Vw Volkswagen Rabbit Gti 1984 on 2040-cars

Auto blog

VW will delay projects to cope with diesel scandal

Volkswagen's diesel emissions scandal will require the sacrifice of far more than just executives and money. It's also going to result in the cancellation of various projects, a process that new CEO Matthias Mueller said "won't be painless." "We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller said while addressing the embattled company's employees. The former Porsche boss also said the money set aside by the German giant – about $7.29 billion – won't be enough to cover recall expenses, fines from governments in affected countries, and the expected deluge of lawsuits from disgruntled TDI owners. According to Bloomberg, that figure probably won't even be enough to match the fines Uncle Sam is likely charge, pegged to be around $7.4 billion, according to one analyst. It's expected that VW could delay a further push for share in the North American market, which would include a $1-billion investment in its Puebla, Mexico, factory. But it will take more than cancellations and delays, analysts claim. "It's going to be tough to find projects they could chop that will actually move the needle," JPMorgan Chase's Jose Asumendi told Bloomberg. "What they really need to do is get costs under control." That, according to Bloomberg, is already setting up a showdown between management and labor. The latter wants a reduction in VW's $17.4-billion research-and-development budget – the world's largest and more than what Ford and General Motors spend combined – while the former wants to slash personnel costs. Bloomberg also spoke to analysts who claimed the company should look into reductions in purchasing costs as well as trimming sponsorships. It's impossible to know just how extreme Volkswagen will need to get with cancellations, delays, and cost-cutting, but it's becoming increasingly clear that the effects of this scandal will likely be felt far longer than the controversies that surrounded other automakers like General Motors and Toyota. Related Video: News Source: BloombergImage Credit: John Macdougall / AFP / Getty Images Earnings/Financials Green Plants/Manufacturing Recalls Volkswagen Diesel Vehicles vw diesel scandal matthias mueller

FCA to pay buyers $1,700 to swap out of scandal-mired VWs

FCA is trying to gain some sales from arch-rival VW in the competitive European market by offering potential buyers in Italy up to $1,700 to swap into an FCA group car. While the promotion isn't specifically targeted at TDI owners affected by the emissions scandal, it is clearly intended to turn dissatisfaction with VW's defeat device cheat into additional sales, Bloomberg reports. The 500-1,500 euro incentive (roughly $560-1,700, depending on vehicle) stacks on top of any other rebates or deals applicable, and applies if a buyer brings in any of Volkswagen Group's cars – including Audi, Skoda, and SEAT, among (many) others. As Bloomberg notes, it's normal for automakers to offer "conquest" deals – giving a buyer cash for trading in a competitor's vehicle. Those deals aren't usually limited to one company's products, however; FCA's program looks specifically to take advantage of VW's legal and public relations nightmare. FCA isn't the only automaker trying this trick in Italy. Automotive News Europe also reported that Ford is offering approximately $840 in incentives across its entire range to owners of VW vehicles seeking to trade in for a Ford. No word of yet as to whether these incentives will spread beyond Italy or to other automakers.Related Video:

2015 Volkswagen GTI: Driving into spring with just one regret [w/video]

If you only notice one thing in the video above, it should be this: that GTI is filthy. Yes, the grossness of winter took its toll on our long-term 2015 Volkswagen GTI, covering the Carbon Steel hatch in a mess of salt-and-slush-streaked grime. The GTI was a champ during the cold months With 225/40R18 Bridgestone Blizzak winter tires offering sure-footed grip, the hatch became a dear companion to editors slogging through unsavory weather. Front-wheel-drive cars are already pretty solid for wintertime driving, and with the added traction of these tires, the GTI plowed forward without any drama. Our biggest gripe about snowy driving involved the car's Driver Assistance Package – a $695 option that, knowing what we know now, we wouldn't have ordered. First, this option positions the front camera right in the middle of the lower grille, which looks pretty terrible. But more importantly, the system can't tell the difference between slush/snow and an actual obstacle, so it constantly feels the need to warn us that we might hit something when the camera is covered in grime. Clearing the camera off isn't a problem, but the practice grew more annoying as the season continued. The Driver Assistance Package gets you front and rear parking sensors that, honestly, we find to be a bit too sensitive. It's activated in any low-speed situation, so the car freaks out whenever you take it through a car wash, and beeps if you walk up to the rear (to, say, open the hatch) while the engine is running. And because the GTI S model doesn't get you a rear-view camera, there's no real added benefit to the noise-makers. Yes, they help while parking in tight places, but if you struggle to park a vehicle the size of a Golf with its already excellent sight lines, you've got larger problems to overcome. We have other issues with the system, too – like how the forward sensors will blink in the instrument panel to tell you you're too close to the vehicle in front of you on the road, even with a four-car-length separation between vehicles. In all, these issues just don't seem to outweigh the benefits of the safety system. To us, it's not $695 well spent. But enough complaining. Really, the Driver Assistance Package has been the only issue we've had with the GTI since its arrival in January. Now that winter has finally melted away, we've enjoyed nice, warm temperatures here in Detroit – just last week, we were took the winter tires off.