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Volkswagen

Back in May, we reported on Volkswagen of America’s announcement that it would be switching the styling of the 2010 Jetta SportWagen to match the all-new Golf hatchback, and after seeing the car in person and in newly released press photos, I can honestly say the new car is much better looking. Although the Jetta SportWagen made its initial debut last year as a 2009 model, it used the same styling as the Rabbit and the Jetta sedan. In an attempt to capitalize on the new look of the all-new Golf, VW gave the SportWagen a cleaner, more unique appearance simply by changing altering the front end of the car.

For some reason, the North American buying public is still averse to the idea of station wagons, but the biggest complaint I had to the 2009 SportWagen I reviewed earlier this year was the front grill and headlamps. While the large headlamps and Audi-inspired chrome grille treatment looked good on the Rabbit, it didn’t translate very well onto the larger Jetta sedan and Jetta SportWagen. With a cleaner, more mature look for 2010, VW replaces the chrome shield with a painted section of fascia breaking up the narrow upper grille and lower air intakes. Like the new Golf, the headlights are inspired by the Europe-only VW Scirocco and help to give the car more attitude. The only changes made to the rear of the 2010 SportWagen are slightly darker taillight lenses.

Not that it was necessary, but VW also used the exterior refresh as an opportunity to change up the interior by giving it a cabin that matches 2010 Golf. The biggest changes are noticeable to the driver as the steering wheel, instrument gauge cluster and the center stack all received minor tweaks. Changes to the steering wheel and gauge cluster give the 2010 SportWagen a sportier appearance, while the new center stack design helps create a more ergonomic cabin with a redesigned HVAC control head. Overall, the biggest improvement is the new cluster with an enlarged information display that was made possible by moving the temperature and fuel gauges into the empty space at the bottom of the tachometer and speedometer. The end result is a cockpit that looks and feels like the more luxurious Volkswagen CC rather than an entry-level economy wagon. As far as amenities go, Bluetooth connectivity is now standard on SE and TDI trim levels, while the panoramic roof and touch-screen navigation system continue to be popular options.

One area of the new SportWagen that remained untouched was the proven drivetrain which means that the 2.5-liter gasoline inline-5 and 2.0-liter diesel inline-4 are still available. The SportWagen S and SE trim levels both come standard with the 170-horsepower gas engine with the base model using a five-speed manual transmission and the SE getting a six-speed automatic. The SportWagen TDI continues to use the fuel-efficient, 50-state legal diesel engine mated to a six-speed manual or VW’s six-speed dual-clutch DSG transmission. Fuel economy in the TDI is still rated up to an impressive 31 miles per gallon in the city and 42 mpg on the highway.

The redesigned 2010 VW Jetta SportWagen models have already started hitting showrooms with a starting MSRP of $19,265 which is $190 more than the 2009 model. Pricing for the 2010 SportWagen TDI increased by $440 up to $24,310.

Well, that didn't last long. Volkswagen's reign as the world's top auto producer came to a quick end recently, following a heated exchange of statistics and counterclaims. Looking at global vehicle sales, not production, and counting only sales from companies in which an automaker has a controlling interest, the current rankings have Toyota in the lead, followed closely by General Motors and Volkswagen.

And not to go all Sesame Street here, but one of these things is not like the other: In the world's second-largest auto market — that would be the U.S. — General Motors sold 177,603 vehicles in October, and overall Toyota sales (including Scion and Lexus) hit 152,165. During the same period, Team VW was good for 26,037 U.S. sales. Although that number is probably just a tad low; it includes Volkswagen-owned brands Audi and Porsche, but not the few stray sales from Bentley and Lamborghini, which are also part of the VW stable.

As a further point of comparison, three individual nameplates, the Ford F-150, Chevrolet Silverado and Toyota Camry, all had more U.S. sales on their own in October than did the entire Volkswagen lineup.

In other words, Volkswagen has built itself into one of the world's biggest automakers with relatively minimal help from the U.S. market. Just imagine what kind of situation the company would be in if it ever found real success here.

I mean, yes, VW is getting some well-deserved credit for achieving monthly U.S. sales increases this year. But we're really talking about the company still clawing its way back toward its numbers of some 30 years ago. Annual U.S. sales were approaching 300,000 by 1980, but had actually shrunk below 50,000 in 1993, mostly due to poor quality and difficulty competing with the improving Japanese imports.

Today, though, the company appears to be ready to move to ye olde next level. VW currently has a lock on the "affordably priced diesel" segment with TDI versions of the Volkswagen Jetta, Volkswagen Jetta Sport Wagon and 2010 Volkswagen Golf.

The Golf is a particularly strong entry — in both diesel- and gas-powered versions — having been completely redesigned for 2010 and already earning praise in Europe as World Car of the Year. The VW GTI, essentially the high-performance version of the Golf, has also taken home some impressive awards and is being rightly lauded by the press as among the best of the "hot hatches."

The Volkswagen CC, which is something like a sportier, more up-market version of the Volkswagen Passat, has also been gaining traction and much love from the auto critics for its beautiful design, impressive engineering and competitive sticker price.

The CC also is notable as an example of what VW's newer sedans could offer. The company currently plans to launch a completely redesigned Jetta compact sedan in 2010 and a slightly larger mid-sizer in early 2011. The news here is that the vehicles are being specifically engineered with U.S. customers in mind as part of VW's push to reach 1 million U.S. sales by 2018.

In fact, the bigger sedan won't even be offered in Europe, where the Volkswagen Passat will remain the company's primary product in the mid-size segment.

And therein lies the problem. While companies like Ford are being hailed for integrating their global manufacturing processes to cut costs and simplify operations, Volkswagen is going in the exact opposite direction by developing two separate, parallel mid-size sedan programs, one for the U.S. (and China) and one for Europe. This is the same kind of thinking behind the VW Routan. Volkswagen is selling the rebadged Chrysler Town & Country solely in the North American minivan segment, while the VW Sharan, a totally separate vehicle, works the global segment.

Now, I will resist the almost overwhelming urge to joke about the German company's apparent urge to dominate the world's auto industry at any cost and let the folks at Bloomberg provide a more sober assessment: After noting that VW saw its third-quarter profit slip by 86 percent despite delivering 8.9 percent more vehicles during that time, Bloomberg quotes a German analyst as saying that, "The size of the profit slump is dreadful, and shows that Volkswagen is overly focused on quantity, not quality."

On the other hand, considering VW's penchant for, uh, interesting vehicle names, this does give me an idea: The company isn't sure whether that new U.S. mid-size sedan will carry the Passat name, but if it doesn't, I'm thinking the "Volkswagen Pyrrhus" might be appropriate.