2011 Volkswagen Golf Base Hatchback 2-door 2.5l 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offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal.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.

Silverado HD, Touareg V10 TDI face off in diesel tug-of-war

A couple weeks ago, we watched a Chevrolet Silverado get dominated by a Dodge Ram Heavy Duty in a fullsize pickup tug-of-war, but in that truck's defense, Chevy's Vortec gas engine was no match for the torquey Cummins turbo diesel. For our next round of vehicular tug-of-war, a Duramax-powered Silverado HD takes on Volkswagen Touareg V10 TDI.
Now, on paper, putting the Duramax V8's 365 horsepower and 660 pound-feet of torque up against the V10's 310 hp and 553 lb-ft looks like an easy win for the Bowtie, but unfortunately, this battle has a similar result as the Dodge versus Chevy video, with the Silverado smoking its tires trying to move forward as it gets pulled backwards. Put another way: YouTube 2, Chevy Silverado 0.
It just goes to show, though, that big tires, bolt-on fender flares and goofy smoke stacks don't improve your towing abilities. Besides, what did the Silverado driver expect when the Touareg V10 TDI has towed a Boeing 747 in the past?

Lamborghini and Bentley may hold off on SUVs so VW can conserve cash

After surveying the European economic scene, Volkswagen may have decided now is not the time to launch utility vehicles with Bentley and Lamborghini badges. Bentley officials say they will continue to push for support for the EXP 9 F and Lamborghini CEO Stephan Winkelman has said planning for the Urus will continue until VW tells it to stop.
That decision could come on November 23, when VW's board will vote on the company's budget for equipment, factories and vehicles. With VW's sales slowing and the Euro economy slumping further, some industry watchers say the company is more likely to build its cash reserves than to introduce super-expensive luxury SUVs or crossovers.
"Such vehicles are anything but obligatory during a crisis," says Frankfurt-based Equinet AG analyst Tim Schuldt in a new Automotive News Europe story. "Delaying their launch would be no drama but help save costs."