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VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.

Audi TT Offroad gets the green light

The TT family already has a coupe and convertible, with various engines available in each. But over the past year or so, Audi has been toying with the idea of expanding the range with another bodystyle. And now the latest report from Car confirms that Ingoldtadt has given the production go-ahead to the TT Offroad concept. Unveiled at the Beijing Motor Show last year, the yellow TT Offroad concept envisioned a high-riding five-door crossover form with trademark TT styling cues. It was preceded by the blue three-door Allroad Shooting Brake concept at the Detroit show and followed by the sleek, red five-door TT Sportbrake concept at the Paris salon later the same year, but the impracticality of both those show cars is what we understand prompted Audi to go with the Offroad concept instead. So if it's a crossover, why not badge it with the letter Q, you ask? Because Fiat, that's why. The Italian automaker owns the names Q2 and Q4, which it has used on a variety of models (particularly Alfa Romeos and Maseratis) to connote their traction system. And though the Volkswagen Group has asked nicely, Sergio Marchionne has been as reluctant to give his biggest rivals a leg up as he has been to part with Alfa Romeo, despite their repeated advances. As a result, word has it that the production version of the TT Offroad concept will be sold as the TTQ, which kinda makes us giggle, but it would at least provide a nomenclature bridge between the TT and Q families within Audi's lineup. That is, unless Audi marketing chief Luca de Meo manages to convince his former boss to part with the Q2 and/or Q4 labels. Whatever it's called, the production crossover coupe would share similar dimensions to the Q3 when it arrives in 2017, but would potentially stand even further apart from its more utilitarian counterpart than the BMW X4 does from the X3 on which it is based.

2014 Audi SQ5 priced from $51,900* [w/video]

Despite the fact that the 2014 Audi SQ5 you see here is quite a bit different than the one offered in Europe, we're still plenty glad that the folks from Ingolstadt have decided to offer a hotted-up version of its compact Q5 crossover here in the States. Now, Audi has announced that its US-spec SQ5 will be priced from $51,900 when it hits dealerships later this summer (*not including $895 for destination). That strikes us as a pretty favorable price - while the base Q5 in 2.0-liter TFSI trim starts at $35,900, the 3.0-liter Prestige model commands a full $51,400, and somehow manages to feel worth it.
We already enjoy driving the Q5 in its standard tune, and this SQ5 looks to be quite an entertaining thing. Audi has tuned its 3.0-liter supercharged V6 to produce 354 horsepower and 347 pound-feet of torque - gains of 82 hp and 52 lb-ft over the standard 3.0L Q5. No, it's not the awesome 313 hp and 479 lb-ft of the twin-turbo-diesel engine used in Europe, but our American SQ5 will certainly be a quick little thing. Audi is estimating a 0-60 time of 5.1 seconds, on its way to a limited top speed of 155 miles per hour.
Like all S models, the SQ5 will be a bit different visually than its basic Q5 kin. Aluminum roof rails are standard, as are 20-inch wheels (21s are available). There are revised bumpers at the front and rear, with Audi's usual gray grille and diffuser, as well as aluminum mirror caps. Inside, leather- and Alcantara-clad sport seats are standard, though buyers can opt for a fine Nappa leather setup. Audi says that new aluminum/black wood inlays are also available, as is a 14-speaker Bang & Olufsen sound system.