Volkswagen has surprise in store for LA show

For years, Volkswagen has toyed with the idea of a lightweight, practical roadster. The world first fell in love with the Concept R back in 2003 where it was unveiled during the Frankfurt Motor Show. The emotive, sensual design took everyone by surprise. People pleaded for Volkswagen to build it but, in the end, Volkswagen's accountants won and the project was canned. No one has forgotten about the Concept R and, to this day, people are waiting for Volkswagen to come out with something similar.

Looks like the wait will be over soon as Autocar is reporting that Volkswagen will have a surprise up its sleeve during the coming LA Auto Show in the form of a practical alternative to the Lotus Elise. Engine offerings are said to be either a 168 hp, 1.4-liter TSI gasoline engine or a 125 hp, 1.6-liter TDI mounted at the rear sending power to the rear wheels via a 7-speed DSG.

It may be premature to talk about production versions but if it does reach that stage, expect the car's curb weight to be around the 2,200 lbs mark with a 0-60 in the sub-7 seconds range.

Source: Autocar via Autoblog

Confirmed: up! gets green light; engine layout revised

It's now official: Volkswagen will produce the up! The news came when Volkswagen confirmed rumors that the up!'s rear-wheel drive layout had indeed been changed to a front-wheel drive layout, citing cost and cabin space as issues with the old RWD layout. The switch to the new FWD layout will set back Volkswagen's launch of the up! by about 5 months bringing the original 2010 launch back to sometime in 2011. The up! is expected to be offered in three different body styles (hatchback, minivan, and sedan), and is expected to be offered in Europe and emerging markets.

No announcement has been made as to whether the up! will be offered in North America.

Source: Autoblog

Volkswagen considering bringing Polo to US

With the recent rise in gas prices and the big environmental push coming from all directions, car manufacturers are under pressure to provide small, fuel-sipping cars for the masses. Most major manufacturers already have one in the US market, leaving Volkswagen playing catch up. If only something like the Polo was available in the US market, that would be perfect for Volkswagen.

As it turns out, Volkswagen of America CEO Stefan Jacoby feels the same way. In a recent interview with Bloomberg, Jacoby said that Volkswagen is considering bringing a subcompact vehicle into the US market. Although he did not specifically mention the Polo, it is a move in the right direction and one that is a long time coming.

If it is the Polo that they do decide to introduce into the US market, it will probably be one of the vehicles to be assembled in the recently announced Volkswagen plant in Tennessee, as the key to selling a successful subcompact in the US market is the correct price point, something that may be hard to come by if the Polo had to be imported.

Just a disclaimer, though: this isn't the first time we've heard about the Polo or some other subcompact making its way to the US. Don't get your hopes up until we hear something official from Volkswagen.

Source: Bloomberg

BREAKING: Volkswagen selects Chattanooga, Tennessee for US plant location

It's been a long time coming and finally it's here. Volkswagen has announced today that the forthcoming Volkswagen production plant in the US will be located in Chattanooga, Tennessee. A slight surprise considering Alabama was considered to be the front runner. No matter, the return of an American assembly line signals that Volkswagen is now fully committed to the US market.

Volkswagen's press release (after the jump, as always) remains mum on the finer details. All it revealed was that the plant will build "a new midsize sedan designed specifically for the North American market," undoubtedly the Passat replacement. So when it comes online sometime in 2011, expect only one car on the assembly line with an output of 150,000 units but also expect that to increase as Volkswagen attempts to achieve their goal of 800,000 units sold in the US by 2018.

Source: Volkswagen

Press Release

Company will invest $1 billion and bring about 2,000 direct jobs to tri-state area

HERNDON, Va. (July 15, 2008) - Volkswagen Group of America, Inc. announced today that it will build a U.S. automotive production facility in Chattanooga, Tenn., where it will produce a car designed specifically for the North American consumer and invest $1 billion in the economy. The announcement is an important element of the company's overall U.S. strategy of connecting with its customers, increasing its competitiveness and tripling its U.S. customer base in the next decade.

"The U.S. market is an important part of our volume strategy and we are now very resolutely accessing that market," said Prof. Martin Winterkorn, CEO of Volkswagen AG. "Volkswagen will be extremely active there. This plant represents a milestone in Volkswagen's growth strategy. We will be selling 800,000 Volkswagens in the U.S. by 2018, and this new site will play a key role. This, along with our growth strategy, is a prerequisite for the economic success of the company in the dollar region. We look forward to establishing an important mainstay for ourselves when we become the biggest European carmaker there."

"This is a significant step forward in achieving our goals in the U.S. market and a clear sign of the Volkswagen Group's commitment to the North American consumer. Today's decision is a fundamental part of our new strategic direction in the U.S. and our five-pillar strategy," said Stefan Jacoby, President and CEO of Volkswagen Group of America. "Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition."

The company will build the facility in the Enterprise South Industrial Park, located 12 miles northeast of downtown Chattanooga. The 1,350-acre site is 100 percent owned by the city of Chattanooga and Hamilton County and is certified as an industrial megasite by the Tennessee Valley Authority. Enterprise South is adjacent to Interstate 75. Initial production capacity for the facility is anticipated to be 150,000 vehicles, including a new midsize sedan designed specifically for the North American market. Production is scheduled to begin in early 2011.

"I'm enormously pleased by the announcement from Volkswagen Group of America and grateful for the company's investment in Chattanooga and in the people of Tennessee," said Tennessee Gov. Phil Bredesen. "I believe Volkswagen chose Tennessee because of our shared values, our commitment to innovation and our strong respect for the environment. This project will have a significant impact on the economy of Tennessee and the region for decades to come."

"I couldn't be more pleased that the spirit of partnership between the state of Tennessee, Volkswagen and the government and business leadership of Chattanooga and Hamilton County has resulted in this significant investment in Enterprise South," said Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development. "Volkswagen's investment in this community means the hard work and dedication demonstrated by people at the state and local level to create one of the best business climates in the country is paying off."

"We started with a vision of transforming an idle Army facility into the source of thousands of family-wage jobs," said Hamilton County Mayor Claude Ramsey. "Over the last 14 years, I've worked with four different city mayors as well as county commissioners, city councilmen and countless others in overcoming barriers and objections to that plan. Today, we stand with our new friends from Volkswagen to make a historic announcement that will create new opportunities for our community for years to come."

"Volkswagen and Chattanooga have a lot in common," said Chattanooga City Mayor Ron Littlefield. "Both are serious about environmental sustainability and 21st Century manufacturing."

Environmental responsibility is a core value of the Volkswagen Group. The company's focus on sustainable mobility and environmentally responsible manufacturing are right in line with Chattanooga's strong environmental commitment. As an expression of this shared commitment, the state of Tennessee, Volkswagen and Chattanooga-area organizations are partnering to distribute two saplings for every tree displaced by the project. The new trees will be planted by local school children.

According to United States Sen. Bob Corker, who was mayor of Chattanooga when the city and Hamilton County acquired the land and established Enterprise South as an industrial park, the Volkswagen announcement represents a new chapter in Chattanooga's success story. "Through twists and turns, our community has maintained focus, invested wisely and exercised tremendous effort and energy in recruiting a major employer to Enterprise South. The breaking of this final barrier and the realization of the vision to which we have held true will take us to levels we can only begin to imagine," said Corker.

He continued, "Volkswagen is the very best manufacturer and partner we could possibly have in terms of our shared values, and as a result of their enormous investment, not only will Chattanooga be forever changed, but our entire state will reap great benefits from the new suppliers that this facility will attract to the region. I am proud to have been part of a dedicated team that has worked seamlessly on this effort and celebrate this outstanding achievement for our city and our state."

United States Sen. Lamar Alexander praised Volkswagen's decision to locate at Enterprise South, saying, "Volkswagen and Chattanooga, the ideal marriage: one of the world's most admired companies and one of America's most livable cities. This decision keeps Tennessee on the road to becoming the No. 1 state in auto jobs. Congratulations especially to Gov. Bredesen, Sen. Corker and Mayors Ramsey and Littlefield for their leadership," Alexander concluded.

"Over the past seven months, more than 100 Tennesseans at the local, state and federal level have worked odd hours on short deadlines to help us reach this day," said Trevor Hamilton, vice president of economic development for the Chattanooga Area Chamber of Commerce. "From this day forward, we dedicate ourselves to partnering with Volkswagen to move from construction to production as quickly as possible. We will unify our team with Volkwagen's to ensure long-term success for the company, our community and the state of Tennessee."

With the new plant, Volkswagen will bring about 2,000 direct jobs to the area, and will add a significant number of jobs in related sectors. It is expected that these jobs will come from the tri-state area, pulling from the labor force of Tennessee as well as Georgia and Alabama. Volkswagen of America received an attractive, comprehensive package of incentives for the new facility from Gov. Bredesen's office and the Tennessee Department of Economic and Community Development. The statutory incentives are tied to job creation and capital investment. Additional support includes assistance for public infrastructure and job training, each designed to ensure the local economy best leverages Volkswagen's investment to benefit the local work force and ensure the facility's success.

"This area has a deep base of well-trained labor, with excellent engineering and manufacturing programs at the universities and technical colleges," added Jacoby. "Thanks to the visionary leaders and people of Chattanooga, we're confident that the values of this area are compatible with our own, and we envision a long and productive partnership."

Last year, Volkswagen outlined a new strategic direction in the U.S. based on five pillars: product, brand positioning, dealer network, organization and local production. As it moved forward to assess the potential for local production, the company considered many other site options and earlier this year had narrowed its search to Alabama, Michigan and Tennessee.

"We reviewed three excellent sites, all of which had the specific qualities necessary to build a plant in the United States," said Jacoby. "Both Gov. Granholm and Gov. Riley were strong advocates on behalf of their states and the citizens they represent. This was a difficult decision, but we look forward to continuing our relationships with both states. I thank both governors and their staffs."

Alabama purported to be front runner to get US plant

Although Volkswagen higher-ups met on the 8th to talk about the forthcoming plans to have an assembly line running in the US, the final decision for where exactly they will build it will not be made until tomorrow. And it appears that between the two top favourites, Alabama is edging out Tennessee as the prime location for Volkswagen to put down $788 million.

The plant should be operational by 2011 and will build the (Mk. VI?) Jetta and the Passat replacement for the North American market. Down the pipe line, a long wheelbase Tiguan and Audi Q5 may be possible, as well.

Source: Autoblog

Hanover loses Robust Pick Up Production

Stephan Schaller current head of Volkswagen Commercial Vehicles has announced that due to rising costs and tough CO2 laws the new Robust Pick Up will not be manufactured in Germany.

This however does not mean that Europe will miss out as originally reported on the Automobilwoche website, with another article dated 4th of July confirming Europe will get it.

Volkswagen Commercial Vehicles sees strong potential for the Argentine built truck where exports will account for the majority of the 90,000 per year production.
Brazil and South Africa are mentioned in the article as key markets for the Robust.

Source: automobilwoche

The Next Generation of the most successful automobile in South America: The new Gol is being launched

Hello fellow VW Gazette Readers !!!

I can now finally reveal the all new VW Gol !!

The new Gol comes from a huge family of 5.7 million other Gol variants roaming the globe under the alias' of Pointer, Fox, Parati, Saveiro, Voyage, Amazon and Gacel.

This new Gol is based upon components within the the VW Empire mainly the Fox and Polo, as such engines comprise of a 1.0L and 1.6L which uses VW's new VHT - Volkswagen High Torque which gives the Gol range a high torque at lower revs, it also means that the Gol will continue the TotalFlex strategy, which means the engine can run on Ethanol and Petrol or a combination of the both.

I'm 100% sure this new Gol will reach most of all the continents, as VW plan to market it in Russia, China and possibly India as well as South East Asia and Eastern Europe where it will be badged as a Skoda.

New Gol will also sprawn additional variations a sedan, utility, van and a crossover, the sedan Voyage will launch in October at the Brazilian Motor Show in Sao Paulo, the new Saveiro utility will follow sometime next year.


Festive premiere in Saõ Paulo with 10,000 guests in attendance- President Luiz Inácio Lula da Silva will be offering his congratulations Saõ Paulo, 01 July 2008 - Now that more than 5.7 million cars have been made here, the Next Generation of the most successful automobile in South America for the last 21 years is being launched: the Gol by Volkswagen. This compact car, which is manufactured in Brazil, is precisely geared toward the local demands of customers in South America. Hence the Gol can be driven on any mixture ratio of gasoline and ethanol without the slightest loss of horsepower thanks to its Totalflex technology, like all the Volkswagen models made in Brazil.

President Luiz Inácio Lula da Silva was invited by Viktor Klima, VW’s South America head. He was the first person to take a seat behind the steering wheel of the new Gol, as Garcia Sanz, member of the board of management, elucidated the main features and significance of this economical compact car: "It’s simply a captivating automobile, which is going to write a new chapter in the success story of the Gol," Sanz said.

Lula da Silva recollected the beginnings of the bivalent Volkswagens, which are primarily operated in South America with ethanol made from sugarcane: "A couple years ago I was inaugurating the production of TotalFlex vehicles here. It all began with a few cars for a test phase, and nowadays nearly every single car in Brazil is running with renewable fuel."

Ulrich Hackenberg, member of the board of management for the Volkswagen brand, in charge of Technical Development, underscored Brazil’s importance as a development location: "The New Gol’s design and technology were conceived here; this Volkswagen, like every other model we make, stands for topmost quality as well as technological innovation." Thomas Schmall, President of Volkswagen do Brazil, particularly extolled the commitment of all the employees at the two plants at Anchietá and Taubaté. "The Gol is a goal that’s shot for Brazil," said Schmall, in a reference to the soccer world.

Europe’s largest car manufacturer has been active in Brazil since 1953. It produces automobiles, buses and heavy trucks as well as engines and gear boxes at five locations, employing about 21,000 people. 18 million vehicles have rolled off their conveyor belts since then. In the 1970s Volkswagen was the first automobile manufacturer that, in conjunction with Brazilian engineers, locally developed vehicles for the regional South American markets. Volkswagen provides the greatest variety of all car manufacturers in Brazil, offering 17 models, and maintains a network of about 600 dealers.

Brazil is the second largest foreign market for the Volkswagen Group after China. Last year the corporation sold 581,300 vehicles here, 32 percent more than in 2006. VW do Brasil is not merely one of the largest privately held companies in Brazil but operates as automobile supplier for all of South America as well. Twelve percent (744,200 vehicles) of all deliveries of the Volkswagen Group were accounted for in this region in 2007.









Source: Volkswagen

UP: Volkswagen reports June sales results

Best Overall Sales Month Since August 2006

HERNDON, Va.— Volkswagen of America, Inc. today announced June 2008 sales of 23,208 units, a 0.3 percent increase over the June 2007 sales of 23,137 vehicles. On a year-to-date basis, 2008 Volkswagen sales remain 0.6 percent ahead of 2007 sales through June.

June reflects Volkswagen’s best sales month since August 2006. The Passat wagon had its best sales month since January 2007 with sales up 25.9 percent over June 2007. Volkswagen’s innovative coupe-convertible-sunroof Eos continues to be a summertime top-seller with sales of 1,632 unites, up 14 percent over last June.

About Volkswagen of America, Inc.

Volkswagen of America, Inc. recently announced Electronic Stabilization Program (ESP) as standard equipment on all its 2009 model year vehicles. As a result, Volkswagen is one of the only original equipment manufacturers to offer an electronic stabilization control system on its entire product line – ahead of the National Highway Traffic Safety Administration’s (NHTSA) deadline requiring stabilization systems in the 2012 model year vehicles. Volkswagen’s ESP technology works in conjunction with anti-lock brakes and helps reduce loss of control, rollovers and other types of crashes. NHTSA predicts nearly 10,000 lives could be saved each year if all vehicles had stabilization systems as standard equipment.

Founded in 1955, Volkswagen of America, Inc. is headquartered in Herndon, Virginia. 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, Jetta, GLI, Passat, Passat wagon, Eos, and Touareg through approximately 600 independent U.S. dealers. Visit Volkswagen of America online at vw.com.

Detailed numbers after the jump.

Source: Volkswagen