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VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.

California orders VW Group to fix 15,000 3.0L diesel vehicles

The California Air Resources Board has ordered Volkswagen to come up with a plan for repairing approximately 15,000 cars sold in the state that contain illegal software that may circumvent emissions testing. In a letter sent to Volkswagen Group of America and several company brands, CARB's chief emissions officer says the company has 45 business days to submit a recall plan that will fix affected Volkswagen, Audi, and Porsche models equipped with 3.0-liter diesel engines sold in the state since 2009. "We expect full cooperation in this investigation so this issue can be addressed expeditiously and appropriately," wrote Annette Herbert, chief of emissions compliance. The violations first surfaced in a meeting last week between California regulatory officials and Audi executives. In that meeting, Audi admitted certain versions of A6, A7, A8, Q5 and Q7 models contained three previously undisclosed auxiliary emissions control devices. An auxiliary device is not necessarily the same as a defeat device that intentionally cheats on emissions testing, but Audi and other affected brands hadn't disclosed the existence of the AECDs, which is a violation of the state's health and safety code. Had they been disclosed prior to vehicle certification, there's a possibility CARB may have approved use of the devices. In a statement Wednesday, CARB did not elaborate on whether it considered the three devices mere AECDs or defeat devices. When Volkswagen submits its plan to fix the cars, CARB says it must include an assessment of how the repairs will affect fuel economy, performance, drivability, and the safety of each vehicle. The 15,000 cars affected in California are part of roughly 85,000 nationwide which contain the affected 3.0-liter engines. The US Environmental Protection Agency may soon address how it expects Volkswagen to fix the remaining cars. "EPA and CARB are working closely and continue to investigate following the admission by Volkswagen that the issues EPA identified in the November 2nd NOV (Notice of Violations) extend to all 3.0-liter diesel Volkswagen, Audi, and Porsche vehicles," an agency spokesperson said in a statement Wednesday. "EPA will take all appropriate enforcement action." The 3.0-liter developments, of course, come on top of the company's September admission that 482,000 diesels equipped with 2.0-liter engines contain defeat devices that detect emissions testing and alter the cars' performance.

German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.