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Horn, Hackenburg, Hatz to be fired as VW diesel scandal deepens

Volkswagen will sack three more high ranking executives, including the head of its US division, as the company's diesel scandal deepens. Reuters reported Thursday morning that the executives are: Michael Horn, who has led VW's US operations since January 1, 2014; Ulrich Hackenberg, who oversaw Audi's research and development; and Wolfgang Hatz, who was in charge of R&D for Porsche. A VW spokesman wouldn't comment in response to an Autoblog email. The moves come in the wake of longtime VW chief executive Martin Winterkorn stepping down on Wednesday. Volkswagen's board said at the time that it expected more personnel changes to follow. Volkswagen's board is scheduled to meet Friday, and Porsche CEO Matthias Muller has reportedly been named as Winterkorn's successor. The German auto giant was plunged into crisis last Friday when the EPA charged that the company manipulated software in its diesel-powered cars to pass US emissions tests. About 482,000 vehicles in the US are affected, and VW estimates 11 million around the world could have the rigged software. The revelations have prompted outcry from governments and regulatory agencies, and in the US, Volkswagen could face a fine of up to $18 billion. The departure of Horn, Hackenberg, and Hatz is a stunning downfall for three of the company's top and most visible executives. Horn had led US operations for less than two years, taking over from Jonathan Browning, who was well-respected but failed to reach VW's ambitious sales targets. Before overseeing Audi R&D, Hackenberg was hailed as a visionary for work in developing VW's modular architectures, which allow the company to save time and money by building many vehicles off the same chassis. Hatz had led Porsche R&D since 2011 and also was in charge of engines and transmission development for all of Volkswagen. Related Video: News Source: ReutersImage Credit: Getty Images Government/Legal Green Hirings/Firings/Layoffs Audi Porsche Volkswagen Emissions Diesel Vehicles vw diesel scandal vw diesel ulrich hackenberg michael horn wolfgang hatz

Audi SQ5 comes to America with 354-hp gasoline engine

When we first saw the Audi SQ5 TDI unveiled back in June, we could feel that pit in our stomach. Here sat a powerful, sporty, mean-looking crossover, and we just knew that Audi wasn't going to be bringing it to the US. And we were right. While we won't be getting the diesel version of this crossover with its 479 pound-feet of torque, we will instead be getting a gas-powered, supercharged V6 - the same powertrain as the S5 - and that's a mighty fine consolation prize if you ask us. The US version of the 2014 Audi SQ5 will debut next week at the Detroit Auto Show, and it will go on sale this fall.
Ditching the diesel engine, the US-bound SQ5 loses some torque but gains plenty of horsepower with Audi quoting power ratings of 354 horsepower and 346 lb-ft from the supercharged 3.0-liter V6. Power is fed through an eight-speed automatic to all four wheels giving the small CUV impressive performance numbers. The 0-60 mile per hour time is expected to be in the low five second range to go with an electronically limited top speed of 155 miles per hour. The suspension has been upgraded as well to improve handling, but it also gives the SQ5 a sportier appearance with a ride height that has been lowered by more than an inch compared to a standard Q5.
Speaking of styling, the 2014 SQ5 gets all of the expected "S" model upgrades, especially when it comes to the new front fascia and grille, the standard 20-inch, triple-spoke wheels and the quadruple exhaust tips. Only two colors will be available on the SQ5: Panther Black and Estoril Blue. Inside, the SQ5 will get a sportier cabin with bright, "aluminum-look" pedals and shift paddles, and the materials will also get an upgrade to include Nappa leather and Alcantara as well as accent options that include carbon fiber, piano black, aluminum or wood finish.

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.