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Volkswagen debuts MkVII-based diesel Golf GTD

As Volkswagen prepares for the launch of the seventh-generation Golf, it continues to show off some of the car's different variants. With the standard Golf and the ultra-efficient BlueMotion Concept out of the way, now we're finally starting to see some of the sportier versions planned for the hatchback. Confirmed for a debut at the Geneva Motor Show, Volkswagen has now given us our first glimpse at the Golf GTD.
Just think of the GTD as a diesel version of the GTI with all the handling and styling upgrades, and then add a torquey engine to the equation. (We had the chance to sample the current GTD over the summer, so click here to read more.) To go with the new body style, VW also gave the GTD a new TDI engine consisting of a similar turbocharged and direct-injected 2.0-liter inline-four layout but with an output of 184 horsepower and 280 pound-feet of torque - that's an increase of 14 hp and 22 lb-ft over the current GTD. That's a pretty good oomph, but the GTD won't be setting any acceleration records with VW quoting a 0-62 mile per hour time of 7.5 seconds thanks to the car's 3,036-pound curb weight.
The styling of the MkVII Golf lends itself quite well to the more aggressive body kit found on the GTD (and likely matching the GTI). The new front fascia and blacked-out grille give the GTD a sporty look up front, while 17-inch sport wheels, rocker panel extensions and smoked LED taillights finish off the visual changes. The GTD will only be offered in three exterior colors: Tornado Red, Black and Pure White. As expected, the interior gets the plaid seat inserts and flat-bottomed sport steering wheel, but the car also gets stainless steel pedals, a black headliner, ambient cabin lighting and a specific gauge cluster readout.

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.

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.