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GM, Audi, Jaguar halt Russian sales amidst ruble's collapse

The value of Russia's ruble currency has sunk like a stone tossed in the Volga for much of the year, losing over 40 percent of its worth since June. The change is having bizarre effects on the auto industry there and leaving some automakers scrambling to adjust. According to Bloomberg, Russians are buying up luxury goods including automobiles at the moment to have a physical investment in case the ruble sinks further. However, with the money worth so little, the companies aren't making much from these transactions. Things are so dire that several automakers are temporarily ending deliveries until the situation stabilizes. According to Bloomberg, General Motors stopped sales on December 16 with no set date to start again. Audi did the same thing but with the intention to resume once it has adjusted model pricing. Jaguar Land Rover terminated business until December 19 to see how things changed. Toyota is increasing its pricing, as well, but keeping business open at the same time. Some automakers have subtly been reacting to the slumping Russian auto market all year. The moves have included Volkswagen cutting production by 30,000 units from its factory in Kaluga. Ford also got rid of 950 workers from two plants due to low demand. Some analysts have even speculated that the contracting industry and possibility of lower import duties into the country could cause companies to end their manufacturing in Russia completely.

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.

Audi A7 Sportback H-Tron Quattro packs plug-in hydrogen powertrain

If you think a plug-in diesel hybrid is an expensive proposition, just wait until you hear details about the just-revealed Audi A7 Sportback H-Tron Quattro. The "H" in H-Tron, as you might guess, stands for hydrogen, so say hello to a new concept that combines a plug-in battery system with a hydrogen fuel cell. Yeah, exactly. Let's start with the numbers. On the plug-in side, the new H-Tron has an 8.8-kWh lithium-ion battery that can power the car for up to 31 miles on battery power. With electric motors on both axles – it's a Quattro, after all, but a through-the-road hybrid with electronic torque distribution management – the A7 H-Tron uses a hydrogen fuel cell and four (!) H2 tanks to offer about 62 miles per gallon equivalent. Audi says the overall fuel cell stack efficiency is "as high as 60 percent" while the electric motors operate at 95 percent efficiency. Efficiently turning all of that electricity into movement means the A7 Sportback H-Tron Quattro has a total power output of 398.3 pound-feet of torque. The 4,299-pound concept can allegedly go from 0-62 miles per hour in 7.9 seconds and has a top speed of 112 mph. The car's total range is 311 miles. The A7 H-Tron is not the first plug-in hydrogen vehicle concept. That title goes to the Ford HySeries Edge. Mazda also considered putting a hydrogen range extender in the Mazda5 plug-in van. The Audi A7 Sportback h-tron quattro It sprints from 0 to 100 km/h (62.1 mi) in 7.9 seconds and on to a top speed of 180 km/h (111.8 mph). It covers over 500 kilometers (310.7 mi) on one tank of fuel – and its exhaust emits nothing more than a few drops of water: The A7 Sportback h-tron quattro, which Audi is unveiling at the Los Angeles Auto Show 2014, uses a powerful, sporty electric drive with a fuel cell as its energy source that operates in combination with a hybrid battery and an additional electric motor in the rear. The overall electrical system power of 170 kW is transferred to both the front and the rear wheels. This drive configuration makes the emission-free Audi A7 Sportback* a quattro through and through – a new departure in fuel cell cars. "The A7 Sportback h-tron quattro is a genuine Audi – at once sporty and efficient. Conceived as an e-quattro, its two electric motors drive all four wheels," explained Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development at Audi. "The h-tron concept car shows that we have mastered fuel cell technology.