It's no secret Volkswagen is preparing a modern, decidedly nonretro Scirocco sport coupe for the last part of the decade. But it's also working on a new version of its retro cutemobile, the New Beetle.
Volkswagen, which has slipped to sixth place among seven major-volume imports in the U.S., with about 244,000 units per year, is still Europe's biggest automaker, but it's facing General Motors-like labor-cost problems. It has to repair Ferdinand Pich's plans to compete with Mercedes, in light of the VW AG board's vote of confidence earlier this year for corporate chief Bernd Pischetsrieder.
VW division's stout Germanic craftsmanship and envy-inducing quality interiors have created cost problems-it's said to lose money on every Golf it builds-on top of poor initial quality scores in the U.S. "We're in the middle of the bad right now," says VW of America's sharp new chief, Adrian Hallmark. He and VW brand chairman Wolfgang Bernhard are hashing out the future of the automaker in North America in order to aim it toward the good. Here's what we're likely to get:
2008 Jetta Wagon
While nearly as large as a Passat wagon, the Jetta has a faster roofline with a wraparound rear window. The wagon will be about the same length as the sedan, but is 26 mm wider. The 2.5-liter five will be standard. There will be a 2.0 FSI GLI model and probably a diesel after it goes on sale in the second half of 2007.
2008 Passat Four-Door Coupe
Expect a new name and distinct sheetmetal for this car, based on the Passat but designed to fit in VW's lineup between the Passat and the Touareg. Likely to be offered in the U.S. with V-6 engines (no fours) and possibly diesels, it's a poor man's Mercedes CLS.