Volkswagen's India Models and its plan

Volkswagen recently announced the launch of its high-end luxury car, the Phaeton, in India. Named after the son of Phoebus, the Greek Sun God, it was unveiled at the Geneva Motor Show in 2002, and it hit the market in 2003. But the sales fell short of expectations. It was positioned against top-end brands like Mercedes, BMW, Lexus and Volkswagen’s own Audi. But it lacked the appeal of the rival brands — hence the lacklustre performance. But so keen is Volkswagen to make the Phaeton work in India that it has taken the car back to the drawing board. The result: LED daytime running lights, 18-inch wheels, a new dashboard, 18-way adjustable seats, better upholstery and even new air-conditioning to suit the Indian climate.
Earlier in the month, Volkswagen, headquartered in Lower Saxony in Germany, had announced that it will launch an all-new sedan, the Vento, in autumn. It will be manufactured at Volkswagen’s factory at Chakan in Pune, and has been completely designed to the needs and expectations of the Indian consumer. Also in the works is a small car. At present, there are six cars in Volkswagen’s stables: The Beetle, Polo, Passat, Jetta, Phaeton and Touareg. It could expand to eight. It fits petrol as well as diesel engines into its cars. Volkswagen thus straddles the entire spectrum of the Indian market. Its factory at Chakan, put up at a cost of Rs 3,200 crore, can make 110,000 cars in a year. Those who have seen the factory say this capacity can easily be doubled because of the modular nature of the plant.

Along with its other brands, Skoda and Audi, Volkswagen has a share of less than 1 per cent in the 1.3-million per annum Indian car market. From here, Volkswagen wants to raise it to 10 per cent in five years. India is vital for Volkswagen’s plan to become the world’s largest car maker by 2018. In 2009, it sold 6.29 million cars. This had placed it on the third spot after Toyota (7.23 million) and General Motors (6.50 million). Volkswagen is the largest player in China, Europe and South America. In China, it sold 1.4 million cars in 2009 — more than the entire Indian market — and its share of the market was an impressive 18 per cent. India, which is expected to grow to 3 million cars in five years, is the final frontier. By itself it may not catapult Volkswagen ahead of Toyota and General Motors, but it is one of the few markets left with large sale volumes up for grabs.

Volkswagen, Maruti start integration talks

Volkswagen (VW) India and Maruti Suzuki have begun the process for integration between the two companies. “I can confirm that visits have been taking place and teams from the two companies have been sitting together to discuss and define common projects,” said Joerg Mueller, president and MD, Volkswagen India (VW) and chief representative India.VW acquired 19.9% stakes in Suzuki Motor Corp in December last year.

“Discussions have begun between the two teams. The proposals are being studied at Volkswagen headquarters and a final picture will emerge in two to three months,” Mueller told media persons in Pune. Recent reports suggest that the VW could be possibly looking at the new Wagon R and Ritz models from the Maruti Suzuki stable to be re-badged as VW cars in India. Mueller however, preferred not to comment on this issue. The two companies are also learnt to be looking at possibilities of sourcing Maruti's engines, components and aggregates for Volkswagen' s Indian models.

Mueller confirmed that the company was still interested in the VW Up! model for the India market. “We still need to look at the Up! concept because small cars form the biggest segment in India, around 50% of the market, he said. Should the model be considered for the India market, the company could be looking at pricing it between Rs 3-4.5 lakh,” he added. A couple of days ago, Volkswagen released its first official sketch of its sedan for the India market.

2010 Camaro’s designer headed for Volkswagen

The 2010 Chevy Camaro is one of the most polarizing and aggressively styled vehicles to hit the road in 2009, but now its designer is set to leave GM after 10 years of service. Designer Sangyup Lee is reportedly going to be taking post in VW’s California-based design studio in 2010.

Lee was born and raised in Korea, and as a result experienced virtually no American car culture – with his first experience with a Camaro being at the age of 20. Lee got his start in American car culture when he moved to the U.S. in 1995 and began his education at the Art Center in Pasadena studying transportation design.

After finishing his education, Lee moved to Europe where he spent time with both Porsche and Pininfarina, before moving back to the U.S. to begin his 10-year stay with GM. During his tenure with GM, Lee worked on the Buick Velite concept, Stingray concept and most famously, the new Chevy Camaro.

VW may Buy Stake in Suzuki by the End of the Year

VW is expected to buy a stake in Suzuki by the end of 2009 according to the German industry publication Automobilwoche report.

The publication quoted an unnamed Suzuki executive, "For Suzuki and VW this connection would be a win-win situation. Suzuki would have access to a variety of VW's technology, while Volkswagen would have a solid supporting leg in India and Southeast Asia."

VW has declined to comment, but last week VW's Chief Executive Martin Winterkorn stated that Suzuki's current product lineup would work well with VW.

There has been speculation about a tie up between the two automakers since August.