1968 Volkswagen Beetle - Classic on 2040-cars

Auto blog

Piech and Winterkorn still at odds about VW leadership plan

Volkswagen Group Chairman Ferdinand Piech (above, right) and CEO Martin Winterkorn (above, left) will be meeting in the coming days to discuss who the next leader of the Volkswagen Group will be. This, of course, comes after a report last Friday in Der Spiegel where Piech said he didn't want Winterkorn to be the automaker's next chairman. Oh, to be a fly on the wall of that conference room. As Automotive News reports, Winterkorn had been widely viewed as the probable replacement for the 77-year-old Piech, until last week, when the current chairman said he was keeping the CEO "at a distance," in the German paper. While Winterkorn confirmed to German media on Monday that he still had a job, analysts aren't sure what Piech's comments will mean for the 67-year-old CEO's future, with some indicating he may end up being a "lame duck" leader. According to AN, Piech doesn't think that Winterkorn has the vision to lead the sprawling Volkswagen Group empire, even though the current CEO has the support of a number of other VAG stakeholders. "Piech knows what he is doing and will assume that he can get the supervisory board to implement his decisions," former BMW executive turned analyst Helmut Becker told German media, AN reports. Winterkorn has just over 18 months left on his contract, while Piech's term has another two years left on it, meaning it will still be some time before we find out how the Volkswagen Group's leadership issues play out.

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.

Golf tees up new sales for VW

If you consider the Passat and the CC two different lines, Volkswagen USA lists nine different models on its website, and they have sold a total of 238,074 units in the US this year through the end of August. The Golf, which was voted North American car of the year in 2015, and its variants account for 44,416 sales, an increase of nearly 150 percent compared to the same period last year. That's also the most Golfs ever sold in that time in the US, and almost 19 percent of this year's entire brand sales. This is compared to a compact car segment that has gained just 1.1 percent compared to 2014. A number of factors are responsible, according to a report in Automotive News: the MQB platform allows different powertrains to roll down the same assembly line; VW USA product planners can now configure vehicles to suit our market and they work with a selection of dealers to refine the retail offering; and the Golf maintains its proper European driving experience. The expanse of the Golf range has meant not only increased profits and new buyers, but more breadth in the buying demographic - expanding outward from the standard Golf to five different extremes, from the e-Golf to the Golf R. Room will be made for a new kind of consumer next year when the current Sportwagen model goes all-wheel drive with an Alltrack designation. Unsurprisingly, VW USA says, "Golf is a role model for the US for us. We want to learn from our success and implement those lessons in our future model planning." After decades of uneven effort, perhaps that formula plus a long-awaited range of crossovers can finally deliver on the promise of the US market. Related Video: