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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offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal.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.

VW agrees to halt next-gen rally car development to help others stay in WRC

Volkswagen has petitioned the FIA to hold on to the current specifications for cars in the World Rally Championship, according to Autosport.com. The move is evidently an effort to keep as many competitors in the sport as possible, despite the fact that using the current spec racers may actually hurt Volkswagen's chances at winning. The three factory teams currently competing in the WRC are at the end of a three-year homologation cycle at the end of 2013, and new cars are expected to bow next year. But developing new racers could cost as much as $4.7 million.
That price tag would put M-Sport (which fields Ford racers) out of the WRC game for 2014 and would put Citroën participation in question as well. VW has already begun work on the next iteration of its Polo R WRC, and the hatch has nabbed four wins in six rounds this season. Now it appears that car won't bow until at least 2015. The FIA has officially agreed to freeze homologation of new WRC cars until the end of next season.

Volkswagen Passat gets Wolfsburg Edition, priced from $23,495*

Volkswagen has just announced a new Passat Wolfsburg Edition, which slots between the base S and mid-grade SE trims in terms of content and price. The automaker has not released any official photos of the car as of this writing (aside from the badge shot you see here, of course), but the Wolfsburg Passat will be visually set apart from the rest by a unique set of 16-inch alloy wheels.
The big host of upgrades for the Wolfsburg Edition are found inside, where buyers will enjoy standard amenities like leatherette seats (with bun-warmers on the front chairs), a power driver's seat, satellite radio and a media interface with iPod connectivity. Of course, this comes on top of the already standard Passat features like Bluetooth and auto on/off headlamps. The Wolfsburg Passat will only be available with the 2.5-liter five-cylinder engine and a six-speed automatic transmission.
Look for the 2013 Wolfsburg Edition Passat to hit dealerships in the very near future, priced from $23,495, *not including $795 for destination. Have a look below for Volkswagen's official press blast.