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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.

NA auto output to reach 11-year peak

According to Automotive News, automakers are expected to manufacture 16 million light vehicles in North America in 2013. That's up 500,000 units from last year and marks the largest number since 2002. The prediction comes courtesy of LMC Automotive and IHS Automotive, which point to the improving US economy as a bellwether for total production. LMC Automotive says North America will produce 16 million vehicles while IHS has a slightly more optimistic forecast of 16.1 million units. A total of seven automakers are slated to increase production on the continent this year. Nissan is set to see the largest jump at 20 percent over last year.
Volkswagen, meanwhile, is one of the only manufacturers predicted to scale back production. Analysts expect the German company's output to fall by 23 percent to 170,000 units, thanks in part to slow demand for the Volkswagen Passat and Jetta.

Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.