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VW exec calls US ops a 'disaster'

Today in the Tell Us How You Really Feel file we have Bernd Osterloh, head of Volkswagen AG's Group Works Councils and member of the company's supervisory board, labeling the company's US operations "a disaster." Why? Because Osterloh believes VW of America doesn't have the models it needs to be competitive here, hasn't been decisive enough about its plans and German higher-ups still don't understand the US market.
In truth, the top labor rep at the German conglomerate is echoing sentiments we've heard from VWoA executives for years, and there's been the same commentary from dealers: Germany doesn't pay enough attention to what the US market really wants. Even ex-VWoA CEO Stefan Jacoby, who preceded the recently departed Jonathan Browning, said early in his tenure that one of his tasks was to get his German bosses to start delivering what the US market demanded. New CEO Michael Horn is saying much the same thing seven years later, telling Sky News that it has to increase "the speed at which we bring new models to the market and innovation to the market."
Osterloh wants to get "more models" here, including a pickup truck, but we'd wonder if the economics have changed from when Jacoby said they'd need to sell 100,000 per year to make money. Osterloh also wants a decision on where the CrossBlue will be built. Although it looked as if the Chatanooga, TN plant would get the call, the Puebla, Mexico plant is still in the running because of lower operating costs. No matter what happens right now, Osterloh thinks the situation won't get better for another two years when revamped models arrive, but at least the company can start taking the steps for a better US future.

How VW's hyper-efficient XL1 will influence the next Golf

In 2007, the European Union mandated fleet average CO2 emissions of 158.7 g/km. For 2015, that figure will drop to 130 g/km, and the target for 2020 is an ambitions 95 g/km. Thanks to some German politicking, that target will be phased in from 2020 to 2024, but it will still apply to 80 percent of passenger cars in that first year. In US miles per gallon, that's the equivalent of going from about 35 mpg to 42 mpg to 57 mpg. The current Volkswagen Golf is rated from 85 g/km of CO2 to 190 g/km depending on model - and zero for the e-Golf, so for the next-generation MkVIII hatch due in 2019, to meet the goal, Volkswagen engineers will need to introduce a bunch of new tricks. According to a report in Autocar, VW be mining its hyper-efficient XL1 for some of them.
Predictions for the next Golf include a variable-compression engine, an electric flywheel and an electric turbo, along with taking greater advantage of coasting. Volkswagen could be getting help from Audi with the electric turbo and variable-compression engine and electric turbo, with Audi already having shown off the former and brand technical boss Ulrich Hackenberg confirming the VW Group is working on the latter. It's possible the flywheel system could also have the mark of The Four Rings: Autocar mentions a British system that Volvo is testing, but the R18 e-tron Quattro racer has been using one for years.
The need for such features is because the company won't be able to net enough future gains from just aerodynamic improvements and advanced materials. As price will be a factor (the regulations are expected to "add hundreds of euros to the cost of building a car"), adding much more aluminum or carbon fiber is an unlikely option. We're told the next generation won't be longer or wider than the current car, and being Europe's most popular model, VW doesn't want to make a big bet on futuristic aero, but the report says the MkVIII will "likely" have "the most aerodynamic treatment yet seen on a production vehicle," the area where lessons learned from the XL1 will truly be seen.

Volkswagen building budget car family planned for China in 2018

Volkswagen has publicly pondered a low-cost car for China, something akin to Nissan's Datsun revival in Southeast Asia, for at least three years. In 2013 it tapped Chinese partner FAW to help develop an entire budget brand, with plans to have something on the market in 2016 in the 6,000- to 8,000-euro range. About a year ago, VW said it couldn't figure out how to engineer an inexpensive car that didn't run counter to the brand's values, then three weeks later said it had overcome the issues. Reuters now reports that VW CEO Martin Winterkorn told German newspaper Bild am Sonntag, "We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback." Winterkorn didn't offer any other details like who VW would work with to build it - VW has partnerships with both FAW and SAIC, but the announcement will be welcomed by the brand's Chinese outpost. When this adventure started, VW said it was working to create a model that would cost 6,000 to 8,000 euro. That estimate has increased. Winterkorn is now saying the 2018 offerings will come in between 8,000 and 11,000 euro. In a straight euro-to-yuan conversion, that would equate to Chinese pricing of 56,000 to 77,000 yuan. For comparison, the New Polo with a 1.4-liter engine and a manual transmission starts at 85,900 yuan. Perhaps with an eye on the success of the Nissan-Renault sub-brand Dacia in Europe and emerging markets, Winterkorn told Bild, "We will see if this is something of interest for other markets as well." On the opposite end of the price/performance spectrum, Winterkorn also said that VW is working on two new models for Bugatti, one powered by a traditional gasoline engine and another with some sort of hybrid setup. The latter model would reportedly be the higher-performing of the two, though it's not clear whether there would be two vehicle lines or two versions of the same vehicle. As ever, as soon as we know more, so will you.