VOLKSWAGEN GOLF, JETTA TDI RECEIVE TOP HONORS FROM KIPLINGER’S

Golf 4-Door Hatch Named Best in Class, Best New Car Under $20,000; Jetta TDI 4-Door named Best in Class for Cars Between $20,000-$25,000

HERNDON, Va., May 18, 2010— Kiplinger’s personal finance – the highly respected money guide - bestowed top honors on two Volkswagen cars for their quality and performance relative to price, Volkswagen Group of America announced today. The 2010 Golf 4-door hatch was named Best-in-Class for cars under $20,000 and Best New Car for cars under $20,000. The magazine also named the 2010 Jetta TDI 4-door Best in Class for cars between $20,000-$25,000. “At Volkswagen, we are continuously listening to our customers and researching new ways to offer the best cars for the greatest value,” Volkswagen Group of America CEO Stefan Jacoby said. “The Golf and the Jetta TDI are great examples of how we are achieving our goals. I appreciate the recognition of such a noted publication as Kiplinger’s and am proud to accept these awards on behalf of everyone at Volkswagen who made this possible.” Kiplinger’s editor-in-chief Knight Kiplinger, presented the awards in person to Mr. Jacoby and Tim Ellis, Vice President, Marketing at Volkswagen’s corporate offices here. The magazine, which annually reviews the newest car offerings against a stringent set of standards, aims to find the best value for readers. In choosing the Golf, Kiplinger’s noted “Its zippy five-cylinder engine puts out 170 horsepower and the most torque in this class (but manages 30 mpg on the highway), and the Golf comes with all the safety features we look for standard.” Kiplinger editors further noted that that Jetta TDI “…continues to impress with classic German handling and good looks. It also boasts high resale value, low annual fuel cost and top safety pick honors.”

The Transformer: Why VW Is the Car Giant to Watch

Volkswagen is bent on displacing Toyota as the world's biggest car company—and it just may succeed !

Eddie Guy
By David Welch

CEO Winterkorn greets the press at VW's Wolfsburg headquarters last year Joern Pollex/Getty Images

Jacoby, VW's U.S. chief, says he persuaded the board to build a U.S. factory Stephen Voss

VW recently unveiled its New Concept Coupe Rebecca Cook/Reuters

When Volkswagen (VOW:GR) CEO Martin Winterkorn said two years ago that he was determined to zoom past Toyota (TM) to become the world's biggest automaker, the notion seemed laughable. At the time, the German automaker sold 3 million fewer vehicles than Toyota, was losing ground in the U.S., and had a reputation for iffy quality. Toyota, then set to pass General Motors as the best-selling carmaker on the planet, seemed unassailable.
Today Toyota is vulnerable, and Winterkorn's ambitions seem a lot less outlandish. In November, for the first time, VW built more cars than its Japanese rival. Toyota still sells more each year, but VW has closed the gap to less than 1.5 million cars. Quality continues to be an issue for VW in the U.S., but Toyota is the one suffering negative headlines after a series of embarrassing recalls. Toyota's CEO—in an act of extreme self-flagellation—has even said his company's best days may be behind it.
Winterkorn sees an historic opportunity. And with the backing of his formidable boss and mentor, VW Chairman Ferdinand Piëch, he's seizing it. By 2018, Winterkorn vows, VW will pass Toyota. "VW saw a chink in Toyota's armor and realized they could act on their ambitions," says Stephen Pope, who follows the industry for Cantor Fitzgerald in London. "They went for it straightaway."
All over the globe, Winterkorn, 62, is punching the accelerator. VW has agreed to buy a 20% stake in Suzuki Motors (7269:JP) to gear up for an assault on the rapidly growing markets of Southeast Asia and India. Winterkorn is going after BMW (BMW:GR) and Mercedes (DAI), committing $11 billion over the next three years to Audi, VW's luxury brand. Peter Schwarzenbauer, a board member who oversees Audi's sales and marketing, says the brand plans 10 new models, including the A1, the world's first "premium subcompact."

Aiming Downmarket

Winterkorn's most ambitious plans are in the U.S., where he aims to double sales by 2012. It was only five years ago that VW tried and failed to move upmarket in the U.S. Remember the Phaeton, the VW with a sticker price of $85,000? Now Winterkorn is reversing course. He's betting that Volkswagen can steal customers from Toyota, Honda (HMC), Ford (F), and others by selling Americans on German engineering and style at affordable prices. This year, VW will introduce a compact priced to compete with cars like the $16,000 Toyota Corolla. "We have to bring the masses to VW," says Mark Barnes, VW's U.S. chief operating officer.
Beating Toyota won't be easy. For starters, VW sells fewer vehicles in the U.S. than Subaru (7270:JP) or Kia and still has a reputation for making unreliable, overpriced cars. In Southeast Asia—a Toyota stronghold—the VW brand is practically unknown. Ditto for India. Winterkorn's plan to double Audi's sales in the U.S. by 2018, meanwhile, isn't exactly scaring BMW. "They have been saying that for years," says Jim O'Donnell, president of BMW of North America.
Still, VW is a formidable competitor; it earned $975 million in the first three quarters of 2009, despite the global collapse of car sales, and it has $33.3 billion in cash. "We want to make [VW] the economic, ecological, and technological leader by 2018," Winterkorn wrote in an e-mail. "Our goal is not just about size—we are aiming for quality-driven growth."
Piëch has long wanted to move beyond VW's bases in Europe, China, and Brazil. In the 1990s, as Audi chairman and later VW CEO, Piëch acquired lower-end brands, including Spain's SEAT and the Czech Republic's Skoda. Later he added ritzy names like Bentley, Lamborghini, and Bugatti. "He used to privately talk about selling a car for every purse and purpose like Alfred Sloan did at GM," says Garel Rhys, president of the Center for Auto Industry Studies at Cardiff University in Wales.

Fixing VW's America Problem

By the end of 2006 it was clear that VW's move upmarket wasn't working, and in January 2007 Piëch installed Winterkorn as CEO. Before his elevation, Winterkorn ran Audi, where he boosted quality and supercharged growth with new models that rivaled BMW's cars. Winterkorn rewarded employees for speaking their minds and bringing ideas to his attention.
In the summer of 2007, Winterkorn and the board met to brainstorm ways to become the world's biggest automaker, says VW's U.S. chief, Stefan Jacoby. High on the agenda was fixing VW's America problem. That year, VW expected to sell 200,000 cars in the U.S., a 40% drop from 2000 and a third of what VW sold in 1970 when the Bug and Bus were Hippie icons. Jacoby says executives at the meeting saw three choices: They could continue to lose buckets of money selling cars that were too small and too expensive; they could wave the white flag; or they could go on the offensive. They chose Door No. 3.

 NEWS YOU CAN USE…

Two Versions of Volkswagen Golf Top Consumer Reports' Tests of Small Hatchbacks

Golf outpoints Nissan Sentra and Suzuki SX4

YONKERS, N.Y., Feb. 3 /PRNewswire-USNewswire/ -- Two versions of the freshened Volkswagen Golf posted "Excellent" overall scores topping Consumer Reports tests' of seven hatchbacks and sedans for the March 2010 issue.

The Volkswagen Golf TDI turbodiesel and Golf 2.5, (formerly the Rabbit) earned "Excellent" overall road test scores of 88 and 85 respectively, outdistancing the Nissan Sentra 2.0 SL sedan  which earned a "Very Good" test score of 74,  the Suzuki SX4 Crossover, which earned a "Very Good" score of 73 and the Suzuki SX4 LE Popular sedan, which earned a "Very Good" score of 66.

"A nice ride, crisp handling, and solid feel, make any Golf a good choice," said David Champion, senior director of Consumer Reports' Auto Test Center in East Haddam, Connecticut.

The 2010 Golf feels solid and substantial for its size and has a high-quality interior. The four-door hatchback layout is practical, and the Golf TDI with a manual transmission attained an impressive 38 mpg overall in CR's own fuel economy tests.

 

(For the complete press release, go to: http://www.prnewswire.com/news-releases/two-versions-of-volkswagen-golf-top-consumer-reports-tests-of-small-hatchbacks-83427087.html )

NEWS YOU CAN USE…

 

Volkswagen and Hollywood Elite Join Forces At The Maxim Party To Benefit Haiti Relief Efforts

Kevin Connolly of "Entourage" and Kellan Lutz from "Twilight" are Among Celebrities to Sign GTI Hood to Benefit Doctors Without Borders; Consumers Can Bid on One-of-a-Kind Autographed Collectible to Support the Cause

HERNDON, Va., Feb. 8 /PRNewswire/ -- Volkswagen of America, Inc. today announced that it will further support ongoing Haiti relief efforts by making a donation to Doctors Without Borders, by auctioning off a celebrity autographed 2010 GTI hood.  At the 2010 Maxim Party to celebrate the biggest weekend in professional football this past weekend in Miami, FL, Volkswagen collected more than 50 celebrity signatures, including: Kevin Connolly, Kellan Lutz, Katie Cassidy ("Melrose Place"), Evander Holyfield, Floyd Mayweather, Jessica Szohr ("Gossip Girl"), Nelly, Jermaine Dupri, LMFAO, Nick Lachey, Vanessa Minnillo, The All American Rejects, Dave Annable ("Brothers and Sisters") and Jesse McCartney.  Consumers can start bidding immediately on this one-of-a-kind collectible on eBay (http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=150412602656&ssPageName=STRK:MESELX:IT#ht_558wt_969), and all proceeds from the auction will benefit the Doctors Without Borders Emergency Relief Fund to aide in the relief efforts in Haiti and other countries around the world.  Consumers can learn more about the auction by visiting www.Maxim.com/VW.  

For more details on the auction, including how to find the hood on eBay, please visit www.Maxim.com/VW.  

Consumer Guide 2010 Awards

The Volkswagen Jetta, CC, Tiguan, and Routan Place Among the Best of the Best in Consumer Guide® Automotive's 2010 Awards

HERNDON, Va., Feb. 16 /PRNewswire/ -- Four models from Volkswagen's 2010 lineup – the brand-leading Jetta, the stylish and sporty CC, the versatile Tiguan, and the family-ready Routan – have been ranked by Consumer Guide® Automotive as some of the best vehicles for consumers to consider and purchase this year. Consumer Guide Automotive editors tested more than 150 vehicles across 18 different categories to select this year's winners. Each vehicle is evaluated for power, real world fuel economy, ride and handling, room and comfort, cargo space, and overall quality through everyday scenarios that a typical owner would experience, such as shopping, commuting, long highway trips, and stop-and-go city driving.

For 2010, the Jetta was named a Best Buy in the "Compact Car" category; the CC received the Best Buy title among "Premium Midsize Cars"; the Tiguan earned Best Buy status for "Compact SUVs"; and the Routan was "Recommended" in the "Minivan" group.

"It is an honor to have even one model rated with the Best Buy or Recommended title from the distinguished group at Consumer Guide," said Mark Barnes, COO, Volkswagen Group of America. "Having four Volkswagens in this prestigious group for 2010 is consistent with our goal of producing vehicles that satisfy the driving needs and desires of our customers."

With German-bred engineering, appealing designs inside and out, fun-to-drive dynamics, and a host of fuel-efficient engines, the Jetta, CC, Tiguan, and Routan aim to please at every start of the ignition. All 2010 Volkswagens include the Prevent and Preserve Safety System as standard, which helps keep drivers and passengers safe during normal driving conditions, and reduce the severity and consequences of a possible crash. Like all 2010 Volkswagen models, the Jetta, CC, Tiguan, and Routan feature standard Anti-Lock Braking System (ABS), Electronic Stability Program (ESP), up to eight airbags (depending on model), and a host of other standard features.

The entire 2010 Volkswagen lineup also features the no-charge Carefree Maintenance Program. With it, all of the scheduled maintenance for the vehicle, as described in its maintenance booklet, is covered for the length of the New Vehicle Warranty—three years or 36,000 miles, whichever occurs first.

Volkswagen Sets Roadmap for E-Mobility

Prof. Winterkorn: In the future, the heart of the brand will also beat with
electricity. Volkswagen is taking E-mobility to the next level: mass
production in the Golf and UP.
High-volume models will extend the hybrid product range

Wolfsburg / Geneva, 01. March 2010 – Volkswagen plans to expand its fleet of
electric drive vehicles: The use of hybrid technology in production vehicles is
already being demonstrated in the Touareg Hybrid at this year’s Geneva Motor
Show. In 2011, a test fleet of 500 Golfs with electric drives will follow. Starting in
2013, the high-volume Golf and Jetta models of the Volkswagen brand are
expected to dominate the hybrid and electric vehicle market.

Volkswagen plans to strategically bundle its competence in electric traction and extend
it step-by-step. It has now established a clear launch schedule for its E-traction
products. Prof. Dr. Winterkorn, Chairman of the Board of Management of Volkswagen
AG explains: “Volkswagen will be taking E-mobility to mass production. In 2011, we are
expanding our test fleet by adding 500 Golfs with electric drive. A hybrid version of the
Jetta for the US market follows in 2012. Starting in 2013, the E-UP goes into
production. The goal is to become the market leader in E-mobility by the year 2018.
We want to attain an electric vehicle market share of three percent within our entire
range of products.” He goes on to say: “We will take the hybrid out of its niche status
with our high-volume models. In the future, the heart of the brand will also beat with
electricity.”

Today, the electric car is already technically capable of short ranges of up to 150
kilometres. And so, the Group’s various brands will be conducting field studies in key
strategic markets of Europe, North America and China in upcoming months. An
important intermediate step here is Group-wide implementation of hybrid technology in
production vehicles. In Geneva, Volkswagen is therefore showcasing its technological
competence in hybrid development and is already introducing the new Touareg Hybrid.
“This technological competence will be advanced in Volkswagen’s modular strategy of
flexibly integrating hybrid and E-drives over a wide variety of vehicle platforms in all of
the Group brands”, says Dr. Karl-Thomas Neumann, Group Chief Officer for Electric
Traction. “We will continue to systematically exploit the potential of internal combustion
engines with the goal of significantly reducing fuel consumption and emissions. So
over the mid-term, vehicles with electric drives and those with internal combustion
engines will co-exist.”

The market launch schedule for purely electric cars is as ambitious as it is systematic:
The E-UP will kick off the programme in 2013; the E-Golf will then be introduced, just
before another crucial event of the Volkswagen Group’s E-strategy follows at the end
of the year with the launch of the E-Jetta. In subsequent years, a modular E-traction
approach will systematically extend electrification to other model series.
Milestones of the planned VW Group’s hybrid offensive: the Jetta Hybrid will debut in
August 2012, the Passat Hybrid in August 2013 and two months later the Golf Hybrid.
These measures will make Volkswagen the leader in CO2-neutral mobility.