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VW budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun. For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany. In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe." Even Fiat, another automaker long considering a budget brand beneath its Fiat line-up, wasn't sure how to squeeze any extra money from lower-cost products but was sure that it couldn't be done by manufacturing in Europe. If VW hasn't yet made the math work with a joint venture in China, it will be interesting to see how it might build a European go-it-alone business case.

Auction for first US VW e-Golf raises $41,400 for Global Green charity

Would having Jay Leno on hand have changed the outcome? That's what executives at Volkswagen might be asking after the German automaker auctioned off the company's first electric car in the US for around $6,000 over MSRP. VW auctioned off the first Volkswagen e-Golf in the US to raise money for the environmental non-profit Global Green USA. Bruce Oberg, an EV enthusiast and previous VW owner, proudly cut a $41,400 check for the car, which has a 116 miles per gallon-equivalent rating and is said to be able to go about 80 miles on a single charge. At your local dealer (depending on where you live), the e-Golf starts at $35,445. Sales start later this month in 11 states: California, Massachusetts, New York, Vermont, Oregon, Maine, Maryland, New Jersey, Connecticut, Rhode Island and Washington, DC. The $6,000 premium for first-dib rights for the e-Golf is nice, but it doesn't compare to what BMW worked out this summer. In August, the first i8 plug-in hybrid in the US was auctioned off at California's Pebble Beach Concours d'Elegance for $825,000 (to an unidentified buyer). That's about six times the car's sticker price, but this special edition came with Louis Vuitton luggage and was presented by noted car buff Leno. VW's press release below. VOLKSWAGEN E-GOLF RAISES MONEY TO BENEFIT GLOBAL GREEN USA AFTER A SUCCESSFUL CHARITY AUCTION Nov 4, 2014 Winning bidder claims first VW electric vehicle as the car begins to ship to select U.S. dealerships Herndon, VA (November 4, 2014) – Volkswagen of America, Inc. today announced that the auction of the first 2015 all-electric Volkswagen e-Golf has raised $41,400, with proceeds benefitting the national environmental non-profit Global Green USA and its efforts to advance smart solutions to climate change. The winner of the auction, which ran from October 8–29 on CharityBuzz.com, became the first U.S. driver to own Volkswagen's all-new, fully-electric vehicle. "Volkswagen's commitment to e-mobility and sustainability runs deep. We could not be more proud that the e-Golf has helped raise money to benefit the efforts of Global Green USA, an organization that shares in our dedication to the environment," said Michael Horn, president and CEO, Volkswagen Group of America, Inc.

Volkswagen throws a Polo-palooza with four new or upgraded models

Volkswagen unveiled a parade of new and upgraded Polo models at the 2014 Geneva Motor Show, including the Polo TSI BlueMotion, Polo TDI BlueMotion, Polo BlueGT and CrossPolo (pictured above). While they will likely never make an appearance this side of the pond, it is fun to see what European subcompact drivers will be driving later this year.
The new BlueMotion models represent the most efficient petrol and diesel options in their class, according to VW. The BlueMotion TDI offers just 73 horsepower from its diesel engine but gives the equivalent of 76 miles per gallon (US) in the EU test. The BlueMotion TSI brings a little more power with its 88-hp petrol engine and has a combined rating of 57 mpg (US) in the EU cycle.
The Polo BlueGT provides a balance of performance and economy, and for the 2014 model, it gains a 9-horsepower boost to its 1.4-liter turbocharged to give drivers 147 hp at the press of the accelerator. This year's car also has an optional Sport Select suspension with electronically controlled dampers to improve handling a bit. It's still fitted with active cylinder management to use as little gas as possible when cruising.