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Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.

This Or That: 1987 VW Vanagon Syncro vs. 1987 Land Rover Defender [w/poll]

As I scoured auction sites and classified ads for the perfect vehicle to take into battle with Autoblog Associate Editor Brandon Turkus, I knew I needed to find something unique. You see, I'm currently 0-2 at winning a round of This or That, in which two of our editors agree on a category, choose a side, and argue it out over a (mostly) friendly chain of emails.
The first time we did this, my chosen Fiat 500 Abarth took about a third of the popular vote in our reader poll. The second time, my lovely 1980 Oldsmobile 442 did just a little bit better against a 1989 BMW 635 CSi. Despite holding the opinion that my automotive choices, though perhaps a little bit more... obscure than my fellow editors, are still better, an outright win would go a long way toward boosting my vehicular self worth a few notches upward.
With all of that out of the way, even if three isn't my lucky number after all, I go into battle against Brandon knowing full well that I've made the perfect choice: A 1987 Volkswagen Vanagon Syncro. My rough-and-tumble van/'ute has a formidable opponent in the form of a 1987 Land Rover Defender, which, truth be told, is exactly what I was expecting from Turkus, a self-proclaimed Rover aficionado.

Volkswagen planning Up! hybrid model using XL1 powertrain

Even though we've finally gotten a look at the production version of the 261-mile per gallon Volkswagen XL1, this aero-shaped two-seater was never intended for high-volume sales. Fortunately, it sounds like the same isn't true for the car's diesel plug-in hybrid powertrain, which, according to a report from AutoCar, could make its way under the hood of another Volkswagen model: the Up! minicar (shown above).
A potential Up! Hybrid would likely be able to return some of the same impressive fuel economy numbers as the XL1, but it would be a more realistic car with more passenger space and greater production capacity. The hand-built XL1 will use a 47-horsepower, two-cylinder TDI engine paired to a seven-speed dual-clutch transmission, and the 27-hp electric motor and lithium-ion battery helps deliver an all-electric driving range of 31 miles.
One of the core pillars of the XL1's design is its lightweight construction with a 1752-pound curb weight, which makes the Up! a perfect recipient for using this powertrain since it weighs just 300 pounds more. The report says that the Up! Hybrid is still in the developmental phase, so a production version isn't expected for at least another 18 months.