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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Import pickup truck-killing Chicken Tax to be repealed?

After over 50 years, the so-called Chicken Tax may finally be going the way of the dodo. Two pending trade deals with countries in the Pacific Rim and Europe potentially could open the US auto market up to imported trucks, if the measures pass. Although, it still might be a while before you can own that Volkswagen Amarok or Toyota Hilux, if ever. The 25-percent import tariff that the Chicken Tax imposes on foreign trucks essentially makes the things all but impossible to sell one profitably in the US, which lends a distinct advantage to domestic pickups. Both the Trans-Pacific Partnership with 12 counties and Transatlantic Trade and Investment Partnership with the European Union would finally end the charge. According to Automotive News though, don't expect new pickups to flood the market, at least not immediately. These deals might roll back the tariff gradually over time, and in the case of Japan, it could be as long as 25 years before fully free trade. Furthermore, Thailand, a major truck builder in Asia, isn't currently part of the deal, and any new models here would still need to meet safety and emissions rules, as well. Automotive News gauged the very early intentions of several automakers with foreign-built trucks, and they weren't necessarily champing at the bit to start imports. Toyota thinks the Hilux sits between the Tundra and Tacoma, and Mazda doesn't think the BT-50 fits its image here. Also, VW doesn't necessarily want to bring the Amarok over from Hannover. There is previous precedent for companies at least considering bringing in pickup trucks after the Chicken Tax's demise, though. The Pacific free trade deal could be done as soon as this fall, while the EU one is likely further out, according to Automotive News. Given enough time, the more accessible ports could allow some new trucks to enter the market.

Volkswagen's new Passat Alltrack ready to scale the Alps

Volvo may be stepping up its off-roading game with a greater variety of Cross Country models tumbling out the factory in Gothenburg, but the other (larger) European automaker whose name starts with the letters V-O-L is also broadening and updating its range of road-going automobiles equipped to handle a little soft-road duty. Aside from Audi's Allroad line, Skoda's Scout models and the new Seat Leon X-Perience, the Volkswagen brand itself has recently showcased Alltrack versions of the Golf, Multivan and of course the Passat. And now it's announced a new version of the latter for the European market. Based on the Euro-spec Passat Variant, the new VW Passat Alltrack follows a familiar formula: take a station wagon, equip it with all-wheel drive, jack up the suspension, add some lower body cladding and some new trim and – voila! – you've got a pseudo rough-roader on your hands. Set to debut in just a couple of weeks from now at the 2015 Geneva Motor Show, the new Passat Alltrack is visually distinguished by its new bumpers, underbody protection, beefed-up wheel arch moldings and a ride height increased by over an inch to the benefit of ground clearance as well as approach and departure angles. European buyers who like to leave the road every once in a while (or give the impression that they do) will be able to choose from a range of five engines: two burning gasoline with either 148 horsepower or 217, and three diesels available in 148-, 187- or 237-hp states of tune. The base TSI and TDI engines are mated to a six-speed manual, while the top three are hooked up to a six-speed DCT, but they all come with 4Motion all-wheel drive as standard. All but the base TSI model boast a towing capacity of 1,800 kg, enhanced by a Trailer Assist system that automatically lines the vehicle up to a trailer. It even comes equipped with an off-road mode that incorporates Hill Start Assist and Hill Descent Assist to make any journey across the Alps a breeze. Wolfsburg / Geneva, 19 February 2015 World premiere of the new Passat Alltrack All-wheel drive all-rounder combines the best of on-road and off-road driving - Passat Alltrack: 100 per cent 4MOTION – from 150 PS to 240 PS - Superior off-road performance with off-road mode and all-wheel drive Ten important facts about the world premiere of the Passat Alltrack: 1. Permanent 4MOTION all-wheel drive as standard. 2. Distinctive off-road look with new bumpers, underbody protection, door sill and wheel arch trims. 3.