1967 Vw Bus (hardtop Camper) on 2040-cars

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VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

Skoda racing Up! to Worthersee with Citigo Rally concept

If you thought the Volkswagen Group was about to wind down the endless stream of concept cars based on the new Up! city car, think again. Because not only is the Volkswagen brand itself keeping the train a-moving, so are its sister brands.
Skoda has its own version of the Up called the Citigo. But what racing fans know the Czech subsidiary for best is its rally program that has become a dominant force in the Intercontinental Rally Challenge and the basis for VW's own foray into the World Rally Championship. Now Skoda is bringing the two together with an exciting concept car previewed by the rendering above and confirmed in the press release below.
Following in the footsteps of the tantalizing Fabia roadster unveiled last year, the Citigo Rally concept is to be the centerpiece of the Skoda display at the Volkswagen Group's annual hot-hatch gathering at Lake Wörthersee in Austria. Details are scarce, but the show car will feature rally-inspired bodywork complete with 18-inch white alloys packed into aggressively flared wheel arches, a substantial rear wing and vents aplenty.

VW Beetle R is one mean bug

Volkswagen's R lineup currently consists of the Golf R in North America, and the too-cool-for-school Scirocco R in Europe. It hasn't exactly been a secret as to which VW would next get the R treatment; the German manufacturer reportedly confirmed that a hotter Beetle would be coming to the US. That announcement, in August 2011, was followed up by a production-ready Beetle R Concept at the 2011 Frankfurt Motor Show.
After some wait, we're finally seeing spy shots of the Beetle R in Germany. The mule shown in the images here is wearing the R-Line bodykit, which adds sportier front and rear fascias, side skirts, dual exhausts and a not-so-subtle spoiler. Topped off with Volkswagen's traditional, five-spoke R wheels, we'd be just fine with the Beetle R coming to market as is.
Our spy photographer, though, seems to think that the production R will get even sportier sheetmetal, which we take to mean the more assertive look shown on the Frankfurt show car. Larger intakes on the front fascia, a bigger rear spoiler and vertical vents on the rear bumper could all be upcoming. Whether a production model will include the concept's polished wheels (R cars haven't traditionally embraced that look), vented hood and the quad-tipped exhausts remains to be seen.