Volkswagen was ranked once again towards the bottom this year after a similarly disastrous result last year.

Volkswagen Asks Public to Name SUV

Text from Autoblog.
Unbeknownst to us a contest has been going on in Germany to name Volkswagen's new small SUV that's slated to be sold under the Touareg when it goes on sale in Europe next year and eventually in the U.S. VW was apparently displeased with names proposed for the vehicle by its own marketing department and executives were tongue-tied, as well. So they opened it up to the people and asked readers of Autobild, Germany's biggest automotive weekly, to vote for their favorite among five names chosen by the company as candidates. One of the readers who chooses the winning name for the SUV will get one free when it goes on sale.

We thought Volkswagen might appreciate the opinion of Autoblog's readership, so we put the question to you: Which name will best suit VW's upcoming small SUV? The candidate names and their definitions follow.

Nanuk: Eskimo for small polar bear.
Namib: a desert in Namibia.
Rockton: a play on the word "rock" and its strength.
Tiguan: a combination of the words "tiger" and "iguana."
Samun: a hot desert wind that blows in North Africa and some Arabian countries.

More Detailed 2007 Change Points for Rabbit, Jetta, and Passat

The following is a more detailed list of change points for the Rabbit/GTI, Jetta/GLI, and Passat.

2007 Rabbit
•iPod adapter (inside armrest)
•Audio Auxiliary input (AUX), replaces glove box light - 3.5mm
•Tire Pressure Monitoring System (TPMS)
•New exterior color, Tornado Red (cloth, velour)
•New exterior color, Candy White (cloth, velour)
•Other Features and changes 2.5L Replace leather armrest w/ leatherette
•Replace third stick cruise control solution to two stick solution
•Delete soft touch from doors and dash
•Radio change (buttons from black to silver finish)
•Delete chrome finish from interior valet locks (trunk and rear seat). Glove box lock will be kept chrome.
•Delete cooling vent from the armrest

2007 GTI
•iPod adapter (inside armrest)
•Audio Auxiliary input (AUX), replaces glove box light - 3.5mm
•Tire Pressure Monitoring System (TPMS)
•Launch control will be standard w/ 6-speed automatic transmission
•22mm ride height reduction
•Replace leather armrest w/ leatherette
•Replace third stick cruise control solution to two stick solution
•Replace Active Headrest (AKS) w/ Rear-impact optimized head restraints. AKS will be kept w/ top sport seats.
•Delete soft touch from doors and dash
•Radio change (buttons from black to silver finish)
•Delete chrome finish from interior valet locks (trunk and rear seat). Glove box lock will be kept chrome.
•Delete cooling vent from the armrest
•Delete Xenon headlight washers

2007 Jetta
•Launch control will be standard w/ GLI 6-speed automatic transmission
•15mm ride height reduction w/ GLI
•iPod adapter (locate inside armrest)
•1.9L TDI production continuation
•Tire Pressure Monitoring System (TPMS)
•Satellite radio (Sirius only)
•Audio Auxiliary input (AUX), replaces glove box light - 3.5mm
•115V Power outlet
•Memory for Mirrors
•Homelink optional on 2.5 and 2.0t
•Narrower back seat pocket
•Replace leather armrest w/ leatherette
•Replace third stick cruise control solution to two stick solution
•Replace leather headrest with leatherette
•Replace air filter (odor/pollen) w/ pollen filter
•Replace 16" spare tire w/ 15" spare tire w/exception of 2.0T engines (requires wheel size due to brakes)
•Replace previous model (2006) 17" wheels with 17" 5-spoke alloy wheels
•Replace previous model (2006) 18" wheels with 17" 10-spoke alloy wheels
•Replace Active Headrest (AKS) w/ Rear-impact optimized head restraints WOKS. AKS will be kept w/ GLI top sport seats.
•Replace current smooth leather quality on steering wheel w/ grained leather
•Replace B-Pillar shine finish w/ dull finish
•Replace window antenna with roof antenna with the 2.5L model
•Replace door entry light w/ a reflector
•Revised lock and unlock symbol
•Reduction of speakers from 10 to 8 with the Jetta and 2.5L model
•Delete chrome finish from interior locks (trunk and back seats).Glove box lock will be kept in chrome
•Deletion of chrome on glove box handle
•Delete soft touch from doors and dashboard
•Delete cooling vent from the armrest
•Delete rubber mats from the sunglass holder
•Delete chrome cargo tie down hooks from trunk area
•Deletion of service door on left side of trunk
•Delete lock for trunk
•Delete chrome in windows in the GLI
•Delete Xenon headlight washers from GLI
•Replace beveled chrome trim at trunk loading sill with black plastic trim on GLI
•Delete phone preparation
•Delete rubber mats from rear doors map pockets

2007 Passat
•Optimized Front Headrests (WOKS replaces AKS)
•"Magic" Design for Radio Buttons (metal-look)
•Aux-In Adapter (multi-media socket for external audio, in glove box)
•iPod Adaptor (replaces aux-in adapter, or CD changer, in glove box)
•Add Adaptive Cruise Control (ACC)
•Naming Convention Change (Deletion of "Value Edition" Name)
•Manual Transmission availability across all 2.0T
•Package content adjustments across entire Passat line
•Package 2 Sport, new for 2.0T
•12-Way Power Seats included on Pkg 2 for 2.0T
•18" Wheels made available on 2.0T
•Heated Front Seats as stand-alone option
•Bi-Xenon Headlights as stand-alone option also for 2.0T
•Delete XM® Satellite Radio
•Other Features and changes Passat
•Interior Rear View Mirror, change to former Jetta/Golf design (VW 340)
•New design cupholders, Front
•"Full Wood" dash option replaced by "Partial Wood" solution (combination wood & brushed aluminum)
•Unpainted sensors for Park Distance Control (with black exterior vehicle color)
•Delete A/C outlet in center console storage bin
•Delete glovebox light
•Spare wheel 16" steel for all FWD Passat (4MOTION keeps matching alloy spare)
•Delete washers on Bi-Xenon Headlights

Volkswagen of America Names Matthias Seidl as Chief Operating Officer

Text from Volkswagen of America.
AUBURN HILLS, Mich.—Effective July 15, 2006, Matthias Seidl will take on the newly created role of Chief Operating Officer at Volkswagen of America, Inc. Making this announcement was Adrian Hallmark, Executive Vice-President, Volkswagen of America, to whom Matthias will directly report.

“We at Volkswagen are delighted to have Matthias’ enthusiasm, commitment and experience, as he will be responsible for the strategic direction, definition and development of Volkswagen of America sales including the development and enhancement of the dealer network,” said Adrian. Matthias’ new role will help ensure Volkswagen meets the needs of the market and the company.

An alumnus of Cass Business School, London, England and Harvard University’s Business School, Matthias joined Volkswagen AG in 1989 as an Area Manager in Belgium, Netherlands and Luxemburg where he served for over two years. His most recent position was Executive Director Sales American Region, a key member of the Volkswagen AG leadership team responsible for overall performance of the North American market.

Prior to joining Volkswagen, Matthias spent 13 years in key management and executive positions at Audi AG and its Importer Operations where he was instrumental in significantly increasing sales for Audi.

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 sells the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Jetta, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.

2007 Volkswagen Change Points

Text from Volkswagen of America.
2007 New Beetle / New Beetle convertible
• More visible location for the Audio Auxiliary input
• Revised wheel finish for 16” alloy wheels
• Revised stitching on leatherette seats resulting in a different look
• Roof trim guides from body color to black
• Deletion of 1.9L TDI engine; All-new Diesel Technology forthcoming for CY 2008
• Special model planned
Color Changes
• New exterior sedan and convertible
– Black (leatherette, leather) / Laser Blue (leatherette, leather)
• New exterior convertible
– Sunflower (leatherette, leather) / Gecko Green (leatherette, leather)

2007 GTI
• Optional iPod adapter
• Audio auxiliary input added
• Simplified cruise control actuation
• Redesigned alloy wheels—late intro
• Launch Control will be standard (DSG only)
• Premium Sound System will be optional
• Tire Pressure Monitoring System standard
• Radio buttons from black to silver finish
• Reduced ride height for sportier appearance
• Special model planned

2007 Rabbit
• Optional iPod adapter
• Audio auxiliary input added
• Simplified cruise control actuation
• New Rabbit exterior colors – Tornado Red, Candy White, United Gray
• Tire Pressure Monitoring System optional

2007 Jetta
• New Lower Base Price
• Optional iPod adapter
• Audio Auxiliary Input added
• Simplified cruise control actuation
• Premium Sound System will be optional
• Tire Pressure Monitoring System standard
• 115v Power Outlet as option
• Memory for Mirrors as option (standard with power, memory seats)
• Homelink as option
• Radio buttons from black to silver finish
Color Changes
• Salsa Red replaces Spice Red

2007 GLI
• Redesigned alloy wheels—late intro
• Launch Control standard (DSG only)
• Simplified cruise control actuation
• Premium Sound System will be optional
• Tire Pressure Monitoring System standard
• Radio buttons from black to silver finish
• Reduced ride height for sportier appearance

2007 Passat
• Add Adaptive Cruise Control (ACC); sold orders only
• Audio auxiliary input added
• Optional iPod adapter-late intro
• Manual Transmission availability across all 2.0T
• 12-way Power Seats included in Package on 2.0T
• 18” Wheels made available on 2.0T
All-new 2007 Passat Wagon model

2007 Touareg
• All-new V6 engine
• All-new V8 engine
• V10 TDI 45-state engine
• Optional iPod adapter
• Servotronic steering standard on all trim levels
• Silver parallel roof rails standard on all trim levels
• Bi-Xenon headlamps with AFS as option on V6 & V8 (std on V10)
• Power Liftgate as option
• Keyless Access with start/stop button as option on all trim levels

Volkswagen Touareg V10 TDI to Climb Pikes Peak Summit

Text and photo from Volkswagen of America.
AUBURN HILLS, Mich. – Three 2006 Volkswagen Touareg V10 TDIs will embark upon the demanding climb to the 14,100-foot Pikes Peak summit in the 84th running of the Race to the Clouds. On July 1, pro-drivers Mark Miller, Danny Sullivan and Ryan Arciero will set out to show that the Touareg’s precise German engineering and powerful V10 TDI engine can handle even the most challenging driving conditions.

The Pikes Peak International Hill Climb, or Race to the Clouds, is a 12.4-mile course with quick straights and 156 hairpin turns on terrain that alternates between pavement and gravel—mostly without guardrails. The Touaregs will run in the Luxury SUV division piloted by the professional drivers.

Off-road champion Mark Miller competed in the 2006 Dakar Rally as a factory Volkswagen Motorsports driver. During his racing career, he has secured multiple first place finishes in the Baja series and competed at Pikes Peak in 2000. Danny Sullivan is one of the most highly acclaimed race car drivers in the world with significant performances in Formula One, Le Mans Sports Car and Indy Car leagues, as well as winning the 1985 Indy 500. Ryan Arciero holds 40 career wins, including three Baja 1000 and multiple Baja 500 championships, a Nevada 2000 Trophy Truck championship and a USAC “Rookie of the Year” title. He also competed in the 2005 Dakar Rally.

“The Touareg is well-equipped to handle the challenges of Pikes Peak,” said Miller. “With its sophisticated engine, it is designed to perform under the most excruciating conditions – including the mixed surface and high altitude of the mountain.”

The Touareg V10 TDI is a high-performance, diesel version of Volkswagen’s popular luxury SUV. Its powerful five-liter, 10-cylinder engine boasts 310 horsepower at 3,750 revolutions per minute and offers impressive pulling power with 553 lbs-ft of torque at 2,000 rpm.

The three Touareg V10 TDIs will be the first SUVs to use ultra-low sulfur diesel (ULSD) to Race to the Clouds. This clean diesel fuel, provided by sponsor Shell Oil Products U.S., reduces emissions of sulfur compounds and allows for the use of advanced emission control systems. In another display of innovation, the Touareg is the first light duty vehicle in the U.S. to include a particulate filter that further reduces emissions. The 2006 Touareg’s diesel engine is compliant in all 50 states and consumes up to 30 percent less fuel than traditional gasoline engines.

“This is a vehicle with tremendous power and technology that I really enjoy driving,” said Danny Sullivan. “I am looking forward to engaging its full strength and ability to climb Pikes Peak.

The Touareg with its 4XMotion all-wheel drive system provides superior traction control – a must-have on the challenging surfaces of Pikes Peak. Standard equipment includes Anti-lock Brake System, Anti-slip regulation, Electronic Differential Lock, Engine Braking Assist, Electronic Brake-pressure Distribution, Electronic Stabilization Program with brake assist, Hill Descent Assist and Hill Climb Assist.

“I’m eager to get behind the wheel of the Touareg at Pikes Peak,” said Arciero. “The vehicle has a great sense of adventure that’s needed for this tough climb. The Race to the Clouds is ideal to present the Touareg’s technical advancements.”

Volkswagen will race the Touareg at Pikes Peak with support from Shell Oil Products U.S., Red Bull, Nitto Tires, Oakley and NAVTEQ.

Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Mich. 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 sells the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Jetta, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.

Porsche to Increase Stake in Volkswagen

Text from The Associated Press.
FRANKFURT, Germany — Porsche AG said Friday it will purchase another 3.9 percent of Volkswagen AG, a move that would give it a blocking minority stake of 25.1 percent in Europe's biggest automaker.

The Stuttgart-based maker of luxury autos said it had filed a request for approval with Germany's Federal Cartel Office for the purchase. Holding a stake of more than 25 percent would put Porsche in a position to block corporate decisions by VW if it so desired.

Shares of Volkswagen rose by nearly 2.6 percent to euro54.28 ($68.29) in Frankfurt trading, whiles Porsche shares were up more than half a percent to euro752.37 ($946.63).

Porsche said it "anticipates that the Cartel Office will approve its plans without delay. Porsche would be able to implement the intended stock purchase as soon as approval is granted."

Porsche spent about euro3.5 billion ($4.4 billion) late last year to increase its stake in VW to 18.5 percent, making it that company's biggest single shareholder.

The move was aimed at protecting Volkswagen, a supplier for nearly a third of Porsche's production, from any hostile foreign takeover. Since then, Porsche's stake has grown to 21.2 percent.

Volkswagen Lands in Roswell

Text from Volkswagen of America.
Pods from around the universe fly in for“2K Car Show Weekend”

ROSWELL, N.M. – Could it be something out of H.G. Wells’ “War of the Worlds”? Actually, these mechanized vehicles and those that drive them “come in peace,” as hundreds of Volkswagen New Beetles trek to the New Mexico desert for the 7th Annual Roswell New Beetle “2K Car Show Weekend,” June 23 – 25, 2006.

This year, Volkswagen of America, Inc. will bring in a number of New Beetles, including the Teacher’s New Beetle, produced for the NEA (National Educators Association), whose surface acts as a dry erase board, allowing teachers to write on the car and then wipe it clean for the next lesson.

Also on hand and poised for stargazing: Volkswagen’s iconic Rabbit. The new Rabbit is nimble and quick and features a powerful five cylinder, 2.5 liter, 150 hp engine, available in both two and four-door versions, starting at just $14,990. The Rabbit was the first Volkswagen produced in the United States and its appeal grew rapidly, with sales of over 1.3 million in its 10-year lifespan. The new Rabbit is darting into showrooms nationwide now.

Coming this fall but also in Roswell: the brand new Volkswagen Eos hardtop convertible. The Eos four-seater features a revolutionary five-panel roof that transforms a hardtop coupe lid with an integrated sunroof, to an open convertible. Volkswagen will offer the Eos with two engines: an award-winning 2.0 liter turbo, 200 horsepower, four cylinder starting at $27,990 and a 3.2 liter, 250 horsepower version of Volkswagen’s narrow angle V6 starting at $36,850.

The Roswell 2K event features a “Skywatch” event Friday night, and, on Saturday, a car show and New Beetle parade down Roswell’s historic Main Street. Barry Meguiar, host of Speed Channel’s “Car Crazy”, will serve as parade Grand Marshal. On Sunday, a road rally will take New Beetle cruisers to Carlsbad Caverns and a drive-in movie.

Last year’s event drew thousands of attendees and more than 250 New Beetles from 34 states and Canada. This year’s caravans hail from all over the continent, including: Denver, Houston, San Diego, Seattle, Toronto and Washington, D.C.

The Roswell 2K event originally grew out of two significant New Beetle occurrences. The first was the online frenzy generated by the car’s official launch in 1998. As new cars left dealer showrooms for the open road, Volkswagen enthusiast websites excitedly "buzzed" with initial New Beetle “sightings” from across the country. In 1999, the idea for an event and its Roswell setting were firmly cast with the airing of a New Beetle commercial which stated (tongue firmly in cheek) that the car was “reverse-engineered by UFOs.”

Held in Roswell, N.M., famous for a 1947 UFO crash that was reported then later denied by the U.S. military, the three-day weekend of activities is the largest New Beetle celebration in the world.

For information, including a full caravan itinerary and complete schedule of events, visit www.roswell2k.org.

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 sells the Rabbit, New Beetle, New Beetle convertible, Jetta, GTI, GLI, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.

Golf (Rabbit?) R32 Heads to North America

Text from AutoWeek.
Now that Volkswagen’s GTI is here and the return of the Rabbit (formerly known as Golf) is imminent, VW is confirming the next piece of the product picture: R32, the performance variant of the Golf that went on sale in Europe last fall (News, Aug. 15, 2005) will arrive in the States in June 2007 as a 2008 model.

The only question remaining is whether they’ll chance calling it a Rabbit R32, or just leave well enough alone.

Volkswagen to Build Scirocco in Portugal Plant

Text from Reuters UK.
HAMBURG (Reuters) - Volkswagen will build a successor to the Scirocco sport coupe at its plant in Setubal, Portugal, Europe's biggest carmaker said on Tuesday, reviving a model that was first popular in the 1970s.

A company spokesman said VW had made the decision early this year but had announced in the past only that it would bring a new model to Portugal without saying which one.

He insisted the decision had nothing to do with a standoff with labour over VW's plans to extend the work week for staff in western Germany to 35 hours from 28.8 at no extra pay, an idea labour leaders have rejected.

Awarding the car to Setubal is a blow to VW's main German plant in Wolfsburg, which needs more work to fill idle capacity.

VW has said 20,000 jobs in Germany are at risk unless it can boost productivity and cut labour costs that are the highest in the global car industry.

The Scirocco was popular in the 1970s and 1980s and there has been speculation that VW would revive the model based on the VW Golf.

Germany's Handelsblatt newspaper quoted company sources as saying Scirocco production would start in 2008 and said industry observers expected annual output of more than 100,000 units.

The Setubal plant already makes the VW Eos coupe-cabriolet plus the VW Sharan and Seat Alhambra vans. The vans are reaching the end of their model life cycles.

Volkswagen Receives Environmental Award from Federation of German Industries

Text from Volkswagen AG.
In honor of Volkswagen’s achievements in pioneering car recycling technology

Wolfsburg/Berlin, 20 June 2006 - The Federation of German Industries (BDI) today presented an environmental award to Volkswagen and its partner company SiCon in Berlin. BDI thus honored Volkswagen’s commitment to an end of life vehicle recycling process characterized by its high environmental compatibility and ability to preserve resources. Volkswagen developed the technology, which converts waste back into raw materials, in cooperation with SiCon GmbH. On June 1, Volkswagen received an environmental award for this process from the European Commission.

The BDI environmental prize was today presented by BDI President Jürgen R. Thumann and the Chairman of the BDI Environment Committee Prof. Wilfried Bockelmann. The award-winning Volkswagen-SiCon process recovers materials from end of life vehicle residue which in the past could not be viably separated. The treated secondary raw materials can then be returned to production processes rather than ending up on landfills or in waste incineration plants.

“This recycling technology underlines Volkswagen’s commitment to sustainable development. It closes the cycle of environmentally sound production, clean operation and subsequent recycling. For us, end of life vehicles are not tiresome waste, but rather a valuable raw material source. That is why we developed the appropriate processes for environmentally compatible recycling at an early stage,” commented the Chairman of the Board of Management of Volkswagen AG, Dr. Bernd Pischetsrieder, during the award ceremony in Berlin.

Following treatment in the Volkswagen-SiCon process, hard plastics, rubber, textiles, glass and metal residues replace primary raw materials and thus contribute to protecting natural resources. Apart from the ecological aspect, this process presents an economically attractive alternative for secondary raw material users as raw material prices continue to rise.

The demonstration plant for the Volkswagen-SiCon process is located in Kallo near Antwerp, Belgium, on the site of one of Europe’s most progressive scrap recycling companies Belgian Scrap Terminal N.V. (BST). Further plants based on this process are planned or under construction in seven European countries.

Other links: www.volkswagen-nachhaltigkeit.de; www.volkswagen-umwelt.de

Ecology Meets Economy

Text from Volkswagen AG.
Volkswagen launches autogas Sharan

Wolfsburg, 20 June 2006 - In cooperation with the company PrinceGas, Volkswagen is offering another attractive engine version of the Sharan. The Sharan LPG (Liquid Petroleum Gas) is equipped with the 85 kW petrol engine. This extends the gas vehicle fleet from Volkswagen, including the Touran EcoFuel and Caddy EcoFuel with the addition of a further interesting vehicle engine version. The Trendline version of the Sharan LPG costs €30,175.

Volkswagen has reacted to the continually increasing fuel prices by providing this offer. LPG is the most widely spread alternative fuel across the world and is already being used in approximately 8 million vehicles. Fuel duty on liquid gas is comparatively low in most European countries. Consequently at current fuel prices the additional cost is recouped after approx. 35,000 km.

Alongside this clear economical advantage, the Sharan LPG is also environmentally friendly: compared with the same engine ran on petrol, the gas powered Sharan emits 15 percent less CO².

Technically the Sharan LPG is a vehicle with a bi-fuel drive system. The approx. 60 litre capacity liquid gas tank has been built into the spare wheel well, so as not to compromise the size of the car's interior. As a result, the Sharan receives an additional range of up to 450 km, because it of course retains its 70 litre capacity, enough to cover 730 km at an average fuel consumption of 9.6 litres per 100km.

Since the market launch of the Sharan eleven years ago the high-comfort MPV by Volkswagen has been able to present an astonishing record of success: during the whole production period it is the highest-selling car of it's class in Germany and one of the top three large MPV's in Europe. In the new gas version the Sharan LPG is every bit the versatile touring vehicle for a large family, it is meant to be. With two tanks a total journey of almost 1,200 km can be achieved.

The highly spacious, comfortable and variable Sharan is the classic luxury family car. These characteristics are also reflected in the buyer profile of the Sharan: 93 percent of the owners are either married or live with their partner. 73 percent of them have children under the age of 18. 73 percent are between 30 and 49 years old. As usual in this class, many Sharan drivers use their car for private and business journeys.

Volkswagen to Cut US Jetta Price

Text from Reuters.
FRANKFURT, June 19 (Reuters) - Volkswagen will cut the price of its Jetta compact car in the United States to help boost volume for what is already its top-selling model in the U.S. market, industry paper Automotive News reported on Monday.

It quoted Adrian Hallmark, executive vice president of Volkswagen of America Inc, as saying the company will remove some features from the Jetta as of the 2007 model year and lower the U.S. price by $1,410.

That means 2007 Jetta prices will start at $17,105 including shipping. The cheapest 2006 Jetta starts at $18,515, it said.

"If we are going to be a volume player, we have to play the volume game," it quoted Hallmark as saying at an event in Germany. "If you look at the price-volume relationship, the decision is really clear."

The move reflects VW's decision to focus on its mass volume image and abandon -- for at least a few years -- efforts to position the brand upmarket to be able to charge more in the world's biggest car market.

It has also cut U.S. prices for the Rabbit, the model sold elsewhere as the Golf. The Rabbit goes on sale shortly with a base price of $15,605 including shipping, down from $16,660.

Hallmark said VW expected to sell about 105,000 Jettas in the U.S. market this year, down from a peak of 145,000 units in 2001.

As previously reported, it has also decided to stop selling the top-end VW Phaeton luxury car in the United States.

"Instead of going for the penthouse, we need a few floors below," Hallmark said.

Volkswagen of America Names David Goggins Director, Volkswagen Product and Marketing Strategy

Text fromm Volkswagen of America.
AUBURN HILLS, Mich.—Effective July 1, 2006, David Goggins will take on the newly created role of Director, Product and Marketing Strategy at Volkswagen of America, Inc. Making this announcement was Adrian Hallmark, Executive Vice-President, Volkswagen of America, to whom David will directly report.

“We at Volkswagen are delighted to have David’s passion, commitment and experience, as he will lead our product planning and strategic marketing initiatives,” said Adrian. David’s new role will ensure that Volkswagen’s positioning, pricing, product attributes and launch activities meet the needs of the market and the company.

David joined Bentley Motors Ltd. In 1999 as Director, Global Marketing and Product Strategy in Crewe, England where he served for three years before joining Bentley Motors, Inc. in Auburn Hills, MI. He was a key member of the Bentley Motors, Inc. leadership team responsible for crafting the plans and executing the successful launch of Bentley’s Continental GT and Continental Flying Spur. His marketing skills took Bentley to a whole new level of effectiveness.

Prior to joining Bentley Motors Ltd, David spent two years as General Manager, Marketing for Land Rover – United Kingdom where he was responsible for all national communications activity and agency direction and product planning. These initiatives included advertising, CRM, web, Public Relations and owner communications.

Prior to his Land Rover experience, David held several product marketing and strategy positions within the BMW Group in the USA, Italy and the UK.

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 sells the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Jetta, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.

Things to come

Text from Autoweek.
2006
Touareg: Facelifted, the SUV offers a 3.6-liter 280-hp V6 gas engine. U.S. sales start by fourth quarter
Cross Golf: Off-road-inspired model addition

2007
Golf (Jetta)Wagon: New Jetta-based load hauler
Compact SUV: Production version of Concept A show car offered in front- and four-wheel drive. Big things are expected by the home office for this in the United States
Minivan: Joint-venture seven-seater built alongside upcoming Chrysler minivans in Canada

2008
Polo: Fifth-generation subcompact hatch under development with eye toward possible sales as entry-level U.S. model. Three- and five-door hatch and sedan versions planned
Scirocco: See main story; produced in Portugal alongside Eos
Golf/Rabbit: Sixth-generation, Europe’s perennial best-seller overhauled in a bid to make it cheaper to produce and boost VW’s bottom line
Passat coupe: Mercedes-Benz CLS fighter with a sleek coupe profile and four-door layout will be built alongside the (facelifted for 2008) sedan and wagon

2009
Touran: Golf-based compact MPV renewed. Possible U.S. entry
Jetta: Sixth incarnation of VW’s compact sedan. The U.S. version may ditch costly multilink rear suspension for a return to torsion beam. Production stays in Mexico
Polo MPV: Subcompact, unlikely to head Stateside
Polo cabriolet: Affordable cloth roof convertible with two-plus-two layout. Possible starter for North America
Touareg: Second-generation SUV developed in joint venture with Porsche (Cayenne) and Audi (Q7). Adds gasoline-electric hybrid model, direct injection for V6 and V8. W12 replaced with conventional V12 by Audi
Phaeton: Second-generation upmarket sedan; will VW try to interest Americans again?

Volkswagen of America's Parts Operations Sets Sales Records

Text from Volkswagen of America.
AUBURN HILLS, Mich. – Volkswagen of America, Inc.’s Parts Operations and Logistics organization has set a record in 2005 with $1.1 billion in sales to dealers in the United States and Canada. Additionally, it ranked fourth in productivity and the top among all European brands by Carlisle & Co. – up from fourteenth the year before.

Parts sales to dealers have consistently risen each year since 1995, breaking internal records and reaching the $1 billion milestone last year. VWoA’s Parts Operations receive parts and accessories primarily from Germany, Mexico and Brazil and redistribute them to more than 1,000 dealers in the United States and Canada. The organization carries out $5 million in sales each day. Volkswagen of America anticipates another record-setting year this year for the sales of authorized parts and accessories.

“Over five years ago, we initiated a plan to bring our parts operation to world class levels. The plan saw the implementation of a completely new parts system called ET2000 and the construction of five new state of the art facilities which support our dealers. And finally, we have reached levels of productivity and efficiency that are recognized to be among the best in the industry” said Eric Johnston, Vice President, Operations and Logistics.

“We lead with the principle of continuous improvement – from reducing costs to improving the quality of our service, we aim to be the preferred service parts logistics provider for the Volkswagen brand,” said Eric Carlson, director, Parts Operations, Volkswagen of America, Inc. “ We’ve improved our internal productivity and that has had a direct positive impact on our customers.”

Concord, Massachusetts-based Carlisle & Co., a consulting and benchmarking firm devoted exclusively to the service parts industry, found a 30 percent improvement in the productivity of VWoA’s parts warehouses from 2004 to 2005. The Carlisle study showed that productivity in VWoA’s warehouses increased to 45,288 lines handled per employee per year (LHY) in 2005, making it the fourth most productive among all automakers surveyed and first among the European brands.

“A dramatic one-year improvement like this hasn’t been seen in our 15 years of benchmarking,” said David Carlisle, chairman, Carlisle & Co. “Extraordinary performance improvements like we are now seeing from Volkswagen of America can only come from a well-led organization with a clear vision and a smart, dedicated team of people.”

Carlson points to feedback from warehouse employees and better inventory management as reasons for the marked improvement. “We redesigned the layout of our facilities for enhanced efficiency, and we’ve implemented the latest technology, equipment and processes to better fulfill and replenish our customers’ inventory,” Carlson said.

Volkswagen of America Parts Operations maintains three million square feet of warehouse space and fulfills around 14 million order lines per year.

Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany.

More Scirocco Rumblings Heard in Wolfsburg

Text from Leftlane News. Photo is artist's rendering.
After months of debate and internal struggle, Volkswagen has approved development and production of the 2009 Scirocco coupe, according to AutoWeek. The magazine claims there was an internal debate at VW over the design of the car, with one side wanting a dramatic sports coupe, and the other hoping to keep costs low with a more conservative offering. In the end, the car guys triumphed over the bean counters, the report says. The magazine has created a new computer rendering of the car, which is a slightly modified version of AutoWeb’s recent illustration of the car. We wouldn’t put too much faith in either drawing, but the general consensus is that VW has opted for a grille design similar to that of the EcoRacer Concept. Recent illustrations by Auto Motor und Sport suggested something similar, but also called for a less aggressive roofline — more true to the Scirocco name. In the end, it’s anyone’s guess exactly what design path VW will take — we’ll be patiently awaiting more details.

Volkswagen to Replace Automatics with DSG

Text from Leftlane News.
Volkswagen is planning to replace all its automatic transmissions in cars with transverse engine configurations with DSG transmissions, according to a published report. Product chief Wolfgang Bernhard said DSG will be used on transverse-engine cars from Audi, Skoda, Seat, and Volkswagen, reports The Car Connection. The company is also developing a way to implement DSG on longitudinal engine configurations. DSG is a dual-clutch gearbox that uses two computer-controlled clutches to achieve very fast and smooth shifts. Bernhard said VW has no plans to license the technology to any other companies. Instead, the automaker hopes it will be a “unique selling proposition” for VW Group vehicles. The Leftlane Perspective: VW might not sell DSG to any rivals, but we suspect shareholder and affiliate Porsche might get a piece of the action once DSG is ready for high-performance applications.

New Jetta Wagon and Revised Touareg to Debut at the Paris Motor Show

Text from 4Car News.
Volkswagen is to launch an estate (station wagon) version of its Jetta saloon at the Paris Motor Show this autumn, according to TheCarConnection.com.

The Jetta, midway between the Golf and Passat in size, is being marketed as a kind of junior-executive model and the estate version will be positioned against models such as the Saab 9-3 SportCombi/Sportwagon and Volvo V50, if not the BMW 3-Series Touring and Mercedes-Benz C-Class estate.

Designed with the US market in mind, the Jetta station wagon will be built in Mexico, but it has been developed and styled at Volkswagen's European HQ in Wolfsburg. Production will start in 2007.

TCC also reports that a revised version of the Touareg 4x4 will be launched in Paris, with a restyled front end, new headlamps and taillights, and an overhauled interior including new seats and upgraded sat nav. Volkswagen's new 3.6-litre V6 FSI (direct-injection) petrol engine will be fitted and US buyers in most states will be offered the V10 diesel for the first time.

Volkswagen Reports Significant Growth in May

Text from Volkswagen AG.
Wolfsburg, 09 June 2006 - In May, the Volkswagen brand once again sold considerably more cars than in the same month of the previous year despite stiff global competition. The number of cars delivered to customers throughout the world rose 18.1 percent to 298,000. Since January, deliveries have risen 15.4 percent to 1.38 million vehicles. “In all regions, we are experiencing gratifying growth as a result of our attractive model range. Last year’s model offensive is still having an effect. Nevertheless, markets continue to be dominated by severe pressure on prices and margins,” said Dr. Michael Kern, Member of the Board of Management of the Volkswagen Passenger Car brand responsible for sales and marketing.

“The marked rise in deliveries means that we have been able to boost our market shares in key European automobile markets,” added Kern. In May, Volkswagen delivered 141,000 vehicles to customers in western Europe. This corresponds to a 15.9 percent rise over the figure for May 2005. Since the beginning of the year, the number of deliveries has therefore risen 12 percent to 636,000 vehicles.

In China, car deliveries were up 18.3 percent to 50,000 units. Since the beginning of the year, Volkswagen has therefore achieved growth of 27.8 percent to 254,000 cars. In the entire Asia-Pacific region including China, the number of deliveries rose 17.8 percent to 57,000. With 290,000 vehicles sold since January, the rise in this region was 25.5 percent.

Car sales in North America in May were up 18.3 percent to 35,000, with a 35.6 percent rise to 22,100 units in the USA. Total sales in the region since January reached 160,000 vehicles, up 7.2 percent on the same period of 2005. In the USA, sales from January to May totaled 96,000 vehicles, up 23.6 percent on the same period of 2005.

Volkswagen sales in South America and South Africa also rose markedly, by 12.6 percent to 46,000 units in May. Since the beginning of the year, 216,000 vehicles have been sold on these markets, a rise of 11.9 percent. On the smaller automobile markets of the world, sales in May rose 28.9 percent to 19,000; sales since January were up 44.3 percent to 75,000 cars.

Volkswagen of America Names MWW Group Lifestyle Lifestyle Public Relations Agency of Record

Text from Volkswagen of America.
Agency to Spearhead Media Relations and Key Public Relations Initiatives in Support of Automotive Leader’s New “Lifestyle” Focus

AUBURN HILLS, Mich. – Volkswagen of America, Inc. announced today that it has appointed MWW Group as its lifestyle and entertainment public relations agency of record. In this role, MWW Group will manage national lifestyle and entertainment media relations initiatives for the Volkswagen brand in the U.S. market.

”It’s time to expand our public relations outreach efforts in lifestyle and entertainment media,” said Kerri Martin, director of brand innovation, Volkswagen of America, Inc. “MWW Group has a successful track record with other iconic brands and has a demonstrated ability to translate a brand’s business goals and objectives into creative public relations strategies and programs.”

“Volkswagen is a tremendous brand with an extraordinarily exciting line up of new cars. We look forward to working with Volkswagen to create a deep and relevant brand connection within key consumer lifestyle segments by leveraging the introduction of cutting-edge new vehicles such as the GTI, Rabbit and upcoming hardtop convertible Eos”, said Michael W. Kempner, president and CEO of MWW Group. “But what is most exciting to me is that Volkswagen represents so much more than just a car, it is one of the most famous automotive brands in the world.”

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 sells the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Jetta, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.
www.vw.com.

About MWW Group

This is the third consecutive year that MWW Group has been honored with the #1 ranking in the 2005 Holmes Report/Kelly & Lugbauer agency client satisfaction survey. MWW Group achieved top rankings in the categories of account leadership, strength of account team, creativity, strategy and planning, and program execution.

MWW Group is one of the nation’s top ten public relations agencies and is known for its results-driven approach to public relations. The agency is nationally recognized for its work in consumer marketing, corporate communications, investor relations, public affairs and government relations, technology and healthcare. Headquartered in East Rutherford, N.J., MWW Group has 11 full-service offices representing national and multinational companies, including Sun Microsystems; Samsung; McDonald's; Nikon; Bally Total Fitness; Sara Lee; Deloitte & Touche; Amazon.com; FreshDirect; Trans World Entertainment; Scottish Enterprise; Verizon; CIT Group, Inc.; Oxford Health Plans; Roche; The Mills Corporation; The Palm Restaurants and many Fortune 1000 clients in the consumer, professional services and industrial sectors. MWW Group is part of the Interpublic Group of Companies (NYSE: IPG). For more information on MWW Group, visit www.mww.com.

Volkswagen Receives European Enviromental Award

Text from Volkswagen AG.
WOLFSBURG/BRUSSELS - The EU Commission has presented Volkswagen with the “European Business Award for the Environment” for an end of life vehicle recycling process characterized by its high environmental compatibility and ability to preserve resources. Volkswagen developed the technology which converts waste back into raw materials in cooperation with SiCon GmbH.

European Commissioner for the Environment Stavros Dimas presented the prize in the “Process Award” category to the Volkswagen Group on Thursday. The award-winning Volkswagen-SiCon process recovers materials from end of life vehicle residue which in the past could not be viably separated. The treated secondary raw materials can then be returned to production processes rather than ending up on landfills or in waste incineration plants.

“The environmentally compatible recycling of end of life vehicles is part of Volkswagen’s commitment to sustainable development. We are an innovation leader in this field, since we recognized early on that end of life vehicles are not tiresome waste, but rather a valuable raw material source, and developed the appropriate products and processes for environmentally compatible recycling at an early stage” said Chairman of the Board of Management of Volkswagen AG, Dr. Bernd Pischetsrieder.

Following treatment in the Volkswagen-SiCon process, hard plastics, rubber, textiles, glass and metal residues replace primary raw materials and thus contribute to protecting natural resources. Apart from the ecological aspect, this process presents an economically attractive alternative for secondary raw material users as raw material prices continue to rise.

The demonstration plant for the Volkswagen-SiCon process is located in Kallo near Antwerp, Belgium, on the site of one of Europe’s most progressive scrap recycling companies Belgian Scrap Terminal N.V. (BST). Further plants based on this process are planned or under construction in seven European countries.

Other links: www.volkswagen-nachhaltigkeit.de, www.volkswagen-umwelt.de

Volkswagen Canada May Sales Results

Text from CNW Group.
AJAX, ON, June 2 /CNW/ - Volkswagen Canada sales totalled 3,092 new units for May 2006, compared with 2,768 units in May 2005 which is a increase of 10.7%. Year to date sales for 2006 have totalled 12,514 new models, compared to 11,127 in May 2005, an increase of 12.5%.

This monthly total for May 2006 is comprised of:
187 New Beetles
462 Golfs/GTIs
1,988 Jettas
388 Passats
66 Touaregs
1 Phaeton.

A few key notes of interest include an excellent 19.7% increase in Jetta sales from May of 2005. This increase also includes a boost in sales from the previous month by 316 units. The Golf/GTI models show a 23.6% increase from 1,625 units YTD May 2005 to 2,009 units YTD May 2006.

May 2005 Sales Results

Volkswagen of America May Sales Results

Text from Volkswagen of America.
AUBURN HILLS, Mich. – Volkswagen of America, Inc. today reported May sales of 22,100, a 35.6 percent increase over prior year sales of 16,297.

Volkswagen’s volume car, the Jetta, continues to gain momentum – up 48.5 percent versus last year, while the newly re-designed Passat posted a tremendous increase over May of 2005.

Year-to-date sales show an increase of 23.6 percent (95,924 for 2006 as compared to 77,633 for 2005). Below is the breakdown of the models for the Volkswagen brand in May, 2006.


May 2005 Sales Results

2006 Passat Ranked First in AutoPacific Satisfaction Awards

Text from Volkswagen of America.
AUBURN HILLS, Mich. — The Volkswagen Passat was recently recognized by AutoPacific, Inc., a noted automotive research firm, in its 2006 Vehicle Satisfaction Awards as the top-ranking vehicle for the Premium Mid-Size Car category.

Survey ratings by owners acknowledged the outstanding interior design, use of high touch materials and European driving dynamics as contributing factors in their overall satisfaction of the vehicle.

AutoPacific measures customer satisfaction by collecting data from thousands of new car and light truck buyers. Those surveyed are owners of new 2006 model year cars and trucks, purchased from September through December 2005. Respondents rated 45 different attributes, each contributing toward an overall satisfaction score on their new vehicle.

The 2006 Passat is completely redesigned inside and out, with contemporary, sporty European styling and a powerful new base engine. Base-priced at $22,950, the Passat is larger than the previous model, allowing for greater comfort and function while maintaining a sporty, confident design that commands respect with:

• a new, four-cylinder, two-liter base engine called the 2.0T, delivering 200 horsepower at 5,100 revolutions per minute;

• more refined higher displacement due to the returning VR6, a powerful version of its 3.6 L engine that creates 280 hp;

• an advanced four-link independent rear suspension;

• a new handling system that provides active-return steering and straight-ahead driving correction assistance;

• six airbags, available rear torso airbags and Autobahn-bred safety features; and,

• performance features that can help avoid accidents, including advanced power steering systems, electronic stabilization and anti-slip features.

Since its 1997 redesign, the Passat has averaged more than 75,000 a year in U.S. sales, making it the most successful Volkswagen midsize car. The 2006 Passat also recently earned a “Double Best Pick” designation for outstanding performance in front and side tests conducted by the Insurance Institute for Highway Safety. The Passat earned the top rating in every individual measurement category (head protection, injuries and structural design) for both the side impact and frontal tests. It also received a five star rating for occupant protection in the Euro NCAP crash test. Additionally, Kelley Blue Book named the 2006 Passat among the top ten best redesigned cars.

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 sells the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Jetta, Passat, Passat Wagon, Touareg and Phaeton through more than 600 independent U.S. dealers.

New Engine Range for Polo

Text from Volkswagen AG.
- Diesel particulate filter available for three TDI engines
- Polo 1.6 with 77 kW and optional six-speed automatic gearbox

WOLFSBURG, Germany - With immediate effect, Volkswagen is expanding the range of Germany's favourite small car by producing the Polo TDI in three different output versions, each with diesel particulate filter (DPF).

Costing 575 euro, the DPF is available for the 1.4 TDI with 51 kW and 59 kW, and for the 1.9 TDI with 74 kW. Volkswagen is thus making even more eco-friendly versions of its successful diesel engines available in the Polo class.

Volkswagen has consistently expanded the availability of this filter technology from the upper class to the small car. In addition, a number of new features with respect to engines and gearboxes will be introduced at the change of Model Year. For example, the current Polo 1.4 with 74 kW will be superseded by the new Polo 1.6 with 77 kW, available with either the 5-speed manual gearbox or 6-speed automatic gearbox. The Polo 1.6 with manual gearbox costs 14,175 euro, the automatic version is available for an extra 1325 euro. Polo 1.4 with the 5-speed manual gearbox has become stronger: it delivers now 59 kW, prices as of 12.925 Euro.

New in the range with respect to safety are the so-called SST tyres (self-supporting tyres), which are available in 15 inch format for the Polo Trendline and Polo Comfortline (from 375 euro). In contrast to conventional car tyres, the reinforced side walls of these self-supporting tyres allow emergency running in event of a loss of pressure. This makes it possible to continue driving for up to 80 kilometers at speeds of up to 80 km/h, depending on the road surface conditions and the vehicle weight, for example to reach the next workshop.