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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.

VW recalls 1.1M Jetta, Beetle models in US, China over suspension fears

Volkswagen is recalling about 1.1 million vehicles in China and North America in a newly announced campaign affecting the rear suspensions on some models. For the US, the action covers about 442,265 vehicles, including 400,602 examples of its 2011-2013 Jetta and 41,663 units of the 2012-2013 Beetle and Beetle Convertible. According to Reuters, the recall affects a further 126,000 vehicles in Canada and about 581,090 in China, including related market-specific models like the Sagitar.
The problem can occur if the affected models have a collision to the rear or the side-rear of the vehicle. It's then possible for the trailing arms on the torsion-beam rear suspension to be damaged. If the harm isn't noticed, then the part could fracture while driving. Obviously, a broken rear suspension is going to have an adverse effect on handling.
To fix things, VW dealers will inspect the trailing arms on the models, and they will all receive a sheetmetal part that will make a distinctive sound if broken in the future. If already damaged, the entire torsion beam will be replaced. Obviously, this work will be done at no charge to owners.

VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.