1973 Volkswagen Camper on 2040-cars

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VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.

VW Up Buggy may be headed to showrooms

Volkswagen showed six conceptual takes on its Up at the 2011 Frankfurt Motor Show, one of those being the Up Buggy. Although few will probably remember it, VW has not forgotten it, applying for a patent for the Meyers Manx revival roadster way back in March 2012 and being approved in June of this year, according to a report in Autocar. That will give the automaker a 14-year lock on the design while it decides whether to move forward with a reboot of its past.
A patent doesn't mean the Up Buggy will ever move beyond the sheet-of-paper stage, but Autocar says VW is studying the market to see if a production version is feasible. We can't see North America ever getting it, but even so, we wouldn't complain if they made it - especially if they put an exposed engine in back that was set off by 18-inch-long twin tailpipes jutting straight up into the air. However, for a company that aims to be the world's number-one automaker by 2018, a niche vehicle for its mass-market brand would be a surprising use of resources.

Porsche 911 with VW turbodiesel prepares for LeMons assault

LeMons racing is a wonderful example that setting limits can actually breed creativity. The series mandates that all entries must cost $500, not counting safety equipment, and that cap forces teams to be ingenious in how they build a racecar. Take for example this diesel-powered Porsche 911, which its creators have dubbed Ferkel the Nein-11, that will be racing in the Sears Pointless race this weekend in Sonoma, California.
This Frankenstein combines a 911 chassis that was originally bought just for its European powertrain and a Volkswagen TDI diesel engine mounted in the rear. After deciding the shell could still be of some use, the team decided to go racing. "We began brainstorming what replacement drivetrain to use for maximum offense and there was really only one answer: a diesel," said Philipp von Weitershausen, one of the team captains, to Jalopnik. They bought a 1998 Jetta TDI on the cheap and started figuring out a way to hack the engine into the bay. To pay respect to the donor, the VW's trunk was highly modified (and drilled) and grafted onto the back of Ferkel.
This team isn't a newcomer to LeMons. Its last car was a classic VW Beetle with a Subaru engine and dual controls, named Ferdinand the Bug, which could be driven from the left or right side. It's quite a sight.