Volkswagen AG is planning to invest an automotive capital expenditure of around 19.9 billion euros ($29.55 billion) between 2010 and 2012. The German automaker said that an estimated 13.3 billion euros of the total investment will go into property, plant and equipment and will help modernize and expand the company’s product range.

“In the area of powertrains, new engine generations will be introduced that offer additional improvements in performance, consumption and emissions. Automatic gearbox capacity will be aligned with growing demand,” Volkswagen said in a statement. “Because of the high quality and cost targets, the new products require modifications to press and paint shops as well as assembly facilities. Outside manufacturing, investments are planned mainly in the areas of development, quality assurance, genuine parts supply and IT.”

The other 6.6 billion euros will be investing in ”cross-product technologies” in the coming three years.

This investment does not include another 4.4 billion euro earmarked over the same period at its two Chinese joint ventures.

- By: Stephen Calogera

Source: Reuters

Volkswagen’s Supervisory Board  confirmed today that it will buy land, machinery and equipment formerly belonging to Karmann at its Osnabrueck, Germany. Volkswagen said that it will build a new vehicle in Osnabrueck in 2011 but did not specify what the new car would be.

“Volkswagen will begin vehicle production in Osnabrück in 2011,” Volkswagen said in a statement. “According to present plans, this will create over 1,000 jobs by 2014. Ongoing development contracts will continue in effect. Some 200 specialists will already be needed from next year to start production and set up the vehicle project.”

Volkswagen said that employees and former employees of Karmann have extensive experience in the production of small series models, and this experience will be accessed in line with requirements.

- By: Omar Rana

According to Chattanoogan.com, Volkswagen has received 65,000 applications for about 2,000 positions for its new plant in Chattanooga, Tennessee. Volkswagen of America accepted applications for about three weeks.

Volkswagen plans to kick off production of a new mid-size sedan at Chattanooga in 2011. The automaker has yet to decided on the official name of the sedan, which will replace the Passat in the United States. CEO Stefan Jacoby said that the company has plans to sell 100,000 units annually and also has plans to export the U.S. built sedan.

- By: Kap Shah

Source: Free Press

The new Volkswagen Amarok pickup has been named the official vehicle of the 2010 Dakar Rally. Twenty units of the Volkswagen pickup will provide race support for the Rally’s organizer and 15 will be used to drive the press along the route.

“The Volkswagen Amarok is Volkswagen’s answer to the pickup and on the Dakar Rally – one of the last great adventures for mankind – it will have the chance to show what it’s made of and to demonstrate its flexibility and durability,” said Stephan Schaller, CEO of Volkswagen Commercial Vehicles.

Previously known as the Paris Dakar Rally, the grueling motorsports has now moved to South America. The event runs 9,000 kilometers through the mountains and deserts of Argentina and Chile.

“We are pleased to be able to use the Volkswagen Amarok as our Support Vehicle, because the Dakar Rally demands the highest levels of technical perfection, reliability and endurance and our race Touaregs,” said Kris Nissen, Volkswagen Motorsport Director. “The Amarok is exactly the right vehicle for our team.”

Volkswagen Concept Pickup:

- By: Stephen Calogera

Source: Volkswagen (via PickupTrucks)

At the 2010 Detroit Auto Show in January, Volkswagen will show the new 2011 Volkswagen Touareg. The lineup is reported to include a hybrid version of the SUV.

The Volkswagen Touareg V6 TSI Hybrid uses the German automakers BlueMotion Technologies that are mated to parallel hybrid system and a supercharged V6 TSI allowing the SUV to produce a total of 324-hp. The Touareg Hybrid is able to travel up to 31 mph on the electric motor.

Volkswagen says that when the Touareg V6 TSI Hybrid enters production in 2010, it will have a towing capacity of 3.5 metric tons (7,716 pounds).

Volkswagen Touareg V6 TSI Hybrid Prototype:

- By: Kap Shah

Source: AutoCar

The 2010 Volkswagen GTI has been named the 2010 Automobile of the Year by Automobile magazine.

The GTI was up against a very impressive lineup of test-vehicles including the 2010 Chevrolet Camaro SS, a 2010 Ford Mustang GT, a 2010 Porsche Panamera S, a 2010 Jaguar XFR, a 2009 BMW Z4, and a 2009 Porsche Cayman S.

“Remarkably competent on the track,” said tech editor Don Sherman. “Superb handling and good feedback,” seconded road test coordinator Mike Ofiara, who has a Mark 3 and a Mark 5 GTI at home. “Oodles of fun,” enthused contributor Preston Lerner, adding, “front-wheel drive never seemed to be an issue.”

We’ll have the 2010 Volkswagen GTI in the egmCarTech garage on Nov. 20th so we’ll be sure to fill you in with daily updates and a full review.

Refresher: Powered by a 2.0L turbocharged 4-cylinder engine making 206-hp and 207 lb-ft of torque. 0 to 62 mph comes in 6.9 seconds with a top speed of 149 mph.

2010 Volkswagen GTI (US Spec):

- By: Kap Shah

Source: Automobile

The United Kingdom’s Guardian newspaper reports IHS Global Insight figures as indicating that Volkswagen Group has surpassed Toyota Motor Corp. this month as the world’s largest car manufacturer. Volkswagen (including Porsche AG, their recent acquisition) sold 4.4 million units this year, climbing past Toyota, which produced about 4 million units to date this year. This milestone is not a shock.

VW’s popularity in China has also given them a great boost. In July alone, 128,000 VW units were sold in China; 1/4 of their global total. Compare that figure to the 223,000 units that VW sold in America for all of 2008, and it puts a little perspective on the situation.

All of this could change however with a slight rebound of the U.S. market. Toyota’s U.S. sales last year alone were over 2.2 million.

- By: Stephen Calogera

Source: AutoObserver

Volkswagen of America announced today that the Jetta TDI Cup “Street” Edition will hit North American dealerships in January 2010. Like the TDI Cup race car, the “Street” Edition is equipped with the optional TDI Cup Edition Kit, which includes a new front bumper, side skirts and rear valance that are found on the TDI Cup race cars.

The Volkswagen Jetta TDI Cup is powered by a 2.0L clean diesel that makes 140-hp and a maximum torque of 236 lb-ft. Power is transmitted to the wheels via a 6-speed manual transmission or a DSG automatic transmission. All ”Street” Edition Jetta TDI’s feature larger brakes with red calipers, sway bars and European sport tuned suspension from the performance oriented GLI.

Pricing for the 2010 Jetta TDI Cup edition starts at $25,000 and it qualifies for a $1,300 Advanced Lean Burn Technology Motor Vehicle Federal Income Tax Credit.

2010 Volkswagen Jetta TDI Cup Street Edition:

Press Release:

Jetta TDI Cup ‘Street’ Edition Racing Into Dealer Showrooms Soon

HERNDON, Va., Nov. 4 /PRNewswire/ — Volkswagen of America, Inc. today announced the Jetta TDI Cup “Street” Edition will be available in dealer showrooms January 2010. The concept debuted in Las Vegas during the 2008 SEMA (Specialty Equipment Market Association) show. Following the SEMA show the concept was displayed at TDI Cup races throughout the country, where it was well received by enthusiasts and consumers alike.

“Since our inaugural TDI Cup series in 2008 we have received numerous inquiries as to whether or not we would offer a TDI Cup replica vehicle,” said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. “We’re thrilled to announce that a special edition Jetta TDI Cup Street Edition will be available in dealer showrooms early next year. What makes this special edition so unique is that it features the optional, race inspired, TDI Cup body kit package combined with our clean diesel engine. The Jetta TDI Cup Street Edition is one exceptional special model that is as fun-to-drive as it is to look at,” added Barnes.

The similarities between the TDI Cup race car and the “Street” Edition equipped with the optional TDI Cup Edition Kit are apparent at first glance — the TDI Cup “Street” Edition Kit features the front bumper, side skirts and rear valance that are found on the TDI Cup race cars. The enhancements to the TDI Cup “Street” Edition go well beyond cosmetics. All “Street” Edition Jetta TDI’s feature larger brakes with red calipers, sway bars and European sport tuned suspension from the performance oriented GLI.

The TDI Cup “Street” Edition is powered by the award winning 2.0-liter clean diesel engine that produces 140 horsepower and an impressive 236 lbs.-ft. of torque. The engine makes use of an advanced electronically controlled turbocharger and common rail direct injection technology, and can be mated to either a six-speed manual transmission or the highly acclaimed DSG® transmission.

Other standard upgrades on the Jetta TDI Cup “Street” Edition include sport seats with Interlagos cloth, and a leather-wrapped, multi-function steering wheel that features paddle shifters when equipped with the DSG transmission. Completing this dynamic special edition is a set of 18 inch Charleston wheels with performance all-season tires. This special edition starts around $25,000–staying true to the brands mantra of offering affordable German engineering that is a whole lot of fun to drive.

The Jetta TDI Cup “Street” Edition, like the Jetta TDI, Jetta SportWagen TDI, Golf TDI and Touareg TDI qualifies for an Advanced Lean Burn Technology Motor Vehicle Federal Income Tax Credit. The tax credit on the “Street” Edition is $1,300.

Like all 2010 models, the Jetta TDI Cup “Street” Edition also comes standard with Volkswagen’s Carefree Maintenance Program, with this program there are no charges for the scheduled maintenance described in the vehicle’s maintenance booklet for the length of the New Vehicle Limited Warranty — three years or 36,000 miles, whichever occurs first.

- By: Kap Shah

Volkswagen of America today released a sketch of its forthcoming new mid-size sedan, which will be produced at the company’s new plant in Chattanooga, TN. The sedan will be introduced to the market in late 2011. Volkswagen has yet to release the official name of the sedan, which will replace the Passat in the United States.

CEO of Volkswagen Group of America, Stefan Jacoby,  said that Volkswagen expects to sell about 100,000 units of the sedan annually. Volkswagen also has plans to export the new U.S. built sedan.

2011 Volkswagen Mid-size Sedan (Chattanooga):

- By: Omar Rana

Volkswagen is planning to take over Germany’s coach building firm Karmann, brining the company back from the brink of bankruptcy. Karmann has undertaken many rolls from design to production for various automakers including Chrysler, Porsche and Volkswagen Group.

“Talks have been going on for some time, but there is no agreement yet on a price,” one of the sources told Reuters.

Reuters said that without any fresh funds, the contract carmaker and convertible roof specialist will shut down in early November as new orders remain scarce and customers are unwilling to pay bills. Karmann filed for insolvency in April.

A Karmann spokesman said that the company has been in touch with Volkswagen but would not discuss the content of the talks.

- By: Stephen Calogera

Source: Reuters

Earlier this week, Volkswagen released a statement saying that it plans to complete its merger with Porsche during the course of 2011.

According to Michael Macht of Porsche, the sports car maker is prepared to share the Panamera and 911 platforms with other Volkswagen Group brands.

“Porsche needs to become a strong pillar of VW, as well as having its own production and research and development capabilities. It is important to 
use synergies as well as having independence,” Macht said. “The Panamera platform could be used by other brands for models that are in development and at the concept stage.”

When asked if Porsche’s 911 platform was also set to be shared with other brands in Volkswagen, Macht said that it could be made available on other vehicles under Volkswagen’s umbrella.

As for engine sharing, Porsche will only use Volkswagen V6 in its Cayenne SUV. Other than that Macht said that “engine development is a core value for Porsche” and the company will work to stick to its core values.

- By: Kap Shah

Source: AutoCar

An Autopia reader spotted this accident involving a Tesla Roadster, Volkswagen Touareg and the Toyota Prius. The accident took place earlier this week and as the story goes the Tesla was stopped behind the Touareg at a red light when a Prius rear-ended it and pushed it under the SUV.

According Tesla’s spokeswoman Rachel Konrad:

This was a customer car but the customer was not driving or in the car at the time. The driver stopped at a red light behind a truck and was hit from behind by a VW Touareg driving at 80km/hour at the time of impact. The Roadster driver walked away with minor bruises.

No word on others involved in the accident but we hope everyone is okay and made it out safe.

If you have any additional details about the crash, let us know in the comments section below.

- By: Omar Rana

Source: Autopia

Volkswagen is going to be launching their new 2010 Volkswagen GTI exclusively via their iPhone app. The move, an industry first, offers immense bang-for-the-advertising-buck according to the article. the annual budget for mobil services runs $500,000. Compare that to the $60 million media blitz that VW ran with the release of their 2006 GTI and it makes sense.

At first glance an iPhone/iPod touch only strategy may seem limiting, but consider this; there are a reported 50 million iPhone and iPod touch customers worldwide. CBS’s ‘NCIS’, the most-watched show for the week ending Oct 18, reached 21 million viewers and gets and average of $130,000 for a single 30-second spot.

The German automaker unveiled their GTI racing game for the Apple devices at a press event this week, and tied that in with a six-car giveaway for its gameplayers. “It’s a clever idea,” mobile-marketing consultant Raven Zachary, president of Small Society and founder of iPhoneDevCamp told Automotive News. “Licensing game technology saves VW considerable development cost and time to delivery. And the cost of six cars is not bad considering the cost of doing a print campaign or TV campaign.”

Volkswagen feel that their is good demographic overlap between their GTI target market and the iPhone user. An incentive beyond entertainment to download the game is that you can win a new GTI.

“For consumers, more game play means more chances to win one of the six limited-edition 2010 GTI’s.

You can check it out here.

-By Stephen Calogera

Volkswagen AG announced today that it will take a 49.9 percent stake in Porsche AG in a first step towards a merger with the Stuttgart sports car manufacturer.

“This was agreed between Volkswagen and Porsche SE during negotiations on the contracts of implementation relating to the merger of the two companies,” Volkswagen said in a statement. “The Comprehensive Agreement announced in August referred to an initial participation in Porsche AG amounting to 42 percent.”

Volkswagen said that it will acquire a participation in the operating business of Porsche by the end of 2009 and is looking to complete the full merger process during the course of 2011.

“Volkswagen is thus securing a higher share of the increase in the value of Porsche expected from the joint projects at an early stage, the German automaker said. “At the same time, Volkswagen remains committed to the phased integration of the two companies and is preserving the independence and the interests of Porsche.”

Volkswagen is expected to pay approximately EUR 3.9 billion ($5.82 billion USD) for Porsche.

- By: Omar Rana

According to Stefan Jacoby, Volkswagen Group of America CEO, the automaker will most likely drop the Passat sedan and wagon in 2011 when its new U.S. built mid-size sedan goes on sale.

“We are looking at it in detail,” Jacoby said at a press event earlier this month.

The U.S. built mid-size four-door car will be larger than the Passat but will be priced lower since Volkswagen will be building it at its new plant in Chattanooga, Tennessee.

“We’ll have two sedans coming out at the same time, and the smaller one will cost considerably more than the bigger one,” said a VW spokesman.

Volkswagen said that it plans to export the new U.S. built sedan, which has been designed primarily for the United States. The German automaker will still sell the Passat in Europe with a new redesigned version to arrive in 2011. The new Passat CC will continue to sell on the stateside.

Jacoby said that the automaker expects to sell about 100,000 units of the new sedans annually. Sales of the Passat sedan and wagon peaked in 2002 with a total of 96,142 units sold. Sales fell to 30,035 last year.

- By: Kap Shah

Source: AutoWeek

Speaking at a recent press event in Germany, president and CEO of Volkswagen Group of America, Stefan Jacoby, said that the new Beetle will arrive in 2012. He said that the next-generation model will have more space in the back seat and will offer better packaging.

Jacoby said that the next Beetle will also be “more of a halo car” for the Volkswagen brand and is expected to bring in higher sales. The current Volkswagen Beetle peaked at 83,434 units in the U.S. in 1999.

Jacoby said that major complaints from customers about the current Beetle include a cramped rear-seat and that the model is way overdue for a redesign.

In terms of design, Walter de’ Silva, head of design for the VW Group, said that the next-generation Beetle “will be a big step.”

- By: Omar Rana

Source: AutoWeek

During a media event in Wolfsburg, Germany today, Volkswagen confirmed that it will sell a version of the Golf R in the United States. The Golf R, which will be known as the GTI-R in the U.S., will replace the R32.

Along with Volkswagen’s 4Motion all-wheel-drive system, the GTI-R will get 2.0L TSI 4-cylinder engine making 265-hp with a peak torque of 258 lb-ft. The engine will be mated to a 5-speed manual or Volkswagen’s DSG automatic with manual mode.

Look out for the Volkswagen GTI-R to hit U.S. dealerships later next year with a price slightly above the 2010 GTI, which starts at $23,489.

2010 Volkswagen Golf R:

- By: Omar Rana

Volkswagen’s CEO Martin Winterkorn planned to have the Volkswagen Up! on the roads by spring of 2011. However, rivalries between the brands in the Volkswagen Group are delaying the launch of the mini car by a couple of months.

According to a report by Automobilwoche, who spoke with Volkswagen’s production chief Jochem Heizmann, production of the Up! won’t start until after March 2011.

“As we now see it, we will start regular production for Volkswagen and Skoda in the second half of 2011,” he said.

A Volkswagen executive said the cause for the delay was “time-consuming petty jealousies between various departments and the participating brands.”

Volkswagen hopes to sell at least 500,000 Up! variants annually in global markets.

- By: Kap Shah