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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

2014 Volkswagen GTI to start a new hot hatch era in Geneva

The upcoming Geneva Motor Show is going to be stocked with important new production models and sexy concept cars, but hot hatch enthusiasts will undoubtedly see it as the coming out party of the MkVII Volkswagen GTI. And while we've only got European specifications and pricing to go on for now, we can tell from the get-go that the new GTI will be a proper heir to VW's hot hatch legacy.
This seventh-generation GTI is powered by a turbocharged, direct-injection 2.0-liter four-cylinder engine, which makes 220 horsepower and 258 pound-feet of torque in base form. For the first time ever, Volkswagen is also offering a performance pack for the GTI as well, which ups the horsepower to 230 (torque remains unchanged). With a slightly lower curb weight to push around - the new base car weighs 2,978 pounds versus 3,034 for the current three-door GTI - 0-62 miles per hour is now achieved in 6.5 seconds, and top speed is 153 mph. (Cars with the performance pack offer 0-62 mph in 6.4 seconds, and a 155-mph top speed.) Buyers my choose between a six-speed manual transmission or an optional six-speed DSG unit.
Visually, the new GTI has obviously adopted the slant-nosed looks of the MkVII Golf, though with plenty of added drama. The exterior is dominated by the 17-inch "Brooklyn" wheels wearing 225-section rubber, and the aggressive front fascia gets black honeycombed inserts in the upper and lower grille sections. At launch, Volkswagen will offer the GTI in three colors: the Pure White seen here, Tornado Red and Black. Tartan patterned seats are of course still an option for the interior, while the GTI-specific steering wheel and shift knob are standard.

Interested, then not: Marchionne not 'chasing' a VW merger

Update (March 15, 2017) : Automotive News reports that FCA CEO Sergio Marchionne, regarding the suggested VW and FCA merger, said in a press conference "I have no interest." He also said that he "will not call Matthias," the CEO of VW. He did add that he would be willing to entertain anything VW brings up, but he has "no intention of chasing him." Despite this, Marchionne still took a moment to reinforce his favorable stance concerning mergers and consolidation. Last week, Volkswagen's CEO Matthias Mueller effectively shut down Fiat Chrysler CEO Sergio Marchionne's idea of the two automakers merging. However, it seems Mueller has softened, if only just, to the idea. According to Reuters, the CEO said in a press conference he is "not ruling out a conversation." However, he did say that he would like Marchionne to discuss with him directly the possibility rather than to the media. Though this statement certainly doesn't mean such a merger is happening, it's far more open than when he said outright the company isn't in any talks with anyone at the moment. His new stance also indicates that there may be people (lawyers, accountants, etc.) behind the scenes working out possible ways a merger could work. And even though this new development makes the prospect of a merger between the two companies a bit less bleak, it's still a long way from the "will they, won't they" relationship between GM and FCA. FCA's pursuit of GM involved emailing CEO Mary Barra and the threats of a hostile takeover, the latter of which resulted in some awkward statements about hugs. Only time will tell if VW becomes open enough for Marchionne to talk about hugs again. Related Video: