Auto blog

Audi CVT suit settlement given green light, 64,000 cars covered

Audi drivers, listen up. If you bought or leased a 2002-06 model-year A4 or A6 with a factory-installed Continuously Variable Transmission (CVT) that failed, you may be entitled to reimbursement under a recently settled class-action lawsuit with corporate parent Volkswagen.
According to Automotive News, the settlement covers about 64,000 vehicles and alleges that "manufacturing and design problems caused the transmissions to fail and left owners stuck with repair costs." While the suit also argues Audi was aware of these issues (going so far as to hide that knowledge from consumers), the settlement stops short of acknowledging any wrongdoing by the German automaker.
Audi drivers are eligible for a cash reimbursement if their CVT repairs occurred within 10 years or 100,000 miles of the date they bought or leased the vehicle before June 19, 2013. To be eligible for compensation, drivers must submit a claim form (found here) with supporting documents by November 18.

2015 Audi Q3 is ready to woo America's young and upwardly mobile

You can hardly blame Audi for its decision to finally bring its Q3 compact crossover to America, even though it's been on sale in other global markets since 2012. CUVs of all stripes are red hot, and the number of players in the US entry-level premium segment is mushrooming. Rapidly growing Audi simply can't afford to be left out of the discussion in favor of vehicles like the BMW X1, Land Rover Range Rover Evoque, and even small near-luxury entries like the Buick Encore, if only because capturing these customers could result in subsequent sales of more profitable models down the road.
Audi evidently intends to attract these new, younger customers by spoiling them in decidedly unGermanic fashion: by offering lots of standard equipment. Peruse the spec sheet on base models from rivals and you'll see things like manually adjusted faux leather seats, conventional projector headlamps, and little in the way of frills. By comparison, the 2015 Q3 comes with an embarrassment of standard features, including heated and power-articulated leather seats, panoramic moonroof, Xenon headlamps with LED accents and keyless start.
First impressions of the four-cylinder, 200-horsepower Q3 revealed here at the Detroit Auto Show are very positive, with a rakish (if overly familiar) shape and a fair amount of utility with up to 48.2 cubic feet of storage with the rear seats folded. If Audi can price the Q3 similarly to the entry-level BMW X1 sDrive28i ($31,825 delivered) when it arrives this fall, we think it'll sell like hotcakes - just like its Q5 big brother.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.