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Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.

Volkswagen forced to sell stake in Suzuki

The six-year-long failed marriage between Volkswagen and Suzuki has finally come to an end. Almost. An arbitration panel in London issued its final verdict which, according to a VW press release, cleared Suzuki in terminating the agreement, so VW now needs to get rid of its 19.9-percent share. However, the tribunal's decision said VW performed all of its obligations and Suzuki didn't – the Japanese carmaker should have given VW last-call rights for a delivery of diesel engines, but failed to. The breach opens Suzuki up to damage claim, but so far VW only says it reserves the right to sue. Now that Suzuki has an outside investor to provide funds it meant to get from VW, perhaps both can get back to their reasons for being. The press release is below. Ruling in arbitration proceedings: Cooperation between Volkswagen and Suzuki deemed terminated - Arbitral tribunal confirms Volkswagen met contractual obligations and finds that Suzuki has ordinary right to terminate agreement based on reasonable notice - Volkswagen to dispose of its 19.9 percent stake in Suzuki and expects positive effect on Company's earnings and liquidity from transaction - Arbitrators also find that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has right to claim damages Wolfsburg, 30 August 2015 - An arbitral tribunal in London has announced its ruling in the dispute between Suzuki Motor Corporation and Volkswagen Aktiengesellschaft. As a result, cooperation between the two parties is deemed terminated. The arbitrators confirmed that Volkswagen met its contractual obligations under the cooperation agreement and found that Suzuki has terminated the agreement upon reasonable notice. Volkswagen will therefore now dispose of its 19.9 percent stake in Suzuki and expects a positive effect on the Company's earnings and liquidity from the transaction. The arbitral tribunal also confirmed that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has the right to claim damages. "We welcome the clarity created by this ruling. The tribunal rejected Suzuki's claims of breach and found that Volkswagen met its contractual obligations under the cooperation agreement. Nevertheless, the arbitrators found that termination of the cooperation agreement by Suzuki on reasonable notice was valid, and that Volkswagen must dispose of the shares purchased.

2016 Volkswagen Golf GTE First Drive [w/video]

For the past few years I've enjoyed a simple automotive tradition: When planning a European vacation, I request a relatively attainable loaner car that's unavailable in the States. These slices of can't-get-it-at-home automotive exotica have tended to be clean diesels, and experiencing them in their native habitat ahead of their US debuts often gives some form of four-wheeled revelation. For instance, before the mainstream emergence of clean diesels stateside, I racked up 1,500 miles on a then-brand-new 2008 Mercedes-Benz C220 CDI. The otherwise unassuming sedan enabled me to cannonball from the South of France to Barcelona on a single tank of fuel, while delivering satisfying torque around town and averaging 41 mpg. The following year, I bombed through the Italian Alps in a Volkswagen Golf SportWagen TDI, which eked a claimed 17 percent better fuel economy than its predecessor. Once again, I was in car guy heaven, returning home with nothing but praise for these efficient, entertaining diesels that seemed to defy conventional wisdom. And then came the Volkswagen scandal, single-handedly besmirching so-called clean diesels and everything they purported to represent. With a European pleasure trip around the corner (and a request for a press car pending with VW), I wondered what would be waiting for me curbside when I touched down at Aeroporto di Firenze-Peretola. The GTE packs what is essentially an Audi A3 E-Tron beneath its familiar skin. Enter The High Performance Hybrid Volkswagen, quite understandably, didn't want to arm a journalist with potentially damning commentary about the technology that has already inspired environmental outrage and the ousting of CEO Martin Winterkorn. For the automaker in peril (and the auto writer in waiting), I soon discovered that the 'clean' diesel elephant in the room would be supplanted with a vehicle that could single-handedly deflect controversy. My loaner? A still-can't-get-it-back-home alternative to diesel, the 2016 Volkswagen Golf GTE plug-in hybrid. First off, let me admit to some prejudicial bias against the GTE. Maybe it's my personal views on hybrids, tainted by the eco self-righteousness exuded by their drivers back home, and epitomized by teeming swarms of Prius drivers who couldn't give a single damn about driving. Or maybe it's the added weight and complexity of a hybrid drivetrain that runs counter to my petrol-loving soul.