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VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

2017 Audi Q7 2.0 is $5,800 cheaper than the least-expensive V6

Audi has announced that it will add an entry-level Q7 model with a turbocharged 2.0-liter four-cylinder engine. With a starting price tag of $49,950 for a 2.0 Premium, it's a substantial $5,800 less than a 3.0 Premium, which starts at $55,750. With less money comes less power. In contrast to the V6's 333 horsepower and 325 pound-feet of torque, the turbo-four only offers 252 ponies and 273 lb-ft of torque. However, Audi says the 2.0 is half a second quicker to 60 mph than the entry-level V6 model from 2015. That model accelerated to 60 in 7.7 seconds, so expect a low 7-second time from the turbo-four. You'll probably want to spring for the 3.0 if you want to tow. The four-cylinder will tow up to 4,400 pounds with the towing package, which is much less than the V6's 7,700-pound capacity. Although power and towing ability are less in the 2.0, gas mileage goes up. Current V6 models are rated at 21 miles per gallon overall for city and highway mileage, and the four-cylinder improves that by 1 mpg. It's not much, but it's still a little bonus to the big up-front discount. So if you need an Audi Q7, and saving money is your priority, the new 2.0-liter iteration may be the version for you. Related Video: Featured Gallery 2017 Audi Q7: Second Drive View 23 Photos Image Credit: Audi Audi SUV Luxury

Audi kicks off A3 celebrity-fest marketing campaign with Dues

Audi is desperate to appeal to young people with its new 2015 A3 sedan. It's planning launch parties around the country to present the new model to these younger buyers, and its latest tactic is a series of videos starring celebrities the company considers trailblazers to further captivate youthful buyers.
The advertising campaign starts with a spot titled Dues starring comedian Ricky Gervais, chef David Chang, photo journalist Lynsey Addario, comedian Kristen Schaal, boxer Claressa Shields, artist collective Cyrcle, and church choir Voices of Destiny. It's being followed up with seven, minute-long online documentaries called Uncompromised Portraits about the folks featured in the new ad. Audi believes that they are all trailblazers who have forged their own way, and it's all supposed to fit with the A3's slogan of "Stay Uncompromised."
Dues will play during the NCAA March Madness tournament. Audi is also running two, 30-second commercials during the games to highlight the sedan's technology and two, 15-second ads to promote its Quattro all-wheel-drive system.