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Volkswagen's 261-mpg hand-built XL1 headed for Geneva

After years of rumors, development and testing, the Volkswagen XL1 is finally about to become a reality. The project that began life as a daring 1-Liter concept car in 2002, will finally get its production-ready curtain call at the Geneva Motor Show in just a few weeks.
As soon as it hits the streets, the two-seat XL1 will instantly become the most fuel-efficient and most aerodynamic production car in the world. The car uses a plug-in hybrid system to achieve mind-blowing consumption of just 0.9 liters of diesel fuel consumed every 100 kilometers (and average of roughly 261 miles per gallon). Plus, the XL1 can go up to 50 kilometers on its battery power alone. Coefficient of drag is a miniscule 0.189, thanks to a tiny frontal area and an obviously slippery shape.
XL1 power comes from a two-cylinder diesel motor connected to a seven-speed dual-clutch gearbox, while the 20 kW electric motor is fed by a lithium-ion battery. Both combine to give the XL1 performance figures that are, while not stirring, not shabby considering its extreme frugality: 0-62 miles per hour comes up in 12.7 seconds and top speed is nearly 146 mph.

Volkswagen Golf Variant will make a lovely Jetta SportWagen

In addition to several other versions of the Golf, Volkswagen is debuting the new Golf Variant (read: wagon) here at the 2013 Geneva Motor Show. And if this bigger version of the Golf looks like it might fit right at home in the States, it's because we could possibly see some version of this car as the next-generation Jetta SportWagen here on our shores.
Volkswagen is debuting the Golf Variant with two efficient diesel engines, rated at 110 and 150 horsepower, the smaller of which is good for an impressive 71.3 miles per gallon on the European cycle (when mated to a six-speed manual transmission). The Golf Variant also gets a version of Volkswagen's 4Motion all-wheel-drive system, making it incredibly all-weather capable.
It's a handsome estate, and it wears the new Golf's design language well. We can't say for sure if this car will actually make its way Stateside, but given the fact that the current Jetta SportWagen still rides on the old Golf platform, the odds look to be in our favor.

VW announces recall of 26,000 2014 models with 1.8T engines

Volkswagen has followed up on a stop-sale order from earlier this month, announcing a voluntarily recall of 26,400 vehicles that are powered by the brand's 1.8-liter, turbocharged four-cylinder engine. The new mill replaced the despised 2.5-liter five-cylinder in the Jetta, Passat, Beetle and Beetle Convertible last year. Weirdly, though, of the 26,452 units covered in the recall, only 1,655 are customer vehicles.
According to VW, the affected models were built between February 1 and April 6 of this year, and feature bad O-ring seals in the transmission oil cooler. Apparently, the faulty O-rings could cause a fluid leak, as they won't seal between the oil cooler and transmission. VW is blaming a material change from a supplier for the problem.
There have been no fires, injuries, accidents or fatalities relating to this issue, which VW will be fixing free of charge. Customers will need to report to dealers to have the O-rings replaced.