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Cost-cutting measures put VW Beetle in jeopardy

Volkswagen is on a mission to cut costs. That means producing more models across its various brands based on the same platforms and powertrains, but the latest word from Germany has it that it will also mean cutting some of the VW brand's less successful models. First on the chopping block, according to German publication Der Spiegel, is the three-door version of the Polo, which will reportedly cede its place to the five-door version exclusively. The elimination of that model alone is said to save VW a good 200 million euros, putting it on its way towards reducing the brand's costs by a targeted five billion euros. The Polo isn't the only one in danger, though. The Eos, as we know, is not due to be replaced, but the future of the Beetle could be in jeopardy as well. The Beetle may be one of VW's most iconic models, but is hardly its most successful in terms of sales. With the 2014 annual report due to be released shortly, the last full-year sales figures had Volkswagen selling 109,517 Beetles in 2013. That may be more than four times the number of Scirocco models it sold, but hardly puts a dent in the 871,413 Jettas, 824,629 Golfs and 725,291 Polos it sold during the same year.

Volkswagen Caddy hauls its cute self into Geneva

Here in the States, we have a small but growing segment of little people-and-stuff-carriers, including new things like the Ford Transit Connect, Nissan NV200, Ram ProMaster City, and so on. But in the Old Country, these little guys are everywhere, and hardly a new concept. One of Europe's best in this segment – the Volkswagen Caddy – has been given a thorough refresh, combining all of the great-to-drive characteristics of a Golf with the functionality of a Touran van. Buyers can choose between four different versions of the 2.0-liter diesel inline-four, or three gasoline engines in 1.0-, 1.2-, and 1.4-liter displacements. There's even a natural gas version. And with its Golf roots, your author is, shall we say, really, really interested in a GTI version of this little cutie. The Caddy you're seeing here is, obviously, a passenger van configuration with windows abound. Buyers can also opt for a panel van variant, for more secretive load-hauling. Have a look at the updated Caddy in the images above, and read all about it in the release below. The new Caddy – always the best choice – world premiere for the fourth generation of the best-seller - Entry-level price reduced due to new versions - Emissions and fuel consumption reduced by new EU6 engines - Safety increased by new driver assistance systems - Design refined with clear edge Hannover/ Poznan, 04 February 2015: Volkswagen Commercial Vehicles is showing the fourth generation of the hugely popular Caddy for the first time. Around 1.5 million of the award-winning previous generation were sold worldwide during its eleven years in production. A success that the new Caddy is intended to continue because the urban delivery van and its privately used brother have been enhanced and refined in every area. In Germany, prices for the new Caddy start at ˆ 14,785.00 (net, panel van) and ˆ 15,330.00 net (ˆ 18,242.70 gross, as Conceptline, replacing the previously familiar Startline), each with the 62 kW TSI entry-level engine and thus, when adjusted for feature content, are even below the level of the predecessor model. The drive systems use state-of-the-art technology, with the Caddy's new engines providing maximum efficiency and compliance with the EU6 emissions standard. The basis for the four TDI diesel versions is always a two-litre four cylinder engine. Their performance ranges from 55 kW / 75 h.p. to the top engine with 110 kW / 150 h.p..

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.