Allegations of corruption at Volkswagen's home office didn't stop the German automaker from achieving record worldwide sales in 2005. The company reported 5.24 million deliveries in 2005, up 3.2 percent from 2004. News wasn't so good in the U.S., however, as sales dropped 12.5 percent to 224,195 in 2005 from 256,111 in 2004. Though U.S. sales of the compact Jetta sedan increased, all other VW models showed declines.

Recently, VW announced a massive restructuring plan with up to 20,000 job cuts. It's aimed at improving overall profits and righting U.S. sales.

To try and reverse those fortunes, Volkswagen unveiled a redesigned 2007 Golf hatchback at the 2006 Chicago Auto Show.

2007 Volkswagen Golf
2007 volkswagen golf 2007 volkswagen golf 2007 volkswagen golf
2007 volkswagen golf

Click here for a video review of the new Volkswagen Golf.

Volkswagen introduced a redesigned version of its Golf hatchback at the 2006 Chicago Auto Show. A perennial best-seller in Europe, Golf comes to the U.S. on the heels of the recently launched sporty GTI hatchback.

Volkswagen will continue to offer 2-door and 4-door variants, with the redesigned versions based on the 2005 Jetta sedan platform. This means the new Golf has more passenger and cargo room than its predecessor. It also shares the Jetta's 150-horsepower, 2.5-liter 5-cylinder engine and standard 5-speed manual transmission. A 6-speed automatic is available. An independent rear suspension is a Golf first. ABS, front side and head-protecting curtain side airbags are standard. Stability control is optional. Prices weren't announced, but expect them to be comparable to 2006 models. The '07 Golf is scheduled to reach dealers in June.

2006 Chicago Auto Show

Auto show video