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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offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal.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.

Volkswagen reveals Beetle GSR, R-Line convertible and two special GTIs

Volkswagen has chosen to really expand its performance-tuned portfolio at this year's Chicago Auto Show, bringing along a couple of new Beetles destined for model year 2014, as well as a pair of freshened GTI packages that you'll be able to buy almost right away.
The first, and splashiest of the Chicago goodies on the VW stand has got to be the 2014 Volkswagen Beetle GSR. Don't lose your temper, Acura Integra geeks; in this case, GSR stands for "Gelb Schwarzer Renner" or "Yellow Black Racer," and harkens back to a sport-tuned classic Beetle from the 1970s. For the 2014 iteration, the GSR gets a 210-horsepower version of VW's 2.0-liter turbo four-cylinder. That engine is enough to push the Beetle to 60 miles per hour in 6.6 seconds, and up to a top speed of 130 mph.
Of course, you'll have long-since noticed the shockingly yellow-and-black livery before you stumble across the Turbo badge on the rear deck. The GSR gets 19-inch alloy wheels, 235-section tires and a tea-tray rear spoiler, but it's the paint and graphics package that will decide if this is your (lemony) cup of tea. Things don't get any subtler inside the car, either, as VW has carried the colorway through to the interior, as well. Only 3,500 Beetle GSRs will be produced, with just more than half of those going to the US - call your dealer today, Wiz Khalifa.

Chief designer Walter de Silva out at Volkswagen

After decades of penning beautiful machines, Volkswagen Group design boss Walter de Silva will retire at the end of November but will still hold an advisory role. He has led the styling for the automotive giant's brands since 2007. The company's statement didn't announce a successor for him. De Silva began his design career at Fiat in 1972 and led styling at Alfa Romeo from 1986 to 1998. He first joined VW Group with Seat but made a big splash at Audi in 2002. His work there included the sixth-generation A6, A5, and the fantastic R8. Later, he created a great take on the classic Leica M9 camera, too. VW praised de Silva's creation of a design culture that spanned its division but still allowed for creativity within each one. "Walter de Silva epitomizes creativity and the Italian sense of beauty and style on the one hand and thoroughness, a systematic approach and discipline on the other," CEO Matthias Muller said in the announcement. De Silva's retirement could bring a major change in the way VW Group organizes its studios, according to Automotive News. The automaker reportedly wants to cut its annual styling budget and might not seek a replacement for him. Walter Maria de Silva takes retirement Head of Group Design established common design culture across all brands while retaining creative autonomy of each individual brand Walter Maria de Silva Walter Maria de Silva Walter Maria de Silva (64), Head of Group Design, is retiring with effect from the end of November. De Silva assumed design responsibility for all passenger car brands within the Volkswagen Group in February 2007. Walter de Silva will continue his links with the Group in an advisory capacity. Walter Maria de Silva was born in Lecco (Italy) on February 27, 1951 and joined the Volkswagen Group 17 years ago when he became Head of the SEAT Design Centre in 1998. He was put in charge of the design of the Audi brand group, including the brands Audi, Lamborghini and SEAT, in 2002. His new design language with Audi was epitomised by the 6th generation of the Audi A6 and Audi A5 Coupe. He was appointed Head of Group Design at Volkswagen Aktiengesellschaft in 2007. Walter de Silva saw the main focus of his work as design chief in establishing and nurturing a common design culture across all brands, which nevertheless allows each brand to retain a high degree of creative autonomy.