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VW pondering low-cost sub-brand for China?

More detail is being sketched into the Volkswagen Group's plan to launch a low-cost brand for emerging markets. Late last year a German report quoted a VW rep saying that the brand has been interested in building a no-frills car, the kind that would challenge Dacia and Datsun, for a while. With both Proton and Suzuki effectively out of the partnership picture, a report in Reuters suggests VW could go straight to China, developing a car with its joint venture partners and building and selling it there.
Officially, company CEO Martin Winterkorn said the issue of a model for emerging markets would be decided this year but VW isn't any closer to confirming any kind of plan for a car in its portfolio underneath the Up!, remarking to Reuters about the China possibility, "That's an issue we're currently looking at."

Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen

Volkswagen unveils sportier Passat Performance Concept ahead of Detroit debut

Ahead of its official unveiling at next week's Detroit Auto Show, Volkswagen has released some preliminary details and images of its Passat Performance Concept - a car that, as its name suggests, adds a little more spice to the automaker's midsize sedan formula. VW makes no mention of any production intent for this road-ready-looking sedan, simply stating that the Performance Concept is a way to "explore this practical four-door's sportier side."
It certainly doesn't look too sporty, the only visual upgrades being larger 19-inch wheels, dual exhaust, bi-xenon headlamps with VW's Advanced Front Lighting system, LED taillmaps and carbon-look mirror caps. Inside, there are carbon interior accents and two-tone leather upholstery. But no matter, the real upgrades for this mightier Passat are found below the sheetmetal.
Powering the Performance Concept is a 1.8-liter turbocharged four-cylinder engine, churning out 250 horsepower and sending its grunt to the ground via a six-speed automatic transmission. For reference, that's 80 more horsepower than the Passat's base 2.5-liter inline-five, but 20 horsepower less than the potent 3.6-liter VR6. As for other performance upgrades, Volkswagen has fitted the car with a lowered sport suspension and revamped electronic steering, which should indeed add a bit more dynamic feedback to the already nice-driving sedan.