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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

2016 Audi R8 looks like a promising second chapter [w/video]

Audi shook up the supercar market when it released the original R8 road car. Now, it's hoping to do the same with the second-generation of the handsome mid-engine star. But where the original R8 was something of an analog supercar, boasting a naturally aspirated V8 and a delightful gated shifter, this new model is something much different. Gone is the popular, high-revving 4.2-liter V8 and the snickety-snack transmission, although the 5.2-liter V10 that joined the original R8 later in its life remains. In base form, it turns out 540 horsepower in the second-gen R8, while the V10 Plus model can be had with an impressive 610 ponies. That's good for a sprint to 60 of just 3.5 seconds and a top speed of 201 miles per hour in the former and 3.2 seconds and 205-mph in the latter. A seven-speed dual-clutch transmission is the sole gearbox, sending power to a revised Quattro all-wheel-drive system that's capable of shunting 100 percent of the engine's torque to the rear axle. Meanwhile, Audi has managed to shave 441 pounds by using a new Audi space frame, with more aluminum and carbon fiber than before. Weighing in at just 3,205 pounds, the R8 is slightly lighter than the new, V8-powered Ferrari 488 GTB, although it's not quite as light as its cousin, the 3,135-lb Lamborghini Huracan. And of course, we can't forget to mention the R8's new look. It's very clearly an evolution of the first-gen's handsome styling. A strong grille and canted headlights, inspired by the TT and the concepts that came before it, highlight the front end, while Audi has opted to bisect the last-gen car's side blades with a body-color section of sheet metal. In back, slim taillights, exhausts that have been integrated into the rear bumper and a central diffuser are the main styling features. Opt for the V10 Plus, and you'll get a sizable rear wing, for added downforce. Take a look at our full gallery of live images from Geneva for a closer look at the new Audi R8.

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.