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VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

Audi planning A9 electric vehicle to challenge Tesla

It looks like we have another "Tesla Fighter" on our hands. Various higher-end automakers have announced plug-in luxury sports sedans that would likely take on the California-based electric-vehicle maker, and Audi now appears to have joined that group. The badge is A9, and it may be available to the public by the end of the decade, UK's Autocar reports. The Audi A9 E-Tron could be a beast. The car will deliver 429 horsepower via three electric motors – two driving the front wheels, one driving the rear. The sedan will be equipped with a 95-kilowatt-hour battery that will enable a 310-mile single-charge range (on the more generous European driving cycle). Lots of parts and features will be shared with the battery-electric SUV Audi is also planning. Where it really gets fun is the prospect of the sedan having "torque vectoring," in which power can be shifted from side to side in order to boost handling. Additionally, the car could have a wireless, inductive charging option as well as an auto-parking feature for positioning over the floor-mounted charging module. No word on how this car will be priced, but we're guessing quite high. Audi CEO Rupert Stadler has gone on record saying that the German automaker wants to have three all-electric models available to the public by 2020, though hasn't said anything specific about a high-end battery-electric sedan that would be geared to take on the Tesla Model S. The company did introduce its E-tron Quattro concept last year, though, and Audi has said it aims to have as much as 25 percent of its sales be of the plug-in variety by 2025. There's a chance for that if the A9 e-tron is as enticing as it appears to be. Related Video:

Audi Nanuk Quattro Concept is a wild surprise ahead of Frankfurt

Volkswagen Group Night ahead of the Frankfurt Motor Show always has some surprises, the first of which this year is the Audi Nanuk Quattro Concept. The all-wheel-drive, turbo-diesel-powered supercar is similar to the Giugiaro Parcour Concept that was unveiled earlier this summer. In fact, the Parcour's creator, Italdesign Giugiaro, penned the Nanuk, and we suspect much of the former found its way into the latter - with some changes, of course.
The diesel engine, a departure from the Parcour, is a twin-turbocharged 5.0-liter V10 TDI unit that develops 544 horsepower and a hole-digging 738 pound-feet of torque, which make the 4,189-pound all-road vehicle able to dispatch 0-62 miles per hour in 3.8 seconds and go on to a 190-mph top speed. Fuel consumption is a relatively low 30 miles per gallon for a car with this much performance.
The Nanuk showcases Audi's Quattro, though it uses a specially designed version of the all-wheel-drive system to get the job done. Audi's next generation of adaptive air suspension is featured as well, which fits the crossover nature of the Nanuk. Drivers are given a range of 2.76 inches of height adjustment, though Audi doesn't mention the car's minimum or maximum ground clearance.