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As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

2015 Volkswagen Passat Alltrack ready for any road, except in the US

If Volkswagen built a Subaru Outback-fighter for US buyers, the Passat Alltrack would be it, and the new generation of VW's off-roading wagon debuted this week at the Geneva Motor Show. The Passat Alltrack – which is not sold in the United States – takes the car-like demeanor of the Passat and punches it up into a go-anywhere crossover. It has permanent 4Motion all-wheel drive, raised ride height and an electronic differential lock. The body is fitted with modified bumpers with underbody guards, reinforced wheelarches and side moldings with extended sills. There are roof rails on top, and it rolls on standard 17-inch wheels with 18s and 19s optional. The Passat Alltrack offers five direct-injected engines, with the lineup comprised of two turbocharged gasoline mills and three turbo diesels. Volkswagen loaded the vehicle with a wide range of infotainment and safety features, including choices of five radio and navigation units. It also has fully digital instruments, heads-up display and a rear-seat entertainment system setup for laptops. There is also lane-changing assist, rear-traffic alert and trailer-assist features. As spokesman confirmed to Autoblog there are no plans to bring the Passat Alltrack to the US market. The new Passat Alltrack • World premiere at the Geneva International Motor Show • All-wheel drive all-rounder* combines exceptional off-road properties with excellent travel comfort The latest generation of the Passat Alltrack* is celebrating its debut at this year's Geneva International Motor Show. Based on the new Passat Estate, the new Passat Alltrack impresses with an independent off-road look, 4MOTION permanent all-wheel drive and highly advanced technologies. The updated version confidently handles rough terrain, on the one hand, while simultaneously providing excellent cruising comfort – thanks to the driving profile selector and DCC adaptive chassis control. The Passat Alltrack is an independent model within the model series. This can be seen in exterior features such as the modified bumpers (with underbody guard in stainless-steel look), rugged wheel arch and side sill moulding covers in "Anthracite" and sill extensions. Its 27.5 mm higher ground clearance also makes it ready for any driving situation. Anodised silver roof rails, "Alltrack" badges on the radiator grille and tailgate, and custom 17-inch alloy wheels (18- and 19-inch wheel options available) upgrade this Estate even more.