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VW still set on Phaeton redux despite cost-cutting drive and losing $32k per car

While critically well regarded, the Volkswagen Phaeton has proven to be a vehicle largely unloved by luxury buyers around the world. Despite this, it refuses to die. While VW's luxury sedan hasn't been sold in the US since 2006 due to low sales here, it has soldiered on in Europe with occasional updates. As the model's long lifespan has been winding down, VW has decided to keep pushing the Phaeton into a new generation, despite in-house alternatives like the Audi A8 and Bentley Continental Flying Spur. The move might not make much business sense, but Volkswagen executives are determined to make the Phaeton work. According to market analysts speaking to Reuters, developing the next-gen luxury sedan on the MLB platform could cost as much as 650 million euros ($737 million), despite relying on the same underpinnings in the A8. It's not like the Phaeton is leading the luxury sedan sales ranks, either. Reuters notes VW produced just 5,812 of them in 2013 (the most current year with data), and from 2002 to 2012, the automaker reportedly lost 28,000 euros ($32,000) on each example sold. Conversely, Mercedes-Benz sold 103,737 units of its new S-Class in 2014, an astonishing 82.2 percent jump over the previous year. The decision to keep the Phaeton going doesn't seem to square with the VW brand's cost-cutting strategy. Boss Martin Winterkorn announced last year a plan to save 5 billion euros ($5.7 billion) annually in the coming years. That plan reportedly also includes killing off less profitable models. Apparently, VW can't just rip off the band-aid and get rid of the Phaeton. Even some VW bosses seem somewhat perplexed at the sedan's business case. When Reuters asked the company's US boss Michael Horn about selling the Phaeton here, he said. "That's a dangerous question. It's an image bearer with no relevance for volume." The next-gen Phaeton is scheduled to go on sale in Europe in 2017 or 2018, according to Reuters, which is about a year later than previous rumors. A US launch will reportedly follow in 2018 or 2019 with the plug-in hybrid and potentially even diesel versions on offer. A starting price around $70,000 is estimated. Featured Gallery 2011 Volkswagen Phaeton View 15 Photos News Source: ReutersImage Credit: Volkswagen Plants/Manufacturing Volkswagen Luxury Sedan vw phaeton cost cutting

VW Group recalls 27k Touaregs, Audis and Porsches for fuel leak

The Volkswagen Group is one of the most expansive in the entire industry, and shares parts across more product lines than we could wrap our heads around. So when the German megalith finds a fault in one of its components, it has the capacity to spread like wildfire. The latest set of recall notices from the National Highway Traffic Safety Administration covers vehicles from the Volkswagen, Audi and Porsche divisions. The problem revolves around the fuel injection system, which could potentially leak and cause a fire. The recall affects – deep breath now – the 2012 VW Touareg Hybrid, the 2011-12 Porsche Cayenne S Hybrid and Panamera S Hybrid, 2011-12 Audi S4, S5 and Q7 and the 2012-13 Audi A7. All told, that amounts to 27,376 units, the owners of which can expect to hear from the manufacturer to have the fuel rails replaced, along with their corresponding seals (having nothing to do with marine mammals writing letters). RECALL Subject : Fuel Injection System Fuel Leak Report Receipt Date: JAN 20, 2015 NHTSA Campaign Number: 15V019000 Component(s): FUEL SYSTEM, GASOLINE Potential Number of Units Affected: 26,008 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2011-2012 Audi S4, S5, Q7, 2012 Audi A6, Volkswagen Touareg Hybrid, and 2012-2013 Audi A7 vehicles. In the affected vehicles the fuel injection system may experience a fuel leak. CONSEQUENCE: A fuel leak in the injection system in the presence of an ignition source, increases the risk of a fire. REMEDY: Volkswagen will notify owners, and dealers will replace the fuel rails and corresponding seals, free of charge. The recall is expected to begin March 10, 2015. Owners may contact Audi customer service at 1-800-822-2834 or Volkswagen customer service at 1-800-893-5298. Volkswagen's numbers for this recall are 24AP for Audi customers and 24BK for Volkswagen customers. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. ### RECALL Subject : Fuel Injection System may Leak Report Receipt Date: JAN 20, 2015 NHTSA Campaign Number: 15V016000 Component(s): ENGINE AND ENGINE COOLING Potential Number of Units Affected: 1,368 Manufacturer: Porsche Cars North America, Inc. SUMMARY: Porsche Cars North America, Inc.

VW issues orders for police version of e-Golf

If the Toyota Prius could be used (in fiction, anyway) as a quiet way to do a drive-by shooting, then a pure electric vehicle should have some silent benefits for the police. It's happening in the real world thanks to the new police-spec VW e-Golf. On display at an international police equipment conference in Germany this week (the Internationalen Fachmesse fur Polizeiausrustung), the 5-0-ready EV has a special paint job as well as the required top lights and digital communications gear. VW says the special e-Golf also stands ready to serve the mission of emissions reduction. The powertrain is the same as what you'll find in the civilian e-Golf, which means an 85-kW electric motor that can zip up to 62 miles per hour in 10.4 seconds and a li-ion battery that provides something between 80 and 118 miles of range. We imagine using this little car for a high-speed car chase will shrink that down a bit. Volkswagen Konzern prasentiert Fahrzeuge mit Spezialausstattung auf Polizei-Fachmesse Internationale Premiere: Der e-Golf* als Polizei-Einsatzfahrzeug Der Volkswagen Konzern prasentiert eine breite Palette seiner Fahrzeugmodelle mit speziellen Polizei-Sonderausstattungen auf der 8. Internationalen Fachmesse fur Polizeiausrustung. Vertreten sind die Marken Volkswagen, Audi, SEAT, SKODA und Volkswagen Nutzfahrzeuge. Die Volkswagen Leasing GmbH komplettiert als Finanzdienstleister den Konzernauftritt. Die Fachmesse findet vom 9. bis 11. September 2014 auf dem Messegelande in Leipzig statt. Als Messehighlight wird der e-Golf als Polizeieinsatzfahrzeug prasentiert. Damit verfolgt Volkswagen auch in diesem speziellen Fahrzeugsegment das Ziel der Schadstoffreduktion. Die Ausstattung umfasst neben der Sondersignalanlage unter anderem Digitalfunk und das klassische Erscheinungsbild in typisch blauer Beklebung. Ausgestellt werden weiterhin ein Golf Variant, ein T5 und ein Audi Q5 als Funkstreifenwagen sowie ein SKODA Octavia Kombi RS und ein SEAT Leon FR in der zivilen Variante. Fachbesucher finden den Volkswagen Messestand in der Halle 1, Stand H02. Der e-Golf uberzeugt mit einem wegweisend niedrigen Verbrauch von 12,7 kWh/100 km. Der Elektromotor leistet 85 kW/115 PS und entwickelt aus dem Stand maximal 270 Nm Drehmoment. In 4,2 Sekunden werden 60 km/h erreicht, nach 10,4 Sekunden 100 km/h. Die Reichweite liegt je nach Streckenprofil, Fahrweise, Einsatz von Komfort- und Nebenverbrauchern sowie Zuladung zwischen 130 und 190 Kilometern.