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VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

VW Sport Coupe Concept GTE 'marks beginning of a new design era' [w/video]

You didn't think that Volkswagen was going to come to Geneva armed only with a bunch of European-market minivans and wagons, did you? Of course not. Last week VW gave us our first glimpse at a new show car for the Swiss auto expo, and here it is in full: the Volkswagen Sport Coupe Concept GTE. Set to be unveiled at the Geneva Motor Show this week, the Sport Coupe is envisioned as a successor to the current CC, but beyond previewing a specific model, this concept showcases a new design language that's set to characterize all new VWs to come. And judging by how good it looks from the images in the slideshow above, that could prove to be a very good thing indeed. The concept strikes us as the sleekest iteration yet of the company's flexible MQB architecture that already underpins vehicles as small as the Golf and as large as the new Skoda Superb. It's larger than the current CC in every dimension but height, and pushes the wheels further out on a longer wheelbase. And with a liftgate at the back instead of a trunk, it strikes a form more similar to the Audi A7 than the Passat-based CC. As with recent past concepts, VW has taken the opportunity to showcase its hybrid powertrain technologies, fitting the Sport Coupe with a plug-in hybrid system that couples a 3.0-liter turbocharged V6 to a pair of electric motors and a six-speed dual-clutch transmission. The internal combustion engine drives 295 horsepower and 369 pound-feet of torque to the front wheels, while an electric motor integrated into the gearbox contributes another 54 hp and a second one kicks in 114 hp at the rear. Juiced by a lithium-ion battery housed in the center tunnel and offering all-wheel traction, the combined output of 374 hp is said to be capable of propelling the concept to 62 miles per hour in five seconds flat and on to a top speed of 155 mph. It can travel for 32 miles on electric power alone and on to an overall range of 745 miles, netting the equivalent of 118 miles per gallon on the European cycle. Inside, the four-seat cabin is laden with digital displays: there's a 12.3-inch unit – dominated by the speedo and power meter – in place of a conventional instrument cluster. The center stack incorporates a 10.1-inch infotainment display, and the rear-seat passengers have access to another 12.3-inch display at the back of the center console and another pair of 10.1-inch displays in the seatbacks.

VW XL1 priced at $169,000 in UK, only 30 will be sold there

Volkswagen has announced the pricing of its XL1 diesel plug-in hybrid for the UK, according to Car magazine. The small, uber-efficient two-seater will start at GBP98,515, or roughly $168,930 at current exchange rates. Additionally, only 30 units of the XL1 will be sold throughout the UK, giving it a rareness appropriate for its lofty price. It's nice to finally be able to stop speculating about the XL1's price. Even as recently as the first XL1 delivery in Germany, we were still mostly in the dark concerning the cost of the slippery VW. But is the price worth it, especially considering that the much sportier BMW i8 can be had for just a bit more (GBP99,895, or $171,460, in the UK)? Car seems to think so, noting that the XL1 is an eco and technology pioneer, and saying that its cost of ownership is "merely the price of progress." Plus, that includes the bragging rights of owning the world's most fuel-efficient car. The XL1's two-cylinder turbo-diesel engine displaces just eight-tenths of a liter and produces 47 horsepower. The internal combustion engine operates alongside a 26-horsepower electric motor powered by a 5.5-kWh lithium-ion battery pack. Despite its 2.64-gallon fuel tank, the XL1 has a maximum driving range of over 700 miles thanks to a 261-mpg rating (based on the European cycle). Unfortunately, we won't be able to do any bladder-busting, nonstop Chicago to DC road trips any time soon, as VW has no plans to bring the XL1 to North America - not that one would relish the experience of dicing it up with America's massive trucks and SUVs. If you want to drive one, you'll have to go to Europe, and you'd better have a very large piggy bank you're prepared to break open.