The joint venture of Volkswagen with First Automotive Works Corporation (FAW), which is one of the top Sino-foreign car partnerships, proved to be a good venture as they now expect their 2007 profits to increase by at least a quarter, helped by brisk sales and cost-cutting efforts.

“The venture, FAW Volkswagen, in the northeastern city of Changchun, will have a “minimum” profit growth of 25 percent this year from 2006,” Joachim Wedler said, their vice-president in charge of finance. However, Wedler didn’t disclose how much the firm will earn this year. Volkswagen only holds 40 percent of the firm whilst FAW holds the 60 percent.

Venture’s sales chief Weiming Soh said that it plans on selling more than 400,000 cars this year, which is 50,000 more from last year’s sales.

The first five months gave the firm a good start of the year as their retail sales jumped by 25.1 percent year-on-year to 173,218 units, making it reach the third spot after General Motor’s venture with SAIC Motor Corporation and Volkswagen’s other partnership with SAIC. “FAW Volkswgen’s June sales are expected to exceed 40,000 units,” Soh said.

The bold profit and sales projection of the company came amidst the blistering growth of China’s vehicle market. China-made vehicles’ slaes were up by 22 percent to 3.65 million units from January to May, including 2.12 million passenger cars, based on the industry data. During the first four months, the profits of the combined top 16 Chinese auto groups reached 18.1 billion yuan, increasing by 51.3 percent.

Wedler said that the cost-cutting plan of FAW Volkswagen is to use locally made engines and spare parts. “We are shooting for a very high localization rate to have more financial power to beat competition,” he said.

The competition is China’s passenger car market is going at its peak as companies are coming up with price incentives and product launches. Automakers offered some 50 price cuts in the first five months this year, based from the FAW Volkswagen data.

The venture’s general manager An Tiecheng said that it has plans on rolling out at least two new models under the Volkswagen and Audi makes yearly during the next five years to appeal to the increasing sophisticated buyers .

The venture will introduce a Volkswagen Magotan large-sized sedan next month. Their current line up includes Volkswagen Jetta, Bora, Golf, Sagitar, and Caddy. They also included Audi A6 and A4.

The latest specification and details on Volkswagen’s new compact off-roader, the 2009 Tiguan Crossover has been disclosed. This compact crossover is not due to come out until September at Frankfurt’s Auto Show, but Volkswagen has decided to let people in on the latest features their 2009 Tiguan has.

The 2009 model year for Tiguan is 173.2 inches long, 72.8 inches wide, and stands at 66.5 inches. It has the modified Golf/Rabbit as its platform and some specifications and attributes of the Touran MPV (which was sold in Europe) have been incorporated into this new compact off-roader. Three turbocharged gas engines and two turbodiesels are included in its global lineup of engines. The likely engine specification that U.S would have is a 200 hp, 2.0L turbo four with direct injection. There have been plans for a Jetta line having clean diesels and Volkswagen had also shown a Tiguan concept with clean diesel power during the 2006 L.A Auto Show but there is still no news on whether the upcoming 140 hp TDI engine will suit into the Tiguan.

In some world markets, the 2009 Volkswagen Tiguan comes with a choice of front ends. The first two will be called Trend & Fun and Sport & Style. Both will have 18 degrees at the front as their maximum entry angle. Track & Field will be the third one and it has a revised nose that would make it much more capable for off-road use. It is capable of entry angles of up to 28 degrees.

Volkswagen introduces another car technology in the form of the Offroad Mode. This is a button found on the dashboard that will activate a raft of alternative safety features. However, this technology will only be available on the Track & Field car, and this will switch on the hill descent control and hill climb assist. It wil also improve the throttle response to allow more accurate delivery of torque, and boost braking on loose surfaces.

This 2009 Volkswagen Tiguan will be launched at September’s Frankfurt Motor Show and will go on sale in Europe in early 2009.

Volkswagen of America is offering a vacation including their very own Volkswagen Touareg. Volkswagen has rolled out new vacation packages to Moab Utah, which they called the “Toureg Adventure.” This three-day adventure package costs $2,000 per person but it does not include airfare. This program will start in July and ends in October 31.

“Participants do not need to be experienced off-road drivers, as experienced guides will coach guests through the challenging Moab terrain,” the company said.

There will be three choices for the engines of the 2007 Touareg SUV – a 280-horsepower 3.6-liter six-cylinder, a 350-hp 4.2-liter V8 or a 310-hp 5.0-liter V10 TDi. All engines are linked to a six-speed automatic transmission with Tiptronic.

The new Multivan, Volkswagen’s seven-seater vehicle, has had some added features on it for a more luxurious look. Volkswagen has always been connected with small cars with their Volkswagen Beetle, Golf, and Passat, with prices not exceeding $57,000(which would be the highest-priced Passat from Europe). But they actually have vehicles over that price range and the newest one would be their Volkswagen Multivan.

The Volkswagen Multivan is a luxury type vehicle which could seat seven passengers and was based on the T5 light commercial vehicle. But this vehicle is well sorted and with a lot of extensive features. If people would be asked to name the first “people-mover” van they remembered, there’s a good chance that they’ll be naming the Volkswagen Kombi. But today, the people-mover van that Volkswagen offers its market is one that has the touch of today’s luxuries.

The Volkswagen Multivan in it’s Highline trims has an electrically-operated sliding doors, a multifunction rear table, satellite navigation(which would cost about $4000 extra on lesser models), leather trim, heated front seats, 17-inch alloy wheels, front and rear parking sensors complete with front and rear fog lamps. Extra luxurious features would include a six-stack CD with eight speakers sound system, cruise control, power windows, ‘climatronic’ three-zone climate control and swivel seats in the middle row. All these extras give the passengers an even more comforting ride in the Multivan.

The Highline version of the Multivan is available with a choice of turbo-diesel or petrol engines and with Volkswagen’s 4Motion, which is their term for the all-wheel drive. The engines are placed transversally in the front. The petrol engine has the 3.2L V6, rated at 173kW of power at 6200rpm and 315Nm torque at 2900rpm. But these specs could only be attained if a premium (98RON) unleaded petrol is used.

Its diesel engine is the 2.5L 5-cylinder unit with intercooler, delivering 128kW of power at 3500rpm and 400Nm of torque at 2000rpm. Because it is with the 4Motion AWD either has to drive through a six-speed manual transmission. But in the front-wheel drive, it comes with a six-speed tiptronic automatic.

The Volkswagen Multivan Highline 4Motion is priced at $76,990 for the V6 petrol and $73,990 for the 4Motion diesel. The front-wheel drive diesel automatic is $72,990 and $75,990 for the V6 petrol.

Like the Volkswagen Jetta, Passat, and New Beetle, two other of their models also underwent changes - the Volkswagen Eos and Touareg. These changes will ne visible on the 2008 model years of the said vehicles.

The Eos models largely remain the same but with just a few minor changes. The changes made on the Eos are as follows:

*New trim level naming, Turbo, Komfort, Lux, and VR6
*Leatherette now named V-Tex
*Lux only available with automatic transmission
*Winter starting assist mode standard on VR6
*New seventeen-inch alloy wheel on Lux
*New eighteen-inch alloy wheel on VR6
*Delete Wheat Beige
*Rear Park Distance Control included in Lux and VR6
*Chrome front grille louvers included on VR6
*Power twelve-way driver seat now standard equipment
*Leather steering wheel now standard equipment
*Leather shift knob now standard equipment
*Leather parking brake handle now standard equipment
*Wind blocker now standard equipment
*Ambient lighting deleted on Turbo
*Micritech interior trim now included in Turbo
*Center sliding armrest now standard equipment
*Heated front seats now optional on Turbo
*Seventeen-inch alloy wheel optional on Komfort

However, the Toureg receives a lot more comprehensive updates. This SUV will carry the minor styling changes until its next redesign and some luxury features will become standard like the power liftgate, satellite radio, and parking assist. Other changes made on the Touareg are below:

*New exterior colors (White Gold, Galapagos, Alaska Gray, Cranberry)
*Chrome grille with logo and chrome eyebrows standard on VR6 FSI
*Chrome matte grille with logo and chrome eyebrows, chrome air intakes, chrome grille slats standard on V8 FSI and V10 TDI Twin Turbo
*Darkened Taillights
*New, central headlights design
*Sporty, more aerodynamic rear spoiler
*Electronic Parking Assistance now standard equipment
*Nineteen-inch Wheels with all-season tires optional on VR6 FSI, included in V8 FSI and V10 TDI Twin Turbo
*Larger screen for Multi-function Indicator included with optional Technologies Package
*New Option Packages
*Dynaudio now available in package for all trims
*Next generation Tire Pressure Monitoring System (TPMS) now standard equipment
*ABS-Plus standard
*ESP Innovations standard
*New front seat design, more comfortable front seat side bolsters, new seat stitching design now standard equipment
*Gray seat trim in leather and leatherette deleted
*Silver Metallic Plastic interior trim standard on VR6 FSI with leatherette
*Servotronic steering no longer available on 3.6L VR6 FSI
*Comfort Suspension replaces Sport Suspension on VR6 FSI

The Volkswagen Rabbit, GLI, and GTI are the models that received little changes. For the Rabbit:

*New 170-hp, 177 lb-ft 2.5-liter five-cylinder engine standard on two- & four-door
*Tire Pressure Monitoring System (TPMS) now standard
*New trim level naming: Rabbit S (two- and four-door)

For the GLI, the changes are:

*Reflex Silver is now special order only
*Climatronic deleted from all trims
*New trim level naming: GLI and GLI Autobahn

For the GTI:

*15mm ride height reduction on both two- and four-door
*Sirius satellite radio now standard * Reflex Silver is now special order only
*Climatronic deleted from all trim
*New trim level naming: GTI and GTI Autobahn

Volkswagen is currently changing their 2008 New Beetle/New Beetle Convertible for its 2008 model year. The changes are minor and some of which include deletions of colors and trim level naming switches. However, there are also significant changes like extra power in some of the engines of other Volkswagen models.
There is also a newfound thrust courtesy of a new intake and software that would take advantage of the extra breathing capability. But this intake doesn’t fit under the hood of the New Beetle, which will continue on with its 150-horsepower version. There is a rumor that the New Beetle for 2007 would have an extra 20 horsepower in it but that still remains to be seen.

The Beetle got a lot of cuts in the changes as the fog lights were taken away from all trims, the floor mats, leather seating, and rain-sensing wipers. Among the changes in the New Beetle and Beetle Convertible aside from those are the following:

*New Trim Level Naming: S and SE
*Tire Pressure Monitoring System (TPMS) becomes standard
*New sixteen-inch alloy wheel S
*New seventeen-inch alloy wheel on SE
*Temporary use spare tire
*Delete Shadow Blue on sedan and convertible
*Delete Platinum Gray on convertible
*Delete reflex silver on convertible
*Laser blue no longer available with gray interior
*Black not available with crème top
*Delete Leather seating surfaces from all trims
*Leatherette now named V-Tex
*Cold weather package available on S as stand alone option

The Passat also wasn’t spared from the changes. But the changes for the 2008 Volkswagen passat is much more enjoyable. New Passat owners will now experience standard power driver seats, window shades, and upgraded interior details on all trim levels. Below are the other changes for the Passat sedans and Wagon:

*New trim level naming, Turbo, Komfort, Lux, and VR6
*Leatherette now named V-Tex
*Temporary use spare tire like the Volkswagen New Beetle
*Chrome window trim becomes standard on Turbo
*New sixteen-inch alloy wheel on Turbo
*New seventeen-inch alloy wheel on Komfort
*Delete Shadow Blue
*Delete Wheat Beige on wagon
*Heated washer nozzles only available on VR6
*Bi-Xenon headlamps w/ AFS now standard on VR6
*Manual side and rear sunshade are now standard on sedans
*Manual side sunshades is now standard on wagon
*Power twelve-way driver seat now standard equipment
*Heated front seats optional on Turbo and Komfort
*Leather steering wheel now standard equipment
*Leather shift knob now standard equipment
*Delete Pure Beige leather comfort seats
*Delete gray leather and V-Tex
*New interior trim on Turbo
*Three-spoke leather multi-function steering wheel included with Lux
*Dynaudio now optional on Lux
*Adaptive Cruise Control optional on VR6
*4Motion is only configuration available with VR6 wagon
*Manual transmission only available on Turbo

New Jetta owners could now enjoy an extra power for the 2.5L five cylinder engine. The engines will get a more useful 20 horsepower boost from 170 last year, it will now be producing 177hp. Other chnages are as follows:

*New 170-hp, 177 lb-ft 2.5L five-cylinder engine standard
*Delete 2.0T engine (only available on GLI)
*Automatic only available with SEL
*Temporary use spare tire
*Laser Blue replaces Shadow Blue
*Delete Wheat Beige
*Front and rear lower valance in black textured color on S and SE
*Body color front and rear valance on SEL
*2.5 badge included on S
*Sixteen-inch steel wheels with full covers standard on S
*Delete Climatronic from all trims
*Delete leather seating surfaces from all trims
*Power recline standard on all trim levels
*Seventeen-inch wheel standard on SEL
*Delete Homelink from all trims
*Cold weather package now optional on S
*Sixteen-inch alloy wheel now optional on S
*Sunroof now optional on S
*Premium sound package (includes amplifier and 250W) now optional on SE
*New trim level naming, S, SE, and SEL
*Leatherette now named V-Tex

Porsche CEO Wendelin Wiedeking said during the Porsche’s general staff meeting that Porsche will not take over Volkswagen, they will operate independently of Volkswagen’s decisisons. He cleared this out because there have been a lot of media craze around the Porsche-Volkswagen relationship. “Volkswagen will remain Volkswagen,” Wiedeking said before the Porsche employees. He also pointed out the difference between the two companies saying that Volkswagen “plays in the championship league” but still has a long way to achieve its goals.

Wiedeking also cleared that Porsche will remain in Stuttgard. Regarding the increase of collaboration with Volkswagen, he said that “At present there are no further intentions. We continue to look at the market by ourselves and what is feasible.” He also said reverified that “there will be no baby Cayenne.”

Porsche also raised their forecast on their earnings. Wiedeking said that “it is not difficult to predict that our annual earnings will be significantly — and I mean significantly — better than the 2.1 billion euros in the previous year.”

The Volkswagen AG’s unit in Czech, Skoda Auto AS, increased its full-year forecast on sales. This is because the demand for the Roomster all-purpose vehicle and Fabia small car were up to a high. “Skoda estimates deliveries will increase about 13 percent to 620,000 units from 549,667 units in 2006,” said Chief Executive Officer Detlef Wittig during an interview at the headquarters in Skoda’s Mlada Boleslav, Czech Republic.

Only in February this year that Wittig made a forecast that sales will increase by up to 9.1 percent to 600,000. The six-month sales of the automaker made an increase of up to 15 percent from a year earlier to 310,000 vehicles as reported by Wittig, while their revenue increased between 7 and 8 percent.

The growth of profit “will be a little higher” than the sales increase as they said because Skoda has cut the production and the costs for material. The medium-term global target increase for the sales of Skoda of Wittig is 45 percent to 800,000 vehicles a year since the division expands production worldwide.

The Volkswagen’s second most profitable unit after the Audi luxury brand is planning on increasing their 2007 sales through their new version of their best-selling Fabia model. This model came to market in March and the Roomster was introduced in 2006. “The new Fabia and the Roomster are doing well, which is a good reassurance for the future,” Wittig said. The Czech division’s 2006 profit soared 40 per cent to a record 11.1 billion koruna ($520 million) as the Roomster appealed to buyers and thus the productivity improved.

The sales increased to 8.7 percent to 203.7 billion koruna. Skoda is investing a total of 350 euros or $471 million this year, and most of the money will be used for the expanding production capacity at the three existing Czech plants. However, they have no plans on adding a factory on th market even though they are experiencing a “tight labor market.”A fourth plant is absolutely out of discussion,” Wittig said. “The Czech labor market would not give us an opportunity to do that,” he added.

It was said by the government that their unemployment rate fell to 6.4 percent in May, which would be the lowest since 2004, the time Czech Republic joined the European union. Skoda also had to compete for workers as a joint venture was made between Toyota Motor Corporation and PSA Peugeot Citroen and other automakers expanded.

Wittig’s objective is to introduce a new model every year and that includes a new Sports Utility Vehicle called the Yeti, which is scheduled to come out in 2009. Also, they plan to release a Combi Fabia in 2008, which will be manufactured at the main plant in Mlada Boleslav.

Skoda alo plans on expanding in emerging countries like Russia, India, and China. This year’s division began on selling the Octavia mid-size sedan produced at the Volkswagen plant in China, and they will also manufacture the Fabia and Superb, its most expensive vehicle.

The joint Volkswagen and Skoda factory will help the automaker in avoiding a 25 percent tax on imported vehicles. “Skoda now has 50 exclusive dealerships in China and by the end of the year will have 80 outlets,” Wittig said. “Skoda has received orders in the last month for about 10,000 cars in China and expects to sell as many as 30,000 vehicles there this year,” he added.

The first Octavia in Russia will be assembled from kits staring October or November with the full production beginning in 2009. “The major growth rate in the future will be in the emerging markets, in Russia, India, and China,” Wittig said.

The production for those cars “will be done in those markets.” The division in March began selling the first complete remake of the Fabia since its introduction more than seven years ago. 1.6 million units of Fabias were already sold by Skoda since its debut in 1999.

Pricing and specifications of the revised Phaeton luxury saloon has already been announced by Volkswagen ahead of its launch on September this year. The revisions made on the Phaeton include an updated interior and exterior styling, a new engine that follows the Euro V emissions legislation, making it the first Volkswagen engine to follow such and is a 3.0L V6 TDI. This engine also prides itself of its more power than the outgoing unit.

This new engine uses common rail technology, with an utmost power output of 233 PS, which is eight more PS than its predecessor. This 3.0L V6 TDI engine also produces a torque measurable of up to 450Nm, 0-62 miles per hour in an approximate time of 8.4 seconds, and has a top speed of 146mph. But it still returns a 29.4 miles per gallon on the combined cycle. The 80 percent reduction in particulates (compared with the Euro IV) is one of the requirements of the Euro V emission and is not scheduled to come out until 2009, has already been achieved by this new Volkswagen engine.

Two other engines complete the Phaeton line up – the 4.2L V8 335 PS and the 6.0L W12 450 PS. All the models are equipped with the standard 4MOTION four-wheel drive and the long wheelbase, which gives 12cm additional rear legroom, are also available. The only thing offered with the standard wheelbase is the 3.0L V6 TDI engine.

There are certain subtle style changes on the Phaeton’s exterior and these are the re-profiled bonnet, newly-designed headlights complete with automatic driving lights, body coloured bumpers with chrome trim,cherry red rear light clusters, hazard lights which illuminate automatically in extreme braking situations for added safety, and chrome air inlets. There is an option however, to upgrade into the cornering bi-Xenon lights with LED daytime running lights. This innovation upgrade is already a standard on the W12.

Phaeton also now features a modified center console switchgear for enhanced ease of use in its cabin, and a new DVD navigation system. Again, as an option, the current telephone preparation is replaced by Voice Activated Mobile Phone Preparation. This already includes a Blueetooth Interface with hands-free operation and the control unit integrated into the “infotainment” system. This costs £825.00.

The prices for this revised Volkswagen Phaeton starts at £37,995* RRP OTR. This will arrive in UK in September this year and will be available to order now from Volkswagen retailers.

Strategic Vision has named Volkswagen of America, Inc. the best-full line manufacturer for the second consecutive year. Along with that, the Volkswagen Rabbit was also rated the top vehicle in its class in the yearly Strategic Vision Total Quality Index (TQI), which has the task of measuring the new vehicle owner satisfaction.

Alexander Edwards, President of Strategic Vision said, “On top of strong quality, the Volkswagen Rabbit hits a strong emotional chord with its buyers. Overall, Volkswagen vehicles have proven to be of high-quality and owners are passionate about the brand and their vehicles.”

In the small multi-function segment, Rabbit has ranked top above many various competitors, all of which had something to offer. Executive Vice President of Volkswagen of America, Adrian Hallmark said, “Volkswagen has continued to do well in the Strategic Vision Total Quality Awards. It reiterates that our vehicles are well crafted and fun to drive and that our owners are some of the most passionate drivers in the market.”

Hallmark also said, “Our continuing commitment to building high-quality vehicles is evident in important quality surveys, like Strategic Vision; it is Volkswagen’s objective to continue to improve our quality and receive scores among the top tier.”

The Strategic Vision Total Quality Index observes all aspects of the ownership experience – from buying and owning to driving the car. It associates the satisfaction of customers with complete ownership experience, owner reported delight, future purchase intent, perception of quality, and emotional attachment to the vehicle.