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Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati

VW announces recall of 26,000 2014 models with 1.8T engines

Volkswagen has followed up on a stop-sale order from earlier this month, announcing a voluntarily recall of 26,400 vehicles that are powered by the brand's 1.8-liter, turbocharged four-cylinder engine. The new mill replaced the despised 2.5-liter five-cylinder in the Jetta, Passat, Beetle and Beetle Convertible last year. Weirdly, though, of the 26,452 units covered in the recall, only 1,655 are customer vehicles.
According to VW, the affected models were built between February 1 and April 6 of this year, and feature bad O-ring seals in the transmission oil cooler. Apparently, the faulty O-rings could cause a fluid leak, as they won't seal between the oil cooler and transmission. VW is blaming a material change from a supplier for the problem.
There have been no fires, injuries, accidents or fatalities relating to this issue, which VW will be fixing free of charge. Customers will need to report to dealers to have the O-rings replaced.

2015 Volkswagen Golf R [w/video]

Volkswagen hired a photographer to come shoot the handful of journalists that it brought to drive the 2015 Golf R at Buttonwillow Raceway north of Los Angeles. This fact, though unremarkable in and of itself, was something I hadn't noticed until I was well into my track time – probably ten laps deep on a day that would see me run twice that number. In any event, I noticed the intrepid shooter as he was sprinting from one side of the track to the other somewhere before Turn 2, while I was barreling down the main straightaway, still looking through Turn 1. In the roughly two-mile configuration of the track that I drove, Buttonwillow is a big, wide-open circuit, largely flat and with excellent overall visibility. On that layout, and just hours into my Golf R experience, I'd already become confident in endeavoring to push the limits of VW's latest blistering hatch. In fact, the easy nature of driving the thing quickly had me overestimating my pace. So when I saw the photog sprint across the tarmac I instinctively slowed way too much, way too early for Turn 1. Looking back at the incident after I'd pitted for the session, I laughed at myself, knowing I'd have had to be driving almost double my actual speed to put the camera guy in any real danger of being hit. But the experience crystallized what my full test of the R bore out: this is a car that makes you feel much faster than you otherwise would, at least in a competition setting. The 2015 Golf R is an uber hatch that will flatter those hyper-enthusiasts passionate enough to splash out on its steep price tag, but without threatening sales of core models like the GTI and its ilk. That's a good thing for the VW fanboys, to be sure, and, I'd argue, a great thing for the strength of the German brand overall. {C} The R felt both placid and comfortable while I clicked off highway miles in search of the racetrack. My test in California had at least two things in common with the First Drive feature that Steve Ewing brought us with the Golf R in Sweden. First, we both drove European specification cars (though mine didn't suffer from the same sticker abuse that Steve's did). Second, we were both somewhat limited in terms of driving the car in varied, real-world situations. My street route consisted almost entirely of tracking California's I-5 north out of Los Angeles; which any Angelino will tell you is a less-than-riveting mode of travel.