Porsche chief Matthias Müller found a big gap in his program. A price gap. “It bugs me that the 911 stops at around €250,000, and then things start moving again with the 918 for €750,000,” Müller complains to the Süddeutsche Zeitung today. “Ferrari builds a comfortable and pretty much competition-free nest. We need to get in there.”

The new Mercedes B-Class has been extensively discussed here, it was shown at the Shanghai Auto Show, where it found itself upstaged by the requisite Chinese copy. Slowly, it is time to show the production model. Which will happen at the Frankfurt Auto Show. After the rest of the world has seen the B-Class, now Germany can too.

When I was still working for Volkswagen, I blatantly picked up the delegations from Wolfsburg in my Eddie Bauer Expedition when they arrived at JFK. The higher paygrades were already used to it. The lower paygrades inevitably asked: “Why don’t you drive a Touareg?” While bouncing down the Van Wyck, I inevitably shouted “Silence in the third row! The Touareg doesn’t even have a third row. If I had a Touareg, you’d be sitting in a taxi.”

Soon I’d run out of excuses: If Germany’s AUTO BILD and the DetN are correctly informed, then Volkswagen will get a big SUV – big enough for Americans, even for those with a smaller wallet.

Conventional wisdom says that the Chinese will suck all the know-how out of their foreign joint venture partners, and once they are through with them, they’ll discard them like Dracula a bloodless virgin. As a thank you, the Chinese will flood foreign countries with cheap Chinese cars. The trouble with conventional wisdom is that it is rarely true, or wise. Actually, the Chinese are now worried that the foreigners amass too much power. “Foreign car producers have begun to take more control of their joint ventures in China, sidelining their Chinese counterparts from business partners to factory providers,” China Daily writes today. China Daily is owned by the Chinese government.

Yesterday, we talked a little about Volkswagen’s latest small car, the up! We walked down memory lane, and compared the 2012 up! with the Polo of 1975. The up! is nearly as short as the Polo of ancient times (3.54 meters). The heftier bumpers don’t leave a car designer much choice. And speaking of heft: We wondered how the up! is doing in the weight department.

When the Polo was launched in 1975, it weighed in at 685 kg (1,510 lbs) – with four guys, you could solve parking problems manually. We didn’t have much entertainment in those years, and sometimes carried a Polo to spots that were a bit inaccessible on wheels, like up a flight of stairs. This was a source of a lot of fun, especially when viewed from a beer garden across the street.

Volkswagen did not disclose the curb weight of the new up!, so we called up! Herr Schröder in Wolfsburg on Monday morning and asked.

SUVs are hot in China, and VW’s SUVlet, the Tiguan has turned into a hot seller. In the last few months, it steadily worked itself up the SUV charts and was in the second position in July, behind the Honda CR-V, and before the Nissan Qashqai. In China, the Tiguan is made by Volkswagen’s southern joint venture with Shanghai Volkswagen. What to do when Volkswagen’s Northern joint venture with FAW develops offroadish desires?

China Car Times heard around the hot water dispenser (they like to drink hot water in China, yuck, I know) that First Automobile Works has signaled its wishes that Volkswagen should go off-road with them. Volkswagen can hardly give them the Tiguan as well. That would be taking socialism too far. So what’s Volkswagen to do?

Volkswagen may have garnered a bad rap for being in the shop too much. Their sales performance however continues without a single breakdown. According to the July data (global, consolidated, all companies), the Volkswagen Group had a 16.3 percent unit sale rise in July (compared to July 2010) . From January to July, 4.75 million vehicles were sold worldwide, a 14.4 percent increase.

Think the Q5 is a bit too small? Do you find the Q7 altogether too large? You’re in luck! Rather than simply continuing to bracket the meat of the German luxury SUV market, Audi is stretching and widening its Q5 chassis in order to directly challenge the “just right” Mercedes ML/BMW X5 segment. The end result is supposed to look more coupe-like (read: more BMW X6-like) than this pieced-together mule, as Auto Motor und Sport calls the Q6 the “sporting connection between Q5 and Q7.” Let’s hope those wild test wheels are an option when Q6s start rolling off production lines sometime in 2014.

Much to my own surprise I read in China Daily that Volkswagen only holds 40 percent in its partnership with its Chinese joint venture partner FAW. I always thought they had the usual 50:50. Well, it looks like my beliefs will become reality.

At the Frankfurt Motor Show (13 – 25 September 2011), Daimler will show a bicycle. A lot of manufacturers have shown two-wheeled design studies at shows. This one will go on sale. In Frankfurt, you will see a “near-series version of the smart ebike,” as Daimler’s press release says. The ebike will be launched in the first half of 2012 and will initially be marketed by dealers in Europe and North America.

Porsche was spared a major embarrassment – by the Chinese. According to an emailed memo, the boys in Zuffenhausen sold 10,722 vehicles worldwide in July, that’s 4 percent below the 11,169 units sold in July 2010. It could have been worse.

Chevrolet has big plans for Germany. “Mid-term” one percent market share will be in Chevy’s crosshairs, says Automobilwoche [sub]. “We have a realistic chance to reach that level, which is very important for a German importer,“ Chevy’s Germany-chief Steffen Raschig told Automobilwoche. “This is my main target.“

He is aiming low.

Munich, Germany, to St. Moritz, Switzerland. It can be a scenic afternoon ride. The nicest route, shown here would take you very leisurely four hours these days. Before the car was invented, it would have taken a few days and a lot of real horses. How about with pure plug-ins? 31 participants embarked on a plug-in rally from Munich to St. Moritz. It started on August 1. It ended on August 5th. Yep, five days. When I was young, I did that in two easy days on a bicycle. The electric cars took the better part of the week.

Good news for Opel workers: They could all get Chevys, and GM CEO Dan Akerson won’t sell them down the river, to China, to Korea, or god forbid to Wolfsburg. “We would never give Opel away. Opel contributes to our global size and is not for sale, end of discussion,” Akerson told Germany’s Financial Times Deutschland. An unambiguous statement. Opel workers would have loved to hear it a bit earlier. But better late than Hyundai.

Akerson had more news. Some good. Some, well, you decide …

With US gas prices at some of the lowest levels in the world, it’s not too surprising that US consumers aren’t overly anxious to go electric, but what about in Germany, where gas prices are near double the US’s? According to Thilo Koslowski of Gartner Research, interest in EVs remains low there as well, and the big gainer in recent years has been hybrid technology… at the expense of the once-ubiquitous diesel, demand for which has “peaked” according to Koslowski’s research. Says the man who coined the term “ the trough of disappointment,”

Although the majority of German consumers continue to see EVs’ benefits in environmental and socioeconomic implications, broad adoption of EVs will remain low as long as current offerings don’t meet drivers’ practical usability and cost-saving requirements. To expand from early to mainstream EV adopters in Germany, automotive companies must focus on technology innovations, offer pricing strategies that are aligned with established premiums for diesel and hybrid powertrain options and develop diverse EV model mixes targeted at younger consumer segments that have higher EV interest levels than older demographics… E-mobility will become a viable addition to future transportation scenarios in Germany, but automotive companies and the German Government must address marketability requirements of EVs, prioritise technology investments and continue to promote cross-industry collaboration. Future mobility concepts will consist of diverse powertrain choices and business models that will leverage technology to satisfy consumers’ transportation needs while challenging traditional car ownership.

The US won’t be receiving the hatchback version of the forthcoming, front-drive Mercedes A-series, but we will be getting this “CLC” four-door coupe based on the same platform. But, if American owners can’t tell the difference between front- and rear-drive, will this CLC cannibalize the C-Class? According to AutoBild, it will be only 2cm shorter than the C-Class sedan, and its wheelbase is only 6cm shorter. In Europe, they say the CLC will be bought by 45-50 year-olds with two kids and enough money to spend €5k more than the average A-Class buyer. But in the US, where this will form the Mercedes entry level, and where shoppers tend to be more value-oriented, couldn’t you see a cheaper, front-drive/AWD CLS lookalike stealing sales from the rather subdued C-Class?

To be perfectly honest, we don’t know if the forthcoming Opel Astra CC (shown here in mule form) will be brought to the US and sold as a Buick, but it’s certainly been rumored. C&D says that, in addition to an Astra/Verano coupe, which it says will “definitely” be coming to the US,

Buick’s lineup could be graced with another Opel model that is currently under development. Replacing the folding-hardtop Astra Twin Top in Europe will be a new model that won’t be badged Astra, but will be based on the car’s Delta platform and remain close to the current model’s dimensions. The new convertible will keep its pronounced trunk and shed its clumsy hardtop in favor of a softtop, which should increase luggage space and make for a far cleaner look. Opel believes the softtop will create a more premium image.

The last Buick convertible? The 1990-91 Reatta convertible. But Buick’s probably hoping that nobody remembers those bad old days…

Imagine what would have happened if someone would have done an “Imported from Detroit” persiflage as blatant as the one above. A horde of screeching lawyers waving court orders and threats of unspecified punitive damages would have descended on the authors. What did Volkswagen do? Volkswagen invited the creators of the movie to Wolfsburg for a chat over coffee and PowerPoints.

Greenpeace says Volkswagen is not doing enough to save the planet. Volkswagen on the other hand thinks the company is the epitome of environmental responsibility. Greenpeace wanted to discuss Volkswagen’s environmental record. The environmentalists received an invitation to Wolfsburg to see themselves. After they left, the attacks escalated, Volkswagen’s plant in Wolfsburg was picketed and the video went viral. And that’s just the beginning of a sordid story that has the pungent smell of a different kind of green …

Welcome back to ongoing coverage of the latest transcontinental tale of romance and betrayal, in which Volkswagen and Suzuki’s young-but-troubled relationship is put to the test while the world watches. Last time we checked in, a piece of pricey gossip suggested what the rumors had been saying for weeks: VW and Suzuki were headed for Splitsville. But despite the angry blogging outbursts and talk of “ reviewing the relationship,” Volkswagen is standing by its Japanese bride, telling Automotive News Europe [sub] that the latest gossip that the “relationship is headed for dissolution” is “nonsense.” Suzuki joined the show of support, saying it had no plans to leave. But all the while, an Italian temptress is putting even more pressure on this relationship, as Bertel reported last month:

Someone is fanning the flames between Volkswagen and Suzuki, and we aren’t talking flames of love. Today, the German Platow Brief reported a bit belatedly that the German-Nipponese alliance is on the ropes. Something that the attentive reader of TTAC has known for quite a while and as always free of charge. The expensive subscription to the German financial newsletter is not in our editorial budget. A friend of TTAC sent us today’s Platow missive, which can’t be found on-line. After going through the usual blah-blah, the letter drops a high explosive bomb:

Within the next ten years, the car industry will change more than in the past fifty years. At least at Volkswagen, says Audi Chief Rupert Stadler. Platforms are a thing of the last century. The future of the car industry is kit cars. Or make that cars designed and built using elements of a common kit architecture. Currently, there are two families of erector kits which can be assembled into all kinds of cars at Volkswagen. They have Teutonic names like “Modularer Querbaukasten” (MQB) and “Modularer Längsbaukasten” (MLB). Porsche is developing a “MMB” (Modularer Mittelbaukasten) for Mittelmotor (mid-engined) cars. Or possibly a MSB (Modularer Standardbaukasten), which could be the Mutter of all Baukasten.

Audi is already working with the MLB architecture. This coming year, Volkswagen will start using the MQB. Says Automobilwoche [sub]:

At Volkswagen, the sales chief sits right next to God, or the CEO. Now imagine a sales chief that suddenly find himself with the title “Vice President of Customer Experience” and most likely with the responsibility to increase customer satisfaction like tomorrow – what would you do in his shoes? Polish your resume. This is what Mark Barnes likely is doing right now.

Mercedes-Benz is currently trying to recapture the number one position in global luxury sales, but a quality problem on its home turf in Germany seems to be undermining confidence in the brand. Autobild reports that the M272 V6 and M273 V8 engines used a sintered steel timing chain gear made of various materials starting in 2004, but switched to conventional steel in 2006, eliminating the problem with gear wear. The problem: nobody seems to know how many vehicles built between 2004 and 2006 are affected. Mercedes claims, based on secret internal defect tracking, that one percent, or about 1,500 vehicles, are affected. If you have a vehicle with one of these engines built between 04 and 06 and your check engine light comes on, Mercedes encourages you to visit your M-B dealer rather than an independent shop, as Mercedes is offering free repairs to affected customers. And as Autobild’s Matthias Mötsch argues, when your motto is “the best or nothing,” the only answer to a situation like this is to fix 100% of the defects for free.

For the first minute and ten seconds or so of this video, you might be thinking “so what, it’s just an SUV with quad pipes?” After the 1:10 mark, though, when the development mule for the new Mercedes ML63 AMG starts flying around the track, you may just begin to wonder if the laws of physics are being bent. There’s something a little distressing about watching a 5,000+ lb ute tucking through tight corners, as if the car guy’s traditional fetish for light weight were suddenly revealed to be some kind of cruel joke. But perhaps what’s really bothering me is that I know I’ll never see one of these things driven this way, unless some famous football player commits a heinous crime of some kind and leads cops on a modern, high-speed update of OJ Simpson’s infamous chase. In which case, I’d say this might just be the vehicle to have.

For the first time since the days of the 912, Porsche will be selling cars with a boxer-four engine. This new engine will power everything from the forthcoming “Baby Boxster” to the next generation of Boxster and Cayman, likely differentiated by different states of turbocharged tune. Here, a mule of the next-gen Cayman (released in Europe next year), which is growing to accommodate the new entry-level model, shows off the sweet sound of its new turbocharged 2.5 liter four-banger, which is rumored to put out 365 HP in “S” trim. And by “sweet sounds” I mean, it sounds a lot nicer than the 2.5 liter boxer in my girlfriend’s Impreza… although some of our more discriminating readers might feel that it’s still not up to Porsche standards. What say you?

Toshihiro Suzuki, executive vice president of Suzuki said Volkswagen conducting a review of their troubled marriage is “a step forward.” He quickly added that Suzuki had not heard any details, says Dow Jones via The Nikkei [sub].

“Our cooperation is based on the premise of being equal partners,” said Suzuki. “We’ll wait to hear from Volkswagen to confirm that the review under way is being carried out with this idea in mind.”

This doesn’t sound like the remarks of a partner who is ready to kiss and make up & out.

With the luxury market defying sluggish economic conditions, Daimler CEO Dieter Zetsche doesn’t want the upstarts at BMW and Audi to slip past it… which they are. Six months through 2011, the Mercedes brand found itself in third place among the German global luxury brands, at 610,531 units. A surging BMW captured 689,861 sales in the half, while Audi took second with 652,970. This, for Zetsche, is an unthinkable state of affairs. In a letter to his employees, excerpted by Automotive News Europe [sub], Zetsche makes it clear that leadership in the luxury space is a Daimler birthright.

Some of our competitors are now growing faster and more profitably than we are. Granted, those are just snapshots in time and should not be overestimated. After all, many of our best new products are yet to come… In the long run we can’t be content to be in a “solid second” or even “third” place: We are Daimler – we should be far ahead of the pack! And if that requires something that we don’t currently have, then we’ll identify and develop it.

Enjoy your summer and refill your tanks. Because in the second half of this year we’re going to continue to play some hard offense!

But does a sense of entitlement actually motivate workers?

New car sales were up 9.9 percent in July in Germany, says the German Kraftfahrtbundesamt. As the picture above shows, sales are slightly above 2010 (red line) and below the Abwrackprämien-addled 2009. Normalcy ensues in Deutschland, which is mostly on vacation anyway. The summer months are not for car buying, they are for car driving.

Don Jackson, manager of Volkswagen’s spanking-new plant in Chattanooga, dispelled rumors that unionization of the VW works is imminent. “No one from the UAW has visited the plant, or asked to visit,” Jackson told Bernie Woodall of Reuters. Jackson said that neither he nor anyone else at the new VW plant has been in contact with UAW representatives, and dismissed talks about the UAW representing workers at the plant as “speculation.”

According to Germany’s usually well informed AUTO BILD, Korea’s Hyundai either did or still does cast longing eyes on struggling Opel. Opel is on Hyundai’s horizon, literally: Hyundai’s German tech center in Rüsselsheim is only a few miles away from Opel. “Hyundai is growing faster than any other automaker. They are desperately seeking new engineers at the Hyundai tech center,” writes AUTO BILD, “and the plant in Czech Nošovice cannot be expanded further. Opel with thousands of well trained engineers, precious EV know-how (Ampera) and underutilized plants would be a great fit.” And this is how the latest car-cliffhanger started …

While natural and man-made disasters rattled the globe, Volkswagen, Europe’s largest and by the end of the year most likely the world’s second largest auto manufacturer, reports eye-popping numbers for the first half year of 2011.

Including China, Volkswagen made $13.5 billion in the first half of 2011. How did they pull off that economic miracle?

Better late than never: After refusing for months to comment on rumors that Opel might be up for sale, and after having been lambasted from his own workers up to Germany’s government, GM CEO Dan Akerson said the magic words: “We don’t comment on speculation — and there has been a lot of speculation — but I will say this: Opel is not for sale.”

Akerson made the remarks at a GM plant while celebrating the official launch of labor talks with the UAW, Reuters reports.

What TTAC readers have known for a while already, Germany’s Financial Times has realized: The UAW is trying to get its foot into the door of Volkswagen’s Chattanooga plant. Apparently, the UAW is banking on the fact that the plant is new, that Volkswagen is used to working with the unions, and most of all, that wages in Chattanooga are lower than at Daimler, BMW, Toyota and Honda. Financial Times Deutschland reports that a worker makes $14.50 an hour in Chattanooga, $19.50 after three years. Now the German Metal Workers Union IG Metall wants to help the UAW – by establishing a works council in Chattanooga.

Who says an automaker needs at least 5 million units per year to survive? Daimler in Germany made $6.7 billion EBIT on sales of just 989,386 units in the first half year. Unlike other car companies who are sitting on such a big pile of accrued losses that no taxes will be due in the foreseeable future, Daimler made a healthy contribution to the government’s finances. Even after tax, the company is left with $4.2 billion for the first half year. This according to emailed statements by Daimler.

After a lot of prototypes presented at Chinese car shows with hoods closed and long cables going to mock charging stations, EV development appears to get serious in China. Yesterday, Nissan announced that it is developing an EV for the Chinese market that will be sold under the Venucia brand by 2015. Daimler of all people could be further ahead.

If you don’t speak German, you can go ahead and skip to 1:30, where the magic happens. Essentially, the German safety nuts at the ADAC and DEKRA have been trying to scare motorists silly for some time now, shaming automakers and educating motorists about the dangers they face every day. The latest terror: a semi truck plowing into you from behind at about 43 MPH. The results? Well, they speak for themselves. The reason? Illustrating the need for Emergency Brake Assist in large trucks, which the ADAC argues should be mandatory for all trucks [per Autobild]. Though this does seem to be something of a case of legislating against stupidity, the ADAC certainly make a vivid argument for their cause…