With the on-going quest to develop green cars, Volkswagen and the German Society for Nature Conservation NABU joined forces for the first time at the International Auto Show (IAA) in Frankfurt.

This year’s auto show is focusing on protecting the climate and the environment. It was to be expected that the partnership between Europe’s largest automaker and Germany’s largest environmental organization team up for one of the largest car show.

“Protecting the environment has become a global challenge. Wherever we look - design, climate technology or packaging, sensor technology and architecture, material development, micro- and nano-technology – researchers and developers take their lead from nature, just as we do in the automotive industry. In this sense, biodiversity also has an economic value. That is one reason why our cooperation with NABU is so important for Volkswagen,” said Stephan Grühsem, Head of Group Communications.

Volkswagen and NABU were already working on free fuel saving training sessions throughout Germany even before the present climate protection debate began. These sessions are composed of a team of professional trainers that teach driving license holders how to drive their vehicles the modern and efficient way. The sessions proved that it is possible to save up to 25 percent on fuel without slowing down drive times.

At the IAA, Volkswagen showcased the BlueMotion series. Launched a year ago, the Polo BlueMotion boasts a CO2 emissions of a mere 99 grams per kilometer. According to Miller, “Not all that glitters at auto shows is worth its weight in environmental gold, but we believe that Volkswagen’s high-efficiency models are a big step in the right direction. They demonstrate that climate-friendly cars can be found in almost every vehicle class without considerable additional cost.”

With fuel price rising, car manufacturers are on the race to develop fuel efficient vehicles. Volkswagen is on the right track especially when the German car maker is set to launch one of the world’s most fuel-efficient liquid-fueled cars, the Polo BlueMotion, which returns a combined fuel consumption of 74.3 mpg and emits just 99 g/km of carbon dioxide.

For its launching, Streetcar, the UK’s largest pay-as-you-go car club together with Volkswagen will be trailing the Polo BlueMotion across 25 locations in London. This will merge the concept of the most efficient car on the road and the most efficient way to drive.

Streetcar is a company that provides a highly flexible, convenient and cost effective alternative to car ownership. Clients can simply book a car online or over the phone, 30 seconds before. Clients can then easily access the vehicle through a remotely activated smartcards. Launched in 2004, Streetcar had some substantial growth, tripling in size each year. Today it has over 20,000 members and 600 cars across 400 locations in London and five other cities. Considering the success, Streetcar expects to have 150,000 members across the UK by the year 2012.

UK will witness the first The first Polo BlueMotion in Streetcar’s lineup this month. Next year, Volkswagen plans to introduce BlueMotion models in its Golf, Golf Plus, Golf Estate, Jetta, Touran and Passat, Passat Estate ranges.

Vincent Kinner, Head of Volkswagen Fleet Services said, “We’re delighted to move our relationship with Streetcar forward with the Polo BlueMotion. The Polo is a highly efficient, practical and benchmark model and new BlueMotion products will enhance our choice to customers in future. Transport is changing and we recognise customers – particularly in cities – are seeking new mobility solutions.”

The Polo BlueMotion is equipped with a three-cylinder 1.4-liter TDI 80 PS engine. The vehicle’s fuel economy is enhanced with its lower aerodynamic drag, low rolling resistance tires, longer gearing in 3rd, 4th and 5th and small weight savings. The Polo BlueMotion is capable of sitting five people, can speed up to 109 mph and still get a fuel consumption figure of 74.3 mpg. It is available with three or five doors. It also aim to provide customers who want a vehicle that is more environment-friendly and has a low maintenance cost.

Although many consumers are anticipating by the release of the iCar, the potential Apple/Volkswagen collaboration faces a set of daunting challenges, and is not likely to produce an actual vehicle for another three or four years, iSuppli Corp. believes.

Stories about the iCar circulated when a meeting between Apple head Steve Jobs and Martin Winterkorn, chief executive of German automaker Volkswagen was held. However, there are no actual facts if they indeed discuss the possibility of an iCar, or if the meeting merely about cross-functional leverage opportunities for each company.

If the said meeting was really about the possibility of an iCar, then both Apple and Volkswagen will be looking at various benefits. In the case of Apple, it would be a great opportunity for them to incorporate the iPod system to the automotive scene. For Volkswagen, it would be more success. The iCar is a hot topic that in a recent Google search of the phrase “VW + iCar”, more than 2 million entries appeared. Rumors of the iCar’s production already gained so much interest, what more if the actual vehicle was already manufactured?

It is predicted that the automotive infotainment industry will be able to break through the $50 billion mark in 2012, and the iCar is seen as another untapped market. It is said that car production has been having a steady 3 percent growth, but the automotive infotainment market will surpass that faster with a Compound Annual Growth Rate (CAGR) of 8 percent from 2006 to 2013. Consumer demand is strong for automotive electronics that entertain and inform.

Some say that a major issue that will face Apple and Volkswagen in the production of the iCar is the two companies different cultures.

“Although the old cliché says ‘opposites attract,’ the cultural divide between Apple and Volkswagen may be too wide to bridge,” said Richard Robinson, principal analyst, automotive electronics, for iSuppli.

“Apple is a highly innovative and dynamic consumer electronics company that generates significant profits from living off its wits and supplying niche markets with the next big thing in music players, mobile phones and personal computers. VW, on the other hand, is from an entirely different tradition: the more conservative world of automotive, with its solid four-to five-year development cycles, tight margins and production-standard compliance requirements that would bring even the most enthusiastic designer from Cupertino to his knees.”

Volkswagen has a unique image on its own. All automakers try to exercise such unique qualities to be distinguishable among their rivals. But with all the various gadgets and gizmos coming along, automakers will soon have to change a few things. They would simply have to be careful to maintain some of their tried and tested approach and yet integrate the latest technology.

“Thus, vehicle manufacturers are not interested in the next big thing and instead are focused on producing solid, tried and tested products that will be reliable for years,” Robinson said. “While consumer-electronics warranty returns might eat into a company’s profits, automotive recalls are the stuff of nightmares in a car industry that operates at the very margins of profitability.”

Nobody is sure if the iCar will be released anytime soon. All we can do is watch for updates regarding the matter.

As part of their e

fforts to make a comeback in the U.S. market, Volkswagen AG plans to produce a Toyota Camry-fighter, a midsize car designed for Americans. Specially catering to the American market, Volkswagen will also include a small sport utility vehicle to its U.S. lineup, the Tiguan, which it unveiled this week at the Frankfurt motor show. Some analysts said that this is a crucial move for Volkswagen to improve their U.S. sales over the next decade, in order to reach 1 million vehicles, 800,000 of them VW-brand cars and trucks and 200,000 Audis. According to the new head of VW’s U.S. operations, Stefan Jacoby, Volkswagen is driven to reach their goal to stop losing money in America by 2009, but it mainly targets to a strong presence.

“The United States is now our highest priority,” he said in an interview on the Frankfurt auto show. “We are strong in Asia, especially in China, we are strong in Europe and we are strong in South America. But one of our weakest areas worldwide is the United States.”

Volkswagen has maintained a strong brand image in the United States, but their sales is not that good. Volkswagen’s Asian rivals managed to topple Volkswagen in the American market by coming up with vehicles specially catering to the U.S. buyers.

Volkswagen is presently working on how to improve their vehicles. Before, Japanese car manufacturers produced vehicles for the American market, while Volkswagen only designed vehicles for Europeans and ended up selling niche models in the United States. Some of the vehicles were also priced wrong for their segment. Just like the Volkswagen Passat, which is almost as large as the Camry but is 25 percent more expensive.

Jacoby did not release any information regarding the midsize car Volkswagen is developing for the U.S. market. Instead, he said that it would probably be out in the market in three to four years time.

By the second quarter of 2008, America will see the Tiguan, which is referred to as the Touareg SUV’s little brother. Volkswagen expects to sell 20,000 to 25,000 units of Tiguans annually in peak years, said Adrian Hallmark, executive vice president of Volkswagen of America. There is also a possibility of bringing the Up! concept in the U.S.

When Volkswagen executives were asked regarding any plans of manufacturing pickup trucks for emerging markets, Jacoby said the company was not planning a pickup for the United States. “A pickup in the United States wouldn’t fit the Volkswagen brand,” he said. “In the United States, we want to focus on sedan segments.”

Porsche is considering its options regarding Volkswagen. Recently, the maker of the 911 sports car said it has enough options to “significantly” raise its Volkswagen AG stake. Porsche advanced the most in more than five months in German trading after it said full-year sales rose.

Recent reports have come out that Porsche has guaranteed to purchase shares above the current 31 percent holding and will be waiting if they can deal with the current Volkswagen law, Chief Executive Officer Wendelin Wiedeking said, “We’d like to have a greater share in Volkswagen’s success.”

It was in 2005 when Wiedeking first purchased a stake in Volkswagen. It was also at that time that its value almost quadrupled. Volkswagen has “a lot of work to do” to improve profitability and catch up with Toyota Motor Corp., he said, adding that CEO Martin Winterkorn and the board are doing a “good job.”

Volkswagen is long been protected from a takeover by a 47-year-old German law. The law allows the investor with 20 percent holding to block major decisions. Even if the holding is larger, the said law also limits voting rights to 20 percent. It is now being being challenged at the European Union’s highest court.

It was reported that Porsche shares rose as much as 72.47 euros, or 5.9 percent, to 1,308 euros, the largest increase since March 27, and were 4.9 percent higher at 2:32 p.m. in Frankfurt. Volkswagen shares were unchanged at 150 euros.

Wiedeking is currently working with Christian Wulff, premier of the German state of Lower Saxony. He is also the second-largest investor in Stuttgart, Germany-based Porsche.

“We expect that the VW law will fall in October or perhaps in November,” said Holger Haerter, Porsche chief financial officer.

According to Wiedeking, Porsche spent more than 5 billion euros buying almost a third of Volkswagen and gained 520 million-euro after the shares almost doubled. Porsche’s profit rose “significantly” in the 12 months through July, Wiedeking said at a press conference today. The company has not yet reported profit for 2007.

News have been circulating in the automotive scene that Volkswagen may release a more improved Phaeton sedan in the market. The car, which VW chairman Ferdinand Piech developed to go up against the Mercedes S Class and BMW 7 Series, has been a flop in Europe and was discontinued in the U.S.

Stefan Jacoby, the new CEO of Volkswagen of America, says he would like to see a new generation of Phaeton be developed and re-introduce it to the U.S market. “It was a big mistake to drop the Phaeton,” he said.

“I’d like to see the Phaeton be the hero of the VW lineup when it comes to technology, especially fuel economy,” says Jacoby. The statement may probably be an indication of the possibility of the Paheton’s revival. It is said that Jacoby reports directly to the current VW chairman Martin Winterkorn and is known to have the ear of Piech who is now supervisory board chairman and thought to be setting VW’s long term strategic agenda. Piech was known to be extremely irritated when former VW chairman Bernd Pischetsrieder dropped the Phaeton from the U.S.

Jacoby says that VW needs to get “funkier” in the U.S. with product and marketing than it has been. In line with the new strategies being conceptualized for the re-entry of the Phaeton is marketing it as an expensive sedan. “A world class luxury sedan that doesn’t show the luxury all over the place and that could have the only fuel efficient 12 cylinder diesel engine…that’s funky,” he said.

One report said that Jacoby certainly isn’t afraid to look to VW’s past. This was proven when Jacoby gave Virginia’s Governor a scale model of a Volkswagen (original) Beetle instead of one of the company’s new cars. German executives consider the classic Beetle as a museum piece. Many had no interest in the company’s development of the New Beetle. Jacoby said he chose the Type 1 Beetle rather than have to choose between a current Volkswagen or Audi scale model. “The Beetle is our heritage and was the safer choice,” Jacoby said.

The online edition of Financial Times Deutschland has reported that U.S computer company Apple Inc and German automaker Volkswagen are considering to team up over a concept car dubbed “iCar”

Volkswagen CEO Martin Winterkorn and Apple CEO Steve Jobs have met several days ago in California for concrete cooperation talks.

Hans-Gerd Bode, a spokesman for Volkswagen, confirmed to the German paper that the negotiations will be further continued, all the while affirming that: “The two companies are in the early stages of talks.”

“There are lots of ideas, but no specific plans,” Bode was quoted as saying.

Through market analysis, experts estimate that compact cars that come loaded with Apple products would be of great interest amongst the younger-generation consumers. This is a market targeting that would be very much to Volkswagen’s liking as the car company seeks to appeal to younger buyers.

The report further indicates that Volkswagen is planning an unconventional subcompact car that would ring up for under $10K. Details are still vague if Apple would be present in this venture.

That Apple is in communication with carmakers is nothing new. Apple and Mercedes-Benz unveiled the first integrated iPod connection kit as long ago as January 2005. There have also been rumors that the two companies are collaborating on a radically new dashboard navigation system due out next year. The company also seems presently linked with BMW and Jaguar. The former for the iPod and iPod integration, and the latter as the central console of the new Jaguar XF offers a portable audio interface for the iPod.

Relatively, this is not Volkswagen and Apple’s first venture together. Volkswagen of America and Apple have hooked up before. In 2003, new Beetle buyers in the United States were given a complimentary Apple iPod as part of a “Pods Unite” promotion. To date, many VW cars already come equipped with iPod-compatible connectors.

Volkswagen of America, Inc. is proud to announce that their 2007 Volkswagen GTI and VW Jetta have each garnered a “Motorist Choice Award” from PRIMEDIA’s IntelliChoice.com and owner satisfaction research firm AutoPacific.

The Volkswagen GTI was named winner for the “Image Compact Car” category, while the Jetta was decided as the best choice for the “Mid-Size Car” category. Winners of the said awards, which recognizes the most satisfying cars and trucks that are also the least expensive to own, were based on a combination of IntelliChoice.com empirical cost of ownership data and AutoPacific’s customer satisfaction survey data of new car and truck consumers.

IntelliChoice.com’s analysis is based on seven attributes namely: depreciation, financing, fuel, insurance, maintenance, repairs and state fees. The Autopacific survey, on the other hand, revolved on 38 product-centered traits, generating a score between 5 and 25, thus allowing for a maximum possible score of 950. Consequently, the results of these studies formed the final scores and rankings of the Motorist Choice Awards.

When asked for a statement regarding this recent event and accolade, Matthias Seidl, Volkswagen of America’s Chief Operating Officer, was very pleased to announce: “Both of these vehicles are very deserving of this praise.”

“Our commitment to making the safest and best-engineered vehicles at an affordable operating cost has shown through with these great cars.”

For the year 2008, the Volkswagen brand would be introducing a more powerful and fine-tuned equipment packaging for its fleet. The world’s largest German automaker assures that its consumers can look forward to an even higher level of standard features coupled with highly attractive pricing.

Below are the cream of the crop VW enhancements:

The 2008 edition of the Jetta model acquire new equipment packages that are more geared on the personalized tastes and preferences of the VW consumer. The entry-level model would now include a set of standard 16-inch wheels, new wheel designs, and new array of wheel colors. The base price is unchanged.

Both the 2008 Volkswagen GTI and GLI models would be fully equipped with a standard dual-zone automatic climate control, as well as a new 17-inch wheel design. Unlike the 2008 Jetta, however, the GTI and GLI units would also be acquiring some price changes, with the GTI carrying a base price of $29,575 and that of the GLI sedan coming in at $32,175.

For 2008, the VW Rabbit will be having intense enhancement in the horsepower and torque department. From an old batting rate of 150 horsepower and 170 lb.-ft, the new 2008 Rabbit would be enjoying a whopping 170 horsepower and 177 lb.- ft of torque. Relatively, this major development would be equivalent to an affordable increase in price, which would be now starting at $20,175. Besides the specifications, labels are also being enhanced. The entry level is now called the Trendline. Sixteen-inch wheels come with the new Comfortline model, which was formerly called the Convenience model.

Volkswagen’s flagship unit, the VW Passat, also undergoes several changes in its configuration. This would include standard alloy wheels and a fresh 12-way power driver’s seat. The base model, like that of the Rabbit, is also called the Trendline. The V6 engine now comes only with the 4Motion AWD system. Xenon lighting with active lighting system will also be the standard beams for the 3.6 litre engine. Furthermore, the most unique concept for this model is that various updates to the option packages permit customers to specify or custom-fit the new equipment combinations. For instance, the 2.0t model can be acquired with a set of 17″ alloy wheels, fog lamps and wood dashboard trim. Pricing starts at $30,975 for the sedan structure, and $32,475 for the wagon.

The 2008 Eos takes on the Trendline name for the base model as well. Moreover, the Sport Leather package is replaced with the Comfortline package, which in turn has added satellite radio among its numerous features. Price for this unit starts at $37,175.

The 2008 Volkswagen Touareg 2 has been greatly restyled in its aesthetic sense. The new look reduces the industrial and conservative tones, attributes highly familiar with the previous Touaregs. The 2008 Touareg is designed to be more soft, friendly and inviting. Headlamps are now rounded off and taillights are darkened. Still, this new unit does not lose the distinctive Volkswagen style, as the Touareg is fully equipped with vertical chrome-clad grille. Engine power boasts of a 3.6 litre V6 with 280 horsepower, a rate ideal for general operation. But for those consumers who need more, also available is a 4.2 litre V8 engine with 350 horsepower. Surprisingly, pricing for the Touareg 2 is greatly reduced despite its over 2,300 new parts. The Touareg comes in some $1,500 less than last year’s model at $49,975.

Volkswagen of America, Inc., is moving its United States headquarters out of the nation’s automotive capital and into the nation’s capital, specifically from Auburn Hills, Michigan to suburban Herndon, Virginia.

Employment Issues.

The employment division, as expected, will be drastically affected by this monumental move. Andreas Meurer, spokesman for Volkswagen, made himself available to answer questions regarding the estimated 1,400 workers currently employed in Auburn Hills.

“The company’s existing plans is to cut 400 positions, move 400 people to a new headquarters outside Washington in Herndon, Virginia, and keep 600 people in Auburn Hills, Michigan,” Andreas Meurer supplied in a telephone interview today.

“The employees in Virginia will take over sales, marketing and public relations functions.”

“Furthermore, the Herndon location near Washington Dulles airport will make it easier to attract workers,” Meurer asserts in pertaining to the would-be increasing workforce of Virginia residents.

Meurer also explained the fate of those workers that would be left behind in Detroit: “The 600 people remaining in Auburn Hills will run a call center as well as a facility that does final preparations on vehicles for the U.S. market before they are sent to dealerships.”

With the unfortunate 400 workers that would be cut off, Meurer reassured that the company has already taken steps to reduce its staff through attrition, early retirement packages, and voluntary separations.

Newly installed Volkswagen of America Chief Executive Stefan Jacoby has this to say on all the employment changes: “Our excitement for the move is tempered by the fact that we need to reduce our workforce overall and by the realization that this does not come as good news in Michigan. However, we will remain a member of the Auburn Hills community, where we will continue to house certain key business activities and retain a workforce of approximately 600 people.”

“These changes are necessary to allow Volkswagen of America to meet the needs of our customers and remain competitive in the U.S. market. We must undertake an aggressive new direction in this market and these are critical first steps.”

Relocation and the New Business Strategy.

With a working investment of $100 million, construction for the move will begin April of 2008. The new 185,000-square-foot facility is expected to be fully occupied by the end of 2008, and it will house the U.S. headquarters for Volkswagen of America, Inc. It will also include the U.S. headquarters for Audi of America, Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.

This new location is said to be Volkswagen’s well-considered plan that will bring Volkswagen of America, with its brands, Volkswagen and Audi, to increase competitiveness and achieve sharper focus on key markets.

Jacoby said Virginia has one of the highest concentrations of Audi and Volkswagen buyers in the U.S., explaining that such information was an important factor in the company’s decision because it wanted to be closer to its customers.

“It reflects a major new commitment to achieving our Company’s goals in the world’s largest car market. We are excited about moving our headquarters to Northern Virginia, where we will be closer to key markets and customers.”

“We need fewer redundancies, less bureaucracy, more creativity, and more openness. Moving and streamlining our operations give us an opportunity to naturally transform the business so we can compete successfully in the U.S. market and better serve our customers. We want to connect with our customers better, and these changes will help us do that.”

Jacoby said he will be implementing a new business strategy that includes five pillars: product, brand positioning, dealer network, organization and, ultimately, the possibility of local production. A premium will be put on connecting more with customers, and fostering a culture of fresh ideas and bold thinking. Additionally, the Company will be focusing its efforts on producing more cars designed specifically with the U.S. market in mind.

As Stefan Jacoby proclaims, “With these changes, Volkswagen of America drives the future.”

Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG, added, “We are strongly focused on the U.S. market. This is a top priority for our Company, and we are confident that under Stefan’s leadership, we will continue to serve our current U.S. customers well and add many new customers.”