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VW will expand goodwill package to larger diesels

Volkswagen Group of America will expand its goodwill package to affected owners of the VW Touareg and other models with the 3.0 TDI. The company may also replace the catalytic converter on some cars equipped with the 2.0-liter four-cylinder TDI engine to bring it into compliance with US emissions. VW Group of America boss Michael Horn told Reuters he plans announce the goodwill program's expansion to the 2009-2016 Touareg during the Detroit Auto Show, and company spokesperson Jeannine Ginivan also confirmed this to Autoblog. Audi intends to extend the offer to its affected owners, too. As with the previous goodwill package, participating customers would receive a $500 prepaid Visa card and $500 to use at dealers. The EPA issued a violation notice against the 3.0 TDI in November and later extended it to additional model years. Audi later admitted that the engine, which was also in the Touareg and Porsche Cayenne, had undisclosed emissions management software. However, the automaker limited the goodwill package only to the 2.0-liter powerplant while it investigated the allegations against the larger mill. VW has not announced a recall plan in the US for the 2.0 TDI so far, but VW Group CEO Matthias Muller recently outlined a possible solution that could fix about 430,000 of the 482,000 affected vehicles. "We have one [catalytic converter] in the works and we believe that will be a part of the technical solutions," he told Reuters. Muller plans to discuss the repair while in Washington D.C. on Wednesday to meet with the EPA. "I think we can now offer a package that will come very close to what the EPA is expecting from us," Muller said to Reuters. He also suggested the company might buy back some affected models but didn't confirm the recent rumor claiming that the buy-back may cover as many as 115,000 cars.

Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

The 2018 Audi SQ5 looks mean and switches to turbo power

Audi's huge Q8 wasn't the only crossover introduced by the German automaker at this year's Detroit Auto Show. Right alongside it came the 2018 SQ5, the brand's high-performance midsize crossover. This newest version ditches the previous generation's supercharger in favor of a turbo for its 3.0-liter V6. The powertrain is similar to the one used in the latest S4 and S5. Horsepower remains unchanged compared to the last SQ5 at 354, but torque sees a healthy increase to 369 pound-feet, and it's available anywhere from 1,370 to 4,500 rpm. The car itself weighs about 77 pounds less, too. It's a combination that should make the SQ5 pretty entertaining off the line. Coupled to the turbo engine is an eight-speed automatic and standard all-wheel drive. Power delivery and handling can be enhanced with a Quattro sport rear differential that can shuffle power left and right to aid cornering. Audi says the torque vectoring system can send almost all rearward power to one wheel as necessary. The differential is available as part of the S sport package, which comes with other upgrades including air suspension. The suspension gives the crossover a lower ride height by default. Both height and firmness can be adjusted, and it offers an "offroad" position that raises the car for maximum ground clearance. Inside, the SQ5 comes with a sportier interior than its Q5 counterpart. It comes with prerequisites such as a flat-bottomed steering wheel and more-bolstered seats. Audi also provides a Bang & Olufsen sound system and standard Apple CarPlay and Android Auto. The cabin experience can be further augmented with Audi's Virtual Cockpit LCD instrument panel, as well as driving assists such as a variable-ratio steering rack and adaptive cruise control that can handle stop-and-go traffic from 0 to 40 mph. Audi will begin selling the new 2018 SQ5 here in spring of 2017. Pricing for it and the Q5 has not yet been released. Related Video: