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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.

VW internal investigation finds 'no evidence' against suspended engineers

Volkswagen is still working out the chain of events that led to emissions-evading software being installed in 11 million diesel vehicles worldwide and deciding who was responsible for the treachery. So far, the German automotive giant's internal investigation hasn't publicly named many suspects, and three suspended executive-level engineers have been found not to be culpable in the wrongdoing, according to an anonymous insider speaking to Reuters. VW knows that the software began being installed in the EA 189 engine in 2008. The internal investigation has found that the emissions-evading tech was created because the powerplant was found to fail US standards. Plus, the diesel mill wasn't meeting cost targets, according to Reuters. The automaker responded by suspending over 10 employees, but three top engineers among them might not have been involved. Those put on leave include Heinz-Jakob Neusser from VW, Ulrich Hackenberg from Audi, and Wolfgang Hatz who led Porsche's research and group-wide engine development. The internal detective work hasn't turned up any evidence against these three men. In addition to VW's own inquires, government investigators in both the US and Germany are taking a serious look into the company's actions, too. So far, the automaker is setting aside about $7.3 billion to pay to fix the vehicles with the evasive software. Depending on what authorities find, the costs could grow quickly. Beyond the financial implications, the scandal has led to a serious shakeup in VW's corporate structure. Related Video:

Audi E-Tron Sportback Concept previews 2019 production model

Audi has revealed the E-Tron Sportback concept it has been teasing ahead of Auto Shanghai. The all-electric model, the automaker says, previews a production model slated for 2019. Audi will launch an electric SUV with a driving range of 311 miles in 2018. "Following close on its heels, in 2019," says Audi Chairman Rupert Stadler, "comes the production version of the Audi E-Tron Sportback – an emotional coupe version that is thrillingly identifiable as an electric car at the very first glance." The E-Tron Sportback is powered by three electric motors – one on the front axle, and two on the rear ­– providing a total 320 kW (429 horsepower), with a boost mode that ups that output to 370 kW (496 hp). It's capable of a 0-62 mile per hour sprint of 4.5 seconds. A liquid-cooled 95-kWh lithium-ion battery provides 311 miles of driving range (on the European cycle). The concept features Audi's singleframe grille, with an illuminated four-ring logo. The front of the car is shaped for optimal airflow, and the dip in the hood also gives it a uniquely sporty look. Its front fascia integrates lighting that not only illuminates the road, but can project animations or provide communicative signals to other drivers or pedestrians. Its 23-inch wheels are imposing, giving the car a muscular stance. Side mirrors are replaced by slender cameras, which improve airflow and provide a better view of the car's surroundings, helping to eliminate blind spots. By revealing the E-Tron Sportback concept in China, Audi is acknowledging the significance of the country's electric vehicle market. "There are already about 150,000 charging stations in the country, with another 100,000 due to come on stream by the end of 2017," notes Audi Board Member for Marketing and Sales, Dr. Dietmar Voggenreiter. "We are well equipped for this rapid growth. In the next five years we will be offering five E-Tron models in China, including purely battery-powered vehicles with ranges well in excess of 500 kilometers (310.7 miles) such as the Audi E-Tron Sportback." Related Video: Featured Gallery Audi E-Tron Sportback Concept View 34 Photos News Source: Audi Green Auto Shanghai Audi Green Automakers Technology Electric e-tron audi e-tron Auto Shanghai 2017