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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

Audi S1 officially shows itself as 228-hp hot hatch [w/video]

We got the first leaked pics of the new Audi S1 Sportback five-door hot hatch yesterday, and as expected, Audi has unloaded the full details today, including confirmation of its S1 three-door sibling ahead of its debut at next month's Geneva Motor Show. The two cars are essentially identical aside from their door counts, and together, they represent a new entry-level rung into Audi's S car range.
The subcompact S1 is propelled by Audi's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive. The potent combo accelerates the S1 to 62 miles per hour in 5.8 seconds (5.9 seconds for the Sportback) and on to a top speed of 155 mph. Fuel economy is rated at an average 33.6 miles per gallon (40.3 mpg UK) in the UK cycle. The S also gets a completely different four-link independent suspension to replace the less sophisticated torsion beam setup found in the standard A1.
Styling also gets a bump in aggressiveness that befit the S1's performance upgrades. In addition to a new body kit with a lower front air dam and 17-inch wheels, the S1 comes standard with Xenon headlights, LED taillights and two new available exterior colors ­- Vegas Yellow and Sepang Blue. The interior gets combination leather and cloth sport seats, piano black trim and a retractable 6.5-inch color infotainment display.

The VW emissions carnage assessment with an upside

Bombs cause destruction. Even if they're intelligently guided and pinpoint, there's always collateral damage. The strange Volkswagen brew, which is still spontaneously combusting in plain sight, will result in aftershocks for years. And the professional end of the corporation's top leadership will not be the only casualties. Blows are striking shareholder confidence, the residual value of the cars involved, consumer confidence, and the German economy itself. A hard rain's going to fall elsewhere, too. Here are just four damage assessment areas. The High-Compression Past and Low-Compassion Future of Diesels Despite European and especially German manufacturers' high belief that diesel engines were a way to light-duty automotive salvation, VW's scandal started the last nail in the fuel's coffin. Regulations both in the U.S. and in Europe for particulates and nitrogen oxide (NOx) are getting much harder to meet, and this is at the very core of VW's deception. Even with the high-cost exhaust after-treatment systems, sky-high fuel pressure, and sophisticated electronics, the inescapable NOx realities won't be washable by technology in an affordable way. German engineering pride will have to work a real miracle to meet these looming regs and the stain of VW's scandal did the whole diesel movement no favors. Perhaps not so ironically, the E.U. adopted more stringent emission standards this year, which closely mimic the U.S. Tier 2, Bin 5 figures phased in for 2008. Indeed, when VW announced it was able to meet the stringent US NOx emissions standards in 2009 for its diesel engines without urea injection as an exhaust after-treatment, it was a particularly high point of engineering pride for the company. No other manufacturer had figured out how to do so. One Honda official at the time remarked that they had simply no idea how VW was achieving this feat and Honda couldn't come close. Well, neither could VW. On a macro scale, European cities are also starting to face government fines for air quality violations. This is forcing those cities to find various ways to cut smog-related causes like tailpipe emissions. In fact, Paris has gone to the length of restricting car use on a sliding scale when smog persists, while electric cars are free to roam. France's longer and larger plan is banning diesel fuel for light-duty transportation entirely. But why was there a frothy focus by the European manufacturers on diesels in the first place?