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With Volkswagen due to make a decision about the location of its first US factory in more than two decades, the next obvious question is what to build there? We had a chance to pose that very question to Steve Keyes, GM of Public Relations for VW of America. According to Steve, the driving force for the factory is two-fold. First and most obvious is the exchange rate issue. With dollar being worth less almost daily against the Euro, it’s increasingly difficult for VW to price cars competitively, especially in the mainstream segments where it primarily competes. The second reason is capacity constraints at the Peubla, Mexico factory that builds VW’s highest volume US product, the Jetta. VW of America has set a target tripling combined sales of Audi and VW within the next decade.

Meeting those sales goals will require a lot more vehicles to sell at a competitive cost. So the first products out of the plant will likely be the highest volume products, the Passat and Jetta. If the plant is set up to build Jettas, then it could relatively easily be adapted to build any other model that shares the Golf/Jetta platform. That could potentially mean products like the Scirocco and even the Audi TT. Will we see these? Probably not at first, but if demand warrants, it could happen. So if you are all really serious about wanting the Scirocco on US shores, you should start pestering the head office (which just moved to Virginia last week).

[Source: Volkswagen]

It’s tough to top Top Gear (as Gear producers are about to find out), but until Clarkson, Hamster and Captain Slow get back on schedule, the crew at WebRidesTV is back to cure our insatiable lust for all things automotive and in motion. Sure, it doesn’t have TG’s production value, but everything looks cooler with heavy vignetting.

This latest installment pits the Audi RS4 against the Lexus IS F, in what could be their best shootout to date. It’s the battle of the middleweights and you can view the film in full after the jump.

In 2007 Hyundai had a US sales target of 555,000. That number was set by HQ in Korea, and when it was clear they weren’t going to make it, they revised it downward to just over 500,000. By the time the bell rung, even that number proved a little beyond Hyundai’s reach: they sold 467,009 cars last year. That still represented a 2.5-percent gain over 2006 sales.

Hyundai’s goal this year is a 20-percent increase in global sales. For the US, though, the goal is 500,000 units, which is the goal set by the folks in the US, not Korea, and even though nearly everyone has predicted a sales downturn, that goal is “regardless of what the industry is doing.” To achieve those sales, the automaker has revamped numerous aspects of their dealer incentive operation. Hyundai dealership profit was down five-percent last year, and only two-thirds of dealers benefited from company incentives. This year, the dealer incentive has been streamlined and set up so that 99-percent of dealers are expected to receive some sort of incentive. Dealers will also be receiving more Accents and Elantras to prevent the shortages experienced last year.

Hyundai is also bringing back its dealer ad associations and is going to distribute more largesse to help dealers advertise everything happening for the growing brand. Hyundai has a refreshed Sonata and the new Genesis coming in the spring, and the Genesis coupe and Elantra Touring coming later this year, and it wants to make sure everyone hears the word. It’s quite conceivable that Hyundai can increase its sales this year in spite of the market, and making its dealers happy will be a good way to help the cause. Dealers are, of course, happy about the changes, but also want to make sure Hyundai doesn’t forget its bread and butter cars and customers in the Genesis hoopla.

[Source: Automotive News - Sub. Req.]

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The first race of the first all-diesel, road racing series in America took place this past weekend at VIRginia International Raceway,

 and we were there, or rather AutoblogGreen was there, to watch it go down. The gorgeous VIR long course proved to be a great setting for the opening round of Volkswagen’s new Jetta TDI Cup series. The new series is both a continuation of VW’s history of grassroots racing, as well as promotion for the new Jetta TDI that launches this summer. Volkswagen had an open casting call earlier this year for young amateur racing drivers and picked the 30 best to run in the promotional series. Prior to arriving at VIR for Friday’s first practice, the drivers had one day of actual running in the Jettas during the driver selection process at the beginning of April. Though the Jetta TDI race cars were slightly modified from their production counterpart for safety reasons, they still managed to retuFollowing two practice sessions on Friday and a 30-minute qualifying session on Saturday, 23-year-old Josh Hurley claimed the number one starting slot on the standing start grid for Sunday’s race. Yesterday afternoon, the field (ranging in age from three, 16-year-olds to one 26-year-old Gary Williams, Jr.) made a clean getaway for the 30-minute race. Although they were cautious at the start, it didn’t take long before cars were mixing it up. Anyone who remembers seeing first-generation (and later) Rabbits and Sciroccos on the track or autocross course would instantly recognize the three-wheel cornering stance of these Jettas during hard cornering. A few laps into the race, the first yellow flag flew bringing out the pace car for a couple of laps while the carnage was cleared. Once they were back under green, the Jettas were door-handle-to-door-handle through the corners as their tires howled. There was action aplenty with lots of lead changes, but ultimately, Mark Pombo crossed the line first with 1.63 seconds covering the first six cars. If you happen to be at one of the tracks where the Jetta TDI Cup is running this summer (check the schedule here), make sure you don’t wander off during this race. You won’t know any of these drivers names (yet), but the action is fun to watch and odds are at least some of these drivers may become household names in time.

Travel and lodging for this media event was provided by the manufacturer
rn 25 mpg… while racing.

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Audi has gone ahead and released all it knows about the two newest versions of the TT. The first is the TTS, the most hotted-up version of Audi’s sports car brandishing a 2.0L TFSI (turbo, direct-inject) four-cylinder that produces 272 horsepower and 258 pound-feet of torque. It features a magnetic ride adaptive damping system on its suspension, and 0-62 mph takes 5.2 seconds in the just-over 3,000 lbs. coupe thanks to a structure made predominantly from aluminum. An S tronic dual-clutch transmission is optional for snicking through gears quickly without the aid of your left foot, and quattro all-wheel-drive is, of course, standard. For those in Europe, the TTS Coupe starts at €44,900 and the Roadster version will go for €47,750. For us in the U.S., November 2008 is the ETA.

The second iteration of the TT may not be as quick as the TTS, but it’s just as exciting. The TT TDI comes with the first application of a diesel engine in Audi’s attractive sportster. Said engine is Audi’s 2.0L four-cylinder diesel producing 170 hp that’s backed by 258 pound-feet of torque. That makes the oil burning Audi good for a 7.5-second run to 62 mph while returning 44.38 mpg on the combined European cycle. Both Coupe and Roadster versions are available, though the Roadster is heavier and less frugal with the fuel as a result. They are much cheaper than the TTS, however, with prices starting at €34,850 for the Coupe and €35,900 for the drop top. There are no official plans to bring the TT TDI to the U.S. yet, but man do we wish there were.

[Source: Audi]

We can’t imagine being an apprentice at Bentley leaves you a lot of spare time, what with your full class load on how to stitch the perfect steering wheel, match wood grains and build twin-turbo V8s with your bare hands. A team of nine apprentices comprising the Bentley Greenpower Team, however, have found the time over the past ten months to build an exceptional little electrical vehicle for the Greenpower Corporate Challenge that kicked off at the Goodwood race circuit yesterday.

Their car, dubbed the Continental DC, was developed using the same CAD software that Bentley uses for its own cars, and is powered by two 12-volt batteries and a 24-volt motor that’s required by competition rules. The body is also based on Bentley’s 2004 Goodwood soap box racer and is basically invisible to wind resistance. The use of carbon fiber to keep weight down is extensive, to say the least. The body, chassis, wheels and even a specially designed suspension with carbon fiber beams under tension are all made from the exotic weave. Despite being green as can be, the Continental DC still sports some flare from Crewe thanks to a single leather Bentley seat with a four-point harness, a custom Bentley-inspired steering wheel and Bentley “dashboard”.
[Source: Bentley]

We knew it was true, but we still can’t believe it. The Spada Codatronca is slated for production, with 20 examples due to be built in the near future and priced somewhere north of £200,000. As reported previously, the Dark Knight’s weekend driver is packing a supercharged LS7 V8, producing 600 hp in “entry-level” TS guise and can be upgraded to a track-ready version producing 700 hp and dropping 0-60 times to a mind-boggling 2.7 seconds. Unfortunately, we’ve yet to see any photos of the “production” version that was unveiled at the Top Marques show this past weekend, so we’ll just have to wait and see if the sinister sled makes a successful transition from concept to production.

[Source: Top Gear]

Truth be told, the Autoblog team is split on whether or not we like the M1 Hommage Concept that was unveiled at the Concorso d’Eleganza at Villa d’Este this past weekend. Some of us claim that it’s genius baked in a car-shaped pan, while the rest would rather stare at flame surfacing, Chris Bangle’s ignominious contribution to automotive design, until their eyes start bleeding. Regardless, it creates discussion, and to facilitate the talk we have BMW Design Director Adrian van Hooydonk on camera after the jump talking about the car and its inspiration, the original M1.

Though the video after the jump is over eight minutes long, you’ll want to watch it all the way through to catch footage of the original M1 that was used for the photo shoot being thrashed on-track.
[Source: BMW]

BMW talks about the M1 Hommage Concept

Volkswagen’s most powerful Passat ever, the R36, which we’ve been hearing about for over a year, is finally on sale in the U.K. in both sedan and wagon versions. Featuring a 4MOTION all-wheel-drive system to put the 300 horses and 258 lb. ft. of torque to the ground, VeeDub claims that the sedan can get to 100 kilometers per hour (62 mph) in 5.6 seconds. The wagon is a few hundredths slower in the sprint to sixty, but both boast a top speed limited to 155 mph.

Besides the powertrain updates, the R36 gets a unique body kit, Bi-Xenon headlights and a new grille. Chassis enhancements include 18-inch rims, new brake calipers and most importantly, a 20mm lowering of the ride height. A blindingly bright turned-aluminum dash applique matches the new allow pedals and sill plates, while new seats promise a snug fit. The £30,990 base-price is encroaching on Audi territory, though not one featuring 300 horsepower. Now that Volvo’s V70R is no longer available, the £32,150 estate model (that’s wagon to us yanks) offers lots of performance and utility in a much more refined manner than your typical SUV. No word on a Stateside offering as of yet, but we won’t give up the hope.

[Source: Volkswagen]

Renault has been hard at work on the replacement for the current Megane. Following the new Clio, which came out three years ago, the Megane is an important model for the French automaker, designed to face off against volume leaders like the Volkswagen Golf/Rabbit and Ford Focus. French magazine Auto Plus has managed to obtain some undisguised shots of the car, presumably obtained from a Renault employee in exchange for a case of wine, a carton of Gauloise and/or a joke about Americans.

As promised, the new Megane will be substantially more subdued in its styling than the love-it-or-hate-it current model, with its curved upright rear window. The front end borrows heavily from the new Laguna, hinting at a common design language for the company. There’s certainly some similarity between the production version and the Megane Coupe Concept unveiled at the Geneva show this year. Although the production Megane will predictably be considerably more conservative than the show car, the three-door appears further differentiated from its five-door stablemate with more sporting lines. See for yourself in the scanned magazine pages in the gallery below. The car looks just about ready to hit the market, so a debut at Renault’s home-turf Paris Auto Salon this fall would be a good bet.
[Source: AutoPlus.fr via theCarfanatic.com and Autoblog Spanish]