1973 Volkswagen Type Iii Fastback on 2040-cars

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Volkswagen tipped to launch turbocharged Up! with 100 hp

Overseas customers enticed by the compact dimensions of the Volkswagen Up! but turned off by its diminutive 1.0-liter three-cylinder engine may be encouraged by reports that the German automaker is planning a more potent turbo version. Previewed by the GT Up! concept showcased at the 2011 Frankfurt Motor Show (pictured above), the more performance-oriented model is expected to pack the turbo three from the larger Polo, where it produces 100 horsepower channeled through a five-speed manual transmission. That may not seem like much, but it would put the existing 59- and 74-horsepower versions of the German city car to shame. That might not give it enough punch to keep pace with the upcoming Smart Fortwo Brabus (and its Renaultsport Twingo counterpart), tipped to pack as much as 130 hp, but it could stand to out-perform the existing 89-hp turbo models of both. Given that the reports are emanating from Brazil, however, it is possible that the Up! Turbo (or whatever it's ultimately called) would be limited to the South American market, if it's built at all. One thing's for sure, though: it's not likely to make it to North American showrooms anytime soon.

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

MotorWeek looks back at the 1986.5 VW Scirocco 16V

It's back to the past with MotorWeek for a video dive into the 1986.5 Volkswagen Scirocco 16V, the coupe that carried the pennant for VW's performance aspirations for 15 years, from 1974 to 1989. This one, the last generation, got the hottest of all by adding a head with four valves per cylinder. The 1.8-liter DOHC engine cranked out "an amazing" 123 horsepower and 120 pound-feet of torque, and made this model the fastest VW to ever be sold in America; it went from 0 to 60 miles per hour in 8.5 seconds, faster than a Porsche 944. To compare vintage apples to modern ones, the New Scirocco with a 123-hp 1.4-liter TSI engine and a manual transmission takes 9.3 seconds. We like MotorWeek's Retro Review series not only for the cars, but for how they also remind us of what we used to find important in cars. The Scirocco here gets upvoted for its throttle response and handling, downvoted for an oddly placed oil pressure gauge and lack of battery voltage meter. We can't remember the last time a voltage meter was mentioned in a review, either its presence or lack. Check out the video above for what the definition of "US hot hatch" used to be.