2003 Volkswagon Passat on 2040-cars

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Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.

Volkswagen breaks 40-year-old sales record in 2012

The last time Volkswagen moved this many vehicles in America in one year, Richard Nixon was still a President in good standing, Let It Be was a radio hit and each car wearing the VW badge boasted an air-cooled engine. That's right, with a grand total of 580,286 vehicles sold in the US last year, the VW Group has broken its own four-decades-old sales record by 2,899 vehicles.
Of that 580k total sold, 438k were Volkswagens and 139k were Audi products - increases of 35.1 percent and 18.5 percent, respectively, in year-over-year sales. The ultra-premium members of the VW group also fared well; Bentley delivered 2,315 vehicles for a 23.3-precent increase, and Lamborghini delivered 520 units for a 52.9-percent jump. Bugatti, we're told is "right on track."
Jetta (pictured) sales paced the marque with 170k models sold, and Passat also finished very strong with sales of 117k total. Tiguan also racked up its best year on file, with 31,731 models shifted.

Volkswagen Golf R Variant ready to haul ass, stuff

Volkswagen seems to be playing a cruel trick on the American automotive public at the Los Angeles Auto Show. It's displaying its sexy Golf R Variant with no clear intention of actually selling the model here. The hot wagon launches in Europe in the spring, but the automaker makes absolutely no mention of the model's prospects in the US. Hopefully, its appearance in LA at least indicates VW is considering bringing it stateside. The great thing about this wagon is that it has everything that the regular Golf R offers, but there's even more room to carry stuff. The same 2.0-liter turbocharged four-cylinder engine makes 296 horsepower and 280 pound-feet of torque with a six-speed dual-clutch gearbox and 4Motion all-wheel drive. Performance is very close, too, with the Variant R taking 5.1 seconds to get to 62 miles per hour versus the 4.9 seconds the standard R needs to read 60 mph. The two of them also have the same tech goodies like ESC Sport stability control and multiple damping modes. The real advantage to opting for the estate is its ability to carry up to 57.2 cubic feet of cargo in the back. This hot rod wagon would seem to be perfect for the family that needs to haul some extra junk in the trunk, but doesn't want to sacrifice performance. Whether the Variant R makes it to the US remains a mystery, though. Scroll down to read the specs and feel a twinge of jealousy.