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VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.

Feds allege widespread Volkswagen cheating on clean-air rules

Volkswagen intentionally installed software in nearly a half-million diesel vehicles that helped the cars evade substandard results on emissions tests, the federal government charged Friday. The Environmental Protection Agency issued a notice of violation to the German automaker, saying the company's software broke the law by violating two provisions in the Clean Air Act. Circumventing the standards meant affected cars emitted as much as 40 times the allowable level of certain pollutants. Both the EPA and California Air Resources Board have launched investigations. In its notice of violations, the EPA said Volkswagen officials admitted to installing and concealing what they call a "defeat device," which was designed to detect when the cars were undergoing official emissions tests – and only turn on emissions controls during that time. "Our goal now is to ensure that the affected cars are brought into compliance, to dig more deeply into the extent and implications of Volkswagen's efforts to cheat on clean air rules, and to take appropriate further action," said Richard Corey, executive officer of CARB. The allegations cover approximately 482,000 vehicles sold in the United States over the past seven years. Cars involved include diesel versions of the Jetta, Beetle, Audi A3 and Golf manufactured between the 2009 and 2015 model years. Passats manufactured for the 2014 and 2015 model years are also included. Federal officials note there is no safety danger to motorists, but the cars will be recalled for repairs. If true, Volkswagen faces a fine that could run in the hundreds of millions of dollars -- likely higher than the $300 million charge the EPA levied last November at Hyundai and Kia for exaggerating the fuel-economy in several models. The charges also put a tremendous dent into the company's plans to increase sales of its "Clean Diesel" vehicles in North America. In a written statement, Volkswagen Group of America acknowledged it had received the notices from the EPA and CARB. "VW is cooperating with the investigation; we are unable to comment further at this time," it said. Federal officials said the defeat-device software was uncovered during an independent analysis by researchers at West Virginia University, who in working with the International Council on Clean Transportation, a non-governmental organization, raised questions about emissions levels.

Audi rolls out new A6 L E-Tron hybrid for China

Audi is expanding its range of hybrid models with the introduction of the A6 L E-Tron at the Shanghai Motor Show. It's earmarked specifically for the Chinese market and is based on the long-wheelbase A6 L already produced there. The new E-Tron model marries a 2.0-liter turbo four good for 211 horsepower and 258 pound-feet of torque to an electric motor with 122 hp and 162 lb-ft integrated into the eight-speed automatic transmission. A lithium-ion battery pack provides 14.1 kWh power. Mounted in the trunk, it limits cargo capacity to 11.9 cubic feet. The system produces net output of 245 hp and 369 lb-ft – enough to send the long-wheelbase hybrid to 62 miles per hour in 8.4 seconds en route to a top speed of 130 mph. All the while, it'll return 106.9 miles per gallon by the Chinese standard, traveling over 30 miles on electric power alone (at speeds of up to 83.9 mph) and up to 546.8 miles without needing to stop. The A6 L E-Tron is one of three new hybrids Audi is showcasing in Shanghai this year, alongside the Q7 E-Tron and Prologue Allroad concept. Ingolstadt, 2015-04-16 The new Audi A6 L e-tron for China - First Audi plug-in hybrid model from Chinese production - Output of 180 kW (245 hp) with extremely low consumption - 50 km (31.1 mi) electric range and total range of 880 km (546.8 mi) With the A6 L e-tron, Audi is taking an important step toward even greater fuel efficiency in China. The sedan has been developed specifically for the Chinese market. Its plug-in hybrid drive with 180 kW (245 hp) provides for powerful performance. The model consumes on average just 2.2 liters of fuel per 100 kilometers (106.9 US mpg). After launching the e-tron era in China with the imported A3 Sportback e-tron* in 2015, Audi is taking the next step with the local production of the A6 L e-tron beginning in 2016. The model is based on the long version of the Audi A6, which is already built in China, and is configured as a highly efficient parallel hybrid, meaning that its two drives are arranged one directly behind the other. The 2.0 TFSI is a state-of-the-art, four-cylinder, gasoline engine producing 155 kW (211 hp) and 350 Nm (258.1 lb-ft) of torque. The disk-shaped electric motor provides 91 kW and 220 Nm (162.3 lb-ft) of torque. Together with a decoupler, this is integrated into the eight-speed tiptronic transmission, which transfers the power to the front wheels. System output is 180 kW (245 hp); maximum system torque is 500 Nm (368.8 lb-ft).