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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.

2017 Audi A4 2.0T Quattro Second Drive

Never mind the impending bubble burst, it's technology's time and Audi couldn't be happier. The 2017 A4 is the latest attempt to prove beauty and brawn can't beat intelligence outright. And this is the company's best case in 20 years. For two decades, the A4 has been the backbone of Audi's lineup and key in its resurgence in the post-Unintended Acceleration days. This car has managed to build up a successful following by being an alternative to the more popular BMW 3 Series and Mercedes-Benz C-Class while being nearly as good, if not actually better, than the competition. Audi chose to stake a claim in simple clothes covering technology that was more intuitive than some, being different without being difficult. But Audi is as much a part of the establishment as its big rivals now, so it's not getting any alternative breaks anymore. It's the young tech startup that's finally a grownup – and learned to dress like one. While Jonathon Ramsey got to drive this new A4 last fall in Italy, Audi sent me to San Diego last week to drive the US-spec model that goes on sale in a couple of weeks. And, in short, if you liked the old A4, you'll really like this one. If you liked the old A4, you'll really like this one. The fact this model is known internally at Audi as "B9" is a coincidence when you think about its exterior design. The new A4 is certainly attractive, but you'll have to be a huge Audi aficionado to differentiate this over the old car at a glance. And I dare you to find someone who's actually offended by any part of the design. Some creases lower down on the side of the new car help eliminate the bloated look of the outgoing model, without adding too much fuss. Audi still has Acura beat in the "precision" race. Other new details of note are a wider grille and slimmer headlights (xenons are standard, full LEDs optional) that make the front of the A4 look lower than before, and new sequential turn signals out back that are just fun to watch in traffic. Changes are far more noticeable inside. The tall, somewhat slab-sided dash of the old car is gone and replaced by something with a more airy feel that we've seen in the TT and Q7. There's less of a black dash to get in the way of the expansive windshield and generous side glass, all unusual in today's automotive landscape. You're going to enjoy the fact you can see out of the A4.

Updated Audi R8 GT caught testing

When Audi introduced the refreshed 2014 R8, one of the first things we noticed was that the new R8 V10 Plus offers identical output to the outgoing R8 GT, suggesting that this limited-production model was either due to be cancelled or poised for a serious power increase. Fortunately, these spy shots have us suspecting that the latter is more likely.
Like the previous R8 GT, this new model will likely hit the gym, dropping some weight and packing more punch, but while that's all speculative, we do see that better handling is definitely in the cards. Aside from the aero-improving chin spoiler, fascia winglets and fixed rear wing, this R8 also has upgraded brakes with bigger calipers and what appear to be cross-drilled ceramic rotors. We hear output could be increased from the current 560 horsepower up closer to the 600-hp range, and laid to the pavement via Audi's Quattro all-wheel-drive system. It also very likely that Audi will keep production numbers for a 2014 R8 GT rather low, with the outgoing model limited to just 333 units globally.