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VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,

Volkswagen could build plug-in hybrids in China

When you're Europe's largest automaker and your largest global market happens to be the one most notorious for its pollution (China), some solutions just present themselves. Volkswagen may be heeding that call. During the upcoming Beijing Motor Show, the company is expected to announce plans to produce plug-in hybrid electric vehicles in China, Reuters says, citing sources within the company. Few details have emerged, though the plug-ins will likely be produced at VW's Foshan factory in South China, which currently makes the Golf and Audi A3 and has plans to eventually make 600,000 vehicles annually. News has been percolating for a while, as Oliver Schmidt, general manager engineering and environmental office for Volkswagen Group of America, said last March that the company was planning at least two plug-in hybrid lines under the VW badge (and another three with its Audi and Porsche affiliates), including possibly a Touareg and Jetta PHEV. VW said late last month that it was looking to speed up development of "particularly eco-friendly models" made by Shanghai Volkswagen as well as developing a "new, very eco-friendly vehicle" with First Automotive Works (FAW). Earlier this year, VW unveiled its Golf GTE plug-in hybrid at the Geneva Motor Show. That model has a 1.4-liter turbocharged four-cylinder engine and an electric motor to provide 201 horsepower and 258 pound-feet of torque. The car can travel as many as 81 miles on electric power alone.

Next Volkswagen Golf R to get 286 horsepower?

The seventh-generation Volkswagen Golf hasn't launched in the United States just yet, but we're already setting our sights on the range-topping R model. According to Autocar, the next Golf R will be more powerful than the current version, producing 268 horsepower and 280 pound-feet of torque, making it the most powerful production Golf ever.
Powering the new Golf R will be a further evolution of Volkswagen's well-liked 2.0-liter turbocharged inline-four, and when mated to a six-speed dual-clutch transmission, the hotter hatch will reportedly be able to sprint to 62 miles per hour in five seconds flat. That's over half a second quicker than the current US-spec model.
Other updates for the new Golf R include the addition of VW's Haldex 5 all-wheel-drive system found in the latest iteration of 4Motion. Furthermore, thanks to the use of lightweight materials, the new R is expected to weigh in around 2,650 pounds - that's a massive 675 pounds less than the current US-spec car. The exhaust has reportedly been reworked to provide more aural delight, as well.