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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.

Next-gen Audi S7 looking hot in Southern Europe

Development on the next-gen Audi S7 is in full swing. The handsome hatchback is still popular, even if it is starting to show its age, so we have high hopes for the new model. We have some new spy photos of the car performing hot-weather testing in Southern Europe. We don't have many details or a firm release date, but there are a few things we can pull from these pics. The new model looks like it will retain the same general shape as the current one. That's a good thing, as the A7 is one of the best looking vehicles on the market. The long and flowing roof, frameless doors, and long wheelbase all look to be present. There are hints of the Audi R8 from the A-pillar forward while the large grille looks exactly like the on new Audi A8. Many of these design elements are straight off of the Audi Prologue concept from a few years back. Like other Audi S models, the S7 has a wide bumper with large intakes at the bottom corners. A chin spoiler appears to channel air down under the car. Around the side, we can see big wheels and brakes. There are side skirts along the bottom. Out back, it has the requisite quad exhaust tip, a dead giveaway that this is an S model. Lighting both front and rear appears to be LED. What rests under the hood is arguably the car's biggest mystery. We can count on Quattro all-wheel drive and an eight-speed automatic, but we don't know if it will have a turbocharged V6 or V8 under the hood. At this point, both seem equally likely. Horsepower and torque should both be in the mid-400 range while 0-60 mph times should be around 4.5 seconds. Look for more news this fall. Related Video: Featured Gallery Audi S7 Spy Shots View 12 Photos Image Credit: CarPix Spy Photos Audi Luxury audi s7

Overnight action from the 24 Hours of Le Mans

We won't go into a recap here, but there are still leading positions being fought for in all classes - it's so close that leads are changing when a car goes into the pits. We'll let the recap wait until the end of the race, so for now enjoy some shots from last night's action at the 24 Hours of Le Mans.