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Weekly Recap: Volkswagen moves forward under Muller

Most stunning was the speed of it all. On the morning of September 18, Volkswagen AG stood atop the automotive world. It was profitable and sold more cars than Toyota and General Motors, its two main rivals for global supremacy. By nightfall, the company would be embroiled in scandal. Revelations the German auto giant cheated on diesel emissions testing in the United States reverberated from Washington to Wolfsburg, Germany. What started out as a problem with 482,000 VWs and Audis in the US exploded into an international scandal. Millions of vehicles have the rigged software, meaning VW broke environmental rules as its cars spewed pollutants all over the world. The fallout began immediately. Volkswagen CEO Martin Winterkorn – one of the most respected and capable executives in the business – apologized on Sunday and Tuesday. On Wednesday he resigned. As the week progressed, the company's stock took a beating and credit agencies threatened to drop their ratings. VW dealers and owners said they felt betrayed. The automaker hired a law firm that defended BP after the Deepwater Horizon oil spill. The EPA is already extending its testing procedures to look for "defeat devices" like the ones used by Volkswagen. On Friday the company announced a major restructuring. Matthias Muller, Porsche's chief for the last five years, took over as CEO of Volkswagen and is charged with picking up the pieces of a shattered company facing regulatory action and lawsuits. With GM, Toyota, and Takata scandals still fresh, Volkswagen will likely experience unprecedented levels of scrutiny. Additionally, VW's markets in the United States, Canada, and Mexico will be combined into a North American region under the leadership of former Skoda boss Winfried Vahland, though US chief executive Michael Horn will stay on. The company is also realigning its brands by specialty and streamlining its board. Firings, government action, restructurings, and international outrage – things that usually build up over months or years – all occurred in about a week. With dizzying speed, Volkswagen's future has changed dramatically. It all happened, it's still happening, so fast. OTHER NEWS & NOTES 2016 Buick Cascada to start at $33,990 Buick hasn't made a convertible in 25 years. That's a whole person who can drink plus a kindergartner. So it's been awhile. Enter the 2016 Buick Cascada. It has top-shelf Opel engineering, slinky design, and it's reasonably priced.

U.S. auto sales in April expected to drop despite big discounts

DETROIT — U.S. auto sales in April likely fell nearly 8 percent from the same month in 2017 despite big discounts for consumers, industry consultants J.D. Power and LMC Automotive said on Thursday. For much of the past two years, the discounts offered by automakers have remained at levels that industry analysts say are unsustainable and unhealthy in the long term. April U.S. new vehicle sales will likely be about 1.31 million units, down from 1.42 million units a year earlier, the consultancies said. The forecast was based on the first 17 selling days of April. Automakers, including Ford and Fiat Chrysler Automobiles, will release April U.S. sales results on May 1. Earlier this month, No. 1 U.S. automaker General Motors said it will stop reporting monthly U.S. sales because the 30-day snapshot does not accurately reflect the market. GM will instead issue quarterly sales reports. U.S. new vehicle sales fell 2 percent in 2017 to 17.23 million units after hitting a record high in 2016. Sales are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. LMC expects full-year 2018 U.S. new vehicle sales to come in at around 17 million units. "Uncertainty and unfavorable factors appear to be mounting for autos, including a volatile stock market, rising interest rates, rising oil prices and potential trade roadblocks," Jeff Schuster, LMC's head of global vehicle forecasts, said in a statement. The seasonally adjusted annualized rate of sales for April will be 16.6 million vehicles, down more than 2 percent from 17 million units in April 2017, the consultancies said. Retail sales to consumers, excluding lower-margin fleet sales to rental agencies, businesses and government, were set to decline about 9 percent in April. The level of consumer discounts, which can erode profit margins and undercut resale values, "remains the larger concern," the consultancies said. The average discount was $3,698, up $187 from April 2017. Discounts on trucks and SUVs were up $426, but down $226 on passenger cars. Reporting by Nick CareyRelated Video: Image Credit: Reuters Earnings/Financials Chrysler Ford GM JD Power

A cool boost to turbocharger performance

Since the advent of the forced-induction engine, we have been looking for ways to get every drop of performance we can. There are many approaches to getting additional power using better intercooling, water injection, or even adding nitrous oxide. One take on a short instant burst of power is being researched by Mahle and involves providing supercooled air to an engine, which allows it to burn a leaner fuel mixture and produce more power. The supercooling idea is not new and was examined by Ford in 1993 on the Mustang Mach III concept car, then brought up again in 2003 with the SVT F-150 Lightning concept. Ford called its system the SuperCooler; it was designed to work with any turbocharged or supercharged engine equipped with a water-to-air intercooler. The system on the Lightning concept used a small tank of antifreeze that was hooked up to the truck air conditioning compressor. The air conditioning compressor cooled the antifreeze down to about 30 degrees. The other side of the tank was hooked up to the air-to-water intercooler, which usually had a temperature over 100 degrees. Once the antifreeze was circulated from the tank into the intercooler, it would lower the intercooler temperature and provide for a cooler, denser air charge into the engine; the result was around 50 extra horsepower for a burst of about 30 seconds to a minute, depending on the size of the tank. The system for the Lightning was to be offered as a $750 option and would have been targeted towards drag racers and the like, as it could be used for a run down the drag strip and then re-cooled by the time the truck was back in line. The system was fairly non-intrusive – it only weighed about 25 pounds and did not require a new compressor or intercooler. But as with many concepts, it was ultimately scrapped. The technology was always stuck in the back of my mind, but with larger and more powerful engines being produced it could not find its place. With the advent of new fuel economy standards, we have seen small-displacement turbocharged engines pop up and they seem like the perfect candidate for this type of technology. Ford's EcoBoost 1.0-liter three-cylinder turbocharged engine, as used in the Fiesta and Focus, is one such candidate for this technology. It would add a negligent amount of weight but could provide a boost of 10 to 20 horsepower when needed, like merging onto the highway or catching up to traffic.