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Audi considers a rugged SUV — maybe on the Scout platform

Audi engineers are formulating plans to possibly build a “super saloon” luxury off-roader SUV in 2027, It would compete in a segment that now includes the Land Rover Defender and Mercedes-Benz G-Class, according to a report in BritainÂ’s Autocar. According to Audi designer Marc Lichte, quoted in the story, the platform for the new model could be borrowed from the Volkswagen GroupÂ’s recently announced sister brand, Scout Motors, which is currently developing electric-powered concepts and prototypes. While Audi has developed a PPE (Premium Platform Electric) architecture for its base EV lineup, that would be replaced in the planned model with ScoutÂ’s ladder chassis to provide the steep departure angles and ground clearance needed to negotiate tough terrain, as well as with the latest generation of AudiÂ’s Quattro four-wheel-drive technology, Autocar reports. Audi is well into development of its Activesphere project, an enticing design blend of coupe and hatchback. The Activesphere uses PPE, co-developed by Audi and Porsche, and will appear in a production Audi product by the end of this year. Audi says. Beyond that, “I think there is space" for a rugged SUV in AudiÂ’s passenger car lineup,  Lichte said. “There is potential because there are only two premium players” in this particular segment" (Mercedes-Benz and Land Rover) “and I think there is a space for a third one.” The upscale Defender was by far Land RoverÂ’s best-selling car last year, with 66,805 sold, and the G-Class set a new sales record the previous year with 41,174 moved worldwide. Audi obviously would like to capitalize on this popularity of the rugged 4x4 segment. The proposed competitor, said Lichte, “will not look like a G-Class and it will not look like a Defender, I can promise you. It will be something else."

European new car sales drop nearly 8% in first half of 2019

PARIS — European car sales dropped 7.9% in June, led by bigger declines for Nissan, Volvo and Fiat Chrysler (FCA), according to industry data published on Wednesday. Registrations fell to 1.49 million cars last month from 1.62 million a year earlier across the European Union and EFTA countries, the Brussels-based Association of European Carmakers said in a statement. Calendar effects resulted in two fewer sales days in most markets, accentuating the decline. Registrations for the first half closed 3.1% lower, ACEA said. For European carmakers, weakening demand at home compounds the pressure from a sharper contraction in China and emerging markets that may yet bring more profit warnings. NissanÂ’s aging model lineup contributed to a 26.6% June sales slump while Volvo Cars, owned by ChinaÂ’s Geely, saw deliveries tumble 21.7%. Registrations also fell 13.5% last month at FCA, 10.1% at BMW, 9.6% at Volkswagen Group and 8.2% for both Mercedes parent Daimler and FranceÂ’s PSA Group. The Peugeot makerÂ’s domestic rival Renault suffered less, posting a 3.9% decline. By the Numbers BMW Chrysler Fiat Nissan Volkswagen Volvo Peugeot Renault

Volkswagen Diesels: Buy, sell, or hold?

Everyone who owns or has remotely considered a Volkswagen diesel over the past 45 days has tried to figure out the right formula. Is it worth buying after the recall? If I own one, should I sell it? How will it perform if I want to keep it? Questions create doubts, and doubts create a stunning lack of activity when it comes to the new and used car market. I seriously doubt Volkswagen will be rolling out its 2016 TDI models anytime soon. The company already failed to create a fix nearly a year ago and has spent an unusually long amount of time trying to get the formula right. There's also the fact that it rescinded its EPA application for 2016 models. I can't provide the ultimate oracle's guide on whether any recalled Volkswagen diesel will fall under the "good value" perceptions of car buyers. But I do believe four factors in particular will be largely independent of the outcome of that recall, and they're what you should pay particular attention to if you plan on buying any Volkswagen diesel – new or used. 1. Demand Creating Bad Supply There are a large number of car buyers who believe that they can zig while the marketplace tells them to zag. Unfortunately, those are the ones that get sent to the slaughter once articles like the one linked above proclaim, "resale values are down 13 percent." These heavily biased write-ups ignore the fact both the supply and demand of new and used recalled Volkswagen diesels are no longer operating in that free market. The supply side is obvious since the EPA has put a stop-sale on all Volkswagen diesels. However, on the demand side, those Volkswagen dealers who have exclusive access to off-lease vehicles and certified pre-owned programs for 2012 and newer VW diesels are now sitting on the sidelines with all those cars. When your best players no longer play, consumers don't come to the ballpark. What exists right now is a lot like a professional sports strike where the talent sits out until a collective agreement is reached. When your best players no longer play, consumers don't come to the ballpark. The marketplace only offers scabs that can play an inferior game. In the wholesale car business, the scabs are salvage vehicles that are wrecked or flood damaged, vehicles that can't be put under a CPO program due to frame damage and lemon law requirements, and the wholesale repossession market. All of these substandard vehicles make up the new supply, the collective underbelly of low-end quality in the used car marketplace.