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Audi prepping a flex-fuel A3 for Latin America

Volkswagen's Audi division hasn't fared well from its parent company's diesel-emissions scandal, especially in the US and Europe. In South America, though, Audi is set to unveil its first vehicle of the flex-fuel variety, according to Nseavoice. Perhaps the German automaker can earn some good karma down in the Southern Hemisphere. The model is the 2016 Audi A3, which is made in Audi's Brazil factory. The engine is a 1.4-liter variety, and it will be able to run on either conventional gasoline or ethanol, or a blend of both. The decision makes sense because ethanol is plentiful in Brazil since the government has long pushed for it and there's plenty of sugar-cane feedstock to produce the stuff. Audi can use all of the positive news it can get, especially in the wake of VW's diesel-emissions scandal. As many as 11 million VW and Audi diesels may have been fitted with software that cheats emissions-testing systems. One result from the scandal's proverbial shrapnel is that the Audi A3 TDI diesel was stripped of its 2010 Green Car of the Year Award by Green Car Journal. The decision marks the first time in the award's history that a winner was stripped of the honor. VW has a long history offering flex-fuel vehicles in Brazil. In 2003, the German automaker was the first to debut a flex-fuel engine, and within two years, VW's Brazil factories were making 300,000 flex-fuel vehicles annually. Other companies have since jumped into Brazil's flex-fuel fray, including Nissan and Honda.

There might be a second VW software cheat

The initial flurry of news about Volkswagen's diesel scandal is just beginning to settle down, but the company is months away from actually having any of the affected vehicles fixed. A stop sale is still in effect on new examples in the US, as well. The remedy process now faces yet another hurdle because the Environmental Protection Agency is requesting more info about other previously undisclosed emissions software on the engines, Bloomberg reports. Separate from the defeat device that evades tests, this new bit of code reportedly helps warm up the engine. However, automakers are supposed to disclose to the EPA any software that can affect emissions. The tech isn't necessarily against the law, but the regulatory agency needs to know about it during evaluations. The company didn't reveal this system until applying for certification on the latest TDIs. "VW did very recently provide EPA with very preliminary information on an auxiliary emissions control device that VW said was included in one or more model years," EPA spokesperson Nick Conger told Bloomberg. In response to the disclosure, VW took back its application for the diesels until it provided more details to the EPA on the previously undisclosed code. So far, there's no evidence that this code is actually another defeat device, though. Regulators are preparing an onslaught of tests on the revised engine to make sure the German automaker isn't gaming the system again. VW has until November 20 to outline a fix for the diesels to the California Air Resources Board. In response to the scandal, the company is preparing for severe cutbacks to have enough money to pay for all of the expected fines and repairs. It also recently announced plans for a serious electrification push in the near future.

Porsche-Piech buy 10% stake in VW's holding company

In August, 2009, as the scuttled merger of Porsche and Volkswagen had gone bad and Porsche was backed up against the ropes, Porsche Automobil Holding SE (PAHSE) relinquished a ten-percent stake in itself to Qatar Holdings as well as options it held on 17 percent of VW shares. The sale meant that, for the first time since the founding of the company 61 years before, an entity outside the Porsche and Piech families had a say in the running of PAHSE.
Buying that ten-percent stake back returns full ownership to the two families, the holding company's sole possession being ownership of 50.7 percent of VW's common shares. The price paid wasn't disclosed, but at market rates the purchase would be worth close to $1.25 billion. Qatar intends to hold onto the 17-percent stake it has in Volkswagen.