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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.

Audi A3-based people mover in the works

We have yet another announcement of yet another new Audi, including yet another obligatory quote from Audi research and development chief Wolfgang Dürheimer that there's room for it in the Audi range. On the sidelines of reports about the diesel-hybrid sports car, derived from the R18 endurance racer, there have been remarks about a possible MPV. Now Auto Express reports that said MPV "is on the way" and will be based on the A3 Sportback.
Previous speculation has posited either a six- or seven-seat people carrier; if the AE report is to be believed then five seats is the number that's been settled on. Planned to rest on a stretched version of the A3 platform, its wheelbase would be nearly eight inches longer than that of the A3 Sportback and it would compete against the Mercedes-Benz B-Class and the production version of the BMW Concept Active Tourer.
Audi is not going to dally about it, either, with a concept said to be ready for debut next year. Should it come, it would mean the A3 range comes pretty close to hitting for the cycle.

New Audi A5 to debut in Ingolstadt on June 2

Audi will introduce the second-generation A5 during a late-night lightshow at its Ingolstadt, Germany, museum on June 2. In the announcement, the company only called out the standard model, but a new S5 coupe is probably not too far behind. Details on the next A5 have been scarce, and spy shots haven't revealed much. Our most recent images come from June of last year and show a vehicle that more or less follows the current A5's theme – a two-door A4 with a few small visual tweaks to distinguish it from the sedan, including a wider stance. Expect an interior treatment very similar to the A4's as well. The new coupe's mechanicals should mirror those of the four-door as well. The A5 will likely stick with a 2.0-liter, turbocharged four-cylinder (the A4's currently makes 252 hp) and ditch the current car's eight-speed automatic transmission for a new seven-speed dual-clutch. Unlike the sedan, the coupe is likely to continue offering a six-speed manual, as it is positioned as a sportier option even if it shares the A4's platform. Front-wheel drive will be standard, while Quattro all-wheel drive will be the one to buy. The S5 should definitely offer a manual again, along with the S4's 354-hp turbo 3.0-liter V6 and standard all-wheel drive. A seven-speed dual-clutch will be an optional extra, again, just like on the S4. Timing of the new A5's arrival appears to have shifted. A leaked product roadmap originally called out April 2016 for the A5 and S5 hardtop and May 2016 for the Cabriolet versions. Based on the June 2 debut, it looks like Audi pushed those dates back, so we'd expect the new convertibles to make their debut sometime in July. The new A5 is pegged to arrive as a 2018 model. We'll have all the details on the new A5 Coupe when it debuts early next month. Related Video: