2006 Volkswagen Jetta Tdi Sedan 4-door 1.9l on 2040-cars

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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.

Porsche again staring down another $1.8B in hedge fund lawsuits

The sequence of events from 2007 that began with Porsche's secret attempt to take over Volkswagen, and instead lead to Porsche being taken over by VW, continues to instigate lawsuits against the Stuttgart sports car manufacturer. A group of hedge funds that suffered over $1 billion in losses sued the car company in New York. Porsche had publicly stated it wasn't trying to buy VW, the hedge funds in question were shorting VW stock, and when Porsche's actual intentions were revealed, the stock shot up and the hedge funds took a beating.
The case was thrown out over the issue of jurisdiction, then appealed, only to see another suit filed on top of that. After that, most of the hedge funds withdrew their claims in New York and Porsche offered a 90-day window to refile in Germany where it is already fighting a number of other suits over the same issue. The hedge funds accepted the offer, refiling in Stuttgart for $1.8 billion in damages. According to Bloomberg, Porsche hasn't commented on the refiling, but as the same plaintiffs are involved, it's safe to assume that the carmaker still feels the case is "unsubstantiated and without merit." It has fared alright so far even in German courts, with two lesser cases against it thrown out last year.

Volkswagen offers Beetle Classic, priced from $20,195*

The current Volkswagen Beetle already tries to be a fairly retro-looking ride by cribbing styling elements from the iconic original. However, for the new, limited-edition Classic model, VW is hopping into the time machine to grab even more vintage cues. The company is even cutting the price, perhaps in hopes of turning around flagging sales this year. You don't need to wait long for any of these upgrades either because the automaker says that the Classic goes on sale this week for $20,195, *excluding the $820 destination charge. That's $100 less than a bone-stock Beetle.
Starting as a standard Beetle with VW's 1.8-liter turbocharged four-cylinder with 170 horsepower and 177 pound-feet of torque, the Classic edition comes with a six-speed automatic and then adds some retro flair. It includes new vintage-look 17-inch wheels with simulated dog dish polished hubcaps over black spokes. It also comes with a rear spoiler, and the automaker is offering the model in Pure White, Black Uni, and Reflex Silver.
The interior mixes in a few more classic touches but includes modern amenities like a standard navigation system, satellite radio and multifunction steering wheel. However, the seats are finished in a two-tone design combining light brown leatherette on the sides and checked cloth centers, plus lumbar support for the driver's side. The shift knob and handbrake also get wrapped in leather.