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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.

A dealer made a 'Urus' out of an Audi Q7 to get people excited for Lambo's SUV

Fake news seems to be catching on. In an attempt to drum up some interest in the upcoming Lamborghini Urus (the Italian SUV that hasn't been unveiled yet) the Lamborghini dealer in Nurnberg, Germany, created a Lambo-badged promotional vehicle. It seems it has fooled at least a few folks, with several outlets reporting on it as if it's a Lamborghini prototype. Of course, it's not. What you're looking at is an Audi Q7 with a camouflage wrap that includes a Lamborghini-script logo across the back and a promotional message on the side, which reads: "Der Urus kommt / Lamborghini Nurnberg." Thanks to one semester of German, we can tell you that first part means "The Urus is coming." Note, that's "is coming," not "is here." There's also something that kind of resembles a scoop on the front fender. It's also fake. It's not uncommon for automakers to put a cryptic message on the side of a test car, often with swirly camo, but this takes the idea a step further since it's not the actual car underneath. That said, the production Urus, whenever it arrives, is expected to share the Audi Q7's MLB 2 platform. So it sort of works. Kind of. Related Video: Image Credit: CarPix Audi Lamborghini Crossover SUV Luxury Performance confirmed

VW Group exploring F1 options, would likely wait until Ecclestone is out

The real hurdle is that Volkswagen overlord Ferdinand Piech doesn't like Bernie Ecclestone on a personal or professional level. Superbugs. They are antiobiotic-resistant bacteria and viruses, fiends that defy eradication no matter how much counteracting agent you throw at them. Reports that Audi is going to join Formula One? They are the superbugs of rumors; for five years they've been coursing through the blood of motorsport, and no amount of denials or Audi's continued non-presence in F1 has been able to make them go away. Not even a month ago we contracted another bout of it, courtesy of Auto Express, citing sources who said Audi would leave endurance racing and DTM - handing Le Mans over to Porsche, instead of the other way around - and buy either Red Bull or Toro Rosso for an entry in 2016 with an in-house powerplant. Within 24 hours of that story, Audi Sport sent the tweet, "Audi in F1? There rumors keep appearing with regularity since years. It's pure speculation again this time and without any foundation." Now, few things are impossible in F1, but lining up on the grid in 2016 is not far away from needing to be ready tomorrow, in F1 terms, which is why these announcements come long in advance. Honda, you'll recall, gave us almost two years' notice of its F1 reunion and Porsche gave us three years notice about Le Mans. A brand-new report in the BBC says that Audi is using new hire and ex-Ferrari technical director Stefano Domenicali to lead a feasibility study into an F1 program. According to that story, the real hurdle to the foray, however, is that Volkswagen Group overlord Ferdinand Piech doesn't like F1 boss Bernie Ecclestone on a personal or professional level, so one of them would need to leave his position before Audi could say yes, feasibility be damned. Since we're talking about two men who define professional longevity, that day might not come soon. The BBC story goes on to say that Martin Winterkorn, head of the VW Group management board, would like to see the group in F1, and that if it happened it would be with a "car designed and made in Germany." Ladies and gentlemen, you know where to file this one...