2010 Jetta Tdi Diesel Wagon, 6 Speed Manual, Panoramic Roof on 2040-cars

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VW, Suzuki mulling rekindling relationship in face of legal battle

Volkswagen and Suzuki have been undergoing marriage counseling in a bid to avoid finalizing their nasty divorce. The blissful union has been troubled for some time, with Volkswagen claiming that it could affect operational decisions at Suzuki, and the Japanese brand's sniping and constant flirting with a certain Italian temptress causing rifts.
The matter first went to court in 2012, when Suzuki demanded VW get out, and leave its 19.9-percent stake in the Japanese brand in a box to the left. Now, Automotive News is reporting that the company will give the relationship one last shot, according to closed-door dealings between the two in London.
Still, it's understood that VW and Suzuki recognize the benefit of their alliance, and that it'd be in the best interests of the kids both parties to make things work. Spokespeople declined to comment to AN, but the newsmagazine spoke with Frank Biller, an analyst for LBBW in Stuttgart, who said, "Both companies stand to benefit if they can overcome the disagreements over leadership claims."

Submit your questions for Autoblog Podcast #299 LIVE!

We record Episode #299 of the Autoblog Podcast tonight, and you can drop us your questions and comments via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #299
2013 Honda Accord

Volkswagen building budget car family planned for China in 2018

Volkswagen has publicly pondered a low-cost car for China, something akin to Nissan's Datsun revival in Southeast Asia, for at least three years. In 2013 it tapped Chinese partner FAW to help develop an entire budget brand, with plans to have something on the market in 2016 in the 6,000- to 8,000-euro range. About a year ago, VW said it couldn't figure out how to engineer an inexpensive car that didn't run counter to the brand's values, then three weeks later said it had overcome the issues. Reuters now reports that VW CEO Martin Winterkorn told German newspaper Bild am Sonntag, "We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback." Winterkorn didn't offer any other details like who VW would work with to build it - VW has partnerships with both FAW and SAIC, but the announcement will be welcomed by the brand's Chinese outpost. When this adventure started, VW said it was working to create a model that would cost 6,000 to 8,000 euro. That estimate has increased. Winterkorn is now saying the 2018 offerings will come in between 8,000 and 11,000 euro. In a straight euro-to-yuan conversion, that would equate to Chinese pricing of 56,000 to 77,000 yuan. For comparison, the New Polo with a 1.4-liter engine and a manual transmission starts at 85,900 yuan. Perhaps with an eye on the success of the Nissan-Renault sub-brand Dacia in Europe and emerging markets, Winterkorn told Bild, "We will see if this is something of interest for other markets as well." On the opposite end of the price/performance spectrum, Winterkorn also said that VW is working on two new models for Bugatti, one powered by a traditional gasoline engine and another with some sort of hybrid setup. The latter model would reportedly be the higher-performing of the two, though it's not clear whether there would be two vehicle lines or two versions of the same vehicle. As ever, as soon as we know more, so will you.