The German auto brand announced that they are not interested in buying the 5th largest automaker in the US. The Volkswagen spokeswoman Christine Ritz says they will not buy the DCX if ever it will be put up for sale. Volkswagen was the last carmaker to decline.

Even the two Asian car brands Renault-Nissan and Hyundai also refused to buy the US cash-craving auto maker. Although the Chrysler released a statement that their table is open for options for its US division, it has also been revealed that they are also planning to give details of their financial information on Chrysler’s selective buyer as reported last week.

Apollo Management, the Blackstone Group, Carlyle Group and Cerberus Capital Management were the four private equities that are interested to buy the Chrysler brand and this is according to the report last Friday in the Financial Times newspaper. DaimlerChrysler are citing some European unnamed people that are interested to buy the group.

We are all aware that the US domestic car maker has undergone 13.000 job cuts just recently. This was due to the decline on their sales up to 7% plus their operating loss of 1.12 billion euros ($1.47 billion) for the year, compared to a profit of 1.53 billion euros in 2005.

According to the critics, no matter how excellent the Chrysler parts are on their cars, US car buyers still want cars that fit their changing tastes. I just hope the Chrysler is aware of that very fact.

These are happy times at Volkswagen after news on Tuesday that it more than doubled its annual profit. Europe’s largest carmaker reported a 58% increase in its overall net profit, earning 2.7 billion euros in 2006 compared to 1.12 billion euros the year before. Strong sales figures and cash gained from selling some units compensated for the costly restructuring expenses.

Volkswagen initiated a restructuring drive under former CEO Bernd Pischetsrieder to parry stiff competition from Asian rivals and gain a bigger share of the US market. This resulted in some 20,000 job cuts that cost the company 2.3 billion Euros, deflating operating profits to just 2 billion - 50% less than the projected 4.3 billion.

Sales grew 11 percent to 104.9 billion euros due to the increased cash flow from the company’s core Automotive business and strong demand for new VW models. Also adding to the profits is the sale of Volkswagen’s Europcar car rental business. Volkswagen sold the firm to French company Eurazio for 1.26 billion euros in March 2006.

Volkswagen is expecting its operating profits for 2007 to perform better than last year on continuing financial restructuring and growing vehicle sales.

It’s hard to believe the New Beetle is now almost a decade old. Seems like only yesterday when it swarmed into showrooms and inspired thousands of Bug lovers around the world who continue to take care of - and yes even drive! - their old model Beetles. The cult status of the Beetle is so strong that when the New Beetle was introduced, the nostalgic public created long waiting lists for the new model. Are they ready for yet another Beetle metamorphosis?

The VW grapevine is buzzing with speculations about plans for a new New Beetle. And going by the early sketches published by German magazine Auto Motor Und Sport, the overhauled New Beetle will be a sharp departure from the iconic rounded curves of its predecessors. The drawings show a New Beetle with a scaled down rooftop and a modern, less bubbly wheel flares. Quite a gamble really, considering that it is precisely the New Beetle’s retro look that made it a success in the first place.

The next generation Beetle, expected to arrive in 2010, will be offered in coupe and cabriolet variants. However, Volkswagen has yet to disclose the feature set and Volkswagen parts for it.

Chocolate covered Beetle, anyone?

In a gimmick for Valentine’s Day,seven local car company employees in Qingdao, Shandong province,China poured 200 kilograms of melted chocolate on a VW Beetle. The Bug was first covered in plastic and then parked in front of a local supermarket, creating an automobile truffle.

If you’re a frequent visitor to the VW website, then you have probably seen the new offer from Volkswagen: three V-Dubs for under $17,000. Volkswagen cars have a reputation for being on the pricey side but this latest attempt from the German giant may bring new converts to the VW fold. The three models put on sale are the 2007 Jetta starting at $16,500, the 2007 Rabbit at $15,000, and the 2007 New Beetle at $17,200.

The move to highlight the low prices may be the result of Volkswagen’s recent failures in cracking the luxury car segment. Volkswagen pulled out the Phaeton last year when it was becoming clear that its hefty $60,000 price tag was turning away customers. The same price perception affects the Toureg SUV. At a $37k - $44k price range, dealers find the model overpriced by as much as $10,000. You sell less when cars are priced high and dealers are not happy with that.

While the market for entry-level vehicles is tough, industry analysts agree that Volkswagen is right in focusing on the price. The company needs to connect with the growing number of status-conscious Gen-Y buyers, according to John Wolkonowicz of Global Insight. He further said that the emphasis on low price won’t hurt the brand. And why should it? Standard Volkswagen parts on the three models such as alloy wheels and spitfire 150hp engines don’t really come off as bargain items, do they?

The Volkswagen Eos was named by MotorWeek TV as "Best Convertible" in its annual Driver’s Choice Awards.

“The four-season retractable hardtop design of the Volkswagen Eos sets a new benchmark for affordable convertibles,” said MotorWeek host John Davis. “The cleverness of the top is obvious. Add in strong and efficient engines and great driving pleasure and the Eos is an easy convertible standout.”

The Eos is the world’s first four-seater, hard-top convertible. It has an integrated sunroof and its revolutionary CSC (coupe-sunroof-convertible) design in which its five-panel roof transforms the coupe’s hardtop into an open-air convertible.

Available with the award-winning 2.0T four-cylinder or the innovative 3.2 L narrow-angle V6 engines, other notable features of the Volkswagen 2007 Eos include Climatic single-zone air conditioning as standard in the base Eos, with dual-zone Climatronic™ standard in the Eos 2.0T and 3.2 L models. Easy entry rear seats that "remember" the driver’s and front passenger’s longitudinal seating positions, and return to these once the rear passengers have entered or exited the vehicle are standard on the Eos 3.2 L and optional on the 2.0T models.

The 2007 Eos 2.0T offers 200 horsepower and 207 lbs.-ft. of torque from a turbocharged 2.0-liter four cylinder engine. High-pressure, Fuel Stratified Injection helps with performance and efficiency. The 2007 Eos 2.0T is EPA rated at an estimated 23 miles per gallon in the city and an impressive 32 mpg in highway driving.

The 2007 Driver’s Choice Awards is selected by 15 judges, composed of writers, producers and crew of MotorWeek. The judges evaluated more than 150 cars and trucks using superior performance, technology, practicality and dollar value as benchmarks.

Volkswagen is planning to build a new car that will set a rivalry between other economically-friendly cars. The chairman, Martin Winterkorn, said that the German auto maker is planning a new entry model as a part of the broader strategic plans of making new cars for the people and the masses.

The new car will be a four-seater and is said to belong in the German carmaker’s European lineup below the Brazil-built Fox. It is also coming to set a rival to the budget friendly Dacia Logan as well as with other famous brands like the Toyota Aygo and its French siblings, the Citroën C1 and Peugeot 107.

"Shortly after my arrival in Wolfsburg, I gave design and development the job to develop a new car beneath the Fox," confirmed over the weekend by Winterkorn to the Germany’s Suddeutsche Zeitung newspaper that a new model will be released.

The new car will have its exclusive Volkswagen parts and performance parts. According to the chairman, the car will be made available first on the European car market before it will be sent to markets in Eastern Europe, India, China and South America to be available on showrooms. He also denies that the concept came up because of the emerging European markets.

The new car promised to be economical, attractive and affordable car that can be used every day according to the chairman. It will be built soon but the price and specifications are not official yet. We all have to be updated with the latest piece of news about this one though. Don’t worry I’ll keep you posted when I get word.

Martin Winterkorn, Volkswagen CEO, has proposed the ""design and development of a new, very small, model below the Fox," according to Sueddeutsche Zeitung, a German daily.

winterkorn, former head of VW’s Audi division, described the car as an "an economical, everyday small car that looks attractive and is affordable." It will be aimed at markets worldwide and, unlike DaimlerChrysler’s ultracompact Smart, it would have "space for four people plus luggage."

There has been much controversy regarding the "Volkswagen Law", which prevents foreign interests from taking control of Volkswagen. The law, passed in 1960 when Volkswagen was privatized by the German government, limits the voting rights of any VW shareholder to just 20%, regardless of the number of stocks each owns. The law is supposed to ensure the company’s stability, but is seen by many as effectively shielding the largest European carmaker from hostile takeovers.

With the advocate general deciding the law to be illegal for preventing the free flow of investments, it could just be a matter of months before the European Court of Justice, the EU’s highest court, scraps the law altogether. When that happens, Porsche could take full control of Volkswagen with 27.4% of its shares. The VW board has already authorized Porsche to buy up to 29.9% of the company and, together with the German state of Lower Saxony with 20.8%, could still prevent any foreign takeovers.   

The controversy has become a scandal in Europe with stories of power-grabs, allegations of kickbacks and other acts of wrong doings by all parties involved. A decision by the full court this year can hopefully bring an end to all these. 

Read more about the consequences of the VW controversy

Major changes are in store for some of Volkswagen’s future models, according to a German automotive paper.

The Allgemaine Zeitung has reported that VW CEO Martin Winterkorn has reportedly asked Walter de’Silva, who heads the design department at Audi and Lamborghini, to review the plans for the forthcoming Passat, Golf and Scirocco. Major changes are already planned for these vehicles, the report added.

The Scirocco was previewed last August with the IROC concept, but the Golf and Passat design plans were not divulged to the public.