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Up Next: Ford-Volkswagen Tie-up?

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What a week it has been. More like a half-week, actually.

For it was within that abbreviated timeframe we officially heard that Fiat Chrysler and the PSA Groupe (Peugeot and Citroën) were talking merger. The news spilled out late Monday and by Wednesday the two automakers came to terms. Today, news of the planned merger was announced, setting in place what will become a near $50 billion entity, which currently produces 8.7 passenger vehicles annually.

Merger talk doesn’t take place in a vacuum. Indeed, soon after the FCA broke off talks with Renault to merge in June, rumors of PSA’s interest in FCA came out. All we’ve heard is what was reported this week. But talks have been going on for some time, carried under the cloak of secrecy.

We shouldn’t be surprised that the two automakers are connecting as the entire industry is ripe of consolidation. With the deal nearly certain to pass, it likely will trigger further consolidation with perhaps Ford and Volkswagen following. Yes, these two automakers seem like prime candidates for an alliance or outright merger. There are several reasons why, which we’ll explore here.

Volkswagen and Ford: The Next Tie-up?

1. The two companies forged a global alliance.

In January 2019, Ford and Volkswagen announced that the two companies were forging a global alliance, but without cross-ownership. Pickup trucks and commercial vans were the first vehicles mentioned where collaboration will take place.

2. An EV/AV alliance follows.

In July, Ford and Volkswagen announced that the two automakers would begin sharing electric vehicle (EV) and autonomous vehicle (AV) technology. VW is investing in Argo AI, which is Ford’s self-driving technology, while Ford will build at least one vehicle based on Volkswagen’s Modular Electric Toolkit (MEB) architecture for sale in Europe.

3. Ford cuts back on cars.

The Ford Motor Company still produces cars, but the U.S. market will soon offer only the Mustang, pickup trucks, and lots of utility vehicles. With a VW tie-up, Ford might find it affordable and sensible to sell small cars again in the U.S., especially as the merged entity shaves costs. In any case, if the market suddenly shifts to cars again, Ford will have the platforms in place to build what’s needed.

4. The Rivian factor.

We already know that Ford owns a slice of Rivian, the upstart electric vehicle maker. Rivian will begin producing an SUV and pickup truck by the end of 2020. Ford will have access to Rivian’s skateboard electric vehicle architecture, which is certain to produce at least one model for the Ford brand. Volkswagen wants a pickup too and might utilize Rivian besides tapping the Ford Ranger for its own purpose.

5. Big is better.

When it comes to building passenger vehicles, the bigger you are, the better. Or at least that is the thinking in this industry. Yes, “economies of scale” and “synergies” are realized through smart collaboration. But there is another factor, bragging rights, which the new company led by Volkswagen would claim as sales would top an estimated 14 million units annually, putting the new automaker well in front of the pack.

What About GM?

With FCA and PSA hooking up and Ford and Volkswagen presenting a strong argument for consolidation, what about GM? At one time we might have seen GM go it alone or acquire another automaker, but that’s not going to happen.

Fresh on the heels of a costly labor agreement with the UAW, GM is ripe for the picking. We don’t see Toyota or Hyundai/Kia interested nor is it likely Honda with its independent streak planning to do likewise. There’s a chance GM might find a place in the Renault-Nissan alliance, but we think a Chinese suitor is just as likely.

In any case, the industry is changing and most likely will see additional mergers, acquisitions, and alliances in the months ahead. FCA and PSA triggered the tsunami. Now we’ll witness how other automakers avoid getting consumed by the waves of change.

See Also — Emerging Alliances Point to Further Auto Industry Consolidation

History of the Volkswagen Bus

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Years before the Volkswagen (VW) Microbus was associated with hippies, free love and protests against the Vietnam War, it served as a basic people hauler. It was just the second Volkswagen model built, following the Beetle to the market in 1950. Although this vehicle disappeared from the US market in the early 1970s before returning briefly as the Vanagon, it continued to be sold elsewhere until production ended in 2013.

An early Type 2 developed for the Australian market.
Public domain photo acquired from Wikipedia.

Volkswagen Microbus Overview

The Volkswagen Microbus was known by a variety of names including the Volkswagen Type 2. The Type 2 appellation described the second VW model built following the Type 1 or what is better known as the Beetle.

In the United States, the VW Microbus was simply called the Bus or Camper, in cases where a camper interior was present. One of its earliest names was Kombi with Bulli, Samba, Campervan, and Transporter used in various markets. The next time you visit a classic car show, be on the lookout for one. Some adhere closely to factory spec, while others are enhanced with modern features such as LED headlights, including those supplied by XKGlow.com.

First-Generation Models

Modify a Volkswagen Beetle platform and its 1.1-liter air-cooled engine and place a van body on top of it and you have the makings of a new vehicle. Like the Type 1, the Type 2 featured a rear-mounted engine and transaxle, adding a ladder frame chassis and a pair of gear-hub reduction boxes to lower the gearing across all four gears.

The original engine made just 25 horsepower, then increased to 44 horsepower when a 1.5-liter engine was introduced. Fuel mileage for first- and second-generation models was about 20 mpg with top speeds ranging from 55 mph for earlier models to 68 mph for second-generation models.

The first-generation Microbus featured certain design characteristics that were unique to this model, including a split windshield layout and multiple window variations. Standard models were equipped with 11 windows, DeLuxe versions had 15 windows and Sunroof DeLuxe models added eight small skylight windows for a total of 23 windows. The first models had removable middle- and rear-row seats, while later models had only a removable rear seat.

The Volkswagen Vanagon is the third-generation model.
Attribution: Sven Storbeck [GPL (http://www.gnu.org/licenses/gpl.html)]

Second-Generation Models

After an 18-year model run of the original, the second-generation Volkswagen Microbus was introduced. Gone was the split windshield, replaced by a single wraparound window. The window count dropped too with vent, side, sliding and rear windows featured.

A 1.6-liter four-cylinder engine making 47 horsepower and paired with a four-speed manual or a three-speed automatic transmission was offered. In later years, a 1.7-liter four-cylinder engine making 65 horsepower was introduced, but imports to the United States were soon ended. Light truck versions of the Microbus were subject to a 25 percent tariff (chicken tax) and pending federal automobile emissions changes led to Volkswagen ending US imports.

Subsequent Generations

Volkswagen continued to manufacture the Volkswagen Microbus after leaving the US market, building the vehicle at plants located in Germany, Argentina, Brazil, Mexico, and Australia.

The third-generation model was introduced in 1980 and was sold briefly as the Vanagon in the United States before high tariffs once again ended imports. Water-cooled engines gradually replaced air-cooled engines with additional design updates carried out in 1990 and 2003. By 2009 only the Brazilian plant was manufacturing the van, with that model based on the second-generation design with a water-cooled engine.

VW I.D. Buzz Concept
Mark your calendars: this electrified VW bus is slated to arrive in 2022.
Photo copyright VW Group.

Volkswagen Pulls the Plug

In 2013, Volkswagen announced the end of the Brazilian-produced Kombi, ending 78 consecutive years of building rear-engine vehicles. New environmental legislation effectively killed the model.

Although the VW Bus departed the US market decades earlier, it is fondly recalled by the generation that came of age in the 1960s. However, just three years after the original Woodstock music festival was held US distribution was ended, replaced later by the Vanagon.

See Also — Book Review: Classic Volkswagens

Volkswagen Arteon:
CC Spiritual Successor

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2019 Volkswagen Arteon.

You may count yourself among the consumers who have shifted their new vehicle purchase decisions from cars to utility vehicles, but that isn’t stopping some manufacturers from offering new or updated car models. Indeed, Volkswagen continues to double down with its Golf, Jetta, and Passat lines, even as sales skew more toward its Tiguan and Atlas SUVs.

New for 2019 is yet another model name: the Volkswagen Arteon. This model arrives just as VW says good-bye again to the Beetle. But unlike the Beetle, the Arteon slots at the top of the brand’s model line, delivering premium features in an unlikely liftback design.

Most certainly, the Volkswagen Arteon is not like any other current VW model. Yet, it is what VW calls the “spiritual successor” of the retired CC, a coupe-like sedan sold from 2010 to 2017. Like the CC, the Arteon is about the size of the Passat midsize sedan. Unlike the CC, this one offers generous rear storage space and a much more powerful turbocharged four-cylinder engine.

Importantly, the Arteon does something we haven’t seen in a Volkswagen in many years, at least not since the opulent Phaeton left our shores in 2006: it delivers Audi-like looks and premium features, and does so at a reasonable cost.

2019 Volkswagen Arteon Overview

The 2019 VW Arteon comes with standard front-wheel drive and available all-wheel drive. All models are powered by a turbocharged 2.0-liter four-cylinder engine paired with an 8-speed automatic transmission.

Three trim levels are available: SE ($35,845), SEL ($39,995), and SEL Premium R-Line ($46,210). Add $1,800 for Volkswagen’s 4MOTION all-wheel-drive system on the SE. Upgrading to all-wheel drive on the SEL also brings in R-Line trim. The cost here is $43,560. A $995 destination charge is extra. As for the top-trim model, it comes with standard all-wheel drive.

Wheels as large as 20 inches grace the 2019 VW Arteon.

A Matter of Style

The Volkswagen Arteon sits on the brand’s modular architecture, which does a number of things, including supplying customized sizing. The Arteon is about the size of a Passat, delivering a slightly longer wheelbase, while measuring just a half-inch longer overall. The Arteon is wider and sits lower than the Passat, and has slightly less passenger volume, but it comes with a huge rear storage compartment.

Indeed, that storage area is the difference maker here as it supplies 27.2 cubic feet of standard space or 55 cubic feet with the rear seat folded. On the other hand, the Passat has a traditional trunk measuring 15.9 cubic feet. That’s still large, but in comparison, the Arteon’s space is cavernous — not unlike a utility vehicle.

It was “smitten at first sight” when we cast our eyes on the Arteon. Its long, sleek body suggests a sedan from the front and sides, but it is only when you concentrate on the rear that it is evident this vehicle is something else. In particular, the long and wide rear window is the chief indicator that this car finishes with a liftgate, delivering what the manufacturer calls a fastback design.

And what does the term “fastback” remind you of? Immediately, I thought of Audi, which is the Volkswagen Group’s top-selling luxury marque. Audi calls its coupe-like sedans “sportbacks,” but the design elements are the same. The Arteon has a canvas that takes elements from the Audi A5 Sportback and A7. Actually, the layout is closer to the A7, while costing half as much.

The bold front fascia makes an immediate luxurious and sporty presence on the Arteon. A broad grille with multiple horizontal slots is honed in by stately headlamps. LED accent lights add distinction, while huge cutouts offset the lower grille. Tasteful character lines run from the top of the grille to the windshield. The hood itself has a near clamshell look.

From the sides, the Arteon’s visage is peppered with chrome trim and includes stylish wheels, measuring as large as 20 inches on some trims. A long roofline gradually drops to the rear deck, forming the liftgate design. From the rear, the fascia features a built-in spoiler, which adds a sporty touch. Wide and narrow wraparound tail lamps, reflector lights, and dual exhaust tips complete the presentation.

A roomy interior marks the VW Arteon. (Photo copyright Volkswagen Group).

Inside, the Arteon is a mixed bag. We give this vehicle high marks for its roomy interior, especially with its large rear-seat compartment. That space reminded us of the room available in the Toyota Avalon. Even so, if you’re taller than six feet, headroom is constrained by the sloping roof.

Volkswagen dresses the Arteon in a variety of materials, including available Nappa leather and padding. Still, hard plastics are found here and there — on the center stack and at the base the dashboard. The knobs and switches are what you’d find in most other mainstream models.

Safety & Technology

As for safety features, the 2019 Arteon has standard forward collision warning and autonomous emergency braking with pedestrian monitoring. You’ll also find side assist, rear traffic alert, and the now mandated rearview camera.

Adaptive cruise control with stop and go is standard beginning with the SEL trim. Features such as lane keeping system, parking steering assist, and an overhead view camera, are only available on the top-trim SEL Premium model.

The Arteon’s interior features upscale and mainstream materials. (Photo copyright Volkswagen Group).

On the tech front, Volkswagen supplies the Arteon with an 8-inch touchscreen display. An 8-speaker audio system, satellite radio, Bluetooth, and two USB ports are standard. Smartphone connectivity via Android Auto and Apple CarPlay are possible through the standard VW Car-Net app suite.

Beginning with the SEL trim, VW adds a digital cockpit, navigation, and a security system. The SEL Premium model supplies a 12-speaker Dynaudio sound package.

On the Road

We’re pleased Volkswagen supplies Audi’s version of the company’s turbocharged 2.0-liter four-cylinder engine in the Arteon. This same-sized engine powers the Passat, but delivers just 184 horsepower to the 268 horsepower in the Arteon. Credit larger turbos and special tuning for producing more power in the latter. Also, the Passat has a six-speed automatic transmission, while the Arteon has an eight-speed.

The extra performance certainly comes in handy, although step-off power is only modest. Once the turbos spool, the Arteon delivers V6-like power and the transmission complies by shifting smoothly. In sport mode, the steering, suspension and transmission sharpen, delivering an improved connection to the road. The available 4MOTION all-wheel-drive system found in our test model keeps this four-door planted and reminds us of Audi’s quattro system. That’s especially helpful on slippery and twisty roads, where extra grip is needed.

This TSI engine produces 268 horsepower. (Photo copyright Volkswagen Group.)

There is an important weight distinction between the Passat and Arteon, something that’s noticeable after a while. The front-wheel-drive Arteon weighs 370 pounds more than the Passat. With 4MOTION, the weight difference is 569 pounds. Drive these models back to back and I think you’ll detect the difference. Again, the more powerful engine in the Arteon certainly helps.

Our R-Line test model has the sporty looks with big 20-inch tires its signature design element. We’d only wish the 3.6-liter V6 now offered only in the Atlas SUV was present here and specially tuned to deliver at least 300 horsepower — in the Atlas, it delivers a modest 276 horsepower. An optional V6 would give the Arteon the power edge it needs to take on the Buick Regal GS and the Kia Stinger GT, which are two other midsize liftgate models.

Auto Trends Recommends

An Arteon in SEL trim supplies many of the upgrades shoppers want, including Nappa leather (imitation leather is standard) seats, a panoramic sunroof, and adaptive cruise control, among other features. We prefer all-wheel drive and strongly recommend it to customers living in wintry areas.

Opt for the R-Line trim, available across the model line, and it is a $1,265 upgrade ($1,765 with 20-inch wheels). This trim brings in gloss black trim, paddle shifters, contrast stitching, a black headliner, and stainless steel door sills and pedal caps. Thus, an SEL model with 4MOTION and R-Line trim will cost around $45,000.

Of course, if your budget is limited, then a Passat is a wise alternative. Indeed, a well-equipped model costs about $30,000, which is in line with other mainstream sedans, including the Toyota Camry, Nissan Altima, and Hyundai Sonata.

The liftgate design opens to a huge storage compartment.

2019 Volkswagen Arteon

  • Sticker price from $35,845 (plus $850 destination charge)
  • Price as tested: $39,905
  • Seats five
  • Engine: 2.0-liter turbocharged inline-four gas
  • 268 horsepower @ 5,500 RPM
  • 258 foot-pounds of torque @ 1,950 RPM
  • 8-speed automatic transmission
  • Wheelbase: 111.7 inches
  • Length: 191.4 inches
  • Width: 73.7 inches
  • Height: 56.5 inches
  • Passenger volume: 96.2 cubic feet
  • Storage volume: 27.2/55 cubic feet
  • Towing capacity: NR
  • EPA: 22/31/25 (FWD) 20/27/23 mpg city/highway/combined)
  • Premium gasoline recommended
  • Fuel tank: 17.4 gallons
  • Curb weight: From 3,655 (FWD) to 3,854 (AWD) pounds
  • IIHS safety rating: Good, except for marginal passenger side
  • Limited vehicle warranty: 6 years/72,000 miles
  • Powertrain warranty: 6 years/72,000 miles
  • Corrosion warranty: 7 years/100,000 miles
  • Vehicle assembly: Emden, Germany

See Also — On Track With a 2017 Volkswagen Golf Alltrack

Photos copyright Auto Trends Magazine unless otherwise indicated.

The Sixth-Generation VW Jetta GLI

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Accent trim and a honeycomb grille set the GLI apart from standard Jetta models.

The Volkswagen Jetta requires little introduction, a compact model with 40 years of history on tap. This vehicle is based on the brand’s modular platform, which includes such disparate models as the subcompact Golf hatchback and the midsize Atlas crossover utility vehicle.

The seventh-generation model rolled out in 2018 and is the largest Jetta yet. Indeed, with a wheelbase now measuring 105.6 inches, it is nearly a foot longer than the original. Thus, in an earlier era of product downsizing, the Jetta gradually reversed course, gaining size and weight along the way.

2019 Volkswagen Jetta GLI Overview

For 2019, Volkswagen rolled out a Jetta GLI 2.0T 35th Anniversary Edition. The five-passenger GLI is the top-trim Jetta and comes with three sub-trim designations this year: S ($25,995), 35th Anniversary Edition ($26,995), and Autobahn ($29,195). A turbocharged 2.0-liter four-cylinder engine is exclusive to this front-wheel-drive sedan. It comes with a 6-speed manual gearbox, otherwise, shoppers can upgrade to a 7-speed dual-clutch transmission for $800.

As for packages, none are offered. Each sub-trim includes various content upgrades and appearance changes. Individual options include such accessories as a cargo box attachment ($699), magnetic pop-in sunshade ($260), and side window deflectors ($135).

My test model was the 35th Anniversary Edition. Volkswagen hasn’t said how many copies it’ll produce. Thus, it seems likely if you want one, you can place your order and you’ll likely get one.

Anniversary Enhancements

Choose the 35th Anniversary Edition and you’ll find a number of enhancements, which are a relative bargain for this model’s $1,000 price premium over the GLI S.

One of the most significant add-ons is the standard DCC adaptive damping system, which supplies an improved balance between handling and ride comfort. Where non-DCC models come in four drive modes: normal, sport, eco, and custom, the DCC adds a fifth: comfort. With DCC, the system manages the suspension’s rebound and compression rates individually, for improved dynamics.

Most of the changes for the anniversary model are appearance upgrades, including “GLI 35” badging and tagging, inside and out. Indeed, you’ll find GLI 35 markings on the interior décor, seat tags, floormats, and the sill kickplates. As for the exterior, the changes include unique dark grey 18-inch wheels featuring a red stripe around the outer rim. All models have red-painted calipers on the front brakes.

The Sixth-Generation Volkswagen Jetta GLI

While the Jetta celebrates its seventh generation, the GLI first appeared in this model range’s second generation. Thus, the Jetta GLI is now in its sixth generation.

The GLI sits 0.6 inches lower than the standard model, giving this sedan a more planted look. A lower front spoiler and a larger air intake set the GLI apart from other Jetta trims. LED lighting treatments are also standard and include front LED projector headlights, LED daytime running lights, side mirror-mounted turn signals, and LED taillights.

Special side skirts add visual appeal to the profile. From the rear, a sporty bumper, the LED taillights, a diffuser, and dual chrome exhaust tips supply additional visible enhancements. All told, the GLI delivers a sporty countenance.

Inside, the cabin features a driver-focused cockpit. Two large analog dials mark the instrument panel with a digital driver’s information center separating the two. The center stack tilts toward the driver, which is a welcome layout for reducing distraction. The layered dashboard gives the GLI a premium look, with the accompanying materials supporting it. Alloy pedals, a flat-bottom steering wheel, sport seats, and oversized door pockets are other notable characteristics.

We found the front seats comfortable, with ample support from the shoulders and down to our hips and legs. The rear seat offers generous space, at least by compact car standards. We think most people will prefer to utilize that area for two adults, but three can fit in a pinch.

As for trunk space, it measures 14.1 cubic feet, down from the previous 15.7 cubic feet. It is still within range of other small sedans, but the approximate 10-percent loss in volume cannot be ignored.

Safety and Technology

New car buyers expect a package of safety features that go beyond airbags, a rearview camera, and traction and stability control. Volkswagen includes a post-collision system that’s unique to the Jetta, one that ensures the GLI comes to a stop after a crash.

You’ll also find standard forward collision warning and autonomous emergency braking. Blind spot monitory and rear traffic alert are also included.

On the tech front, Volkswagen supplies standard Apple CarPlay and Google Android Auto smartphone compatibility. Most models have a 6.5-inch touchscreen, Bluetooth, one USB port, and an SD card. Upgrade to the Autobahn and you’ll find an 8-inch touchscreen display, satellite and HD radio, a CD player, and two USB ports. The Autobahn also adds a digital instrument panel and an eight-speaker Beats audio system.

On the Road

The Volkswagen Jetta may be as close to a driver’s car as you’ll find in this segment. Notably, the segment is also changing as some manufacturers make an exit in favor of crossovers. Gone are the Dodge Dart and Ford Focus. Moreover, the Chevrolet Cruze will also soon go away.

Although the segment pie is shrinking, buyers will find competing models from Asian manufacturers. Among the strongest competitors to the Jetta GLI is the all-wheel-drive Subaru WRX. Volkswagen also identifies the Honda Civic Si and the Hyundai Elantra Sport as rivals, which are front-wheel drive like the Jetta.

As for the Jetta, the GLI model is its most powerful. Indeed, the turbocharged 2.0-liter four-cylinder engine makes 228 horsepower and 258 pound-feet of torque. That torque output is wonderful and especially welcome when passing. On curvy roads, the GLI stays poised, without the diving and porpoising experienced by some models.

The GLI’s steering feel is decent, which means it could be better. It isn’t especially engaging, but the chassis nearly equals the spryness of its top competitors. As for ride comfort, we’re impressed by how well it feels, even as it skirts over bumps. At least some credit belongs to the longer wheelbase, which does a laudable job of spreading feedback across the frame.

Perhaps the brightest mark of the GLI is the standard 6-speed manual gearbox. Kudos to Volkswagen for keeping this transmission around, even as nearly every competitor drops them or offers a five-speed in base models only. We’ve always been impressed by Volkswagen’s manuals with their clean and effortless shifting and smooth clutch uptake. Its workings aren’t on the level of a sports car, but it certainly doesn’t supply the inspire less feel of some units. If manuals ever do bite the dust, we can imagine Volkswagen will be the last to leave the segment.

Auto Trends Recommends

It is easy for us to recommend the GLI over other Jetta models, as the top-trim supplies the look, advanced powertrain, and driving capabilities we like. The 35th-anniversary edition represents a nominal upgrade over the base trim, while the Autobahn delivers an Audi-like characteristic in its digital dashboard. So, our recommendation is to choose the GLI, then consider the look and amenities you want to dress your sedan.

2019 Volkswagen Jetta GLI 2.0T
35th Anniversary Edition

  • Sticker price from $26,995 (plus $895 destination)
  • Price as tested: $27,890
  • Seats 5 occupants
  • Engine: 2.0-liter turbocharged I4 gas
  • 228 horsepower @ 5,000 RPM
  • 258 foot-pounds of torque @ 1,700 RPM
  • 6-speed manual or 7-speed dual-clutch automatic transmission
  • Wheelbase: 105.6 inches
  • Length: 185.2 inches
  • Width: 70.8 inches
  • Height: 56.8 inches
  • Passenger volume: 94.7 cubic feet
  • Storage volume: 14.1 cubic feet
  • Towing capacity: NR
  • EPA: 25/32/28 mpg city/highway/combined
  • Regular gasoline
  • Fuel tank: 13.2 gallons
  • Curb weight: From 3,217 to 3,274 pounds
  • IIHS safety rating: Good; Marginal/Poor headlights
  • New vehicle warranty: 6 years/72,000 miles
  • Vehicle assembly: Puebla, Mexico

See Also — Capacious Compact Sedan: 2017 Volkswagen Jetta

Volkswagen Jetta GLI photos copyright Auto Trends Magazine. All rights reserved.

EV Shocker! Ford, Not GM Invests in Rivian

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RJ Scaringe and Bill Ford

RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announced a $500 million Ford investment in Rivian. Through a strategic partnership, Ford will develop an all-new, next-generation battery electric vehicle for Ford’s growing EV portfolio using Rivian’s skateboard platform.

Upstart Rivian, a future manufacturer of electric vehicles, announced today a $500 million minority investment by the Ford Motor Company. Ford’s backing follows a $700 million investment by Amazon. Together, the two companies give Rivian the confidence and support it needs to launch their new products.

The Ford investment is stunning as it follows on the heels of a rumored stake sought by GM, but later canceled. Ford kept its negotiation with Rivian under wraps, which made today’s announcement all the more stunning.

A Board Seat and a Skateboard Platform

Ford’s stake will not only give it a voice in how Rivian is run — Executive Vice President and President of Global Operations Joe Hinrichs will join Rivian’s board of directors — the company will also receive access to Rivian’s proprietary skateboard platform.

That platform is already designed to uphold an SUV and pickup truck, two models that’ll underpin this emerging automaker. The first of the two is expected late next year. Other models may follow.

Some have speculated the skateboard platform will underpin an electric F-150, but that doesn’t seem at all likely. Notably, Ford is developing its own electrified truck based on its existing platform. Instead, we’re likely to see an all-new model, a dedicated electric vehicle for either the Ford or Lincoln brands. Perhaps both.

If the model is a Ford, an SUV is a logical approach. If Lincoln is selected, it might see a pickup truck, but we’re thinking an SUV designed to compete with the Tesla Model X or perhaps the upcoming Model Y, a small crossover is a more sensible approach.

Ford and Volkswagen

Ford’s Rivian connection won’t have any bearing on its burgeoning relationship with Volkswagen. Indeed, Ford CEO Jim Hackette told Automotive News today that “…the Rivian investment “does not interfere” with any potential deal with VW. ” The two automakers are collaborating on a few products, including a shared EV platform.

The Rivian stake is in addition to Ford’s $11 billion monetary contribution to its own electric vehicle quest. Ford has two electric models in the planning stages, including a Mustang-inspired crossover. The other model is the electrified F-150.

Rivian Independence

Neither Amazon nor Ford will have a controlling interest in Rivian, which will remain an independent company. Rivian already has the backing of two global investment firms: Saudi Arabia’s Abdul Latif Jameel Ltd. and Japan’s Sumitomo Corp.

As for GM, the news that Ford took its place in backing Rivian must be sending shockwaves through the Renaissance Center. To its credit, GM is ahead of Ford in all things electric, but having its chief rival jump in is not something the company’s executives can easily dismiss.

See Also — Rivian Automotive Draws Interest From GM, Amazon

Photo courtesy of the Ford Motor Company.

Emerging Alliances Point to Further Auto Industry Consolidation

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What a month! March 2019 may go down as a pivotal time in automotive history as auto industry consolidation talk strengthens anew.

The news is coming from all corners of the globe as multiple players talk, while others forge alliances. Consolidation certainly isn’t anything new, but the future absolutely points to a host of mergers and alliances taking shape.

2019 Ford Ranger
Volkswagen and Ford are forging a pact that might lead to a Ranger-based pickup truck for VW.

See Also — Fiat Chrysler Renault Merger Talk Heightens

Ford, Volkswagen Tie One On

Heading the alliance news this month is a not-yet-signed agreement between Ford and Volkswagen. According to Reuters, the two automotive giants have been in talks for months and appear ready to sign a pact.

That agreement may involve Volkswagen purchasing a stake in Argo AI, which is Ford’s artificial intelligence company. Argo AI represents the blue oval’s autonomous vehicle and artificial intelligence aspirations, a company launched in 2016. Volkswagen doesn’t have an equivalent business, thus investing in Ford’s venture would give it instant access to AI.

At the same time, Ford appears ready to supply Volkswagen with a pickup truck. The German automaker doesn’t have a model for the American market, though its car-based Amarok is sold in multiple markets. Although the type of truck has not yet been identified, we believe a model closely based on the midsize Ford Ranger pickup truck seems likely.

See Also — Key Facts Surrounding the Nissan-Mitsubishi Alliance

Daimler, Geely Go Beyond Ride-Hailing

Daimler and Geely are expected to soon sign an agreement which would allow the Chinese automaker to purchase a 50-percent stake in Daimler’s Smart small-car brand. Smart has been languishing for years and talk of the brand’s demise emerged just this week.

But Smart may find new life yet as an electric car manufacturer with the Chinese market its main source. The Financial Times reports that an announcement will be confirmed at the Shanghai Auto Show in April.

The two manufacturers are no strangers, although Daimler’s Mercedes-Benz and Geely’s Volvo brands are direct competitors. In 2018, the two companies joined forces to form a China-based ride-hailing company reports CNN.

A Suitor for FCA

The late Fiat Chrysler executive Sergio Marchionne fashioned one of the most unlikely alliances earlier this decade as he married a pair of Italian and American automakers, but he was never satisfied that it would last apart from further consolidation.

Indeed, Marchionne was one of the earlier proponents of global consolidation, noting as far back as in 2009 that there would be “six survivors in the global volume sector.” Marchionne stated his viewpoint during the midst of a worldwide downturn in auto sales that nearly sunk Chrysler and GM and put other manufacturers in jeopardy.

See Also — Auto Industry Buzzword: Collaboration

Marchionne passed away in 2018, but the spirit of FCA consolidation lives on. Notably, in the past few weeks, we have heard that both France’s PSA Groupe (Peugeot, Citroën, Opel, et al) and the Renault-Nissan-Mitsubishi alliance seems interested in acquiring FCA. Jeep and Ram are FCA’s two strongest and most profitable brands and are the top prizes here. At the same time, a merger or an alliance might help FCA improve its performance in Asia, especially in China where it is particularly weak.

But these two possible companies/alliances aren’t the only ones interested in FCA. Several years back the Volkswagen Group targeted Fiat Chrysler, but its overtures were rebuffed. More recently, Hyundai expressed its own interest in the company, but it wasn’t planning to make a move until after FCA’s share values fell.

Limited Agreement Auto Trends

While further consolidation seems likely, more limited agreements between competing manufacturers will continue to emerge.

One of the results of this kind of agreement brought the Toyota Supra back to the market. The Supra’s return comes thanks to an agreement between Toyota and BMW, as the former used the latter’s Z4 platform to build its sports car. Toyota has also worked with Subaru to produce its 86 sports car, and may continue that pact for a new generation model.

Toyota, thanks to its size and deep pockets, may yet avoid the entire alliance and consolidation trend. With stakes in Daihatsu, Suzuki, Subaru, and Mazda, the company can turn to its partners to supply vehicles it doesn’t have. Further, it may work with its associated companies to spread development costs as needed without ceding control.

See Also — 5 Reasons Why Volkswagen Fiat Chrysler Makes Sense

Last Call: 2019 Volkswagen Beetle

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2019 Volkswagen Beetle
The iconic bug bids us farewell with a pair of final edition models.

The Volkswagen Beetle is on its final journey, ending an incredible run that began eight decades earlier. The Beetle is one of the best-known vehicles in the world, an enduring nameplate whose time has finally run out. Again.

The current model is nothing like the original with its rear engine, rear-wheel-drive layout, and body-on-frame construction. That model was produced until 2003 (1949 to 1980 for the U.S. market), earning well-deserved accolades as production at a Mexican factory came to an end.

Overlapping the original model was the VW New Beetle, which was introduced in 1997 and shared the silhouette and some of the interior design drama of the original (a flower holder, for example). But it was based on a slightly larger version of the Golf platform, VW’s subcompact car. Production of the Volkswagen New Beetle ran from 1997 (1998 model year) to 2011, with a Final Edition model marking its end.

Lo and behold, Volkswagen introduced an all-new Beetle in 2012, a model that dropped the “New” nomenclature altogether. Known internally as the A5, the latest “bug” is once again based on the VW Golf’s front-engine and front-wheel-drive platform. Like the New Beetle and many earlier models, this one features a two-door coupe (hatchback) and convertible body styles.

2019 Volkswagen Beetle

2019 Volkswagen Beetle Final Edition

You can still buy a new Beetle hatchback or convertible, but not for long. Last September, Volkswagen of America announced the end of the road for the Beetle. It is marking the occasion with a pair of final edition trims.

The hard-top comes in S ($20,895), followed by the SE ($24,395), Final Edition SE ($23,045), and Final Edition SEL ($25,995) trims. The convertible matches the hatchback in trims and is priced as follows: S ($25,995), SE ($28,395), Final Edition SE ($27,295), and Final Edition SEL ($29,995). Add $895 for the destination charge.

Volkswagen supplied me with a hard-top Final Edition SE model for my review. As with previous final edition models, this one is available in two color choices — Safari Uni (beige) and Stonewashed Blue, the latter a tribute to a 1970s design.

Other Final Edition upgrades include chrome treatments, body-color side mirrors, heated washer nozzles, and a sunroof. Choose the Final Edition SEL model and you’ll find Bi-Xenon headlights along with LED daytime running lights, LED taillights, and fog lights. Unique wheel choices, keyless entry with push-button start, steel pedal caps, unique cloth and imitation leather or real leather seats, and an infotainment system upgrade are among the many other features of these curtain closing models.

2019 Volkswagen Beetle

A Matter of Style

The similarities between the original and current Beetle are obvious, at least with the rounded silhouette. Both the front and rear fascias offer a modern take on the iconic design, with the lighting elements “betraying” that look.

Not only is the current model longer and heavier than the original, but it is almost a foot wider.

Inside, the cabin has an in-dash Beetle box as well as a traditional glove box. A painted dashboard is another tribute to earlier models. But there are many modern touches present, including switches and knobs.

A 6.3-inch screen dominates the center stack, which supplies all the modern touches you’d expect, including a place to connect and rest your cell phone.

2019 Volkswagen Beetle

Safety & Technology

It is a good thing Volkswagen firmly placed twenty-first-century technology in the Beetle. Iconic model aside, there is something today’s drivers won’t accept: a lack of USB ports and connectivity.

Happily, the VW Beetle complies, by fitting this model with everything we expect in a modern car. For instance, while the base models come with a 5.0-inch touchscreen display, both Final Edition models have the 6.3-inch screen and include a CD player and an SD memory card receiver.

But Volkswagen doesn’t stop there. You’ll also find the automaker’s “Car-Net” suite of app, information, and security services, along with Bluetooth. Available navigation and a Fender audio system complete the tech offerings.

On the safety front, the new Beetle doesn’t have the buoyancy capabilities of the old Beetle, but at least its safety features may keep you out of the dunk in the first place. A blind spot monitor and rear traffic alert are both standard. Adaptive cruise control and automatic emergency braking are not, features that’ll roll out everywhere on new vehicles in the coming years.

2019 Volkswagen Beetle

2019 Volkswagen Beetle

On the Road

The original Beetle was a true point-to-point model with negligible power and absolute buoyancy when ditched in water. Its weak four-cylinder engine produced about 53 horsepower, which seems difficult to comprehend in this day of 150+ horsepower produced by four-bangers. Then again, the Beetle weighed under a ton, so it had less mass to move.

For its final year, the VW Beetle comes with a turbocharged 2.0-liter four-cylinder engine with 174 horsepower and 184 pound-feet of torque. Volkswagen pairs this engine with a six-speed automatic transmission. Sorry, no manual transmission is available. Not even an autostick.

Model to model, the latest Beetle’s performance is noticeably better than the original. It won’t wow you, but you’ll have full confidence that it delivers a solid kick to shift lanes and for passing a semi without worrying if oncoming traffic might do you in. That’s not something you would have attempted in the original.

On the twisty roads, the Golf and Jetta perform better. I’m not certain how much the Beetle’s bubble shape plays in, but it seems less confident on the curves than its siblings. Then again, you’ll do things with this Beetle that you wouldn’t have considered with the original.

2019 Volkswagen Beetle

2019 Volkswagen Beetle

Auto Trends Recommends

If you’re considering a 2019 Beetle, you’re opting for a piece of automotive history. Yes, it is a modern take on a classic, so you’re purchasing a vehicle with the look of the original, but the modern amenities of other Volkswagen models.

The standard S and SE trims give buyers more color options, but the special design touches of the Final Edition models are not included. The F.E. models are statement makers too — telling the world that you have the very last of a model name we’re not likely to see again.

Perhaps most intriguing is the convertible as there are only a few small drop-top models left that are affordable. Most definitely, the Mazda MX-5 Miata and similar Fiat 124 Spider are two of the most noteworthy ones. The Mini Cooper Convertible is another. All three are likely to soldier on for many years.

All in all, the 2019 Volkswagen Beetle drops the curtain on an iconic name and does so with the expected special Final Edition models. In some ways we’re sad to see it go, but in doing so it allows Volkswagen to concentrate on its core Golf and Jetta models, while making an expected pivot to electrification and autonomous vehicles.

2019 Volkswagen Beetle Specifications

  • Base price: $23,045 (plus $895 freight)
  • Price as tested: $23,940
  • Seats 4 occupants
  • Engine: Turbo 2.0-liter 16-valve four-cylinder gasoline engine
  • 174 horsepower @ 5,000 rpm
  • 184 foot-pounds of torque @ 1,500 rpm
  • 3.25 inches bore by 3.65 inches stroke
  • Engine compression ratio: 11.65-to-1
  • Six-speed automatic transmission
  • Wheelbase: 100.1 inches
  • Length: 168.8 inches
  • Width: 71.9 inches
  • Height: 58.6 inches
  • Passenger volume: 85.1 cubic feet
  • Storage volume: 15.4 cubic feet
  • Towing capacity: NR
  • EPA: 26/33 mpg city/hwy
  • Regular grade gasoline
  • Fuel tank: 14.5 gallons
  • Curb weight: From 3,045 pounds
  • IIHS safety rating: Good, except of marginal small overlap front driver
  • Limited vehicle warranty: 6 years/72,000 miles
  • Powertrain warranty: 6 years/72,000 miles
  • Corrosion warranty: 7 years/100,000 miles
  • Vehicle assembly: Puebla, Mexico

2019 Volkswagen Beetle

2019 Volkswagen Beetle

See Also — 7 Facts About the Volkswagen Beetle

Photos copyright Auto Trends Magazine. All rights reserved.

These Car Models May Soon Get the Axe

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Sharply declining sales may spell the end for several car models.

The U.S. automotive market, indeed the entire global market has seen a shift away from cars to utility vehicles. Cars, while valued for their practicality and reasonable cost are yielding the market to utility vehicles, which offer an excellent combination of passenger space and cargo capacity. They’re also more profitable to automakers.

As such, manufacturers will soon lay the ax to several car models as the market shift continues. Soon, you may walk into a new car dealership and find no more than one or two car models available as utility vehicles, pickup trucks and an assortment of crossover-like conveyances take over.

Here’s our list of threatened models based on year-to-date sales figures through October 2018:

Chevrolet: Sonic and Impala

The bow-tie brand’s weakest models are its subcompact Sonic (hatchback and sedan) and its full-size Impala sedan. The two models were introduced or updated in 2012 and 2014, respectively.

Chevrolet Silverado
Like its top competitor’s Chevrolet’s best-selling vehicle is not a car.

Sonic sales are down 25.7 percent and will struggle to top 22,000 units this year. The Impala numbers aren’t as bad with Chevrolet selling 43,953 units, down 13.38 percent. We think the midsize Malibu sedan (-23.88%) will hang on for a while longer, mostly because it is rather new. The compact Cruze (-26.52%) numbers are way down too, but there is life left. Besides, it shares its platform with the plug-in Volt (-13.72%).

As for the Corvette (-21.23%) and Camaro (-25.87%), both models will soldier on with a mid-engined Corvette waiting in the wings. We can’t see Chevrolet killing the Camaro all over again, although sales now trail both the Mustang and Challenger.

Dodge and Chrysler: A Vulnerable Trio

Dodge and Chrysler are FCA’s two domestic car brands and both are hanging on. Dodge dropped the compact Dart sedan and Chrysler the midsize 200 sedans in recent years. What’s left is a trio of sporty models: The Dodge Challenger (+0.07%), Dodge Charger (-11.98%), and the Chrysler 300 (-12.83%).

Dodge Charger Hellcat
A succession of Hellcat models has kept the Charger and Challenger alive. But for how long?

The Chrysler is the most vulnerable of the three and will likely be replaced by a utility vehicle. We think Dodge will hang on to the Challenger and Charger for a few more years, making updates to keep these dated models fresh. But the tide is changing and we could see the Charger killed off first with the Challenger following a few years later. The Jeep and Ram brands are the big profit centers for FCA, thus every other brand is vulnerable.

Ford: Only the Mustang Remains

Ford has not been coy about its car models. Every single model except for the Mustang (-0.93%) is threatened. Already, the subcompact Fiesta (+1.05%) and compact Focus (-18.46%) are gone or will soon be gone from the U.S. market.

The midsize Fusion (-21.77%) and the full-size Taurus (-2.49%) will be the next to go, although one or more names may be affixed to a future crossover model. Yes, we’ve heard rumors of a four-door Mustang appearing, but all that noise is simply speculation.

2018 Ford Mustang GT
The Mustang “brand” is a blue oval success story.

Honda: Staying the Course

Sales of the compact Civic (-10.32%) and midsize Accord (-14.16%) may be down, but they’re not out. Indeed, Honda may very well sell as many as 250,000 Accords and 300,000 Civics this year. Even if sales continue to slide, both models are safe.

As for the subcompact Fit (-14.59%), sales aren’t likely to top 40,000 units this year. That said, Honda may keep the Fit around and not offer an update for some time. This automaker also seems committed to its Clarity and Insight electrified vehicles, though sales remain modest.

See Also — It’s a Wrap: 2018 in Review

Nissan: Maxima on a Short Leash

Like Honda and Toyota, Nissan will keep its compact Sentra (-0.34%) and midsize Altima (-16.64%) sedans. The Altima is new for 2019 and will offer available all-wheel drive for the first time. Although the Sentra was last updated in 2013, we think a new model will eventually roll out.

Nissan Maxima models
The Maxima is one of Nissan’s strongest names, but it may not have long-term staying power.

What might not survive is the Maxima sedan (-36.18%), although it shares its underpinnings with the Altima. Like other flagship models, the Maxima may no longer have a place in the Nissan product line.

Also threatened is the subcompact Versa (-29.87%), the sporty 370Z (-24.44%) and the high-performance GT-R (-2.49%). The last two will likely sell just 3,000 and 500 copies, respectively. Those aren’t sustainable numbers no matter how you slice it.

Toyota: Several Models Might Get 86’d

Imagine Toyota without the compact Corolla (-11.35%) and its midsize Camry (-6.94%) if you would. That’s hard to fathom, right? Well, both models sell slightly better than their Honda counterparts, so they’ll be around for some time. Indeed, a new Camry arrived in 2018, followed by an all-new Corolla hatchback in 2019 (we’re expecting a new Corolla sedan in 2020).

2019 Toyota Corolla Hatchback
Toyota’s Corolla is hanging around and includes this sporty hatchback model.

The threatened Toyota models include the subcompact Yaris (-37.05%) and the hybrid Toyota Prius c. We doubt the Toyota 86 (-41.71%) will survive for much longer, although the nearly identical Subaru BRZ may soldier on. As for the full-size Avalon (+6.38%), it is also all new and gaining market share in a shrinking segment. We consider the Avalon the safest model in its segment by far.

Volkswagen: A Passe Passat?

Volkswagen has been undergoing intense changes these past few years following its diesel scandal. New or updated crossovers are taking a bigger slice of the sales pie and are driving sales. But models such as the subcompact Golf (-38.08%), compact Jetta (-32.77%), and the midsize Passat (-33.78%) are falling out of favor.

We think the Golf and Jetta will hang on, but the Tennessee-built Passat may give up its assembly line space to one or more new (and electrified) models planned. That transition may take a few years to complete, however.

Hyundai and Kia: Opportunity Lurks

Hyundai and Kia are joined at the hip, although the two Korean automakers largely operate as separate concerns. Hyundai supplies the vehicle platforms, then leaves each brand (plus Genesis) to decide how they will go.

In recent years, we’ve seen Hyundai do away with the Equus, Genesis, and Genesis coupe, along with the Azera sedan. Some of those models were replaced by Genesis brand vehicles when Hyundai rolled out its luxury brand.

Hyundai has also expanded its crossover offerings while bringing the electrified Ioniq (+37.69) to the market. We’re not sure the subcompact Accent (-51.12%) will survive, given that a new model rolled out in 2018. The compact Elantra (+4.06%) is performing well, but the midsize Sonata (-24.83%) has certainly seen better days. The sporty Veloster returned after a one-year hiatus and like the Elantra, it seems safe. Still, we think Hyundai will keep its car line in place as other automakers cut back.

2018 Kia Rio
Kia Rio sales are down despite a new model on hand.

As for the Kia, nearly the same can be said about it as we have said about Hyundai. Further, Kia continues to update even its slow sellers, such as the full-size Cadenza (-11.07%) and the luxury K900 (-26.14%).

A new subcompact Rio (+44.67) is performing well, although the compact Forte (-18.68%) and the midsize Optima (-5.74%) are not. Still, looking at Kia’s track record, we doubt any model will go away in the near future. In all, we think Hyundai and Kia may see opportunity in segments soon to be vacated by its competitors.

Looking Ahead

The shift to crossovers is, indeed, playing a large part in driving each brand’s portfolio. Two other factors, electrification, and autonomous vehicles, will play increasingly significant roles as we move forward.

The question not asked is this one: will manufacturers permanently adjust their portfolios? They may say yes, but market conditions can and do always change.

Witness Ford’s insistence a few years back that the Ranger pickup truck wouldn’t return. Beginning in 2019 we’ll see a new Ranger. And as for the Fiesta and Focus, both models will serve other markets and could at some point return to the U.S. if demand warrants it.

See Also — End of the Road: Ford Taurus

7 Facts About the Volkswagen Beetle

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You would be hard-pressed to find another vehicle with a model name as well known or as even as old as the Volkswagen Beetle. Years before it showed up on our shores, the Beetle design was established, the work of Ferdinand Porsche. In 2014, Volkswagen marked the 65th anniversary of the Beetle in America, with 5.5 million models sold stateside since it was first imported.

Fact No. 1: Volkswagen Type 1

The “Beetle” wasn’t the first name Volkswagen used for its “people’s car.”

Volkswagen BeetleIt was originally known simply as “Type 1” or as “the Volkswagen,” with Germans affectionately calling it “Kafer” or “Beetle” even before it was sold abroad.

Years earlier, Adolf Hitler ordered its construction to provide low-cost transportation for the average German family.

A small number of models were built for Nazi party officials during the Second World War, with mass production started after the war ended.

Fact No. 2: It Floats

The original Volkswagen Beetle floats. At least it does for a few minutes. That car had a sealed steel bottom with nothing exposed beneath it.

Its body was airtight, leading to Volkswagen creating a television commercial demonstrating that the Beetle, indeed, floated. Volkswagen added a disclaimer at the end of the commercial stating, “The VW will definitely float, but it will not float indefinitely.”

See Also — History of the Volkswagen Bus

Fact No. 3: A Counter-Culture Favorite

In the 1960s as young people began to embrace a counter-culture lifestyle, the Beetle’s appeal surged. Its simple, even cute design were important factors as was its price: it cost less than $2,000.

It also got good gas mileage, but its earlier models were designed to travel no faster than about 62 to 65 mph.

Fact No. 4: The Original Stayed Around

The last of the first-generation Volkswagen Beetle were built in Germany in 1977, with production then shifted to Brazil and Mexico. The Brazilian factory continued to produce Beetles until 1986, but the Mexican factory produced them until 2003.

However, the Latin American models were never exported to the US, which was then served by the replacement Rabbit, known as the Volkswagen Golf elsewhere.

2007 Volkswagen New Beetle
The VW New Beetle is available in coupe and cabriolet configurations
(Credit: OSX, Public Domain Wikipedia).

Fact No. 5: Volkswagen New Beetle

Volkswagen revived the Beetle name in 1998, calling the model the “New Beetle” to distinguish it from the original.

It represented the second of three distinctive “Beetle” models ever built, but its relationship to the original was in name only.

The Volkswagen New Beetle drew its styling cues from the earlier design right down to the flower holder that sat on its dash. Although its rounded shape, front and rear fascia and overall demeanor paralleled the original model, the New Beetle sat on the same front-wheel-drive platform underpinning the VW Golf.

The New Beetle was built from 1997 to 2011.

Fact No. 6: New Is Old Again

If you replace the New Beetle with something new, should it be called the New New Beetle? Wisely, Volkswagen simply reverted to using “Beetle” for the most recent of the three distinctive models to bear the iconic model’s name.

Introduced to the US market for 2012, the current iteration shares its platform with the Volkswagen Jetta and is larger than both earlier Beetle models. Like the New Beetle, the current Beetle is front-engine and front-wheel drive, with more modern engine and transmission choices as well as the latest in-cabin technologies. It is also the first US-spec Beetle to offer a diesel engine.

Fact No. 7: Sales Leader

The current iteration of the Volkswagen Beetle falls under the two-door specialty coupe and convertible category.

Volkswagen I.D. Buzz Concept
Electric vehicles, such as this microbus, is the future of VW.

In 2013, Beetle sales topped 43,000 units in America alone, becoming one of the most popular models in Volkswagen’s 11-model-line family.

Sales, however, began to fall in ensuing years, and are now less than half what they were at their current-generation peak. That said, Volkswagen will discontinue Beetle production in 2019, some 80 years after the original model rolled out.

Volkswagen Transformation: From Beetle to Electric Vehicles

The VW Beetle will soon be history, but its place in global autodom will continue to live on. Today’s models are nothing like the original, except for its iconic good looks. Regardless, Volkswagen’s original model leaves as the brand makes its way in the 21st century, with even diesels now a thing of the past and electric vehicles soon to dominate.

See Also — Volkswagen Rabbit Reprise: Again!

VW I.D. Buzz Concept photo courtesy of Volkswagen of America.

Keogh to Volkswagen: A Brilliant Move

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Audi’s U.S. chief heads to Volkswagen.

2018 Volkswagen Tiguan
The VW Tiguan is a roomy, compact SUV.

Audi of America’s loss is Volkswagen of America’s gain. This week, Volkswagen announced that Audi’s president will become president and CEO of the Volkswagen Group of America as well as head the Volkswagen brand in North America, beginning November 1, 2018.

Scott Keogh’s appointment is significant as it comes just as the Volkswagen brand seeks greater recognition in the ultra-competitive U.S. market. Notably, the German automaker forfeited its place as America’s favorite import brand of the 1950s and 1960s, allowing upstarts from Japan to take its place. Only recently, Volkswagen has been trying to expand its reach by introducing a pair of updated or new crossovers in the compact Tiguan and the midsize Atlas.

Moving Audi Forward

Keogh joined Audi in 2006 as its chief marketing officer. In 2012, he was appointed president just as Audi was undertaking a stateside expansion that doubled sales from 2010 to 2015. Today, Audi is the fourth best-selling luxury automotive brand in the U.S., trailing only Mercedes-Benz, BMW and Lexus.

Scott Keogh
Scott Keogh, from Audi to Volkswagen Group leadership.
Through September, Audi’s U.S. sales are up 3.92 percent on 164,834 units sold. For the same period, the mainstream Volkswagen brand is enjoying a 5.45-percent increase based on 266,217 units sold.

Both brands are thriving in a marketplace where overall sales are down 4 percent so far this year.

Audi’s ascendancy, of course, cannot be attributed to just one person. That said, Keogh has instilled confidence in the brand and will turn over the reigns to Mark Del Rosso, who is currently serving as the head of Bentley of the Americas.

Del Rosso will assume his new position on December 1. His replacement has not yet been named.

Finding Volkswagen’s Place

Although Keogh joins Volkswagen as is sales improve, the brand is still attempting to find its way in a fast-changing market. The earlier diesel scandal still looms over the company, which has had to pay tens of billions of dollars in fines and compensation costs. Importantly, its once trusty line of diesel engines is now gone. The automaker has since redirected its investment strategy to electric vehicles, but the company is still playing catch up.

Volkswagen’s strongest vehicle lines have long been the Golf and Jetta, along with their many variants. But as consumer interests shift to crossovers, Volkswagen has been making the transition too. Indeed, in recent years we have seen an all-new Tiguan, a compact crossover SUV, updated to take on its current competitors. The previous model was considered too small to matter much, but the new model corrects that deficiency.

2018 Volkswagen Atlas
The VW Atlas is this brand’s largest SUV.

The surprise hit (for some analysts, but not this one) is the Atlas, a seven-passenger, midsize crossover SUV. The new model succeeds in a segment led by the likes of the Ford Explorer, Toyota Highlander, Chevrolet Traverse, Honda Pilot and Nissan Pathfinder.

Though its sales pale in comparison to the best sellers, Volkswagen moves more Atlas models than the Buick Enclave and Mazda CX-9.

Keogh and the Challenges Ahead

Besides electrification, Volkswagen has other challenges to tackle. Likely, we’ll see additional variations on the VW Atlas theme, with five-passenger and hybrid versions likely. A subcompact SUV is very much needed, although we like VW’s strategy whereby the Golf SportWagen and Golf Alltrack supply something different for the market.

Volkswagen must also decide whether the midsize Passat sedan deserves a lease on life. Built at the company’s Chattanooga, Tennessee, manufacturing plant, that space might be better used for a utility vehicle. We think Volkswagen will eventually discontinue the Passat, while introducing the new Arteon sedan. It’ll stay with its core Golf and Jetta cars and lean on an ever-widening range of people movers to increase market share.

If Keogh is able to replicate at least a portion of Audi’s success while overseeing the Volkswagen Group, the automaker may very well find itself taking away customers from its many competitors. That’s something that should send a shudder through corporate boardrooms in Detroit, Tokyo, Seoul and elsewhere.

Volkswagen Arteon
This sleek Arteon may replace both the CC and Passat.

See Also — First Impressions of the Second-Generation Volkswagen Tiguan

Scott Keogh and VW Arteon photos copyright Volkswagen Group of America; all other photos belong to Auto Trends Magazine.

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