1970 Volkswagen Karmann Ghia Base 1.6l on 2040-cars

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VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.

2015 VW Golf SportWagen priced from $21,395*

Now known as the Volkswagen Golf SportWagen in the US, the long-roof version of the platform gets larger for its new generation in 2015, but it also sheds up to 137 pounds and cuts some money off the price of some models. The base now begins at $21,395, plus $820 destination on all versions, when they arrive at dealers in April. Volkswagen claims that with all of the extra standard content, buyers actually save $700 compared to the previous-gen Jetta SportWagen, despite its lower $20,995 starting price. The S trim is the least expensive model and comes with a five-speed manual and 1.8-liter turbocharged four-cylinder making 170 horsepower. Paying an extra $1,100 adds a six-speed automatic. The SE for $26,995 gets the auto as standard and also includes a panoramic sunroof, front foglights, push-button start and a rearview camera. The top SEL for $29,345 further features chrome roof rails, navigation, a 12-way power driver's seat and more. In addition to the gas engine, buyers can choose the 2.0-liter TDI with 150 hp and 236 pound-feet of torque, and VW quotes EPA estimates of up to 43 miles per gallon highway fuel economy for it. All of the trims with the oil burner come with a six-speed manual, but a six-speed DSG is a $1,100 extra. The base TDI S trim starts at $24,595, which is nearly $2,000 less than the last-gen Jetta SportWagen with a diesel, and buyers also get standard push-button start and a rearview camera. The SE and SEL trims offer similar upgrades as their gasoline counterparts and ring up for $27,995 and $30,345, respectively. Of course, many buyers want extra tech for their cars, and VW is offering two packages of options for the SE and SEL trims with either engine. One adds collision warning, automatic post-collision braking and front and rear parking sensors for $695. The Lighting Package includes adaptive Bi-Xenon headlights, LED running lights and LED interior lighting for $995. VOLKSWAGEN ANNOUNCES PRICING OF 2015 GOLF SPORTWAGEN ? New TDI® S model reduces base Clean Diesel pricing by almost $2,000 ? Newly available driver assistance technology includes Forward Collision Warning and Automatic Post-Collision Braking System ? Larger interior than outgoing Jetta SportWagen rivals compact SUVs for size ? Car will be offered with 1.8-liter turbocharged TSI® gasoline and 2.0-liter TDI Clean Diesel engines ?

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.