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VW offers to buy back new diesels if bans introduced

By Maria Sheahan FRANKFURT, Germany — Volkswagen will buy back new diesel cars if German cities ban them, it said on Thursday, seeking to reassure potential buyers and stem a plunge in sales of diesel vehicles. Europe's biggest automaker also said it would extend incentives for buyers of new diesel cars. The moves come after a German court ruled last month that cities in the country could ban the most polluting diesel vehicles from their streets. Many German cities exceed European Union limits on atmospheric nitrogen oxide, known to cause respiratory diseases. Fears of bans have led to a plunge in demand for diesel vehicles, which are also key to carmakers' attempts to meet new EU rules on carbon dioxide (CO2) emissions. While diesel cars are heavily criticized for emitting nitrogen oxide, they spew out less CO2 than gasoline equivalents. Diesel car sales plunged 19 percent in Germany last month. At its core VW brand, Volkswagen said its buyback offer applied to new diesels bought between April 1 and the end of 2018 and would kick in if the city in which the buyer lived or worked banned diesels within three years of the purchase. It said its dealerships would buy back diesel vehicles affected by bans at their current value if their owners at the same time bought a new vehicle that was not affected by cities' driving restrictions. At Czech brand Skoda, the guarantee applies to cars bought between April 1 and the end of June, but will cover bans introduced within four years of the purchase date. At premium brand Audi, the offer only covers leased vehicles. Volkswagen also said it was extending to the end of June incentives for customers trading in older diesels for new ones. Fellow German carmaker BMW said earlier this month it would offer to take back leased vehicles if diesels were banned within 100 kilometers (62 miles) of the operator's home or place of work. There has been a global backlash against diesel-engine cars since Volkswagen admitted in 2015 to cheating U.S. exhaust tests. But Germany's government is seeking to avoid widespread bans on heavily polluting diesel vehicles, which companies say could cut the resale value of up to 15 million vehicles in Europe's biggest car market. In Germany, where motorists expect to drive powerful cars on motorways with no speed limits, any restrictions will be unpopular.

Audi shows off the Prologue Avant Concept as a plug-in hybrid

The Audi Prologue Avant Concept goes in a different direction than the Prologue coupe, in more ways than just its five-door wagon body. The coupe was first shown at the LA Auto Show with a 4.0-liter, twin-turbo V8, then went redux at CES as a hybrid with a total of 677 horsepower and 701 pound-feet of torque. The only-slightly-larger Prologue Avant sticks with the hybrid but gets the system from the Q7 E-Tron quattro, meaning a 3.0-liter, twin-turbo V6 TDI with 353 hp and a 100-kW electric motor strapped to the eight-speed transmission. Total output is 455 hp and 553 lb-ft, pure electric range is 33 miles, and 0-62 miles per hour comes in 5.1 seconds. The forward section of cabin with its screen-based Tie Fighter displays and controls comes over from the coupe, as well as the four individual seats, but the Avant lavishes attention on rear passengers in ways not possible in the two-door. They also get a screen on the pass-through center console for convenience controls, and detachable OLED screens - a la the detachable tablets in the Q7 - with which they can send information to the front occupants. As a traditional Audi avant is to a coupe relative, the Prologue Avant is all about bringing the family along on the digital highway. We'll see it at the Geneva Motor Show next week, and Audi is again talking up how the design language will migrate to production cars. It also makes noises in the press release below about near-production many of the technologies are in the concept, so it looks like there could be all sorts of Easter Eggs on the way from the Ingolstadt brand. Related Video: Sporty and elegant, versatile and connected – the Audi prologue Avant show car - New interpretation of the Avant philosophy - Groundbreaking infotainment architecture and entertainment concept - High-performance hybrid drive with 455 hp and 750 Nm (553.2 lb-ft) of torque Ingolstadt, 2015-02-25 -- A design with dynamic elegance and the latest high end technologies: The Audi prologue Avant show car with its stretched roof which the brand is presenting at the Geneva Motor Show gives a look into the future – with the new and emotion filled design language that Audi has initiated with its study in the coupe, the prologue. A glance into the future In November 2014 at the Los Angeles Motorshow, Audi presented the Audi prologue concept car, giving a look to the brand's future design language.

VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen