Volkswagen Passenger Cars, also known as VW, is an automobile manufacturer based in Wolfsburg, Germany and is the original as well as the largest brand by sales volume within the Volkswagen Group.[6]
Volkswagen means "people's car" in German, in which it is pronounced [ˈfɔlksˌvaːgən]. Its current tagline or slogan is Das Auto (in English The Car). Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.
Volkswagen began introducing an array of new models after Bernd Pischetsrieder became Volkswagen Group CEO (responsible for all Group brands) in 2002. The fifth generation VW Golf was launched in 2004, came runner-up to the Fiat Panda in the 2004 European Car of the Year, and has spawned several cousins: SEAT Toledo, Škoda Octavia and Audi A3 hatchback ranges, as well as a new mini-MPV, the SEAT Altea. The GTI, a "hot hatchback" performance version of the Golf, boasts a 2.0 L Turbocharged FSI direct injection engine. VW began marketing the Golf under the Rabbit name once again in the U.S. and Canada in June 2006. (The GTI had arrived to North America four months earlier). The fifth-generation Jetta, and the performance version, the GLI, are also available in the United States and Canada. The sixth-generation Passat and the fifth-generation Jetta both debuted in 2005, and VW has announced plans to expand its lineup further by bringing back the Scirocco by 2008. Other models in Wolfgang Bernhard's (Volkswagen brand CEO) "product offensive" include the Tiguan mid-sized SUV in 2008 and a Passat Coupé. In November 2006 Bernd Pischetsrieder announced his resignation as Volkswagen Group CEO, and was replaced by Audi worldwide CEO Martin Winterkorn at the beginning of 2007. Winterkorn is credited with making Audi a challenger to the dominance of BMW and Mercedes, and his design-led strategy has led to Audi being considered one of the most important brands in the world. It remains to be seen how Winterkorn's focus on design shapes the Volkswagen brand's future. Nevertheless, Volkswagen continues to have complicated relations with both unions and shareholders. The German state of Lower Saxony owns significant stock in VW, as does sportscar manufacturer Porsche. Recently[when?] Porsche has announced to buy the majority of Volkswagen's stock, thus becoming the new owner of Volkswagen.
The fifth-generation Passat, from 2001.5 to 2005 features a facelift from the 98-01 model
In North America, VW faced many challenges. After rising significantly between 1998 and 2001, VW's North American sales began to fall sharply leading to a 2005 loss of roughly US$1 billion for its operations in the U.S. and Canada. Profitability has not been strong, and the lack of reliability of the company's cars appears to bear some of the responsibility for this situation. By 2005, its models sat near the bottom of Consumer Reports reliability ratings, and J.D. Power and Associates ranked VW 35th out of 37 bands in its initial quality survey. Attempts to enter a new market segment also compromised Volkswagen's standing in North America. In 2002, Volkswagen announced the debut of its Phaeton luxury car, which was critically acclaimed but not well received in the marketplace. VW announced its discontinuance in the U.S. market for the 2007 model year due to the disappointing sales.
Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195 -- a dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles. Momentum continued for fiscal 2006, as VW's North American sales for the year were 235,140 vehicles, a 4.9 percent increase over 2005, despite a slump in domestic North American manufacturer's sales. VW plans to close out the decade[when?] with the release on several new vehicles worldwide and a barrage of advertising. In conjunction with the introduction of new models, production location of Volkswagen vehicles also underwent great change. The 2007 Eos, a hardtop convertible, is produced in a new facility in Portugal. All Golf/Rabbit and GTIs as of 2006 are manufactured in Wolfsburg, Germany, rather than VW's Mexican factory in Puebla, where Golfs and GTIs for the North American market were produced from 1989 to 1998, and the Brazilian factory in Curitiba, where Golfs and GTIs were produced from 1999 to 2006. (The Jetta has primarily been made inMexico since 1989). VW is also in the process of reconfiguring an automotive assembly plant in Belgium. The new models and investments in manufacturing improvements were noticed immediately by automotive critics. Favorable reviews for VW's newest cars include the GTI being named byConsumer Reports as the top sporty car under $25,000, one of Car and Driver magazines "10 Best" for 2007, Automobile Magazine's 2007 Car of the Year, as well as a 2008 Motor Trend comparison ranking the midsize Passat first in its class. J.D. Power and Associates 2006 Automotive Performance, Execution and Layout (APEAL) Study scored Volkswagen fourteenth overall with strong performances by its new Jetta and Passat models.
The fifth-generation Golf, sold in North America as the Rabbit.
Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is partnering with Mercedes and other companies to marketBlueTec clean diesel technology, calling it BlueMotion. Volkswagen has offered a number of its vehicles with a TDI Turbocharged Direct Injection engine, which lends class-leading fuel economy to several models. According to the United States Environmental Protection Agency, four of the ten most fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen diesel engines. They were a three-way tie for 8th (TDI Beetle, TDI Golf, TDI Jetta) and ninth, the TDI Jetta Wagon. As of 2007, VW has not yet offered a gas-electric hybrid powertrain such as that in the Toyota Prius(though a diesel-electric hybrid 5th generation Jetta was produced as a test vehicle). In addition, all Volkswagen TDI diesel engines produced from 1996 to 2003-2006 can be driven on 100% biodiesel fuel. For the 2007 model year, however, strict U.S. government emissions regulations have forced VW to drop most diesels from their U.S. engine lineup, but a new lineup of diesel engines compatible to U.S. standards are due for 2008.
The 2006 Eos hardtop convertible
Volkswagen long resisted adding a utility vehicle to its lineup, but it finally relented with the introduction of theTouareg in the early 2000s, sharing major components with the Porsche Cayenne and Audi Q7 sport utility vehicles. Though acclaimed as a fine handling vehicle, the Touareg has been a modest seller at best. Some automotive analysts blame the Touraeg's absence of a third-row seat, the relatively poor fuel economy, and the high vehicle mass. VW plans to add a compact SUV with styling influences from its "Concept A" concept vehicle. On July 20, 2006, VW announced that the new vehicle would be called the Tiguan. One major irony of Volkswagen's current North American lineup is the absence of a minivan, considering that VW is credited for inventing the minivan with its original Transporter, but the firm is currently developing just such a vehicle for the U.S. and Canadian markets with DaimlerChrysler named the Volkswagen Routan, with current plans to introduce it in 2008. Volkswagen is also considering a new entry-level model for the North American lineup. A venture with DaimlerChrysler to produce such a vehicle was considered but dropped as of September 2006. Due to technical difficulty adapting the Polo to meet North American vehicle regulations, VW presented in 2006 the "Iroc" as a concept of the proposed 2009 Scirocco as a potential new small model.
In September 2006, Volkswagen began offering the City Golf and City Jetta only for the Canadian market. Both models were originally the Mk4 Golf andJetta but were later replaced with the Brazilian versions of the Golf Mk4 and Bora. The City Golf and City Jetta were introduced to compete with the Toyota Yaris and Honda Fit. Volkswagen's introduction of such models is seen as a test of the market for a subcompact and, if successful, may be the beginnings of a thriving subcompact market for Volkswagen.
When Martin Winterkorn became the eighth postwar CEO of Volkswagen, the company made several personnel changes in Wolfsburg. Though the VW Group already had their presence in India with Škoda Auto, Volkswagen introduced the Passat and Touareg with TDI engine to India's automobile market in September 2007.
The VW 1L will be available in 2010, in limited numbers. The 1L is a lightweight two person vehicle made out of a magnesium frame covered by an unpainted carbon fiber skin. Every component of the vehicle is intended to reduce the vehicles weight. Aluminum brakes, carbon fiber wheels, titanium hubs, and ceramic bearings all contribute to the vehicle’s light weight of a mere 290 kg. To reduce the weight even further, and to increase the aerodynamics of the vehicle, there are no rear view mirrors. Instead, the car is equipped with cameras that display visual information to the driver via the internal LCD screen. The car is extremely fuel efficient, each gallon of fuel will take you over 235 miles. The fuel tank holds just 1.7 gallons, making the entire travel distance capability about 400 miles per tank. Its top speed is 120 km/h (75 mph), which although isn’t too fast is a welcome trade off for the huge savings in gas consumption.
On July 15, 2008 Volkswagen announced that they will construct an automobile assembly plant in Chattanooga, Tennessee. This plant will produce cars specifically designed for North America beginning with the New Midsize Sedan, which will be more competitive with North American market leaders Toyota Camry and Honda Accord. Production is scheduled to begin in early 2011
