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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 RS3 sedan spied testing at the Nurburgring

Although American enthusiasts often miss out on foreign forbidden fruit, we've known for a while that the Audi RS3 will probably make it to the United States in 2017. While there's been no official word, Audi of America CEO Scott Keogh has made it clear he wants to bring the car over. Audi already sells the handsome RS3 Sportback in Europe, but since European hot hatches don't tend to fly here it will most likely come only as a sedan. Now we have spy shots to drool over. View 7 Photos These gallery above shows the 2016 RS3 Sportback that sits at the top of the range in Europe. The RS3's turbocharged five-cylinder engine sends power through Audi's quattro all-wheel drive system, propelling the car to 62 mph in just over four seconds. We can only make an educated guess as to what will power the RS3 sedan. Quattro all-wheel drive is a given, as is turbocharging. The European RS3 Sportback comes with a seven-speed dual-clutch that will probably make it to the US. In that car, the transmission is fed by a 2.5-liter turbocharged inline five-cylinder engine making 362 horsepower and 343 pound-feet of torque. Rumors suggest that Audi will make up for lost time by giving us the 400-hp inline-five that powers the new TT RS. These spy photos show a black RS3 sedan ripping around the Nurburgring, partially covered in camouflage. Through the camo we can see all of the basic hallmarks of Audi's RS line: cues like larger wheels, brakes, and a spoiler. The front has a hexagonal pattern in the grille that's typical of RS models, while the air intakes are larger and the chin spoiler looks to sit lower than the standard car's. From the side we can see different skirts and fixed brake calipers. Around back two large exhaust pipes replace those of the standard car, which may be the biggest indication that the vehicle is in fact the RS3. Models like the S3 and S4 have quad exhaust tips, while RS models feature two large exits like the ones on the 2016 RS3 Sportback. For 2017, Audi has made some changes to the A3 line, but we haven't heard or seen anything official from Audi regarding the 2017 RS3, be it Sportback or sedan. With the A3 and S3, the interior benefits from the company's fantastic virtual cockpit digital gauge cluster. The company also added some driver assistance features and refreshed the car visually with new front and rear facias.

An amazing Group B rally car collection heads to auction

Kicking off in 1982, the Group B era spawned some of the most fearsome rally cars of all time. The technologically advanced pioneers of all-wheel drive and turbocharging defined a time when automakers had carte blanche to build machines with unrestricted power, without the burden of homologating a large number of road cars to qualify. The results were sometimes deadly, leading the FIA to ban the class after 1986. Now, a collection of seven Group B monsters is headed across the block in Paris as part of the Artcurial auction, held in partnership with France's famed Retromobile show. The show has been delayed to June, however. There's a 1985 Peugeot 205 Turbo 16, one of 20 Evo II models that helped the company achieve two championships in Group B's short run. This particular example was driven by world champion Timo Salonen at the 1986 Swedish Rally, where it finished seventh due to an oil filter seal failure. Bruno Saby subsequently drove it at the 1986 Tour de Corse and Peugeot entered it at the 1986 Acropolis Rally as well. It's still registered to Peugeot Talbot Sport and represents a French technological achievement, according to Artcurial, comparable to the Concorde or TGV train. Representing Italy are a pair of Lancias in the iconic Martini livery. The Lancia 037 helped Bel Paese clinch its only Group B victory in 1983, after a hard-fought rivalry with Audi. It's one of the few Group B cars that weren't AWD, achieving its success the old-fashioned way, through lightness and superb handling. A second Lancia, a 1986 Delta S4, was the culmination of the Italian firm's later Group B efforts and one of Saby's favorites. While Group B was no more in 1987, the S4 was the predecessor to the Delta Integrale that would dominate WRC from 1987 through 1992. While the collection also includes greats like a Ford RS200, Renault 5 Maxi Turbo, and MG Metro 6R4, the centerpiece is the Audi Quattro Sport S1. The ultimate Group B machine, it introduced all-wheel-drive and turbocharging to the sport. It also employed the wildest use of wings and air dams to generate downforce. Tunable up to 590 horsepower, it could rocket to 60 mph in about three seconds. The car offered for sale came straight from Ingolstadt, a 1988 model built for the Race of Champions of ex-Group B cars. The collection was amassed in the late 80s and early 90s, not long after Group B's dissolution.