Volkswagen is usually known for its simple, basic, iconic styling; the classic Beetle and the previous-generation Jetta are perfect case studies. Which is why the svelte and streamlined CC – known overseas as the Passat CC – has come as a refreshing change of pace for the German automaker. We're not the only ones who think so, either, as the four-door coupe from Wolfsburg has been accumulating design awards the world over.

Adding to the list that already includes the coveted iF Product Design Award and the Australian International Design Award, the Volkswagen CC has now been awarded the prestigious Red Dot Design Award. The prize has bestowed annually since 1955 by the Design Zentrum Nordrhein Westfalen, the legendary design museum housed in the reclaimed Zollverein coal mine. The Best of the Best award was accepted by designer Martin Kropp on behalf of VW's Exterior Design Studio 1 and you can get all the details in the press release after the jump.

General Motors, Ford, Chrysler, Honda and everyone else may not think there is much of a market for mainstream diesel vehicles in the United States, but Volkswagen would beg to differ. Since it launched its new generation diesels last fall in the Jetta and earlier this year in the Touareg, they have been selling like hotcakes with June being its best month yet. Last month was the best sales month to date for the Sportwagen with 1,982 sales and a whopping 81% of those were equipped with the 2.0-liter TDI four-cylinder.

Among the 8,431 Jetta sedans sold in June, 40% were diesel powered. And while the Touareg followed most other SUVs with a 41% overall decline to only 330 units in June, 29% of those had the 3.0-liter V6 TDI engine. Rabbit sales were down 69% in June, but a redesigned Golf is arriving in September, including a TDI – and if fuel prices keep climbing through the summer, it could see a huge sales spike as well.



[Source: Volkswagen]

Porsche is profitable and it owns a big chunk of the far larger Volkswagen, yet cash seems to be in short supply. Automotive News is reporting that the world-renowned luxury sports car maker's 1.75 billion euro ($2.45 billion USD) loan request from German state bank KFW has been rejected, leaving Porsche to search elsewhere for funding. Porsche secured 10.75 billion euros ($15.1B) in financing from banks in March to feed its 9 billion euro debt ($12.6B) mountain, but it's looking for alternative means for financing its cash crunch.

Porsche has already looked outside of Europe for funding to handle its mounting debt, as it worked with the Arab emirate of Qatar to secure a sizable stake in the company. VW, smelling blood in the water, reportedly gave Porsche an ultimatum, offering up 3-4 billion euro ($4.2-$5.6B) for 49% of the sports car maker in exchange for not forcing the repayment of a 700 million euro loan ($983M) in September. Porsche responded by saying that ultimatums don't belong in the 21st century. Unfortunately, bankruptcies are all too common in the new economy, so the proud German company may have to dig a bit deeper to keep themselves from falling into the financial abyss.

[Source: Automotive News (subs req'd) | Image: Michael Latz/Getty]

Hear about those reports last week of a potential tie-up between Suzuki and Volkswagen for microcar development? Osamu Suzuki, chief executive at the automaker that bear his name, heard the same rumors that we did, and they apparently came as news to him. Though Suzuki falls short of denying outright that any potential deal could be struck, he told the Chunichi Shimbun daily (via Reuters):

So far there's been absolutely no contact (with Volkswagen). Lately, we've been the victim of a lot of rumors (of equity tie-ups and cooperation deals).

Suzuki sells more mini cars – albeit tiny 660cc Kei urban runabouts – in Japan than any other automaker not named Toyota, yet it has a limited footprint in most other markets. Thus, it's not surprising that rumors of impending partnerships are common. In this case, though, it would seem that reports of a potential 10% stake by VW are at least a bit premature.


[Source: Reuters]

Porsche maintains it still has its mojo, but Volkswagen is treating the company like Porsche's got lunch money and VW is hungry. VW -- which Porsche effectively owns -- loaned Porsche €700 million ($983.8 million) earlier this year, with Porsche due to pay it back in September. As collateral for the loan Porsche used its wholesale distribution arm Porsche Holding GmbH.

The way things are going for Porsche, it might not be able to make that September repayment. So VW and the state of Lower Saxony made an offer: Porsche has until the end of June to accept an offer by VW to pay €3 to €4 billion ($4.2 billion to $5.6 billion) for a 49% Porsche's car business. If Porsche doesn't accept, then VW will "insist" Porsche repay the full amount of the loan in September. If Porsche can't come up with the coin VW could walk away with Porsche Holding GmbH.

Porsche, plucky as ever, didn't want to hear about any of that, saying "Ultimatums do not belong in the 21st century.... We hope very much in the interest of the common goals that the authors of the ultimatum regain their calm..." The crew at VW quickly issued a response, with one spokesperson simply saying, "There is no ultimatum."

Porsche has plenty of time to sort things out, and its investment talks with Qatar, which would greatly help its debt situation, are said to "have entered the final stretch." Thanks for the tip, C. Halen

[Source: Reuters, Automotive News - Sub. Req.]

According to reports from Reuters and Manager Magazin in Germany, Volkswagen is keen to purchase a 10% stake in Suzuki in order to cooperate on future small cars for emerging markets. In its home market of Japan, Suzuki is the second-largest automaker behind Toyota and dominates the tiny Kei car market alongside Toyota-owned Daihatsu.

These miniature 660cc vehicles are extremely popular in Japan's dense urban settings and Volkswagen reportedly believes this class of automobile holds great promise for emerging markets. In India, for example, Tata Motors has seen a great deal of success with its diminutive Nano, which is billed as the cheapest car in the world.

Suzuki already enjoys a measure of success in Tata's home turf, where its Maruti Suzuki subsidiary offers the Alto, which has been the best-selling automobile in India since 2004. At this time, both Suzuki and Volkswagen are declining comment, but VW chairman Ferdinand Piech has praised the Japanese automaker numerous times in the past.



[Source: Retuers]

The 2010 Opel Astra has an impressive exterior and an overhauled interior, but it's also important that the upcoming C-segment hatchback can hang with the competition. The guys and gals at Vauxhall wanted to show just how competent a handler the Astra is, so they brought a pre-production tester to the Millbrook Proving Ground test track in Bedfordshire, England.

Hit the jump to watch the next Astra take on the twists and turns at Millbrook, and while you're at it, make sure to keep an eye on the MKVI Golf and the Euro Focus. You'll have to really pay attention here, though, because the Astra passes them without much of a fight. Sure, that may have something to do with the fact that the Astra is piloted by Vauxhall's own BTCC pilot, Fabrizio Giovanardi. For all we know, the Golf and Focus could be driven by students from the local driver's ed academy.

The Volkswagen Phaeton may not have gotten much love in the States, but V-Dub's range-topping saloon has soldiered on in Europe, undergoing a series of minor tweaks since its introduction earlier this decade. For 2011, the Phaeton is finally due for a comprehensive facelift, and these newest spy shots show a new fascia is in the works.

Although the extensive camouflage doesn't give us much to work with, expect a revised grille to join more sculpted, drawn headlamps that lend some familial cohesion to the sedan. Imagine a stretched and broadened Golf and it's likely you're not too far off. Other tweaks include a reworked rear bumper and tail lamps, along with a new instrument panel, center stack and shifter arrangement. A range of powerplants will be available – possibly including a V10 or V12 TDI – and the 2011 Phaeton could debut at the Frankfurt Motor Show, with sales beginning shortly thereafter. Chances of it coming back to the U.S.: zero.

[Source: FastestCar]

What qualities are required for an engine to be considered the best-of-the-best in today's world? Naturally, any given engine needs to make enough power for its intended application, but fuel efficiency is just as important in modern society. This being the case, it's not terribly surprising that Volkswagen's innovative 1.4-liter Twincharger engine has taken home top honors as the 2009 International Engine of the Year, beating out BMW's powerful 3.0-liter direct-injected twin-turbo six-cylinder powerplant by just four points.

The Engie of the Year award is handed out based on the voting results of 65 motor scribes polled from all around the globe. Some 32 countries are represented in the jury, including the U.S., Germany, Japan, China, the U.K., and Korea.

To go along with its Engine of the Year award, VW's supercharged and turbocharged mill also won the Green Engine of the Year trophy – beating out Honda's 1.3-liter IMA hybrid powertrain in the process – and also took the nod in its 1.0-1.4-liter size class. Here's a list of the rest of the award winners:

• Best New Engine - Porsche's 3.8-liter 385bhp flat-six
• Best Performance Engine - Mercedes-AMG 6.2-liter V8
• Sub 1-liter - Toyota 1-liter three-cylinder
• 1.8-2.0L - Audi 2-liter TFSI
• 2.0L-2.5L - Mercedes-Benz Diesel 2.1-litre BlueEfficiency
• 2.5L-3.9L - BMW 3-liter DI Twin Turbo
• 3.0L-4.0L - BMW 4-liter V8
• Above 4.0L - Mercedes-AMG 6.2-liter V8

[Source: International Engine of the Year Awards]

After getting an exclusive first drive of the Volkswagen BlueSport roadster, the lucky scribes from AutoWeek write of the machine as if it's headed for production. This is contrary to earlier reports coming from an unnamed VW insider which indicated that the program had been placed on hold due to the dire state of the global economy.

We hope AW's right about the BlueSport's production possibilities, especially after reading about how close to production-ready the roadster appears to be. If the German automaker does find a way to build the BlueSport, it will reportedly show up in in the States in 2013 starting for somewhere around $30,000, depending on the powerplant that VW decides to place behind the two occupants.

The turbocharged, direct-injected diesel mill currently in the concept, which VW says delivers nearly 42 miles per gallon in everyday driving, could very well be joined by at least one of VW's gasoline-burning units – possibly the 265-horsepower 2.0-liter installed in the Audi S3 and Volkswagen's own Scirocco R and Golf R. As always, we'll keep our eyes and ears open for more details as they become available.




[Source: Auto Week]