One of the more interesting aspects of this job is gaining access to key executives in large companies who make decisions about the future of large industries. Few industries are larger than the automotive industry. During the Geneva Auto Show and the drive event that followed in Tuscany, I was particularly interested to learn that:
1. Volkswagen has more than 11% market share worldwide but only 3% market share in the U.S.
2. 25% of the automobiles that VW sold in the U.S. market in 2009 were clean diesel models.
I still think of VW as a young brand, so it makes sense to me that they’re planning on making strides in the U.S. market by launching greener vehicles. Young people, and people who feel young, want greener cars as much as they want “a fun drive,” which is exactly what Stefan Jacoby, President and CEO of Volkswagen America, said he wants American drivers to think of when they see the silver VW on the hood of their vehicles. He said it in an interview and he said it again at the dinner table.
Clean Diesel Confusion?
Two points to clear up: First, the “clean” in “clean diesel” does not refer to the fuel itself. When you pull up to the station you put regular diesel in the tank. Clean diesel refers to the vehicle’s emissions. The new TDI/clean diesel version of the Touareg boasts a 40% reduction in emissions compared to the previous version that ran on gasoline. Second, this ain’t your Grandma’s old diesel that went from 0-60mph in eight minutes flat. These TDI vehicles are powerful.
The 2010 Volkswagen Touareg TDI – Best Green SUV on the market
I haven’t been this excited about an SUV since my folks got a Chevy Blazer back in the early ‘90s. I loved that Blazer because my family’s dog and my BMX bicycles fit easily in the back compared to my Mom’s previous vehicle, a sedan. It was the one and only SUV they ever owned because Mom thought the Blazer “handled like a truck.” I never got to drive the Blazer, but it looked awesome to me. I can now assure you and Mom that the new VW Touareg TDI handles sharply thanks to a series of technological advances.
Design in the automobile world has come to mean two things: performance and aesthetics. Seems obvious enough, but good design is where performance and aesthetics meet. Walking the Geneva auto show for a few days, I affirmed that it wasn’t due to my environmental optimism but rather objective observation that a third metric is sneaking into the auto-design criteria: efficiency. Porsche’s new 918 prototype hybrid sports car was a major hit amongst the American auto journalists, who also informed me that Porsche has never made a prototype that didn’t go into production (though a few cited one debatable exception). When green cars get this exciting, it’s a big win for the environment.
Under the hood there are a number of innovative technical design issues at play, making the Touareg best-in-class with regard to drive quality as well as environmental sensitivity. First in line for the “best innovation under the hood award”: The 8-speed transmission. It used to be that more speeds simply meant faster speeds, but oh how far we’ve come in a decade or two… How are more speeds now better in more ways?
This is a bit technical: More speeds are better because more speeds means that the engine is running more optimally more often. An engine that runs optimally more often is an engine that lasts longer. An engine that runs optimally also has superior fuel efficiency. Both of these factors save drivers money over the lifetime of a vehicle. So efficiency is good for vehicle owners and good for the environment. As American car buyers realize the value that VW is offering with their TDI models, it will be good for the company’s bottom line as well.
I’m not sure when that type of thing went out of style in the business world, but if it makes VW old-fashioned to offer a high quality product at a competitive price, then color them old-fashioned. To put it simply, the Touareg TDI is a V6 that performs like a high-end V8 but sips fuel like a four-cylinder.
But the American auto market can’t be captured solely based on dollars-and-cents and value, so VW threw in some very cool features that sounded gimmicky to me at first glance but over the course of the drive event in Tuscany started to actually improve the quality of the ride (and I shutter to admit, my abilities as a driver). The top two coolest features: Dynamic Light Assist and Area View.
Dynamic Light Assist means the headlights utilize a number of cameras built into the car to assist the driver in adapting to road conditions. Effectively, that means each headlight toggles independently to improve your view of the road and minimize glare. It’s a noticeable improvement with regard to visibility.
Area View means cameras, lots of cameras. When you put the car in reverse to back up at a light or to parallel park, you can rely pretty heavily on the view from the dashboard monitor. Yes, I think you should still take a look back first, but it’s a comfort knowing that you’ll never feel the need to park “by sound” again, especially if you’re driving an SUV in city traffic. This is really just the beginning of the Area View features, but you’ll have to check it out for yourself to see how intuitive this technology has become.
The redesigned Touareg TDI is the most fuel-efficient SUV in its class, and one could make a good argument that it’s also among the most feature-rich driving experiences of any SUV. There are flashy things that look cool, there are flashy features that enhance performance, and there are some that do both in such a way that increased safety. You’ll also find rear seats that fold down with a one-hand-on-one-lever maneuver, increased structural strength paired with a substantive decrease in weight, and an intuitive in-dash touchscreen monitor that pulls it all together in a way that makes all of these add-ons feel like an afterthought. I guess that’s what they mean when they talk about fun and design.
Clean Diesel or a Hybrid?
Volkswagen will also be releasing a hybrid model in time for late Fall 2010 (the 2011 model year). I got the chance to test drive this work-in-progress through the city streets of beautiful downtown Florence. With many of the same mechanical marvels under the hood as the TDI (8-speed transmission, European steering, dynamic headlights, cameras, etc) and the same streamlined body, the Hybrid model will prove an excellent option for those skeptics who are still unwilling to go for diesel – as well as for those who simply believe hybrid technology is the way to go.
My personal recommendation is still on the clean diesel option because it’s readily available now, it’s a tried-and-true technology (consumers have been driving them in Europe and elsewhere for years), and it’s an excellent value that’s substantively better for the environment than any standard petrol SUV – 40% emissions reduction is buzz-worthy. At a time when so many auto manufacturers are showing up in congressional hearings, VW has already invested in a green manufacturing plant being built to the highest possible environmental standard that will bring good jobs to Tennessee. Mix that in with a fun vehicle that looks as good in the rolling hills of Tuscany as it does in the city streets of Florence and you’re looking at the newly redesigned, leaner, and greener VW Touareg TDI.
