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VW fix would have cost $335 per vehicle

Since the Volkswagen diesel kerfuffle began, Bosch, the world's largest auto supplier, has been hooked up to a bullhorn trying to make sure everyone knows its side of the story. Bosch supplied VW with the engine management testing software, including delivery and metering modules, that VW then used to skirt emissions laws in the US. Bosch told VW in 2007 that it was illegal to use the software in cars it planned to sell yet VW did it anyway, according to reports coming out in German newspapers Bild am Sonntag and Frankfurter Allgemeine Zeitung. That first warning came two years after VW started developing the small-displacement diesel, around the time that the two men pushing its development, then-brand chief Wolfgang Bernhard and engineer Rudolf Krebs, were telling their superiors that the engine needed AdBlue urea injection to pass US emissions. VW cost controllers wouldn't approve the AdBlue solution because it would add 300 euros ($335 US) to the cost of the vehicle. Bernhard and Krebs left the same year that Bosch advised VW about the software, two years before the engine went into production. That's when things get cloudy. A report in Automotive News says that when Martin Winterkorn took over in 2007 as head of the VW Group and brand, he asked Ulrich Hackenberg and Wolfgang Hatz to keep working on the engine, and "[the] engine then ended up in VW Group diesels" with that problematic software still intact. No one has yet pointed any fingers at this latter chain of command, but like a game of Clue, right now they're the professors in the library holding the candlesticks. Warnings didn't only come from the supplier: Frankfurter says VW's initial investigation has found that an engineer issued the same caution to the company in 2011. Neither Bosch nor VW would comment on the reports.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Audi goes out of this world to sell R8 at the Super Bowl

Audi lets the new R8 V10 Plus blast off in the German brand's space-themed Super Bowl ad titled The Commander. The touching commercial puts a forlorn, retired astronaut behind the supercar's wheel, and he gets to relive the experience of leaving the bonds of Earth. Plus, David Bowie's Starman is the perfect choice for the score. Audi's ad makes the clever decision to link the supercar's rapid acceleration to a rocket launch in in viewers' minds. The spot also resonates emotionally because the retired astronaut only experiences the R8's performance because his son is worried about him. While not as humorous, we think the new spot does a better job of selling the R8's capabilities than the company's famous The Godfather Super Bowl commercial. The 60-second version of The Commander (above) will air during the game's first quarter. You can watch a 90-second cut below to enjoy a little more of the R8 and Bowie. SHOOTING FOR THE MOON, AUDI DEBUTS BIG GAME SPOT CALLED THE COMMANDER 60-second spot to air in first quarter of the big game Feb. 7 "The Commander" to feature the next-generation Audi R8, arriving in U.S. showrooms in Spring 2016 2016 marks return and eighth year for the brand as a big-game advertiser February 03, 2016 - HERNDON, Virginia -- Audi of America returns to the biggest night in football with a 60-second commercial titled "The Commander." A 90-second extended version of the spot is now live on the Audi YouTube channel. Featuring the all-new Audi R8 V10 plus, "The Commander" will air on Sunday, Feb. 7 during the first quarter of the Big Game. San Francisco-based Venables Bell & Partners created the commercial. "The Commander" tells the story of a retired astronaut who rediscovers his lust for life. Viewers watch as the man, surrounded by memories of the golden age of space exploration, sits solemnly, deep in reflection. When his son hands over the keys to a new Audi R8 V10 plus, he gets behind the wheel and relives the thrill of a rocket-like ride under the stars. Viewers watch as newfound life stirs within the Commander. Audi reminds us that amazing things happen when we shoot for the moon. The 2017 R8 is the fastest and most powerful Audi of all time. In its second generation, the all-new Audi R8 V10 plus has a top speed of 205 mph with a 3.2-second 0-60 mph time for "rocket-like" performance.