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The 2007 Volkswagen Jetta, which will be available in fall, will have a lower price than last year’s version. It wil start at $17,120, including a $630 destination charge. The 2006 Jetta started at $18,530, including destination.

Volkswagen spokesman Tom Wegehaupt said, “We lowered the price to be more competitive in the segment”.

The new Jetta also gets an optional iPod adapter, simplified cruise control, an optional premium sound system and a standard tire-pressure monitoring system.

The German automaker dropped the diesel Jetta and the 1.9 TDI diesel New Beetle for 2007. Wegehaupt said all-new common-rail diesel technology will be forthcoming on the New Beetle for the year 2008. He said the new 2.0-liter diesel engine is estimated to deliver 140 horsepower and more than 200 pound-feet of torque.

Volkswagen also announced a special model of the New Beetle is planned for 2007. It will be a white-on-white model that will go on sale in spring 2007. It will feature a white interior and exterior and a white trunk lid, although the top will be black.

After their initial meeting in New York ended positively, PROTON Holdings Bhd and Germany’s Volkswagen AG are due to hold new talks according to Prime Minister Datuk Seri Abdullah Ahmad Badawi..

The two car makers could probably meet in Bangkok regarding a long-term strategic partnership, he said yesterday.

The government have been looking for another alliance for Proton since 2004. The Malaysian car company recently posted its maiden annual loss in 15 years will be needing the new parter to come up with new models and to increase their sales.

“The fact that they want to have another discussion means both sides were happy with the first results. Both sides are in positive mood. I don’t have the details yet. I need the details before I can say anything. Otherwise there will be further speculation and this will not be good,” said the Prime Minister after launching the 2007 National Imams Conference in Universiti Kebangsaan Malaysia in Bangi, Selangor.

On May 31, Proton reported its first-ever annual loss for fiscal 2007 since its listing in 1992. On the same day, Abdullah said Proton should talk to other firms since Volkswagen was not interested in a proposal from Proton. His comment had jolted the parties into action, which resulted to a meeting in New York last week.

On June 1, Second Finance Minister Tan Sri Nor Mohamed Yakcop said the Government will decide on who will be the partner for Proton in the next three months.

Earlier this month, reports from a local paper came out that Volkswagen is set to buy 51 percent stake in a newly formed unit that will own Proton’s manufacturing, research and development and engineering divisions. After Edge Financial Daily reported this matter, Proton stock supposedly rose as much as 21 percent. The same news report also said that Sime Darby will buy a 43 percent stake in Proton Holdings from a Malaysian state investment company, Khazanah Nasional Bhd.

The Malaysian Government is still open to foreign car makers like Germany’s Volkswagen and US-based General Motors.

Nor Mohamed said that all the parties involved must “move fast” to resolve the problem at Proton, a 43 percent unit of Khazanah Nasional Bhd.

Once the car industry’s market leader, Proton’s market share has dwindled due to stiffer competition at home. Analysts have said that it needs a foreign partner to improve sales locally and abroad.

Khazanah managing director Datuk Azman Mokhtar said that talks with Volkswagen are still ongoing. Apart from Volkswagen, General Motors is also interested to partner Proton. “We want resolution soon. The team is working and meetings will be set for this month with the interested parties. For the local parties, the door is open to them. Khazanah is willing and able to sell some equities (in Proton),” he said at a media briefing in Kuala Lumpur.

The Government had earlier missed a March 31 deadline to find a suitable partner for Proton.

Shares of Proton closed 2.4 per cent, or 15 sen lower, at RM6.10 yesterday.

Volkswagen Group Award 2007 was given to Autoliv Inc., a worldwide leader in automotive safety. Volkswagen’s CEO, Professor Dr. Martin Winterkorn presented the award to Autoliv and to 25 other suppliers that have “played a decisive role in research & development, product quality, logistics, environment or entrepreneurial performance”.

“Our thanks go to all representatives of the award winner suppliers, but in particular to all the associates in their plants that have made outstanding efforts,” said Professor Winterkorn at the award ceremony.

Autoliv received its award in recognition of entrepreneurial performance in product innovation, cost optimization and process improvement.

“We are honored and delighted to be recognized for our contributions to Volkswagen,” said Franz Xaver Weiss, Vice President and responsible for Autoliv’s global Volkswagen business. “This achievement is possible because of the hard work and dedication of all members of our Volkswagen team, as well as Autoliv’s other 42,000 associates globally who consistently strive to keep Autoliv in the worldwide leading position in automotive safety.”

Autoliv has partnered with the Volkswagen Group (Audi, Seat, Skoda, Bentley and Lamborghini) for more than 15 years, providing airbag and seatbelt products across a variety of platforms. “This award recognizes our commitment to supporting Volkswagen as a partner in quality, cost and development. I’m sure there will be new challenges also in the years to come, but I’m convinced that we will be able to manage them with success,” said Weiss

Autoliv has received a record number of 14 awards from customers for its achievements during 2006. In addition to this award from Volkswagen, the Company has received one award each from Honda and Hyundai-Kia, two awards from General Motors, four awards from Ford and five awards from Toyota.

Volkswagen executive board member, Horst Neumann said yesterday that the German automaker plans to take further steps in improving productivity.

The company wants to increase car sales and plans to do more development and production itself rather than outsourcing activities to suppliers. Neumann said that Volkswagen plans to produce 27 vehicles per employee in 2007, up from 24 the previous year.

“A closer connection between development, purchasing and production is a major target,” said Neumann in a staff meeting at the company’s headquarters in Wolfsburg.

Neumann admitted that the utilization of the company’s plants has made a big step forward but there are still some challenges.

As part of a wide-ranging cost-cutting program, another 10,000 employees will go into early retirement by 2012, Neumann said. He also said that Volkswagen “urgently needs to find a connecting arrangement” for the time after the current early retirement program. The “international competitive pressure, especially for industrial workers, will remain extremely high,” Neumann noted.

According to earlier company statements, Volkswagen will cut 5,000 jobs between 2007 and 2009 as part of its overall restructuring effort, which includes cutting a total of 20,000 jobs. The job cuts will be done through early retirement and won’t require any layoffs.

In March, Neumann had said the program to cut 20,000 jobs could be completed in 2012 or 2013, adding that he doesn’t see any need for further cutbacks at the moment.

A labor deal signed in November 2004 rules out compulsory layoffs until the end of 2011.

Volkswagen’s headcount reduction follows similar moves by Western automakers such as General Motors Corp., Ford Motor Co. and DaimlerChrysler AG. These car companies have announced plans to cut thousands of jobs to reduce costs and regain competitiveness despite high raw-material prices and the growing challenge from Asian rivals.