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Audi updates the RS3 hatch to sedan specs, but we still aren't getting it

As great as the upcoming Audi RS3 sedan looks and sounds, we're still a bit jealous of the Europeans and others who get the five-door Sportback version. And now even more so, because for 2018 the RS3 Sportback is being updated to match the specs of the RS3 sedan that debuted last fall at the Paris Motor Show. We'll see the revised extra-hot hatch next month in Geneva. Even though we haven't had a chance to get behind the wheel of either model, the raw numbers alone get us excited. An updated Quattro all-wheel-drive system, a 400-horsepower turbocharged inline five-cylinder engine (up from 362), and a seven-speed dual-clutch transmission will send the 2018 RS3 hatch from 0 to 60 mph in 4.1 seconds. That puts it in Porsche 911 and Chevrolet Corvette territory. Other improvements include a wider track to fit wider rubber, a lowered and stiffened suspension, and a larger set of brakes. Carbon-ceramic front rotors will again be available, like they are on the sedan. Inside, the RS3 comes with a boost pressure indicator, an oil thermometer, and a lap timer. Audi's Virtual Cockpit fully digital instrument panel is available as an option, and one we highly recommend. Aside from all of the performance and tech upgrades, the RS3 has a number of changes to the interior and exterior design. Black Nappa leather sport seats are standard, with special contoured RS sport seats available as an option. Lighting elements have been updated to match those of the restyled A3 and S3, the front fascia has been sharpened, with larger intakes on the bottom corners of the bumpers, a slightly more aggressive front splitter, and the Quattro logo emblazoned on the bottom of the grill. Out back, the car gets two large exhaust tips compared to the S3's four outlets. The overall design is typical Audi: handsome, but conservative. The RS3 sedan goes on sale in Europe in April with the Sportback following soon after. We'll have to make do with the sedan version, which is expected to arrive here next year. The only Sportback model Audi offers here from the A3 family is the plug-in e-tron model, and we don't expect that to change any time soon. But we can dream. Related Video:

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.

These are the cars with the best and worst depreciation after 5 years

The average new vehicle sold in America loses nearly half of its initial value after five years of ownership. No surprise there; we all expect that shiny new car to start depreciating as soon as we drive it off the lot. But some vehicles lose value a lot faster than others. According to data provided by iSeeCars.com, trucks and truck-based sport utility vehicles generally hold their value better than other vehicle types, with the Jeep Wrangler — in both four-door Unlimited and standard two-door styles — and Toyota Tacoma sitting at the head of the pack. The Jeep Wrangler Unlimited's average five-year depreciation of 30.9% equals a loss in value of $12,168. That makes Jeep's four-door off-roader the best overall pick for buyers looking to minimize depreciation. The Toyota Tacoma's 32.4% loss in initial value means it loses just $10,496. The smaller dollar amount — the least amount of money lost after five years — indicates that Tacoma buyers pay less than Wrangler Unlimited buyers, on average, when they initially buy the vehicle. The standard two-door Jeep Wrangler is third on the list, depreciating 32.8% after five years and losing $10,824. Click here for a full list of the top 10 vehicles with the least depreciation over five years. On the other side of the depreciation coin, luxury sedans tend to plummet in value at a much faster rate than other vehicle types. The BMW 7 Series leads the losers with a 72.6% drop in value after five years, which equals an alarming $73,686. BMW's slightly smaller 5 Series is next, depreciating 70.1%, or $47,038, over the same period. Number three on the biggest losers list is the Nissan Leaf, the only electric vehicle to appear in the bottom 10. The electric hatchback matches the 5 Series with a 70.1% drop in value, but since it's a much cheaper vehicle, that percentage equals a much smaller $23,470 loss. Click here for a full list of the top 10 vehicles with the most depreciation over five years.