Talks regarding the possible production of Volkswagen’s Up! and Space Up! are circulating due to its successful launched at the Frankfurt and Tokyo auto shows this fall. But Volkswagen R&D Chief Ulrich Hackenburg confirmed that the vehicles production is yet to be discussed.

Hackenburg announced last week in Tokyo that it would take three to four months before a decision will be made. After that Volkswagen is yet to decide whether to go pursue the production of the vehicle that will take the place of Fox, which is available in Europe. The new models will also set a new trend for Volkswagen in other countries, including North America.

The report done by Edmunds.com says that this will buy Volkswagen some time to prepare for the third installment of the up! concept, which is scheduled to be unveiled at the Los Angeles auto show in mid-November. Expect the new concept to look like a compact sedan and have a plug-in hybrid system.

Even before it is launched in the UK market, the European New Car Assessment Program or Euro NCAP already gave the new Volkswagen Tiguan a five star rating for occupant protection, as carpages.co.uk reported

Euro NCAP test include a frontal impact test at 40 mph into an offset deformable barrier, the side impact test consists of a 30 mph impact, the pole test at 18 mph and the pedestrian tests constitutes a 25 mph impact.

For maximum protection in the passenger safety cell, a rigid body structure was incorporated in the Tiguan. The panels are made from high tensile steel, which are designed to deform in case of a collision. Aside from the durability of the Tiguan, Volkswagen engineers made the vehicle lighter with an overall kerb weight of 1,451 kg.

Passenger safety is enhanced with standard six airbags, ABS, Electronic Stabilization Program (ESP) and brake assist. All seats are also equipped with three-point seatbelts. In front, electric belt tensioners are incorporated while the rear gets ISOFIX child seat preparation.

Along with the protection of the belt tensioners and airbags, other standard programs are included in the vehicle in case of an impact. These are the activation of hazard warning lights, unlocking of doors, interior lights are turned on and the fuel pump is deactivated.

The Tiguan will be available in February 2008 and be priced around £19,500.

Details are based on th report in carpages.co.uk

Forbes.com recently reported that the chief executive of Volkswagen, Martin Winterkorn, said the company will still be an independent body if Porsche AG takes over.

According to Winterkorn, “Volkswagen is one of the most well-known and desirable brands in the world.”

“It represents immense value.”

Last September, Porsche chief executive Wendelin Wiedeking, stated that the company has ample funds to acquire a larger share in Volkswagen and increase its present 50 percent share.

Winterkorn however stated that its relationship with Porsche may get better as they may work together in developing some car parts like automotive electronics. “Automotive electronics are an interesting division with high potential for synergies,” he said. “Electronics will soon account for 30 percent of a car’s cost, and the development costs are relatively high,” he added. Winterkorn also said that using similar technology on more cars can help reduce production costs.

Commenting on the recent EU Court of Justice illegal ruling of the Volkswagen, Winterkorn later said that Volkswagen has no reason to be alarmed. This “Volkswagen law” pertains to the rule that a shareholder only gets a maximum of 20 percent voting rights in spite of how large the shares.

Meanwhile, Winterkorn confirmed Volkswagen’s plans increasing its vehicle line of SUVs, vans and off-road vehicles. According to him, the modular building blocks used to design cars are to be thanked for, saying, “We have entirely new opportunities to make niche models at low cost and with very good profit margins.”

This story is based on the report by Forbes.com

A new version of Volkswagen’s Up! is shown in the 2007 Tokyo Motor Show. It is 23 centimeters longer than the Up! concept car revealed last month during the Frankfurt Auto Show. According to Volkswagen’s press release posted in jalopnik.com, the space up! will be offered in environmentally-friendly gasoline, diesel and electric powertrains and placed on the rear.

The Space Up! has four doors but if one counts the two-part rear door, it is considered as a six-door vehicle. Despite its compact look, it has a 200 to 1,005 liters of cargo space, four seat positions that are multivariable in design, and an innovative cockpit concept. The driver will also have no problem with the controls on the touch¬screen equipped with 3D graphics and proximity sensors.

On the exterior, the space up! is almost similar with the up! The space up! has a long extended window section and a clearly distinctive, powerful C-pillar. Up front, a distinguishable headlight along with the VW logo completes the look. Supporting the vehicle are 18-inch tires.

Inside, comfort and ample space is achieved as the seats can be easily folded to maximize storage space. If the seats are folded, the cargo area gets a capacity of up to 1,005 liters. The cushions on both rear and front seats consist of an airflow foam that automatically adapts to individual anatomies.

Some features of the up! are integrated to the space up!, especially in the cockpit. The space up! has two central displays. One 8-inch monitor in the cockpit that displays information such as vehicle speed, fuel level and range as well as momentary CO2 emissions. Meanwhile, a 7-inch monitor is located in the middle of the instruments. All functions can be conveniently controlled from a touchscreen that uses proximity sensors, which responds to gestures and specific hand movements.

Story based on a press release posted in jalopnik.com

ShanghaiDaily.com recently reported that Volkswagen Group (China) Corp will be strengthening its control on its auto parts suppliers in China by launching a restructuring program.\

In line with the German automaker’s aim to increase its sales on the world’s second largest auto market, this move is expected to let Volkswagen monitor product quality as well as cut costs in its enlarged sourcing operations from China. Wolfsburg-based Volkswagen plans a new program called, “Qualification Supplier China Program,” which will offer training, supervision on its domestic auto parts suppliers in cooperation of a third party.

The said program will also encourage domestic suppliers to work out future planning and to target inefficiencies in production, technology, management and workflow. It was reported that the came one week after the German automaker increased its sales target by 26 percent to 900,000 in China.

“The program will also help to enroll Chinese suppliers to our global sourcing system,” Volkswagen stated.
Successfully entering the Chinese market in 1985, Volkswagen has developed more than 300 auto parts suppliers in China.
Commissioning Chinese suppliers are now more attractive for automakers into their global auto parts sourcing system due to their price advantages brought by lower labor costs. Concern on quality of Chinese-made auto parts is often raised.

Last year alone, Volkswagen’s sourcing from China totaled at US$1 billion. This amount served both its Chinese venture with Shanghai Automotive Industry Corp and First Automotive Works Group.

Reviving Volkswagen’s camper van is what makes Volkswagen and British rock group The Who working together as reported by Auto Express.

The report also said that the band’s classic single Magic Bus will most probably be the soundtrack for any future TV, radio or Internet commercials.

Recently, The Who performed at the Volkswagen camper’s 60th birthday celebrations in Hanover, Germany. After the said performance, the British rock band immediately talked to with top VW executives from Germany and the UK. It was in that meeting that guitarist, Pete Townshend, admitted he has a VW bus in his garage accumulating dust at home. He may be one of the lucky few to get a cleaner and safer next-generation version.

It was in 2005 when Volkswagen announce that the Microbus concept showcased at the 2001 Detroit Motor Show will no longer make it to production because it is simply too expensive to manufacture. Until now that Volkswagen is considering of producing a simpler version for the Camper, which is nicknamed the Bulli in Germany. The Microbus will sport a retro look, but will feature less is more appearance to save up on production costs. Volkswagen revealed that the new Camper will be manufactured in the US and will be badged Bulli.

Volkswagen Executives later said that unless they manage to sell a minimum of 100,000 examples of the car worldwide every year, the pro¬ject may not be financially viable.

For those who did not get a chance to see the Microbus concept, here’s a video of what it looked like.

Agence France Press (AFP) recently reported that European Court of Justice will be having its rule on the “Volkswagen Law” today, in line with Porsche’s desire to take control of the German automaker.
Once the 40-year-old law that protects Volkswagen from being taken over becomes void, Porsche will be able to increase its current 31-percent stake to a larger share.

Porsche has openly showed its interest in the German automaker.

The said law was established in 1960 to protect Volkswagen from foreign control. The main idea of the law is that no matter how large the capital is, the shareholder cannot exceed 20 percent of the voting rights in a company.

It is also stated that the German state of Lower Saxony, where Volkswagen is based, can appoint two members to Volkswagen’s supervisory board. This gives them a right to block the majority in implementing certain resolutions. According to the report done by AFP Volkswagen’s second-biggest investor is Lower Saxony with 20.3 percent of the capital.

For a long time now, Porsche has been against the restriction on its voting rights.

“To have 31 percent of the capital but only 20 percent of the voting rights is clearly discrimination,” said its chief executive Wendelin Wiedeking.

AFP also said that it can be expected for the European Court of Justice to rule in favor of the European Commission’s opinion that the Volkswagen Law is restrictive, and may even ask to revise it.

Damaso Ruiz-Jarabo Colomer, the court’s advocate general said in February the law go against European legislation since it limits the free movement of capital within the 27-nation bloc and restricts foreign investment.

Wiedeking said, Porsche will have to enter a “decisive” phase to take control of VW, if the law is revised.

The head of the VW’s supervisory board and co-owner of Porsche, Ferdinand Piech assure changes in Volkswagen. It was his dream to have a car group with global reach.

Bloomberg reports that Volkswagen AG will be spending 223 million euros or $316 million to manufacture a new pickup truck in Argentina.

According Volkswagen, the new truck will be sold to “emerging markets.” Reports also said that it the truck will assemble the truck at its plant in Pacheco, Argentina by 2009.

“This model will help to successfully expand Volkswagen’s product offerings into yet another market segment,” said Stephan Schaller, the head of Volkswagen commercial vehicles.

In order to raise Volkswagen’s companywide sales of 6 million this year to 8 million vehicles, Chief Executive Officer Martin Winterkorn wants to introduce 12 new models over the next three years. Joining the 12 vehicles is the Tiguan, which is a compact sport-utility vehicle ready to be sold in November. Other vehicles are the reconstructed Scirocco sport hatchback and a new Passat Coupe.

Martin Winterkorn, Volkswagen AG’s chief executive wants to improve their U.S. sales to be able to keep up with its competition. In the Wall Street Journal online, the German automaker is said to price its vehicles more aggressively in the U.S. and lessen some features not approved by the American clientele.

These plans indicate Winterkorn’s new focus as well as the challenges that await him as CEO. Such action can add pressure to the U.S. auto market that has experienced a decline in sales.

The Wall Street Journal online also reports that Winterkorn is shifting from running Audi to the Volkswagen, which is geared on offering great features within reasonable costs. To be able to achieve the targeted one million cars by 2018, Winterkorn needs to re-evaluate the features on VW-brand vehicles in the U.S.

“We have definitely added too many technical items that (American) customers don’t want to pay for,” Winterkorn said. He also mentioned Volkswagen’s tendency to equip U.S. models with external mirrors that fold inward ideal for narrow streets and tiny parking spaces. “Who needs that in the U.S.? The streets there are so wide,” he said.

According to Winterkorn, by making Volkswagen cars more suited for the U.S. market, the German automaker can offer future versions of Jetta and Passat at a lower price. Presently the Jetta averages at about $17,000 in the U.S., while the Passat is about $23,900.

As many industry experts predict global demand to rise 12% to 15% by 2010, Volkswagen claimed it can increase its sales by roughly 30%, from about six million this year to eight million in 2010. Some are skeptical with this claim, but Winterkorn is fully confident even noting its possibility due to of a new, more centralized management structure that according to him allows quicker decisions.

Twelve more models are planned to be included in Volkswagen’s global lineup between now and 2010. Volkswagen is actually eager to bring in more vehicles in new segments, just like the new compact sport-utility vehicle called the Tiguan.

“We of course hope to take [customers] from the Japanese and surely the Americans, Winterkorn said. Volkswagen is currently considering on building its first plant in the U.S. after losing more than €2.5 billion ($3.5 billion) in North America over the past five years. Considering the strong value of the euro against the dollar, it has proven that importing cars from Europe is costly. “We want to illustrate that we take the U.S. seriously,” Winterkorn added.

Even before the launching of the new Volkswagen Tiguan in the UK market, those interested can already order the new compact 4×4 from UK retailers. According to easier motoring, the entry-level model will be priced starting at £19,370.
The new Tiguan debuted as a concept car last year at the Los Angeles Motor Show and its final model showcased at the Frankfurt Motor Show last month.

Easier reports that the 4MOTION ‘intelligent’ four-wheel drive will be offered in all Tiguan models. It features a front axle which applies a strut type system connected to a lightweight aluminum support frame with electromechanical power steering. Meanwhile, a four-link rear axle helps the Tiguan get a sharper dynamics needed for off-road driving.

Four trim levels of the Tiguan will be available which are the S, SE, Sport and Escape. The report said that the first three trims will suit on-road driving with a front end treatment and an 18 degree angle of approach. It is said that this figure “defines the angle of slope the Tiguan can traverse.” The Escape trim level, on the other hand, caters to the off-road drivers. A unique front end design makes it more distinguishable with a shorter overhang, protective element over the front radiator grille, a sump guard, hill descent control and a compass along with a 28 degree angle of approach.

Once the Tiguan is launched, a 2.0-litre TDI 140 PS diesel and a 1.4-litre TSI 150 PS petrol unit will be available. Aside from the two engines, a 170 PS TDI engine and a further pair of TSI petrol engines will also be offered by 2008. The diesel engines all abide by the Euro 5 emissions standard that will be implemented in 2009.

The Tiguan’s towing capacity is also impressive, capable of handling as much as 2,500 kg. Capable of accommodating here passengers, the rear seats can be easily moved to extend the leg room and for a larger luggage area. Once the rear seats are folded, the Tiguan can offer a load volume of up to 1,510 liters.

Standard features include alloy wheels, air conditioning, MP3 compatible CD player, ABS with Hydraulic Brake Assist, Electronic Stabilization Program (ESP), head and curtain airbags as well as twin front and side airbags.
Meanwhile, innovative features can easily upgrade the Tiguan such as Volkswagen’s new RNS 510 touchscreen satellite navigation and audio system and the Park Assist system.

Details are from Easier Motoring.