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How should Volkswagen deal with its diesel problems?

The hounds of hell are bearing down on Volkswagen in the wake of allegations of cheating on diesel emissions testing. In just a single day, Volkswagen's stock has dropped 23 percent and the German government has announced that it is going to investigate a far larger number of vehicles over emissions violations. The American storm is quickly becoming a global one. Volkswagen sells over a million diesel vehicles a year and also has more than 13 percent of the automotive market overall – it was the number one automaker in the world up until the scandal. Yet in a matter of hours, Volkswagen has also become a pariah with potential fines and recalls that may be dwarfed by how the alleged lies and deceit change how governments and consumers view the company. Consumers are really going to be the key to the company's survival. It's those consumers who are really going to be the key to the company's survival. Every single one of them now finds themselves with a product that was sold illegally and may not be registered until recall work is done. What's worse is that Volkswagen doesn't yet have a solution for the emissions issue to offer these customers. It should also be noted that this is not the first time Volkswagen has found itself in violation of EPA emission regulations. Volkswagen is in a world of trouble, so what now? As a car dealer and former financial analyst who took several companies public, I believe Volkswagen can and should consider three points of action that would make an enduring difference in the times to come. 1. Offer affected TDI owners a compelling reason to stay with the brand. Recall work and a cup of coffee at the dealership are not going to be enough to placate current owners. Volkswagen should provide compensation for customers at the earliest opportunity and offer some type of inducement that keeps them within the fold. This shouldn't be the industry's version of a Chuck E. Cheese coupon - a small discount on a new vehicle. Volkswagen needs to offer something along the lines of a strong warranty extension of the entire powertrain (not just the emissions system) or some type of valuable feature upgrade for these vehicles so that owners feel that they have been treated fairly. Perhaps a combination of a brand new navigation system, software upgrades for the infotainment components, or some type of basic free WiFi service would be a healthy act of generosity.

Looking for meaning in Audi killing off its $1m electric supercar

Audi's most ambitious - well, most expensive, anyway – electric vehicle is no more. After building fewer than 100 of them (perhaps a lot fewer), Audi has cancelled the R8 E-Tron. Maybe it was the million-dollar-plus price tag. Maybe it was the " supreme hand-built quality." Maybe it was the fact that a non-electric R8 could be had for $164,150. Whatever the reason, was killing the R8 E-Tron a good idea? The R8 E-Tron would have been a good halo vehicle for the brand Here's the case for this being a shortsighted move. As we all know, the VW Group – and Audi especially – is in the middle of an electrification kick, and the R8 E-Tron would have been a good halo vehicle for the brand. Instead, it can stand as a prime example of waffling on the promise of plug-in vehicles. After all, Audi used to be incredibly proud of the R8 E-Tron, even if it had a tough history. The whole program was an on-again/ off-again kind of thing, but with enough momentum to get the EV some time at the Nurburgring. With both Mercedes and the EQ brand and BMW with its i brand moving strong into EVs, letting the headline be "Audi killed an EV" is not exactly fitting. It's not like Audi was wasting time making a lot of these. The R8 E-Tron went on sale in 2015 to customers who made a special request for it, and apparently only 100 did. But let's stop there. Getting 100 people to plunk down a million dollars or so for a car totals up to be a lot of money. There's no reason for Audi to price the car this high (forerunner vehicle programs almost always lose money for a time, just ask Toyota RE the Prius), but it did. And $100 million (if almost 100 were indeed sold) is nothing to scoff at, is it? It obviously wasn't enough to keep the lines and tooling open for this limited vehicle, and that sort of opens up a bigger question. Does the end (the second end, really) of the R8 E-Tron say something more important about EVs? Are they becoming less exotic high-end fixtures and more everyday transport? In a world full of Bolts and Ioniqs and E-Golfs – so, the world of 2017 and beyond – does a super high-end EV have any meaning? Gas-powered cars have managed to pull this off for decades, with Lamborghinis and Maseratis surviving just fine even with millions of Corollas out there. In a more-developed EV ecosystem, expensive EVs like the R8 should be able to do the same. Just not right now.

2015 Rolex 24 at Daytona pre-race notes

Reigning Indy 500 champion Ryan Hunter-Reay summarized our feelings on every year's Rolex 24 Hours at Daytona when he said, "The 24 kind of kicks off the year and has become part of my calendar... It definitely helps you get in race shape after a long layoff." Speaking of IndyCar drivers, 14 of the 33 pilots who started last year's Indy 500 are driving in Daytona this year, and an IndyCar driver has been part of the overall winning team for the last four years. The race starts at 2:10 pm Eastern Standard Time, here's where you can watch it: 2-4 pm: Fox Sports Network 4-8 pm: Fox Sports 2 8-10 pm: Fox Sports 1 10 pm-7 am: IMSA TV on IMSA.com - commentary available here for the full 24 hours 7 am – 2:30 pm (Sunday) – Fox Sports 1 Timing and Scoring Andy Blackmore's typically awesome Spotter's Guide Video primer on the four classes: Prototype (16 in this year's race), Prototype Challenge (8), GT Le Mans (10), GTD (19), and how to identify them. Daytona International Speedway: tri-oval with an infield road course, 3.56 miles long, 12 turns Entry list Qualifying results We've tagged along with Audi for the 53rd running of the race, which marks the first event in the Tudor United SportsCar Car Championship. After a difficult first year of teething – IMSA president and COO Scott Atherton said, "Everybody on our staff and everybody that raced with us last year would tell you it was the most challenging season on record" – some things are smoother this year, some things aren't, starting with the field: 53 cars are expected to line up, 14 fewer than last year, the smallest field since 48 cars lined up in 2011. The Prototype class shed three teams from 2014 and the GT Daytona class lost ten, so there's a 19-car field in that class (nine Porsche 911 GT Americas, three Ferrari 458 Italias, two each of the Aston-Martin V12 Vantage, Dodge Viper SRT, Audi R8 LMS, and one BMW Z4). Truth be told, last year's number was probably inflated by having the previous American Le Mans Series and Grand-Am Rolex Sports Car Championship combined to make the USCC; the field in 2013 was 57 cars, in 2012 it was 59 cars. Another factor in this year's race is that the GT class adopts FIA GT3 rules from next year. Brad Kettler, manager of Audi's customer motorsport program, said they'd sold five R8 LMS cars last year but zero for this year – there are undoubtedly teams waiting on the sidelines for the rules unification before spending the money.