Volkswagen Touareg Sets New World Altitude Record

Company spokesmen for Volkswagen announced that the VW Touareg recently captured a new world altitude record for a motorized vehicle, ascending to 6,080 meters. The accomplishment has been officially recognized by the Guinness Book of World Records and was set using a Touareg 3.2 litre V8 standard-engine.

The Volkswagen Touareg expedition team climbed Chile's Ojos del Salado, the world’s highest volcano, to set the new record. The route was chosen with assistance from the Institute for Cartography at the University of Dresden. Currently, the route is the highest point in the world that a vehicle can reach and also return safely from. Volkswagon stated that the Touareg's accomplishment demonstrates the vehicle's performance in extreme conditions, surpassing the ratings of other off-road vehicles in its class.

Ronald Bormann, previous winner of the European Truck Trail competition, was the driver of the VW Touareg. A winch, offered as a standard accessory on the Touareg Expedition, aided the vehicle through certain terrain obstacles. Spotlights were also outfitted to the VW Toureg roof rack, which also transported rescue gear and spare wheels.

Spokesmen added that the achievement establishes the reputation of the Volkswagen Touareg as the industry's toughest off-roader vehicle and has proven its capability to withstand rocky terrain and extreme weather conditions.

Volkswagen Touareg Expedition Model Released

Auto industry insiders report the Volkswagen Touareg Expedition model is now available for serious off-road enthusiasts. The new VW Touareg Expedition includes 17" AT tires set on “Canyon” aluminium rims and sports suspension with the vehicle raised by 25 millimeters over the basic Touareg package to ensure that the vehicle stays in contact with the ground even on extreme terrain. Other exterior features include two additional spotlights mounted on the VW Touareg roof rack. The roof rack also has room for the optional car-roof tent. Optionally, the roof rack can be fitted with a second spare wheel and two 20 liter gas cans.

The equipment package also includes an exterior spare wheel, tire pressure system, a second battery, rear differential lock, removable towing attachment, front fog lights, net partition, rubber mats in the footwells, tinted side and rear windows. The Touareg Expedition is powered by a choice of engines that include a V6-engine, R5 TDI diesel engine or a V6 TDI engine.

Underbody protection is also available as an option. The underbody protection of the VW Touareg Expedition was designed after being tested at the Dakar rally. Sill protection and seven high-strength aluminium parts shield all sensitive underbody parts from rocks, stones and debris. An optional winch with a pulling power of 3,600 kilograms is available. Owners also have the option of having transparent protective films applied to the vehicle below the windows to protect the paintwork against scratches from undergrowth and tree branches.

Free Car Insurance for VW Golf & Beetle to be Tested in U.S. Dealerships

After three straight years of declining sales in the U.S., several U.S. Volkswagen dealers, announced it will begin offering free auto insurance for a one year period in Wisconsin and Illinois to lure buyers. VW will test the promotion between January 4 through March 31 and provide 12 months of free insurance to buyers and leasers of the new VW Golf, Beetle coupes and Beetle convertibles, according to Illinois and Wisconsin dealers.

"It's definitely original and unique, and I think it will be a lure for college graduates and first-time buyers," said Harry Nesbitt, sales manager at D'Arcy Volkswagen Dealership in Joliet, Illinois. "It's a way to get people in the dealership without sounding like everyone else."

Sales of Volkswagen vehicles in the US dipped 17.6 per cent through November of 2004. Industry analysts have even suggested that BMW could outsell Volkswagen in 2005. This would be the second time BMW beat VW since they began selling in the U.S. in 1949.

The free VW car insurance deal is not expected to hurt the resale value of the models as higher rebates programs normally do. Art Spinella, whose CNW Marketing Research in Bandon, Oregon, tracks auto-top incentive programs stated, "Every US$1 worth of incentives on a new vehicle takes away about US$1.05 from the value of the car if the customer tries to sell it three years later. Rebates cut the value of used models because buyers are paying less for the new car or truck."

Other car makers, such as General Motors Corp, have been experimenting with new ways of attracting buyers this year as well. GM offers have included overnight test drives, 72-hour sales and a program tied into to the US federal interest rate increase that would allow buyers to lock in an interest rate this year on a car or truck purchase up to five years in the future.

The free VW car insurance deal would be the first for any carmaker. If successful, analysts predict, it will signal a new trend in car buying incentives. Among typical people likely to buy a Volkswagen Beetle or Golf, the average insurance premium is US$846 a year, according to insurance data compiled by CNW.

Volkswagen does expect U.S. vehicle sales to rise toward the end of 2005 with the introduction of several new models. The automaker will replace the VW Jetta in March 2005 and the VW Passat in the fourth quarter and introduce the new Golf GTI at the end of 2005, the company has reported.

Volkswagen Reported to Be Discussing Production in India

Europe's largest carmaker, Volkswagen AG, is reported to be visiting Andhra Pradesh to discuss a deal in setting up a VW automobile plant. The state's industry minister stated that "They are expected here in a few weeks to sign a Memorandum of Understanding with the state government."

Volkswagen spokesmen could not be reached for comment on the matter. Several foreign carmakers such as Toyota Motor Co., Hyundai Motor Co., Suzuki Motor Co. and Ford Motor Co. have Indian facilities to address the growing demand for automobiles in India, Asia's fourth largest economy.

The proposed Volkswagen plant, which will initially assemble cars from completely knocked down kits, will be set up in Vishakhapatnam on the eastern coast of India. State officials said Volkswagon had already approved a factory site in October.

Volkswagen Awards Grammer Automotive Best Supplier Award

Grammer vice president, sales and marketing in the Americas, Juergen Huertgen, reported that out of 350 VW suppliers, Grammer was one of four to recieve the Best Supplier Award from Volkswagen’s Truck and Bus Division. Grammer is a leading supplier of specialty automotive seating systems.

Grammer’s Atibaia, Brazil operations make 100 percent of all Volkswagen truck and bus seats. “Grammer’s product teams in Brazil and Germany share this honor,” said Huertgen. “Together, they worked hard to support Volkswagen’s manufacturing operations.”

The Atibaia manufacturing facility also produces fully trimmed head restraints for the Golf A4, Polo and the Audi A3, all built by Volkswagen in Curitiba and Sao Paolo, Brazil. The 215,000-square-foot Grammer facility in Atibaia has supplied Volkswagen in Brazil since 1989.

Huertgen added that the plant is ISO/TS 16949 certified and the 450 employees work under strict and lean principles. The Cut and sew, stamping and assembly, welding, painting, banding and foaming operations are all supported by a small prototype shop.

VW Recalls Golf, Jetta, Passat & GTI

The National Highway Transport Safety Administration announced Volkswagon is recalling 369,284 cars for possible defects that include leaking fuel pumps and defective hazard light switches.

19,284 Jetta, Golf, Beetle and Passat 2004-2005 cars are reported to have been recalled for leaking diesel fuel pumps that could possibly lead to fires. 300,000 Golf, GTI and Jetta 2000-2002 automobiles are also being recalled due to the hazard switch and flasher system that could malfunction as a result of high electrical current load from turn-signal bulbs.

The NHTSA also announced that Toyota is recalling 150,061 2004-2005 model Lexus ES 330 and Camry sedans due to a component in the seat belt buckle that could loosen when a rear-facing infant child seat is installed on the front passenger seat, which could lead to the front passenger side airbags deploying.

VW Names South Korea its Third Largest Asian Car Sales Market

Company officials from VW announced that they have designated South Korea as a key Asian market, following China and Japan. "As we judged recently that the market potential of South Korea is large, we designated it as our third key market in the Asian region," a Volkswagen official stated.

Volkswagen hopes to increase annual car sales in South Korea to 5,500 units over the next four years, and is poised to extend annual deliveries to South Korea, Asia's fourth-largest economy, to 1,500 vehicles in 2005. Volkswagen, the world's fourth-largest automaker, recently decided to take over imports of its cars in South Korea starting next year. The company had previously been selling cars in the region through Gojin Motor Imports since 2000. Gojin will still be Volkswagen's local dealer.

Volkswagon, which first began selling cars to South Korea in 1989, has seen sales decline 12.5 percent year-over-year to 785 units in the January-October 2004 period. VW will be expanding the number of showrooms to 20 over the next five years from the current three.

VW's move follows the launch of the South Korean subsidiary of Audi AG, Volkswagen's luxury model line, in October. Volvo recently announced their decision to increase marketing in South Korea as well. Volvo will be offering the Volvo XC90 in May 2005.

VW to Increase Jetta Production in Mexico

VW recently announced it plans to increase production of the Volkswagon Jetta to 320,000 cars at its Mexico plant in 2005, about 90,000 more units than this year. "Hurt by slow sales in the United States, Volkswagen's Mexican arm produced 20 percent fewer autos this year than in 2003, when its plant outside the colonial city of Puebla built 287,000 units, stated Thomas Karig, Volkswagen's cooperate relations director.

"The new VW Jetta, branded as the VW Bora in Mexico, will be produced in a new section of the Puebla plant, where workers will be assembling parts from Brazil, Karig continued. "Production of the overhauled Jetta will account for 200,000 of cars the Puebla plant will produce in 2005." Volkswagen's only North American assembly plant, has 13,300 workers and is also the only place where the new Beetle sedan and convertible are assembled. About 70 percent of the cars are exported.

"VW has been producing about 70,000 new Beetles per year and will try to maintain that level, said Karig. Puebla is the only assembly plant outside of China that makes the new Jetta model, which will be replacing the older model everywhere but in Mexico. In November 2004 the Puebla facility shut down entirely so VW could lower inventories and prepare for assembly of the new Jetta.

Karig said "The euro's rise against the dollar gives the company a chance to take greater advantage of the facility Mexico."