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Winterkorn kept diesel scandal secret, letter claims

Former Volkswagen Group CEO Martin Winterkorn allegedly kept quiet for two weeks about emissions defeat devices in the company's models. US officials eventually made the automaker's deception public on September 18th. "In the conversation on 03.09.2015 with the regulator CARB (California Air Resources Board), the defeat device was admitted," an employee told Winterkorn on September 4, according to Reuters citing Germany's Bild am Sonntag. Based on this information, Winterkorn had plenty of time to admit the problem. Evidence like this letter continues to suggest top figures knew about the emissions problem. In addition, a separate Bild am Sonntag report recently claimed that an employee emailed Winterkorn in May 2014 to tell him US regulators could discover the cheating. In the lower echelons of the company, the deception was allegedly an open secret among engineers as early as 2006, and people kept quiet even after workers tried to admit what was happening. This culture of secrecy seems to go even deeper than just the diesel emissions scandal. For example, engineers admitted that they cheated on CO2 tests to meet the company's strict standards. According to Green Car Reports, these problems also affected the US. In 2004, an Audi worker in America allegedly discovered an issue with the exhaust gas temperature sensor in some vehicles, but a German executive said not to admit the problem to US regulators. It's not clear whether any high level employees tried to fix the diesel emissions issue or if they simply kept the problem hidden. The company's internal report, which is due in the latter half of April, might address that concern. So far, the VW Group has said only a small group of people caused the scandal. However, these many allegations to the contrary make that claim difficult to believe. Related Video:

VW stock plummets as Euro markets open

The fallout from Volkswagen's installation of an emissions "defeat device" on nearly 500,000 diesel-fueled models in the US is already hitting the automaker hard on the German stock exchange. At one point, the share price plummeted 23 percent to erase the equivalent of $17.6 billion in value. Things eventually bounced back slightly to a still severe 19.23 percent loss, according to Bloomberg as of this writing. The scandal couldn't come at a worse time for chairman Martin Winterkorn. The VW supervisory board takes up the issue of renewing his contract on September 25, Bloomberg reports. If things get bad enough, the door could be open for a new boss to step in. Dealers in the US might start feeling the pain from this, as well. Affected 2015 VWs that are still at showrooms are now under a stop sale. Until the issue is straightened out, the Environmental Protection Agency isn't certifying the company's 2016 diesel models with the 2.0 TDI, either. The diesel emissions problem was first discovered by research from West Virginia University and the International Council on Clean Transportation. In some cases, the engines can produce 40 times more nitrogen oxides than allowed. The automaker could be on the hook for $18 billion in fines for the breach, but the actual figure is expected to be lower. In response, Winterkorn has issued a public apology and ordered an independent investigation into what happened. The EPA and California Air Resources Board have also been looking into the situation. This could become an international problem, though. According to The Detroit News, European authorities might begin similar inquires to check the automaker's diesel emissions there.

The 2018 Audi RS3 sedan priced above the BMW M2 and Mercedes CLA45 AMG

Today, Audi finally released pricing for the 2018 RS3 sedan and it's not quite the performance bargain you may have been hoping for. The RS3 sedan, available for the first time in the US, will start at $55,875 when it hits dealer lots later this year. That's thousands more than the competition from BMW and Mercedes-Benz, though it's not quite a straight one-to-one comparison. View 23 Photos For reference, a BMW M2 starts at $53,495 while a Mercedes-Benz CLA45 AMG will set you back at least $50,875. With an all-new 400 horsepower inline-5 under the hood, the RS3 is packing more punch than its German rivals, and, unlike the M2, sends power to all four wheels. Standard features include LED lighting, Audi pre sense basic, and blind-spot monitoring. Other standard equipment hasn't been announced yet, so it's difficult to make a straight comparison to the M2 and CLA45 AMG. The RS3 sedan will make its North American debut next week in New York. While the car will hit full production for the 2018 model year, there will be a limited number of 2017 RS3s produced. At $55,450, the 2017 model is slightly less expensive than the 2018 RS3. That small batch will be preconfigured with carbon trim, Audi virtual cockpit with MMI Navigation plus, a Bang & Olufsen sound system, 19-inch, five-arm-blade design wheels, red brake calipers, and the RS sport exhaust system with black tips. Sounds like a good deal if you've already got your heart set on the latest from Audi Sport. Related Video: