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Audi says fixing diesel emission problem is simple

Audi reportedly has a simple repair nearly ready to fix the emissions problem on 85,000 vehicles with the 3.0-liter TDI V6 in the US. "Swift, straightforward and customer-friendly solutions are in discussion," company exec Rupert Stadler told workers in Germany, according to Reuters. In late November, Audi announced that the 3.0 TDI had three previously undisclosed auxiliary emission control devices, including one that was potentially considered a defeat device under US law. At the time, the German automaker claimed it could repair the problem with just a software update. Stadler's statement indicates that just such a simple fix might be on the way. Even before Audi's disclosure of the emission control devices, the Environmental Protection Agency issued a notice of violation against the 3.0-liter TDI for allegedly having software to defeat emissions tests, and the agency later expanded the scope to any vehicle with the engine from 2009 through 2016. The affected models include the Audi A6, A7, A8, Q5, Q7, Volkswagen Touareg, and Porsche Cayenne. New diesel versions of these vehicles have a stop-sale. Audi offered owners of affected vehicles the same $1,000 Goodwill Package that parent company VW offered to its affected diesel owners. The money is split up into a $500 gift card and $500 to spend at the Audi dealer. The package also comes with extended roadside assistance. Audi needs to find a solution quickly because it's under a 45-day deadline from the California Air Resources Board to submit a recall plan for the 15,000 vehicles with the 3.0 TDI in the state. The automaker also must include a report on any effects to fuel economy and performance from the proposed repair. Related Video:

VW's Winterkorn to stick around through at least 2018

Volkswagen may yet to have found a new chairman, but it's not about to get rid of its chief executive any time soon. The German automaker has announced its intention to renew Martin Winterkorn's contract through the end of 2018. That is, assuming that the Supervisory Board heeds the recommendation of its own Executive Committee when the full 20-member board meets on September 25. 68-year-old Winterkorn joined the Volkswagen Group back in 1993 after a decade and a half at Bosch. He was named head of Audi in 2002, and chairman of the Board of Management (effectively the chief executive officer) of the entire Volkswagen Group in 2007. Just a few months ago he faced off against Ferdinand Piech – chairman of the company's supervisory board and grandson of Ferdinand Porsche – that resulted in Winterkorn's victory and Piech's resignation. The executive committee's endorsement, then, is effectively a vote of confidence in Winterkorn's leadership. It still leaves unresolved the question of who will ultimately take over as chairman to succeed Piech. Winterkorn was touted for a potential promotion, but if the supervisory board renews his contract – currently set to expire next year – he'll be staying right where he is and a new chairman will need to be found. The chair is currently filled on an interim basis by Berthold Huber, former head of the union that was instrumental in Piech's ousting. Wolfsburg, 02 September 2015 Resolution of the Executive Committee of the Volkswagen AG Supervisory Board The Executive Committee of the Supervisory Board of Volkswagen AG unanimously agreed a resolution for submission to the Supervisory Board at its meeting on September 25, 2015 under which a new contract as Chairman of the Board of Management of Volkswagen AG for a term until December 31, 2018 should be concluded with Professor Dr. Martin Winterkorn. "Together with Professor Martin Winterkorn at the helm we will continue on our successful path of recent years and systematically implement the goals of Strategy 2018", Berthold Huber, Chairman of the Supervisory Board of Volkswagen AG, said.

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.