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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.

Recharge Wrap-up: Eigg's renewable energy grid, Wulin City Car EV looks like i3

Scotland's Isle of Eigg's electrical grid relies solely on wind, hydro and solar power. It's the first grid of its kind after switching to renewable energy from noisy, unreliable diesel generators. Scotland's renewable resources are fodder for supporters of independence form the UK, and Eigg is a perfect example of that potential. Besides being a responsible community, it also seems like a lovely place to visit. Read more at Reuters. London Mayor Boris Johnson is calling for incentives for diesel vehicle scrapping. The goal is to improve London's air quality, encourage the purchase of clean vehicles and offset the inconvenience of charging diesel cars to enter the city's proposed Ultra Low Emissions Zone. Read more at Green Car Congress or in the press release below. BMW, Nissan, Renault and Volkswagen are teaming up to create a better EV charging infrastructure in the UK and Ireland. As part of the Trans-European Transport Network (T-ENT) program, the group aims to create extended EV-friendly roadways with the UK Rapid Charge Network, connecting major cities on the islands. Plans for the network include 70 rapid chargers along 684 miles of road. The four manufacturers also want to extend the project to mainland Europe to encourage the adoption of EVs. Read more at Hybrid Cars. Wuling is working on an EV, called City Car, which liberally takes visual cues from the BMW i3. The City Car EV concept is slated to make its debut in November at the Guangzhou Auto Show, while a production version could make its way onto Chinese roads next year. We might have to wait until the debut to know what powers the City Car, as those details haven't been released yet. General Motors is a 43-percent stakeholder in Wuling. Read and see more at Car News China. Taxi customers in New York will enjoy greater payment flexibility with the new interoperability between RideLinQ and Way2ride apps. Now customers will be able to use either app to pay in any of the city's 20,000 green and yellow taxis. There's no need for separate apps for separate cabs, and no need for drivers to install any new equipment. The groups behind the apps hope to expand this functionality to other cities across the country. Read more in the press release below.

Car and Driver 10Best list cracked by Tesla Model S, BMW 3 Series left off

Car and Driver is keeping new blood pumping into its annual 10Best cars list with three new entries making it on for 2015 and a perennial favorite falling off. Among the biggest shocks this year is that the BMW 3 Series and 4 Series are no longer named, despite years of some portion of that lineup earning a mention. In another surprise, the Tesla Model S (specifically in S 60 trim to fit under the $80,000 cost cap) makes it to the 2015 roster and is the only electrically motivated member of the group. Despite the loss of the 3 Series, BMW isn't entirely shut out this year, because the M235i gets its name on the list. Car and Driver argues that the little coupe feels like a welcome throwback to the E46 chassis M3 of the early 2000s. In addition to the Model S, the final newbie to the annual group is the 2015 Ford Mustang GT. The inclusion of these new members knocks the Audi A6/A7 family and Ford Fiesta ST out from the 2014 rundown. The other seven models carry over from last year, including the Cadillac CTS, Chevrolet Corvette Stingray, Honda Accord, Mazda3, Mazda6, Porsche Boxster/Cayman and Volkswagen Golf/GTI. The 2015 10Best cars list certainly seems to have something for everyone from the hot hatch fan to the family man and even the green car driver, thanks to the addition of the Tesla. Head over to Car and Driver to read its detailed explanations for each vehicle's inclusion, but if you've got a difference of opinion or just really like the list, let us know in Comments. Featured Gallery Car and Driver 2015 10Best Cars List View 10 Photos News Source: Car and DriverImage Credit: Car and Driver, BMW, Cadillac, Chevrolet, Ford, Honda, Mazda, Porsche, Tesla, Volkswagen Auto News BMW Cadillac Chevrolet Ford Honda Mazda Porsche Tesla Volkswagen Convertible Coupe Hatchback Performance Sedan 10Best