VW Group to Invest €51.6 Billion in its Automotive Division Over the Next Five Years

€51.6 billion, or about US$71 billion at today's exchange rates, is a lot of money - equal to around 15% of Sweden's GDP, for example. Nevertheless, that's the amount of money that will be poured into the Volkswagen Group's automotive division for production capacity and vehicle development in the next five years. The goal, according to VW CEO Martin Winterkorn, is "to make Volkswagen the world's most future-proof automotive group".

The new budget will see €41.3 billion invested in property, factories and equipment with more than half of this amount (57%) finding its way into Germany. The remaining €10.3 billion consists of additions to capitalized development costs.

VW said that it will spend most of the budget (€27.7 billion) on modernizing and extending the product range of all its brands with the main focus being on new vehicles, successor models and derivatives in almost all vehicle classes based on modular technology.

"This will allow the Volkswagen Group to systematically continue its model rollout with a view to tapping new markets and segments," the company said in a statement.

In terms of powertrain production, the Group plans to launch a new generation of engines "with enhanced performance, fuel consumption and emission levels," and continue the development of hybrid and electric motors.

Furthermore, €13.6 billion will be used for cross-product investments. Volkswagen will thoroughly modernize or open new press shops, paintshops and assembly facilities including its new North American plant, which is scheduled to begin operating in 2011.

"The Volkswagen Group will help shape the technological turning point in key areas of the automotive industry and, to do this, will continue investing in environmentally friendly technologies, efficient drives and new models. We are systematically pursuing the goals of our Strategy 2018 to further increase our profitability and to make Volkswagen the world's most future-proof automotive group. The investment program we have now resolved will play a significant role in this", said Prof. Dr. Martin Winterkorn.

In addition, VW said that its Chinese joint ventures will see a total investment of €10.6 billion in the period 2011 to 2015. However, this investment will be fully funded from the cash flow generated by the Chinese joint ventures themselves and is not included in the €51.6 billion budget.

By Csaba Daradics

LA Show: Heidi Klum Presents 2012 VW Eos Facelift

We're not sure if the beautiful women surrounding the redesigned 2012 Eos coupe-cabriolet at VW's LA Show booth made it look better, but das Germans definitely scored some media points, especially with the presence of former Victoria's Secret supermodel, Heidi Klum.

Leaving the femme fatales aside, Volkswagen's hardtop convertible enters the 2012 model year with a mid-life facelift that brings it more in line with the company's latest products and includes a more Golf-like fascia with new headlamps and a far less prominent front grille. The reshaped front and rear bumpers, plus new two-part LED rear lights and mirror designs round off the exterior makeover.

For the interior, VW made some subtle upgrades in the form of new trim on the instrument panel and doors, and different controls on the air conditioning system.

In the U.S., the 2012 Eos gets the latest version of VW's 2.0-liter turbocharged and intercooled four-cylinder gasoline engine with direct injection tech that produces 200 horsepower and 207 lbs-ft. of torque while delivering a highway fuel economy of 31 mpg highway.

North American sales of the revamped Eos will start in early spring of 2011.

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NHTSA Opens Investigation on 2009 VW Jetta TDI Diesel Models

US government officials have launched an investigation into possible engine problems in the 2009 VW Jetta sedan and Sportwagen TDI diesel models. The National Highway Traffic Safety Administration (NHTSA) said Tuesday it had received seven complaints on the aforementioned models alleging that while driving and without any warning, the engine limped and then stalled almost immediately.

NHTSA said on its website that "a Preliminary Evaluation has been opened to assess the scope, frequency, and potential safety consequences associated with the alleged defect."

According to the safety agency, approximately 37,889 diesel-powered VW Jetta sedan and estate cars might be involved. We'll update this story as soon as new information is available.

Tuning Quickie: Oettinger's Volkswagen Amarok with 190HP

For Oettinger, tuning the Volkswagen Amarok 2.0 BiTDI didn't mean offering impressive exterior and interior modifications, neither insanely boosting the power, just simply rewriting some of the engine management software. But hey, it gets the job done.

The German pickup truck's diesel powertrain now delivers 190 hp, a 27 hp gain over the stock version. As for torque, the twin-turbocharged unit pushes out 430 Nm (317 lb-ft) at 1,500 rpm, and 450 Nm or 332 lb-f between 2,800-4,000 rpm.

Obviously, Oettinger's Amarok is also a tad faster accelerating from 0 to 100 km/h (62 mph) in 10.5 seconds (0.6 seconds faster than the factory model), and reaches a top speed of 187 km/h (116 mph).

The performance upgrade is available for €1,090.

By Csaba Daradics

Source: Oettinger , Via WFC

H&R puts a little backbone into the New 2011 VW Jetta VI

Suspension aficionados H&R have gotten their hands on the new Volkswagen Jetta 2.5 and decided to give it a once-over with some low-key modifications. After the Jetta arrived at H&R's US headquarters, the first pieces to get the ax were the springs (obviously).

Now, the brand new Jetta VI rides 1.3 inches lower thanks to a set of Sport springs in order to help the small sedan handle a bit better. The next items to go were the rims, which were replaced with 19x8.5 O.Z. Superturismo LM wheels (and TRAK + wheel spacers) to complement the car's handling and appearance.

While the 19's are about a size too large for a factory option, methinks a set of 18s in the same style would make for an interesting factory option. Behind the 19s are 14.4-inch cross-drilled Brembo rotors with 4-piston Monobloc grabbers that round out a nice street performance package. There's also a Vibrant Performance exhaust system as an auditory bonus.

The rest of the appearance add-ons - other than the vinyl - are sourced straight from VW and include a lower body kit and spoiler. Unlike many SEMA cars, H&R seems to have delivered a nice-looking, streetable package that should give the latest Jetta an extra injection of fun without killing your warranty or your wallet.

By Phil Alex

Source: H&R

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