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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

Weekly Recap: Mercedes, Volkswagen spend big as import automakers invest in North America

Import automakers are on a building frenzy in North America as resurgent car sales have prompted companies to expand their manufacturing footprints to meet rising demand. That was evidenced this week when Mercedes-Benz announced plans to build a $500-million factory to produce the Sprinter commercial van, and Volkswagen confirmed a whopping $1-billion investment to expand its massive plant in Mexico. Meanwhile Jaguar Land Rover reportedly wants to build a factory in North America, but not for at least three years, and Hyundai is said to be expanding in the southern United States. The common thread in all of this expansion? Trucks, time and money. Mercedes wants to capitalize on the burgeoning work van segment in the United States and will break ground in 2016 on a 200-acre site in Charleston, SC, to build the next-generation Sprinter. The site will have a paint shop, body shop and an assembly line, and 1,300 people will be employed when production ramps up. Why do this, when Mercedes has immense van operations in Germany? It's cheaper to build in the US for the US market. Building locally allows Mercedes to avoid import taxes, forego a complex shipping process that involves partially disassembling German-built Sprinters and naturally, reduces the time it takes to deliver finished trucks to their buyers. "This plant is key to our future growth in the very dynamic North American van market," Volker Mornhinweg, head of Mercedes-Benz Vans, said in a statement. He was speaking about Mercedes and vans, but another German automotive giant, Volkswagen, had similar motives for its mammoth expansion plans in Puebla, Mexico. The added space and production capacity will allow VW to build a three-row version of the Tiguan, and provide another crossover for its US lineup that's light on SUVs. The current Tiguan has two rows. The factory will be able to churn out 500 units daily of the larger variant, and they will be sold in North and South America. It will arrive in the US in mid-2017, a spokesman told Autoblog. VW also plans to build another crossover, a midsize seven-passenger vehicle, at its growing Chattanooga, TN, site. "Localization has become key to safeguarding our competitive position on the global market, and manufacturing the Tiguan in Mexico will bring production closer to the US market," Michael Horn, CEO of Volkswagen Group of America, said in a statement.

Jaguar Land Rover remains bullish on diesels

Despite Volkswagen's recent diesel scandal, Jaguar Land Rover is pushing ahead with ambitious plans to roll out the technology across most of its lineup in the coming years. Jaguar and Land Rover will add diesel engine variants to every model in their lineups, except for the Jaguar F-Type sports car. Land Rover launched the Range Rover and Range Rover Sport with available 3.0-liter turbocharged V6 diesels, and together they have sold more than 330 units so far in September, their first month on sale in the United States. JLA officials say they've seen no fallout from VW's emissions problem and are adamant their diesels meet EPA standards. "That has been our strategy, and it is not changing," Joe Eberhardt, Jaguar Land Rover North America CEO, told the Automotive Press Association on Wednesday in Detroit. "You have to deal with the situations as they arrive. We are confident of diesel." Jaguar will get another diesel next year from its Ingenium engine family, which will initially be sold in the XE sedan and the F-Pace crossover. It's a turbo 2.0-liter four-cylinder unit and makes 180 horsepower and 317 pound-feet of torque. A JLR spokesman said the Ingenium has not yet gone through the EPA certification process, and the diesel-powered models will arrive in the fall. Jaguar also plans to add diesel engines to the flagship XJ and XF sedans. Land Rovers, including the Discovery and Evoque, will also get diesel options, and the company estimates the technology will offer 20- to 30-percent improvements in fuel economy, depending on the vehicle. Eberhardt said it is "too soon to tell" if the diesel market will be weighed down by Volkswagen's situation. The German automaker admitted to cheating on emissions tests to make its diesel-powered cars appear to run cleaner than they actually do in real-world situations. The ensuing outrage forced longtime VW chief executive Martin Winterkorn to step down and prompted a reorganization of the company, which faces legal and regulatory action around the world. Still, Eberhardt maintains JLR is "very confident" in its diesels, which are part of its strategy to grow sales around the world. Land Rover has experienced rapid growth under the ownership of Indian conglomerate, Tata Motors, while Jaguar is set to revitalize its lineup with new entries like the XE and F-Pace to reach a broader market segment.