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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.

Vahland leaving VW over dispute on how to run NA region

On November 1, Winfried Vahland was supposed to take over Volkswagen Group's recently created North American region that combines Canada, the US, and Mexico. But the longtime exec has instead decided to leave the automaker after a dispute over how to manage the new combined region. Vahland is currently the boss at Skoda, and in a statement about his departure the Czech company said: "Differing views on the organization of the new Group region have led to this decision; this decision is expressly not related to current events on the issue of diesel engines." Vahland is leaving at his own request, the announcement says. Vahland was appointed to run to North American region during VW's massive corporate shakeup on September 25. The decision was part of the automaker's plan to put a greater emphasis on regions and brands, rather than on centralized authority. According to Automotive News Europe citing a report from Germany's Auto Bild, Vahland was passed over for the CEO job, with Matthias Muller taking that position. Amidst the changes, Michael Horn remained at the helm of Volkswagen Group of America, reporting to the new regional boss. Vahland joined the automaker in 1990 and started running VW's operations in China in 2005. He became boss at Skoda in 2010. "In the last 25 years, Prof. Vahland made a great contribution to the company. We respect his decision and thank him for his exceptional performance," Muller said in the departure announcement. Prof. Dr. Winfried Vahland leaves Volkswagen Group 14.10.2015 Prof. Dr. Winfried Vahland leaves Volkswagen Group Mlada Boleslav, 14 October 2015 – After 25 years of successful work in Volkswagen Group, most recently as Chairman of SKODA, Prof. Dr. Winfried Vahland is leaving the company at his own request. Prof. Vahland will therefore not be taking up the position of overall responsibility for the North American Region (NAR). Differing views on the organisation of the new Group region have led to this decision; this decision is expressly not related to current events on the issue of diesel engines. Prof. Vahland began his work in Volkswagen Group in 1990. After holding several key positions at home and abroad, he took over Group responsibility as President and CEO of Volkswagen in China in 2005 and contributed significantly to the successful new direction of Volkswagen in China. He was appointed Chairman of the Board of Management of SKODA in 2010.

2015 Volkswagen Jetta TDI

Volkswagen calls its 2015 Jetta "refined, redesigned," and countless man-hours have gone into its re-engineering, but you'd need to crawl all over the car, unbolt most of the body, drive it or spend some time on VW's website to fathom the changes. That's why we wrote, "2015 Volkswagen Jetta is new, we promise," when we first saw the car in New York last April. While we wait for a sweeping next-generation overhaul to come, the marquee elements for now are the new structure underneath designed to win an IIHS Top Safety Pick+ rating, fuel economy increases and a heavily reworked 2.0 TDI diesel engine. Plus, there's ornamental detailing around the body and updated interior, and the revamped trim package and accessories matrix promises to provide more value. That makes it a better buy than the 2014 model, assuming it can find buyers ready to appreciate the subtleties. Outside, improved aerodynamic prowess is the primary goal, and almost all of the visual refresh works to further that aim. A new grille with three cross fins sits atop a slipperier bumper and air intakes. On models with the 1.8T gas engine and new 2.0 TDI diesel, the grille is fitted with a shutter to decrease drag and, on the diesel, speed up the engine warming. There are sleeker rain gutters inside the A-pillars and paneling under the body by the rear axles. Attending to airflow in back is an altered decklid reshaped with an integrated spoiler. Among the other changes are optional adaptive bi-Xenon headlights lined with 15 LED running lights and a chrome strip of brightwork. New fog lights are set in the flanks of the lower lip, and LED taillights can be had on the GLI and Hybrid models, with a tweaked VW logo sitting in between. The illuminating upgrades continue inside with ambient lighting and a crisper dash cluster display. Those cabin changes are joined by an optional "tunnel" theme for the gauges, a new steering wheel design with piano black accents and chrome, redesigned vent controls and new fabric options. Changes to the front substructure from the bumper to the front doors, and strengthened A-pillars combined to win the 2015 sedan a Top Safety Pick+ rating from the Insurance Institute for Highway Safety. We're here to focus on the diesel model, and the updated EA288 2.0 TDI engine and its modular packaging is the most visceral highlight for 2015, inserting new numbers on every line of the spec sheet compared to its predecessor, save for cylinder bore spacing.