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VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.

Volkswagen debuts MkVII-based diesel Golf GTD

As Volkswagen prepares for the launch of the seventh-generation Golf, it continues to show off some of the car's different variants. With the standard Golf and the ultra-efficient BlueMotion Concept out of the way, now we're finally starting to see some of the sportier versions planned for the hatchback. Confirmed for a debut at the Geneva Motor Show, Volkswagen has now given us our first glimpse at the Golf GTD.
Just think of the GTD as a diesel version of the GTI with all the handling and styling upgrades, and then add a torquey engine to the equation. (We had the chance to sample the current GTD over the summer, so click here to read more.) To go with the new body style, VW also gave the GTD a new TDI engine consisting of a similar turbocharged and direct-injected 2.0-liter inline-four layout but with an output of 184 horsepower and 280 pound-feet of torque - that's an increase of 14 hp and 22 lb-ft over the current GTD. That's a pretty good oomph, but the GTD won't be setting any acceleration records with VW quoting a 0-62 mile per hour time of 7.5 seconds thanks to the car's 3,036-pound curb weight.
The styling of the MkVII Golf lends itself quite well to the more aggressive body kit found on the GTD (and likely matching the GTI). The new front fascia and blacked-out grille give the GTD a sporty look up front, while 17-inch sport wheels, rocker panel extensions and smoked LED taillights finish off the visual changes. The GTD will only be offered in three exterior colors: Tornado Red, Black and Pure White. As expected, the interior gets the plaid seat inserts and flat-bottomed sport steering wheel, but the car also gets stainless steel pedals, a black headliner, ambient cabin lighting and a specific gauge cluster readout.

CEO says Volkswagen's buying spree is over

After adding Italian motorcycle icon Ducati to its stable and spending $5.6 billion on the rest of Porsche, Volkswagen CEO Martin Winterkorn says he's done shopping for a while.
"We have enough to do at the moment in taking our twelve brands to where we want to be," Winterkorn tells German newspaper Handelsblatt.