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Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.

U.S. opens probe into whether VW vehicles infringe Jaguar Land Rover patents

WASHINGTON — The U.S. International Trade Commission (ITC) said on Monday it is opening in investigation into whether Volkswagen AG infringed on patents held by Jaguar Land Rover for a system used for off-road driving. In November, Jaguar Land Rover, a unit of Tata Motors, filed a complaint with the ITC seeking to prevent the import of some VW Porsche, Lamborghini and Audi models with "certain vehicle control systems" that allegedly infringe on it patents held for its Terrain Response system. The models include the Lamborghini Urus, Porsche Cayenne and AudiÂ’s Q8, Q7, Q5, A6 Allroad, and E-Tron vehicles and the VW Tiguan. The ITC said it has made no decision on the merits. VW said in a statement it was examining the action and determining its next steps. "We will of course cooperate with investigating authorities. While we cannot comment on any details of the proceedings, we strongly believe that the claims have no merit and will robustly defend our position," VW said. Many automakers offer a suite of off-road powertrain controls, but JLR claims Volkswagen's tech is more than just similar.  Jaguar Land Rover (JLR) said the vehicles "have used JLRÂ’s patented inventions without payment or permission" notably a patent for an "improved system for driving a vehicle on different driving surfaces, in particular off-road." JLR says its Terrain Response technology uses the patented technology to maximize performance on off-road driving surfaces, including grass, snow, mud, sand and rocks.

VW delivers first XL1 in Germany

Volkswagen has delivered the first XL1 diesel plug-in hybrid to a customer from Berlin, Germany. Dr. Christian Malorny received his Oryx White XL1 with black and grey interior from Volkswagen Germany's director of sales and marketing for passenger cars, Thomas Zahn, at the company's Transparent Factory in Dresden. The super-efficient XL1, which first debuted at the 2013 Geneva Motor Show, is powered by a 0.8-liter, two-cylinder TDI engine and electric motor, with electricity supplied by a 5.5-kWh lithium-ion battery pack. Power is delivered to the rear wheels via a seven-speed DSG transmission. With a curb weight of 1,753 pounds and a drag coefficient of just 0.189, the XL1 is rated at 261 miles per gallon on the lenient European cycle. It is capable of traveling solely on electric power for up to 31 miles. "The XL1 has inspired me from the beginning and I am very pleased to now be driving my own," said Malorny, (translated). "With its visionary design and high-tech appearance, Volkswagen has dared something new and innovative." The futuristic XL1 seats two passengers, and can carry 4.2 cubic feet of cargo. It features a carbon fiber reinforced plastic body, and a low center of gravity. It is diminutive of stature, as you can see in the photo, measuring 153.1 inches long, 65.6 inches wide, and just 45.4 inches tall. It is being billed as the world's most efficient production car, but it's unlikely Dr. Malorny will be making his money back on fuel savings any time soon; despite the first sale and the vehicles appearing on the German VW site, Volkswagen has not officially announced the price tag for the XL1. In the past, we've heard it will cost approximately $145,000. Only 250 are being produced. Check out our drive review of the Volkswagen XL1 here or read on for more information in the Google-translated press release, below. Volkswagen XL1 delivers first from First vehicle goes to Berlin Dr. Christian Malorny (left) took over his Volkswagen XL1 by Thomas Zahn, Director of Sales and Marketing Germany Volkswagen Passenger Cars Dr. Christian Malorny (left) took over his Volkswagen XL1 by Thomas Zahn, Director of Sales and Marketing Germany Volkswagen Passenger Cars Volkswagen has delivered yesterday at the Transparent Factory in Dresden the first XL1 to a customer. Together with his family accepted Dr. Christian Malorny from Berlin's innovative diesel plug-in hybrid.