Volkswagen Announces $1 Million Gift To MLK Memorial Foundation
As the nation prepares to commemorate the Washington, D.C. Martin Luther King, Jr. National Memorial, Volkswagen Group of America has announced a gift of $1,000,000 to the Martin Luther King, Jr. National Memorial Project Foundation, which is responsible for the memorial's construction and upkeep.
In doing so, Volkswagen joins a very long list of heavyweight donors to the National Memorial Project Foundation. At the top: GM Foundation, which has given $10,000,000 and was one of the organization's first major supporters. (Regular readers might remember GM's massive reading project associated with the memorial, which ran earlier this year.) Ford and Toyota have contributed, too -- to the tune of $2,000,000 each. Hyundai's gift sits on par with VW's at $1,000,000, and Honda offered $500,000 in support. (For a complete list of major donors, click here.)
This is a great move for Volkswagen and equally good news for the Martin Luther King, Jr. National Memorial Project Foundation. The Foundation will receive much-needed cash to help meet its $120,000,000 fundraising goal, and Volkswagen will get not just recognition, but a boost to its local community, too. (VW's U.S. division is perhaps best known for its manufacturing facilities in Tennessee, but the Volkswagen Group of America headquarters are located in the Washington, D.C. area -- specifically in Fairfax County, Virginia. That's not insignificant: corporations are far more prone to fund nonprofit organizations situated near corporate headquarters to improve the community.)
We admit, the timing of Volkswagen's gift is a little weird, since it comes during the 11th hour leading up to the Memorial's commemoration on Sunday. But then, VW's a corporation in need of publicity -- and really, what foundation worth its executive director is going to stare a $1,000,000 gift horse in the mouth?
[Volkswagen]
This story originally appeared at The Car Connection
All U.S. Honda Vehicles To Get Brake Overrides By Next Year
American Honda has announced that it will be installing a brake-override system on all of its Honda- and Acura-brand vehicles for the North American market by the end of 2011.
The device would, quite simply, allow the brake pedal to override any throttle input returning the engine to idle or near idle to permit safe braking if the accelerator pedal is either stuck or accidentally simultaneously pressed.
Several other automakers, including Mazda, have announced plans to incorporate brake overrides on all their future models, ahead of a potential federal requirement for them. Currently, Nissan is the only automaker to use them across its entire lineup, though Volkswagen, Mercedes-Benz, and Chrysler already have the feature on many of their models.
Toyota is also planning to install a brake override on a number of models for 2011, and the 2010 Toyota Camry and 2010 Toyota Avalon already had the feature.
At the time Toyota was dealing with its stuck-accelerator recall, Consumer Reports helped bring stuck-accelerator strategies to light, clearly demonstrating—when accelerators were floored—the stopping difference between vehicles that did and didn't have brake overrides.
The first application of the so-called Brake Priority Logic will come to market this August, Honda says.
This story originally appeared at The Car Connection
Ford Gaining On Honda And Toyota In Perceived Quality
Among mainstream brands, consumers still rate Honda and Toyota highest in quality—whether that is or isn't the case on actual quality surveys. But Ford is quickly gaining ground. That's according to the latest Perceived Quality Study (PQS), from residual values expert Automotive Leasing Guide (ALG).
Perceived quality sometimes fails to mirror actual quality. Here, there's no better example than Volkswagen, which ALG says has maintained a strong perceived level of quality even though the brand has placed low in actual metrics for quality.
"Volkswagen's emotionally appealing designs have helped strengthen perceptions of its overall brand and lift VW into third place," said ALG general manager James Clark, in a release accompanying the results. ALG points to the recently launched Volkswagen Tiguan and CC as image-boosters.
Honda's emphasis on engines and engineering might pay off in dividends with respect to perceived quality. ALG observes out that if a consumer thinks that a brand has reliable engines, they will rate other vehicle characteristics high as well. Both Honda and Toyota "consistently score high in perceived quality, actual quality, and residual values because they have maintained a long history of quality with specific focus on durable and reliable powertrains."
Another reason ALG attributes to the continued lofty perceptions of Toyota and Honda are consistent lifecycle management—meaning that major redesigns occur at regular intervals (typically five years) with enhancements in between. Minimized incentives and fleet sales have also helped boost residual value and bolster perceptions.
Over the past year, perhaps because of the failure of GM and Chrysler, there have been some pronounced changes in perceived quality. Ford has surged, with Ford Cars showing a 10.1 percent year-over-year boost in the PQS. ALG attributes the successful launches of the 2010 Ford F-150 and 2010 Ford Flex, plus the 2010 Taurus and the hype around the 2011 Ford Fiesta.
Hyundai also did well, rising 5.5 percent in the study versus a year ago, demonstrating that more shoppers perceive the once no-frills brand in a very positive way. ALG attributes the Hyundai Assurance Program and its strong performance in the Cash for Clunkers program, along with the new Genesis Coupe and sedan.
The Chrysler brand ranked at the bottom, with an 11.9-percent drop perceived quality. ALG says that some refreshed products like the redesigned 2011 Chrysler 300 might help bridge the gap. "However, the uncertainty about the brand's future and the significant time lag between today and the arrival of new products are obvious concerns for Chrysler.
Saturn, Pontiac, and Chevrolet were also down significantly in perceived quality, likely due to GM's bankruptcy filing this year rather than any difference in real quality.
The results of this survey are important, as perceived quality is one of many factors used in assessing a vehicle's residual value, which affects resale value and predicts resale value.
The twice-yearly survey was conducted by Zogby International and based on between 3,000 and 4,000 responses.
[ALG]
This story originally appeared at The Car Connection
Chevy Impala, Chrysler EVs, 2011 Mustang: Today at High Gear Media
What's up with the next Chevrolet Impala? Are Chrysler and Fiat building an electric car together? Why's the $70,000 Audi Allroad a better bet than the current Q5 crossover? And what's the latest on the 2012 Volkswagen New Beetle?
Today at High Gear Media, we've got answers for you. Consumers and car shoppers can get the latest word from our in-house experts at TheCarConnection on Chevrolet's next-generation Impala and on the upcoming Volkswagen New Beetle replacement coming in 2012. And if you've been affected by that big Toyota recall, LexusReports' Jamie Coleman advises you on how to use zip ties to fix your Toyota or Lexus floor-mat woes.
For car enthusiasts, it's a busy week already. Over at MotorAuthority, you can get details on Ford's plans for the 2011 Mustang and the 2009 L.A. Auto Show. They'll take you for a drive in the Audi A4 Allroad, and spread the word on that Subaru Hybrid Tourer Concept, Toyota FT-86, Honda CR-Z and more in the works for next week's 2009 Tokyo Motor Show. FordReports says SVT is back in the truck game with the 2010 Raptor. And over at MustangBlog, there's news from Barrett-Jackson with the sale of Mustang #005 for $352,000. B-J also took care of Bruce Willis' '67 Chevy Corvette Sting Ray, and you'll get more on that at CelebsAndCars.
Fans of green cars will get their alt-fuel fill-up at GreenCarReports, with a preview of the upcoming 2012 Volkswagen Touareg Hybrid. AllCarsElectric has the latest on a possible Peugeot-Mitsubishi alliance, while AllSmallCars brings you the list of finalists for the Green Car of the Year.
----------
Want in on the action? You can be part of the High Gear Media team, too. Sign up to write and tell car enthusiasts and shoppers what you think about your vehicle or today's car news and get published to High Gear Media sites like AllSmallCars, LexusReports, FamilyCarGuide and more.
This story originally appeared at The Car Connection
EXCLUSIVE: Volkswagen NMS Replaces Passat, Phaeton to Return
Volkswagen of America president Stefan Jacoby has confirmed to High Gear Media that the new sedan to be built in Tennessee will effectively replace the VW Passat in North America--and that the former Phaeton sedan will return to the U.S. market.
Speaking to journalists gathered to drive the new VW Golf, Jacoby admitted that today's Passat is too small for the duties pressed on it by American drivers. The Passat is "not the right size...for the distances Americans drive."
The Passat's replacement will be a new four-door code-named "NMS." Set for a new Volkswagen factory in Chattanooga, Tennessee, the new sedan arrives in about two years' time and will be joined by a second product a year later. Jacoby would not confirm the second product would be a crossover vehicle, as some sources have suggested.
By the time the "NMS" arrives on the market as a 2012 or a 2013 model, Volkswagen's lineup will include these sedans:
VW Polo: A new generation of the subcompact Polo arrives in about two years as well, and a four-door sedan is under study for the American market. Like the upcoming Ford Fiesta, Volkswagen thinks both a hatchback Polo and a four-door Polo sedan could be its new model-line anchors, positioned and priced to challenge the Fiesta and the Honda Fit.
Volkswagen Jetta: The next generation of Jetta (and the mechanically similar Golf hatchbacks) should arrive within three years. The cars will continue to compete against the likes of the Honda Civic, Toyota Corolla, and Ford Focus.
VW NMS: The new NMS sedan has been shown in sketches released by Volkswagen (above). In Germany today, VW design chief Walter de' Silva showed three more complete sketches of the NMS sedan, including full frontal, side and rear views. The shape shows some similarity to the former Volkswagen Quantum, with a faster rear roofline, a smoothly integrated grille and headlamps, and angular taillamps. In size, the NMS will likely be roughly the size of today's Nissan Altima-- to provide a wider cabin than the VW Passat, and more rear-seat leg room. According to other High Gear Media sources within the Volkswagen Group, the new sedan will be closely related to the next VW sedan to be built and sold in China.
Volkswagen CC: Jacoby says the new 2009 Volkswagen CC--a re-bodied, re-engineered spin-off of the current Passat--has moved decidedly upmarket from the Passat itself. It may drift further higher in price and mission as Volkswagen introduces the NMS sedan.
VW Phaeton: In the early part of the decade, Volkswagen introduced a large, conservative sedan called the Phaeton. You may have missed it: it sold slowly and was pulled from the market after the 2006 model year. Abandoning the Phaeton in the U.S. market was a "mistake," Jacoby says. "You need to be patient to enter a new segment." It's most likely the new Phaeton will arrive before the end of next year in Europe, and could share the same flexible component kits with other big sedans due from the VW Group, including the Audi A6, A7 and A8--though the A8's aluminum space frame and body panels are sure to remain exclusive to Audi.
Jacoby says that Volkswagen needs the new NMS sedan to compete alongside the likes of Toyota and Honda. But with a five-sedan lineup spanning a price range from about $12,000 to more than $50,000, the VW brand will be stretched much wider than either of the Japanese car names. In fact, that spectrum would include all of Toyota and Honda's core products, all of Acura, and almost all of Lexus.
What gives Volkswagen the reach that's missing from those nameplates? The brand and its heritage, Jacoby says. It's the "brand, the technology, the perception...the [Volkswagen] brand is strong enough to carry this kind of product range."
Stay tuned--we'll have our bottom line on the 2010 Volkswagen Golf and news about the next VW Beetle later today.
This story originally appeared at The Car Connection
Feud Subdued: VW To Buy Porsche For $11.28 Billion
From Germany today comes news that the long struggle between Porsche and Volkswagen may be coming to an end. According to German weekly Der Speigel, the Porsche and Piech clans -- which own 100% of Porsche SE -- have agreed to sell the entirety of their sports car unit, Porsche AG, to VW for approximately 8 billion ($11.28 billion).
It seems like just yesterday that Porsche was hoping to buy a 75% stake in Volkswagen and end the stepsibling rivalry. Even at the beginning of the worldwide economic crisis, it appeared that Porsche might still be able to pull off the deal, since high-end automakers weren't feeling the same pinch as more generalized companies. But then came spring, and the financial bottom fell out across the board, and Porsche had to table its plans.
Since then, there's been persistent talk of merging the two entities, but Porsche has been resistant. Recently the company was in talks with investors in Qatar, who expressed interest in purchasing a portion of Porsche AG. That would have provided more capital for Porsche to relaunch its bid, but in the meantime the company's debt swelled to over 10 billion, making any takeover plans implausible.
Now, the company that chose not to play nice and partner with Volkswagen is being consumed whole-hog. According to Der Speigel, the takeover will be conducted in two stages: Volkswagen will begin by purchasing a 49.9% stake in Porsche AG, with the remaining 50.1% to be purchased by at a later date. The deal is set to be approved at a meeting of Porsche SE's supervisory board this Thursday, July 23.
So far, Porsche has not commented on the story, saying only that it was speculative and that Porsche has not been informed of any deal. Furthermore, a German newspaper, Sueddeutsche Zeitung, has cast a sliver of doubt on the dealings by suggesting that tax liabilities might throw the deal off the track. Although we enjoy the industry drama that Porsche/VW feud has generated, we hope that's not true -- especially for Porsche, who needs a serious infusion of cash right about now. Expect a bumpy ride in Germany this week.
[NYTimes]
This story originally appeared at The Car Connection
Volkswagen Routan Gets Its Big O Moment
Remember how interest in the Pontiac G6 shot through the roof after Oprah Winfrey gave away a fleet of 'em to unsuspecting audience members? (Which subsequently caused a lot of bad press because recipients still had to pay tax on the freebies? Anyway.) That was awfully neat, but the floundering Volkswagen Routan probably won't be so lucky. Yes, Oprah's handing out some keys, but giving away two cars rather than 276 isn't quite the same, is it? [WardsAuto via Autoblog]
This story originally appeared at The Car Connection
AdWatch: VW Passat Keeps You Living In Denial
Are you the sort of person who coasts through life with blinders on? Who avoids unpleasantness at all costs? Who shoves all those bills in a big ol' envelope and takes a dozen people to the Ginger Man for drinks? Well, according to the TV spot above--British, of course--you're a perfect candidate for the Volkswagen Passat. We're sure VW's dealers and mechanics will appreciate that stiff upper lip next time you bring it in for repairs, sucker. [CreativeReview]
This story originally appeared at The Car Connection
Porsche Scrambling To Secure Financial Future, Rejects VW Offer
The bravado necessary to run a company like Porsche well has so far been one the of the strengths of the company's current leadership, in particular Wendelin Wiedeking, as it attempts to acquire Volkswagen AG. But that brave move was caught in the unfortunate timing of the current economic crunch, and things have soured.
Instead of securing a solid and steady revenue stream to help pay for its massive $12.6 billion net debt, Porsche ended up with a large but largely useless 51% stake in VW- an amount too small to secure the degree of control it needs.
So now Porsche is shopping its share around, and state-owned Qatar Investment Authority is the leading suitor.
VW, meanwhile, has been trying to get back full control of its operations as relations with its German purchaser grow more and more obstreperous. Today, VW made an offer to buy 49.9% of Porsche's voting stock, but Porsche rejected the offer. Porsche holds about 51% of VW's stock plus another 20% worth of options.
Porsche's reason for rejecting VW's offer was couched in completely practical terms: allowing VW to buy the proposed stake would have triggered a mandatory re-negotiation of $15 billion in financing. But there's a sense that the decision was also based in the growing enmity between the two companies and their leadership.
So what does the future hold for Porsche and VW? That's anybody's guess, but from this vantage point, it looks like whatever the final outcome, infighting and bickering will pave the way.
In the mean time, Qatar may reap the benefits by acquiring a healthy chunk of Porsche, or a portion of Porsche's options in VW, or some combination of the two.
This story originally appeared at The Car Connection
Volkswagen Ranks Tops In Ownership Experience
Many of Volkswagen's new vehicles continue to be rated worse-than-average by Consumer Reports in reliability, below the industry average in J.D. Power's annual Initial Quality Survey (the latest just released last week), and near the bottom in post-sales service, as gauged by Power's latest annual Customer Service Index (CSI).
Yet, as the latest Total Quality Index from Strategic Vision suggests, Volkswagen owners are among the happiest with the ownership experience. VW placed at the top of the 2009 TQI rankings, along with Ford.
Across the various segments that Strategic Vision breaks models into, Volkswagen had the greatest number of model leaders, for quality of the entire ownership experience, than any other brand—including Jetta, New Beetle, Rabbit, and the new 2009 Tiguan and 2009 CC.
Ford only had one segment leader, the Focus, but the automaker posted a high overall score. Also today, AutoPacific placed Ford at the top among mainstream brands in its Ideal Vehicle Awards. Last year the Michigan automaker tied with Toyota for Strategic Vision's top TQI spot, and the firm noted the automaker's comeback in quality, and brand equity.
GM actually had four segment leaders: Pontiac G8, GMC Envoy, GMC Yukon XL, and Chevrolet Corvette. Its Saturn and Pontiac brands—both no longer part of the automaker's future-product plan—were tied for having the best TQI scores in their price segment.
The new 2009 Dodge Ram was another noteworthy high achiever in the 2009 TQI—earning the highest score of any truck over the 15-year history of the study, along with kudos for its interior and storage capability.
The Total Quality Index is different than most other metrics as it has buyers rate all aspects of the ownership experience, rather than counting specific problems at the vehicle or dealership level. "In today's difficult market, the difference between products that generate consideration, build brands and increase sales versus those that do not is often how much delight and love the product generates with its customers," said Dr. Darrel Edwards, the firm's chairman, in a release.
Strategic Vision points to MINI as another example of a brand that ranks high in perceived quality despite an above-average level of specific counted problems. In its price category, MINI is the highest-rated brand in TQI, and it's not surprising that MINI was one of two brands to post increase sales at the start of the recession.
The results are calculated from a survey of 20,101 buyers who purchased 2008 or 2009 model-year vehicles in September to December of 2008.
Here are the segment-by-segment winners (with repeat awards marked with an asterisk):
| Small Car | Ford Focus Sedan |
| Small Multi-Function (MFV) | Volkswagen Rabbit |
| Medium Car | Volkswagen Jetta* |
| Large Car | Nissan Maxima / Pontiac G8 |
| Near-Luxury Car | Volkswagen CC / Audi A4 Sedan |
| Luxury Car | Mercedes S-Class* |
| Small Specialty Coupe | Volkswagen New Beetle |
| Premium Coupe | Chevrolet Corvette |
| Minivan | Honda Odyssey* |
| Entry Utility | Volkswagen Tiguan |
| Medium Crossover | Toyota Venza |
| Medium SUV | GMC Envoy / Toyota 4Runner* |
| Large SUV | GMC Yukon XL |
| Near-Luxury SUV | Infiniti FX / Infiniti EX / BMW X3 |
| Luxury SUV | Land Rover Range Rover |
| Standard Pickup | Honda Ridgeline* |
| Large Pickup | Dodge Ram |
This story originally appeared at The Car Connection
