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How should Volkswagen deal with its diesel problems?
Mon, Sep 21 2015The 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.
Mystery shoppers love Infiniti, hate Tesla
Tue, Jul 12 2016Infiniti, followed by Lexus tied with Mercedes-Benz took the top two spots for best sales experience according to mystery shoppers from the latest Pied Piper Prospect Satisfaction Index, while EV manufacturer Tesla recorded the lowest overall score. Not surprisingly, premium brands dominated the top ranks. Including the three already mentioned, luxury brands occupied seven of the top ten spots and included Audi, BMW, Porsche, and the only American brand to crack the upper echelon, Cadillac. Toyota, Volkswagen, and Nissan rounded out the first ten positions. The news for domestic automakers isn't good. Aside from Caddy, the only other star-spangled automaker to score above the industry average is Chrysler. The rest of FCA, most of GM, and all of Ford fell below the line. But Pied Piper's mystery shoppers handed Tesla the biggest walloping – the company is ten full points below the next lowest brand, Volvo, and its score of 86 is 17 below the average of 103. It's baffling, considering the company's touted direct-sales model. "Tesla leaves me scratching my head," Fred O'Hagan, Pied Piper's president and CEO, told Wards Auto. "They own all of their stores, so you would think each one would be doing the same thing. But they're not. Tesla is consistent in its inconsistencies." O'Hagan added that there's a "huge variation" in Tesla's store-to-store effectiveness, and that in some cases, shoppers found showroom workers that acted more like "museum curators," Wards Auto reports. It might be popular to call Tesla the Apple of the car world, but based on Pied Piper's work, the brand has a long way to go to emulate the uniform shopping experience of an Apple Store. The news might be bad for Tesla, but even for the brands that scored below average, there's cause for celebration. Only Tesla and Mini lost points in this year's rankings, and only Mercedes and Lincoln held steady. Every other brand, including Infiniti, which topped the index for the first time, gained at least one point. The biggest improvements belong to Porsche, Land Rover, and Mitsubishi, which all jumped five points. Pied Piper's annual Prospect Satisfaction Index uses mystery shoppers – over 6,100 this year – from across the country to assess dealers and generate rankings from over 50 individual factors. News Source: Pied Piper via WardsAuto Green Audi BMW Cadillac Chrysler Infiniti Lexus Mercedes-Benz Nissan Tesla Toyota Car Buying Car Dealers study
2016 Technology of the Year Finalist: Audi Virtual Cockpit
Tue, Jan 5 2016The heart of most infotainment systems is a touchscreen in the center console. In many systems, some information can be sent to the gauge cluster in slightly redacted form – stripped-down navigation commands, basic audio info, that sort of thing. To get the full story, the driver has to take their eyes off the road and look to the middle of the dashboard. Audi's Virtual Cockpit, in essence, ditches the center screen and places all that information in the gauge cluster. The high-resolution TFT screen is just over a foot wide, and it has two main modes: Classic view, and Infotainment view. Classic looks like many other traditional TFT gauge clusters, with large traditional gauges and the ability to display a decent amount of information in the space in-between. Go into Infotainment view, and the gauges shrink and head to the lower corners, freeing up a much larger amount of real estate for, say, the nav system map. The gauges also get out of the way when utilizing the menu, entering a destination, or that sort of thing. The four main modes are standard stuff. Virtual Cockpit will show you navigation, media, phone, and trip computer information in large or small formats. You interact with Virtual Cockpit with a familiar MMI wheel-type controller in the center console, like in many other Audis, or with buttons and a scroll/push wheel on the left side of the steering wheel. Climate control functions are handed by physical controls cleverly integrated in the center three vents. It takes a lot of processing power to make all this work as well as it does, and that's handled by NVIDIA's Tegra 3 processor – a quad-core processor usually seen in tablets and smartphones. The system is quick and responsive, and we found the high-resolution screen to be impressively sharp. If there's a downside, it's that Virtual Cockpit doesn't leave an opportunity for a passenger to step in and, say, enter a destination or change the radio station without altering what's right in front of the driver. It could be inconvenient at best, distracting at worst, to have the nav system directions you're trying to follow suddenly be superseded by the audio menu. Adding a small secondary screen for the passenger could be one fix; a connected companion smartphone app another. In the meantime, it's an impressive implementation of a clever idea.