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Volkswagen scores dominant 1-2-3 finish at Monte Carlo Rally

Racing calendars change from year to year, but most series have that one race they just couldn't do without: the Monaco Grand Prix for F1, Le Mans for endurance racing, Dakar for rally raid, the Indianapolis 500 for Indy, the Daytona 500 for NASCAR... and for the World Rally Championship, it's the Monte Carlo Rally. Winning the Monte brings with it its own measure of bragging rights, but locking out the podium is another story altogether. And that's just what Volkswagen did this weekend on the Cote d'Azur. The hard-fought season-opener saw nine-time world champion (and seven-time Monte Carlo Rally winner) Sebastien Loeb return with Citroen, but ultimately it was the VW team that won – and won big, taking a commanding 1-2-3 finish. Sebastien Ogier (with Julien Ingrassia) finished first, followed by Jari-Matti Latvala (with Miika Anttila) in second and Andreas Mikkelsen (with Ola Floene) in third, all of them in the Volkswagen Polo R WRC that was just updated in time for the start of the season. The rally passed right through the Forest Saint Julien where Ogier was born, and at the end of it all, Mikkelsen walked little more than 50 steps from the Volkswagen garage to his condo at Quai Antoine 1er in Monte Carlo. It was only the second time VW has locked out the podium since hitting the scene two years ago, following the German team's 1-2-3 finish in Australia last season en route to its second consecutive world championship. This also marked the second year in a row that Ogier and VW have won the Monte, after narrowly losing out to Loeb in '03. The achievement in Monaco this weekend made VW only the fifth manufacturer to take the top three spots in the Monegasque capital: Renault-Alpine became the first in 1973, followed by Lancia (with the Stratos) in '76 and then again (with the Delta Integrale) in '89, Audi sandwiched between in '84 and Citroen with the "dream team" of Loeb, Colin McRae and Carlos Sainz in 2003. (Peugeot achieved the same in 2009, but that was when the Monte Carlo Rally had left the WRC and was run as part of the less prominent and lower-spec Intercontinental Rally Challenge.) Not even Subaru, Mitsubishi, Toyota or Ford - all dominant forces in their time - can claim that feat. The victory secures the Polo R WRC's place as the most dominant car in the championship, winning over 85 percent of the rallies in which it has been entered since its debut in 2003. FIA World Rally Championship (WRC), Rally Monte Carlo One-two-three!

VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

French police search VW offices in emissions probe

French authorities have searched the headquarters of Volkswagen France as part of a local investigation into the emissions testing scandal at the German automaker. Investigators from France's environment and public health office conducted the searches Friday at Volkswagen France's offices in Villers-Cotterets, 52 miles north of Paris, and seized computer equipment, the Paris prosecutor's office said Sunday. A spokeswoman for Volkswagen France, Leslie Peltier, confirmed the searches and said Volkswagen is fully cooperating with the police. In Spain, prosecutors have called on the National Court to open a probe of Volkswagen for possible fraud and environmental offences in connection with the emissions scandal at the German automaker. The court's prosecutor's office sent the recommendation Monday to investigative magistrate Ismael Moreno, saying the alleged offences could have affected people across Spain. It said that given that the cars in question qualified for subsidies from the government, they also constitute possible fraud against the state. The prosecutors were acting on complaints filed by the Spanish anti-corruption group Manos Limpias (Clean Hands) and a victims' association. Volkswagen's Spanish subsidiary SEAT said it fitted 700,000 vehicles with the EA 189 diesel engines that had software enabling them to cheat on emissions tests. Volkswagen says 11 million cars worldwide have such software. The automaker has hired Christine Hohmann-Dennhardt away from Daimler to help the company, and perhaps the entire German automobile industry, recover from VW's diesel emissions scandal. Governments around the world are working on new emissions tests that may drive the price of diesel vehicles higher than buyers are willing to pay. Related Video: The AP contributed to this report.