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VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

VW has received several tentative bids for Ducati

Italy's Benetton family is vying with motorbike firms and buyout funds for control of Italian motorcycle brand Ducati, which is being sold by Germany's Volkswagen, sources involved in the process told Reuters. Volkswagen, whose Audi division controls Ducati, has received several tentative bids with the Benetton family's investment vehicle Edizione Holding valuing the Monster motorbike maker at $1.2 billion, one of the sources said. As well as Edizione Holding, U.S. buyout fund Bain Capital, which owns a stake in Ski-Doo snowmobiles maker BRB, and two Indian motorbike firms, Eicher Motors and Bajaj Auto, have also bid for Ducati, the sources said. Indian carmaker Eicher controls Royal Enfield, a motorcycle brand established in 1893 which ranks as one of the oldest. Strategic bidders also include U.S. automotive firm Polaris Industries, which earlier this year said it would wind down its struggling Victory Motorcycle brand. A shortlist of bidders for a second stage of the auction could be selected as soon as Saturday, two of the sources said. Volkswagen adviser Evercore has a long list of bidders including private equity funds such as Ducati's previous owner Investindustrial, CVC Capital Partners, Advent and PAI, all hoping to outbid industry players, the sources said. If it gets to the second round, Edizione Holding could seek to form a consortium with a financial investor, two of the sources said, in a bid to secure control of Ducati, whose racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders. Audi, Edizione Holding, Investindustrial, Advent and PAI declined to comment, while the other interested groups were not immediately available for comment. PRICING CHALLENGES For some buyout funds, Ducati's valuation of up to $1.4 billion – which sources said is based on a multiple of more than 10 times its core earnings of roughly 100 million euros – is a tall order as they lack the synergies that some motorbike makers could achieve. But Investindustrial founder Andrea Bonomi, who sold Ducati to Audi for about 860 million euros in 2012, is serious about a comeback, one of the sources said. China's Loncin Motor was among a group of industry players that initially showed interest in Ducati, alongside Harley-Davidson. The latter has, however, decided against making a bid due to Ducati's price tag, while it could not be established if Loncin Motor had carried on bidding.

VW App-Connect gets celeb-studded campaign

Volkswagen is hoping that some celebrity faces help get the word out about App-Connect in the German brand's latest models with the MIB II infotainment system. The humorous, new commercial titled Party (above) stars Adam Scott, Michael Pena, and Christopher Mintz-Plasse, and the three of them are using voice commands and the touchscreen to show off the tech while planning a party. Another 30-second commercial titled Sorry with the three guys is coming along soon, as well, to advertise it even more. App-Connect is part of VW's adoption of Apple CarPlay, Android Auto, and MirrorLink. By supporting all three standards, pretty much every smartphone user can plug into the vehicle's infotainment system. The tech is already available on the 2016 Tiguan and Golf R but is rolling out to all of the German brand's vehicles this model year, except for the Touareg and Eos. VOLKSWAGEN DEMONSTRATES ADVANCED CONNECTIVITY IN NEW CELEBRITY-DRIVEN MARKETING CAMPAIGN Sep 17, 2015 First brand to offer all three major smartphone integration platforms; available on virtually every model and nearly every trim Highlights App-Connect, a new technology which makes compatible smartphone integration seamless through Apple CarPlay®, Google Android Auto™, and MirrorLink® Multimedia Campaign stars Hollywood celebrities Michael Pena, Adam Scott and Christopher Mintz-Plasse Herndon, Va. – Volkswagen of America, Inc. today announced the release of a new advertising campaign that highlights the brand's all-new infotainment system, MIB II, and its advanced smartphone integration technology, App-Connect. As part of Volkswagen's available Car-Net® suite of connectivity offerings, App-Connect allows for seamless integration of compatible smartphones across Apple CarPlay®, Google Android Auto™ and MirrorLink®; making it the first automaker to do so. The campaign kicks off with two 30-second television commercials, titled "Party" and "Sorry" starring Adam Scott, Michael Pena and Christopher Mintz-Plasse. In each spot, the celebrities navigate App-Connect by utilizing voice commands, the vehicle's touchscreen, and steering wheel controls.