Volkswagen auto news

Autoblog Podcast #137

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Episode #137 of the Autoblog Podcast has arrived. Chris, Sam, and Dan are back, chewing the fat over the Acura ZDX, Death Valley spy shots of the Jaguar XJ, what will underpin Cadillac's new flagship model, Electric Lexus pricing, the ongoing Volkswagen/Porsche soap opera, and Honda's swearing off of V8s and RWD. Wrap it all up nice and tidy with some of your questions, and 82 minutes later, you're done. We apologize for the poor audio quality on Dan's track for some of this week's podcast. It only lasts through the end of the Autoblog Garage segment, and then we're back to full-fidelity. Getting a show out to you quickly was important to us, so we went with what we had. 23 minutes in is the magic point where the audio clears up. Let us know what you think, drop us a line at Podcast at Autoblog dot com. Thanks to all who have taken the time to fill out our survey; hit the jump to listen or subscribe to the Autoblog Podcast. If you like what we're doing, check out some of our sister blog podcasts like Engadget and Joystiq - you can never have enough listening material!

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Did you think the VW-Porsche deal was done? Nein.

When Volkswagen and Porsche sat down at dinner to discuss which one was going to eat the other one, they forgot to invite the German tax man. After VW came to terms with Porsche to take a 49.9% stake in the Stuttgart sports car maker for €8 billion (around $11.4 billion U.S.), the parties discovered there would be a €3 billion ($4.26B) tax bill on top of that.

Adding €3B just to conclude the deal, the way it's currently structured, makes it untenable for both parties. Qatar is still in the picture, but until it's decided who would pay the tax and what they would get in return, some sources are saying the whole thing could evaporate. And if that happened, that could force Porsche to turn to one of several unsavory chapters titled "BK" in the commercial code. Neither VW nor Porsche has yet commented on the tax issue. Thanks for the tip, John!

Porsche's Wiedeking tipped to get $140M golden parachute?

If the rumored deal for Volkswagen to consume Porsche is indeed accurate, then there are only two things left: the shouting, and the sound of Porsche CEO Wendelin Wiedeking departing his post in a Brinks truck filled with €100 million ($141M USD). German newspaper Bild am Sonntag reported "it is now no longer a question of if, but of how Wendelin Wiedeking will step aside, and that he will clear his desk voluntarily in the coming week."

Over his 16-year tenure at the top, Wiedeking has turned Porsche from an automaker offering one iconic car and a couple of others into the maker of one iconic car and several hugely profitable models. Still, his departure now comes after driving Porsche to the brink, and if €100M sounds like a lot of money to leave in humble circumstances, well, that's because it is.

Yet, if this report is to be believed, it's not an outrageous sum in the world of Wiedeking: his pay packet for 2007 was said to amount to €60M ($85M USD). No matter what he gets, and it will certainly be substantial, he will leave behind a company subsequently controlled by its mass market sibling. And although Porsche labor boss Uwe Heck said, "VW will never be able to buy the souls of Porsche employees," their time, their cars and their technology are another story.

Volkswagen reportedly comes to terms with Stuttgart leadership to absorb Porsche

In the midst of all the financial maneuverings, a personal drama has steadily unfolded as well. Porsche is controlled by the descendants of Ferdinand Porsche's children, Ferry Porsche and Louise Piëch. The leaders of the Porsche and Piëch branches of the family, Wolfgang Porsche and Ferdinand Piëch, have been at odds throughout this entire process. Piëch is chairman of VW's supervisory board, while cousin Wolfgang holds a similar position at the family business. As the sequence of events progressed, it appeared that Wolfgang Porsche was trying to oust his cousin, while Ferdinand Piëch was trying to eliminate Porsche CEO Wendelin Weideking.

It now appears that the two companies have reached an agreement that will allow Porsche SE pay off much of its €10 billion+ debt. If approved, Volkswagen would pay €8 billion for Porsche in two stages. The first would give VW 49.9%, with the rest coming at a later date.

Beijing mall builds its own Transformer out of VW Jetta

We know the Chinese love their Transformers - or perhaps it's just Bumblebee. To promote its new movie theater, a mall in China created its own Transformer out of a Volkswagen Jetta. The best part about the sculpture is that it hasn't been painted to look like Bumblebee, and it's been posed in a way that makes it look like it's either speed skating, or finishing up a dance number, or doing aerobics. Oh, and it has no head. But it's still cool, and you can check it out in the gallery of high-res photos below.

Gallery: Chinese Jettabot

VW test driver reportedly killed in on-track incident

Tragedy struck Volkswagen when a 42-year-old Brazilian test driver was reportedly killed at the automaker's Ehra-Lessien test track near Wolfsburg, Germany. Manufacturing reports that the driver lost control of the vehicle after a sudden storm dumped rain on the track. The test car came to rest just shy of a crash barrier, but a second car, piloted by an unidentified 27-year-old driver, also spun out and rammed into the first car. The second driver reportedly sustained serious injuries.

The fatal accident comes just five months after a Porsche test driver was killed on the Autobahn, further proof that the glorified job of test driver is a lot more dangerous than most of us think.

Hyundai trumps BMW and Jaguar in J.D. Power 2009 APEAL study

Porsche grabs the top spot for the fifth year in a row in the J.D. Power and Associates 2009 Automotive Performance, Execution, and Layout (APEAL) Study. For this year's study, the team at JDPA gathered information from more than 80,900 purchasers and lessees of new 2009 model-year cars and questioned them on more than 90 vehicle attributes. Their studies examined "how gratifying a new vehicle is to own and drive," based on those evaluations.

While the APEAL nameplate ranking is significant (Porsche, Jaguar, and Cadillac round out the top-three), the segment winners offer more insight into what today's buyers are seeking. This year, it appears to be the newly launched models including the Volkswagen CC, Nissan Maxima, Dodge Challenger, and Ford Flex... each took top honors in their respective category. This year's biggest upset comes in the "Midsize Premium Car" segment as the all-new Hyundai Genesis (sedan) knocks the BMW 5 Series from the podium. Check out the gallery for the graphics, and read the full press release after the break.

Gallery: 2009 J.D. Power APEAL Results

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Abt gives a boost to the 2010 VW Golf, GTI

Abt Volkswagen GTI MkVI - Click above for high-res image gallery

The sixth-generation Golf and GTI will soon arrive for 2010, and already, Abt Sportline - the largest Volkswagen tuner in the world - has released a variety of aftermarket parts for each. Starting with the new exterior, Abt adds a new front fascia and grill, side skirts, and rear fascia and spoiler. Wheel options come in 18- or 19-inch sizes, with or without sport rubber. Brakes can be upgraded to 345mm or 380mm sizes, and lowering springs can be fitted to provide a sportier ride and eliminate the VW's unsightly wheel gap.

Volkswagen has always left plenty of room for increased potential with its turbocharged engines, and Abt maximizes that with performance packages for the entire range. The GTI's 207-horsepower (197 here in the States) 2.0-liter turbo-four gets boosted to 240 horsepower, while the 2.0-liter diesel engine in the Golf TDI is pushed from 140 to 170 horsepower. The European-only 1.4-liter motor also gets a significant increase in performance, going from 122 to 160 horsepower. Full details on all of the available upgrades from Abt after the jump.

Gallery: Abt GTI MkVI

Gallery: Abt Golf VI

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Spy Shots: 2011 Volkswagen Touareg caught desert testing

The Volkswagen Touareg (and its Porsche counterpart) are getting long in the tooth, and come 2011, both models are due for a full redesign expected to include a thorough makeover and a diet.

Caught testing in the California desert, the next generation Touareg gets a few new curves, primarily on the undisguised center section and flared rear shoulders - very similar to spy shots of the reworked Cayenne.

Early reports indicate that VW aims to address the two of the main complaints of the current model: limited seating and a bloated curb weight. As such, VW could reduce the overall tonnage of the Touareg by around 300 pounds (although the initial target was 600 pounds) by making all-wheel drive an option on certain drive train configurations. V-Dub is also considering adding a third row, although don't expect the cramped confines to get any more cushy in the process.

In addition to the 3.6-liter V6 and 4.2-liter V8, VW will be adding the supercharged 3.0-liter V6 (currently used on the Audi S4 and A6) in a hybrid configuration to the mix, along with a 3.0-liter V6 TDI. Neither the V10 diesel or the W12 will carryover, but considering the current economic climate, no surprise there. Expect the all-new Touareg to debut sometime early next year with sales beginning in the second half of 2010.

Gallery: Spy Shots: 2011 Volkswagen Touareg

REPORT: VW banking on Oprah giveaway to raise awareness of slow-selling Routan minivans

If you close your eyes and think about the Volkswagen product lineup, products like the Golf, Jetta, and Passat are sure to come to mind. Most won't picture the Routan minivan, because most Americans don't even know the rebadged Dodge Grand Caravan exists. Sales of the Routan are so bad that the minivan hasn't been made since January, and production isn't picking up again until August.

Volkswagen is hoping to change the fortunes of its invisible minivan by giving away two Routans on the Oprah Winfrey Show. The move could prove to be a boon for VW, particularly after Oprah's 2004 stunt where the media madam gave away 276 Pontiac G6 models. Two weeks after the show, public awareness of the new sedan shot up to 87% and Pontiac was off the charts in Google and Yahoo searches, too.

Since Oprah is giving away two Routans instead of one to each member of her audience, we're guessing this giveaway won't have the same punch as the G6 scheme. The association with Oprah probably won't hurt, though, and any discernible bump in showroom traffic would make the Routan giveaway a success. With only 2,099 sales in June and 1,390 in May, the Routan could use all the help it can get.