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California orders VW Group to fix 15,000 3.0L diesel vehicles

The California Air Resources Board has ordered Volkswagen to come up with a plan for repairing approximately 15,000 cars sold in the state that contain illegal software that may circumvent emissions testing. In a letter sent to Volkswagen Group of America and several company brands, CARB's chief emissions officer says the company has 45 business days to submit a recall plan that will fix affected Volkswagen, Audi, and Porsche models equipped with 3.0-liter diesel engines sold in the state since 2009. "We expect full cooperation in this investigation so this issue can be addressed expeditiously and appropriately," wrote Annette Herbert, chief of emissions compliance. The violations first surfaced in a meeting last week between California regulatory officials and Audi executives. In that meeting, Audi admitted certain versions of A6, A7, A8, Q5 and Q7 models contained three previously undisclosed auxiliary emissions control devices. An auxiliary device is not necessarily the same as a defeat device that intentionally cheats on emissions testing, but Audi and other affected brands hadn't disclosed the existence of the AECDs, which is a violation of the state's health and safety code. Had they been disclosed prior to vehicle certification, there's a possibility CARB may have approved use of the devices. In a statement Wednesday, CARB did not elaborate on whether it considered the three devices mere AECDs or defeat devices. When Volkswagen submits its plan to fix the cars, CARB says it must include an assessment of how the repairs will affect fuel economy, performance, drivability, and the safety of each vehicle. The 15,000 cars affected in California are part of roughly 85,000 nationwide which contain the affected 3.0-liter engines. The US Environmental Protection Agency may soon address how it expects Volkswagen to fix the remaining cars. "EPA and CARB are working closely and continue to investigate following the admission by Volkswagen that the issues EPA identified in the November 2nd NOV (Notice of Violations) extend to all 3.0-liter diesel Volkswagen, Audi, and Porsche vehicles," an agency spokesperson said in a statement Wednesday. "EPA will take all appropriate enforcement action." The 3.0-liter developments, of course, come on top of the company's September admission that 482,000 diesels equipped with 2.0-liter engines contain defeat devices that detect emissions testing and alter the cars' performance.

VW sales increase 0.6% in September despite diesel scandal

Volkswagen was spared in the month of September from posting a sales disaster, but in reality, the impending doom and gloom is likely just postponed until October. According to VW, it delivered 26,141 vehicles to its dealerships last month, which represents a 0.6-percent gain over the same period a year ago. While up, that meager increase represents the smallest uptick of all major brands in the United States, which is currently in the middle of the best vehicular sales year in the last decade. Audi, the German automaker's mainstream luxury unit, saw a bigger gain at 16.2 percent with 17,340 total units sold, thanks in large part to the popularity of its crossover models. These numbers can't totally be taken at face value, however. In 2014, Labor Day weekend was counted as part of August's sales figures; in 2015, that traditional car-buying holiday fell early in September and is therefore partly responsible for the huge increases from all brands doing business in the United States. Remember, the diesel emissions scandal didn't hit the news until September 18, which means VW was free to sell its 2.0-liter TDI engine for the majority of the month. In other words, October is going to be the real indicator of sales reckoning as it will be the first full month that the brand can't sell its popular diesel models and the first since its emissions scandal broke. Still, TDI sales were down last month. VW reports a total of 3,060 sales of vehicles equipped with TDI engines, which represents 11.7 percent of total volume. That's nearly cut in half from the TDI's year-to-date volume percentage of 20.4 percent. "We would like to thank dealers and customers for the support of the Volkswagen brand," said Mark McNabb, chief operating officer for Volkswagen of America in a statement. "Volkswagen will continue to work diligently to regain trust and confidence in our brand." It's not yet clear exactly when VW will issue a fix to make its 2.0-liter TDI engine emissions legal, or when the EPA will recertify those models for sale. Once those two things happen, dealers will again be free to sell vehicles equipped with the powertrain, but even then it remains to be seen how consumers react when the sales ban is lifted. Scroll down below for all the sales data from Volkswagen in September.

Why Audi is staking its future on electric SUVs

This much we know: SUVs and crossovers sell like hotcakes. The body style has become such a juggernaut that for the first time in recorded history, sport utes beat out sedans this year to score the biggest slice of the luxury pie. Love 'em or hate 'em, SUVs are here to stay, and carmakers are investing more than ever in the segment. Sport utility vehicles also played a bigger role than you might think in making Audi relevant in the US, and based on what we learned during a sit-down with Audi of America president Scott Keogh at the Paris Motor Show, their role is only going to continue to grow at the automaker. Last year, the brand sold 202,202 cars in the States, capping off 60 consecutive months of record sales. But it's not enough to focus on traditional SUVs like the Q5, which was launched on the heels of the global economic meltdown in a tiny small segment of around 160,000 vehicles and has since ballooned to over 400,000 units. The Q5 has scored 80 percent of its buyers from conquest, and a new plant in Puebla, Mexico, promises to churn even more units to the US and the world. Still, tackling the future head-on can be like wrestling an eel – an elusive, almost impossible-to-execute challenge – and Audi is betting a huge part of that success will be the production version of the E-Tron Quattro Concept that debuted last year in Frankfurt. Internally referred to as the C Bev, this battery-powered SUV claims a 311-mile range, and might as well be nicknamed the Tesla Model X Killer. "If you look at where this car migrated from," Keogh says, "it started as a European-ish city car, and then it migrated into a sedan-ish sportback-y type thing, and then we pushed very aggressively to make it an SUV." Keogh says the vehicle will hit showrooms "after 2018." The SUV layout naturally lends itself to batteries, but it also boils down to a simple bureaucratic advantage: "We get [government CO2 and fuel economy] credits for volume," says Keogh. "It's not just enough for a car to be there, it's got to be a car that a lot of people want to buy." Sized between a Q5 and a Q7, the E-Tron Quattro resides in a target-rich environment, a 600,000 - 700,000 unit segment. Add Audi's goals of electrifying 25 percent of its lineup by 2025, and a high volume, medium/large SUV simply makes sense.