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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.

Five reasons to love, or hate, the culture of German cars

A few months back, we took a 500-foot view of the culture of American cars, dissecting prides and prejudices on our way to the conclusion that automotive allegiances can be simultaneously embraced and derided. We had so much fun with the narrative that we decided to do it again, this time taking a look at Germany and its world-renowned lineup of automakers, including the likes of Audi, BMW, Mercedes-Benz, Porsche and Volkswagen, among others. Join us below as we discuss the points and counterpoints that make or have made the German auto industry what it is today. And remember, Germany did pretty much invent the automobile, after all... The V12 Engine If America is known for the proliferation of the V8 engine, an argument could be made that Germany owns the V12. Yes, of course, other companies have created V12 engines – Ferrari, Jaguar and Lamborghini immediately come to mind – but the big 12-cylinder powerplants from BMW and Mercedes-Benz, in particular, have proven to be some of the most effortless, luxurious and downright over-built engines the world has ever seen. These days, having 12 cylinders is more a case of wretched excess than ever before, and yet, you can still stroll into your local BMW or Mercedes dealership and get a brand-new 760i, S600 or even an over-the-top G65 AMG, efficiency be damned. Best of all, since the majority of these German powerhouses depreciate as fast as an anchor sinks, nearly any auto enthusiast who dreams of a dozen cylinders can satisfy their carnal desires. Current Star: 2016 Mercedes-Maybach S600 View 28 Photos Diesel Engines Remember how we talked about those glorious V12 engines? Well, you can even get one from Audi that runs on diesel. If your compression-ignition fantasies err more on the side of fuel savings, that's no problem, either. Audi, BMW, Mercedes and Volkswagen have got you covered, with engines starting as small as 800 cubic centimeters (Smart Fortwo). If you want something a little more practical, it's hard to argue with a VW Golf TDI, which will provide plenty of space for you and three of your best friends, plus a fair bit of luggage, all while returning 50-ish miles per gallon. For the purposes of this discussion, we'd rather focus on the asinine levels of torque provided by Germany's high-end diesel engines than the lower-end fuel sippers.

Why Audi is staking its future on electric SUVs

This much we know: SUVs and crossovers sell like hotcakes. The body style has become such a juggernaut that for the first time in recorded history, sport utes beat out sedans this year to score the biggest slice of the luxury pie. Love 'em or hate 'em, SUVs are here to stay, and carmakers are investing more than ever in the segment. Sport utility vehicles also played a bigger role than you might think in making Audi relevant in the US, and based on what we learned during a sit-down with Audi of America president Scott Keogh at the Paris Motor Show, their role is only going to continue to grow at the automaker. Last year, the brand sold 202,202 cars in the States, capping off 60 consecutive months of record sales. But it's not enough to focus on traditional SUVs like the Q5, which was launched on the heels of the global economic meltdown in a tiny small segment of around 160,000 vehicles and has since ballooned to over 400,000 units. The Q5 has scored 80 percent of its buyers from conquest, and a new plant in Puebla, Mexico, promises to churn even more units to the US and the world. Still, tackling the future head-on can be like wrestling an eel – an elusive, almost impossible-to-execute challenge – and Audi is betting a huge part of that success will be the production version of the E-Tron Quattro Concept that debuted last year in Frankfurt. Internally referred to as the C Bev, this battery-powered SUV claims a 311-mile range, and might as well be nicknamed the Tesla Model X Killer. "If you look at where this car migrated from," Keogh says, "it started as a European-ish city car, and then it migrated into a sedan-ish sportback-y type thing, and then we pushed very aggressively to make it an SUV." Keogh says the vehicle will hit showrooms "after 2018." The SUV layout naturally lends itself to batteries, but it also boils down to a simple bureaucratic advantage: "We get [government CO2 and fuel economy] credits for volume," says Keogh. "It's not just enough for a car to be there, it's got to be a car that a lot of people want to buy." Sized between a Q5 and a Q7, the E-Tron Quattro resides in a target-rich environment, a 600,000 - 700,000 unit segment. Add Audi's goals of electrifying 25 percent of its lineup by 2025, and a high volume, medium/large SUV simply makes sense.