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Volkswagen kills planned 10-speed DSG

If there are two things in this wild and crazy industry that keep growing, they are the size of cars and the number of gears in their transmissions. It wasn't ten years ago that cars with six forward gears – either manually or automatically shifted – were a relative rarity. Now, there are a multitude of sub-$30,000 cars with at least a six-speed automatic. But while eight- and nine-speed automatics are becoming increasingly common, no automaker has delivered a production ten-speed automatic (which may be a good thing, considering the reception to most nine-speed gearboxes). Ford and General Motors were collaborating on one as recently as April 2013, and Hyundai has was allegedly working on one way back in 2011. Most recently, though, Volkswagen announced a ten-speed, dual-clutch automatic in November 2014. And now, less than two years later, the project has apparently been shelved. That's according to our Vegemite-loving friends at Motoring.com.au, which report that both the cost and complexity of project has proved unfeasible for VW. "In the end, we had to balance what our priorities were with our transmissions and other things are more important and more urgent," an unnamed source at the Frankfurt Motor Show told the Aussie website. The ten-speed DSG was slated for a number of three- and four-cylinder models from VAG's entire range of affordable vehicles. It was also, allegedly, to feature in the ultra-high-performance Golf R400, Motoring reports. It's unclear how its cancellation will impact the company's future projects, if VW will look elsewhere for its small-car gearboxes, of if there's another – perhaps conventional – new transmission in the pipeline. Currently, VW's highest gear-count dual-clutch is the seven-speed DSG, shown above with company CEO Martin Winterkorn.

VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.

2023 CES Editors' Picks

Over the past few years, it has become more and more clear that the Consumer Electronics Show is a car show. And this year that reality is more clear than ever. Not only did established automakers show off seriously important vehicles, but a traditional electronics company brought a car that gives an idea of its intents (with the help of establishment car company). With so many car reveals, we had to rank our favorites. Our picks for this show are entirely electric. Or at least, they are on paper, since many are concepts. Considering the name of the show, it would be a little strange if they weren't. In fact, not only are many of our favorites concepts, they all are save for one. See how they shook out below. VW ID7 camo View 28 Photos 5. Volkswagen ID.7 "The ID.7 definitely got lost in the crowd at CES. That it was camouflaged definitely didn't help, even if that camo was electroluminescent (BMW trumped it big time with its color-changing Dee). Nevertheless, this is a close-to-production hatchback-ed sedan, not unlike today's Arteon, with an extra-long wheelbase courtesy its EV architecture. It should be a solid answer to the Tesla Model 3 and Hyundai Ioniq 6, and even if people obviously prefer SUVs now, VW says there is still a market for sedans. I know I'd probably prefer one." –Senior Editor, West Coast and Reviews, James Riswick Peugeot Inception concept View 12 Photos 4. Peugeot Inception "It's not often that show debuts surprise us. While Peugeot teased the Inception ahead of CES, its unveiling seemed almost incidental. But just look at this thing; it's like an electric French Mustang with someplace important to be. I don't buy into the stupid 'It's not a wheel!' thing that Peugeot CEO Linda Jackson described as providing a video-game-like drive experience, but that bit of silliness aside, this is a really promising design study. Give us more of these and fewer tall boxes, please." –Associate Editor Byron Hurd Afeela prototype from Sony Honda Mobility View 11 Photos 3. Afeela by Sony Honda “Ever since Sony showed off an impressively put-together concept car at CES a few years ago, IÂ’ve been anticipating the companyÂ’s next move. Apparently, that next move is “Afeela.” No, I donÂ’t love the name. The specs from SonyÂ’s original concept car give me hope that this prototype sportback (itÂ’s a hatchback!) will be fun to drive, though.