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More German automakers may be afoul of US emission standards

Volkswagen has plenty of smoke to share, and that may mean fire for other German automakers that make diesel vehicles, says Automotive News. Earlier this month, European Federation for Transport and Environment said that BMW, Daimler's Mercedes-Benz and General Motor's Opel division are among other automakers that may have equipped their vehicles' diesel engines with similar software as VW's. That software was found to reduce emissions while a car is being tested for emissions and shuts down emissions-control systems during normal use. The European environmental group used data from the International Council on Clean Transportation. Automotive News notes that the European environmental group put out its own report earlier this month, before the VW scandal broke loose, but the report was pretty much overlooked. Now, VW is under fire after it was discovered that 2.0-liter diesel engines in the VW Jetta and Golf, and Audi A3, may be programmed to game the emissions system. VW sold almost a half-million diesel vehicles in the US during the past six years. Both BMW and Mercedes-Benz told Automotive News that the issue that befell VW doesn't apply to their diesel vehicles. Earlier this week, Volkswagen admitted its car ran the sneaky software, while the US Environmental Protection Agency (EPA) has started a probe on the company. VW is setting aside more than $7 billion to pay for the alleged violations. Meanwhile, US taxpayers may have spent as much as $51 million a year to pay for subsidies related to VW's diesel vehicle sales in 2009 alone, according to the Los Angeles Times.

AMG could have a hybrid model on sale by 2020

European CO2 regulations are driving every carmaker to previously unthinkable solutions in order to reduce emissions. And so far those unthinkable solutions, like a turbocharged Ferrari, have been pretty good. AMG has its development eye on the year 2021, when EU regulations will include every car sold by Mercedes-Benz parent company Daimler when calculating fleet average emissions, and says that the deadline could mean a hybrid AMG by 2020. Those are the words of the company's R&D boss, Thomas Weber, to Autocar. Weber says a hybrid system right now wouldn't work only because AMG customers "wouldn't buy it." In five years, though, not only will the pressure have forced the situation, but the low-six-figure segment might also be populated by heresies like a diesel and hybrid Bentleys, and a hybrid or electric Porsche 911, to break the ice. Acceptance is coming down from the top via supercars like the McLaren P1 and Porsche 918, and up from the bottom with the near-term incorporation of electric turbos and e-boost systems. And whenever the German challengers to Tesla arrive, that will be another huge step to changing the public's mind. E-boost is what Weber said the division is looking at right now, perhaps like the kind in Mercedes' Bluetec Hybrid that employs an innocuous battery and motor. Regenerative braking would keep the battery charged. Weber said he likes it because it's proven, it's light, it's cheap, and it's already used in high-volume applications. But we would not be surprised to see a more robust implementation by the time 2020 gets here.

Is Audi getting complacent and suffering from brain drain?

The argument is made in a Reuters article: Audi is falling behind other luxury brands, such as Mercedes-Benz and BMW, due to a lack of research-and-development spending and "brain drain," or the migration of top executives and R&D chiefs to other parts of the Volkswagen Group. Reuters notes that Audi's current R&D chief is the third in 16 months.
Audi, which contributed to 40 percent of VW Group's $11.6 billion in profit the first nine months of the year, is delivering cars at a record pace: 1.31 million were delivered from January to October 2013 versus BMW's 1.35 million. Yet Audi, Reuters reports, doesn't have a halo car akin to BMW's new electrified i3 and i8 or an answer to Mercedes' plug-in-hybrid S-Class, and the R&D spending at Audi is less than BMW and Mercedes by a fair margin. It's noted in the article, however, that Audi benefits from other R&D spending within VW Group.
Reuters mentions that BMW "trumpets its new 'i' series" and the new Mercedes CLA and GLA ranges are winning "rave reviews" as part of its argument that Audi's recent lack of technological innovation could hurt future sales. Those cars do pack tons of new technology, some of which are firsts for mainstream production cars. But last time we checked, the i3 could be causing BMW's stock to slide, the CLA isn't receiving the rave reviews that Reuters would have you believe and the GLA hasn't been reviewed yet.