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VW boss confirms Subaru-aping Golf Alltrack for US

Subaru needs to watch out, because the Japanese brand with a utilitarian image has a big bull's eye on its back. Not only is Acura considering going 100-percent all-wheel drive in a bid to mimic the successful automaker, Volkswagen has just confirmed that the Golf Alltrack is coming to the US as another competitor for Subaru's popular Outback crossover. Volkswagen Group of America CEO Michael Horn has confirmed the addition of the higher-riding, all-wheel drive version of the Golf SportWagen to Automotive News, indicating that the model will arrive in the US in 2016. "That's what our dealers, our customers, are asking us for," he said to the industry publication. The Golf Alltrack, which debuted at the Paris Motor Show in early October, has an extra 0.75 inches of ride height and protective black cladding all the way around. Its biggest mechanical differentiator from other Golfs is its Haldex all-wheel drive system, a setup that can completely unhook from the rear axle when not needed to save fuel. In Europe, the Alltrack is available with a turbocharged 1.8-liter with 178 horsepower and two diesels offering between 109hp and 182 hp. However, Horn made no mention of likely powertrains for the US. Horn tells Automotive News that all-wheel drive tooling is currently being installed at the Puebla, Mexico, factory where the standard Golf Sportwagen is built. VW might have tipped its hand about this possibility several months ago when press shots of the wagon were released for the US with TDI and 4Motion badges. Horn says he expects even the front-wheel drive version to be a sales hit here, suggesting it may eventually account for 50 percent of the Golf range's volume.

Interested, then not: Marchionne not 'chasing' a VW merger

Update (March 15, 2017) : Automotive News reports that FCA CEO Sergio Marchionne, regarding the suggested VW and FCA merger, said in a press conference "I have no interest." He also said that he "will not call Matthias," the CEO of VW. He did add that he would be willing to entertain anything VW brings up, but he has "no intention of chasing him." Despite this, Marchionne still took a moment to reinforce his favorable stance concerning mergers and consolidation. Last week, Volkswagen's CEO Matthias Mueller effectively shut down Fiat Chrysler CEO Sergio Marchionne's idea of the two automakers merging. However, it seems Mueller has softened, if only just, to the idea. According to Reuters, the CEO said in a press conference he is "not ruling out a conversation." However, he did say that he would like Marchionne to discuss with him directly the possibility rather than to the media. Though this statement certainly doesn't mean such a merger is happening, it's far more open than when he said outright the company isn't in any talks with anyone at the moment. His new stance also indicates that there may be people (lawyers, accountants, etc.) behind the scenes working out possible ways a merger could work. And even though this new development makes the prospect of a merger between the two companies a bit less bleak, it's still a long way from the "will they, won't they" relationship between GM and FCA. FCA's pursuit of GM involved emailing CEO Mary Barra and the threats of a hostile takeover, the latter of which resulted in some awkward statements about hugs. Only time will tell if VW becomes open enough for Marchionne to talk about hugs again. Related Video:

How VW's hyper-efficient XL1 will influence the next Golf

In 2007, the European Union mandated fleet average CO2 emissions of 158.7 g/km. For 2015, that figure will drop to 130 g/km, and the target for 2020 is an ambitions 95 g/km. Thanks to some German politicking, that target will be phased in from 2020 to 2024, but it will still apply to 80 percent of passenger cars in that first year. In US miles per gallon, that's the equivalent of going from about 35 mpg to 42 mpg to 57 mpg. The current Volkswagen Golf is rated from 85 g/km of CO2 to 190 g/km depending on model - and zero for the e-Golf, so for the next-generation MkVIII hatch due in 2019, to meet the goal, Volkswagen engineers will need to introduce a bunch of new tricks. According to a report in Autocar, VW be mining its hyper-efficient XL1 for some of them.
Predictions for the next Golf include a variable-compression engine, an electric flywheel and an electric turbo, along with taking greater advantage of coasting. Volkswagen could be getting help from Audi with the electric turbo and variable-compression engine and electric turbo, with Audi already having shown off the former and brand technical boss Ulrich Hackenberg confirming the VW Group is working on the latter. It's possible the flywheel system could also have the mark of The Four Rings: Autocar mentions a British system that Volvo is testing, but the R18 e-tron Quattro racer has been using one for years.
The need for such features is because the company won't be able to net enough future gains from just aerodynamic improvements and advanced materials. As price will be a factor (the regulations are expected to "add hundreds of euros to the cost of building a car"), adding much more aluminum or carbon fiber is an unlikely option. We're told the next generation won't be longer or wider than the current car, and being Europe's most popular model, VW doesn't want to make a big bet on futuristic aero, but the report says the MkVIII will "likely" have "the most aerodynamic treatment yet seen on a production vehicle," the area where lessons learned from the XL1 will truly be seen.