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Recharge Wrap-up: Audi's EV SUV to be built in Brussels, Mercedes-Benz to extend EV range

European Union Industry Commissioner Elzbieta Bienkowska is demanding that Volkswagen compensate owners of cars affected by the diesel emissions scandal. She says European customers should receive the same goodwill compensation as American drivers, whom VW is providing with $1,000 worth of recompense. "The issue of compensation goes beyond the difference in the legal setup between the US and the EU and plays a fundamental role in viewing VW as a responsible and trustworthy company," says Bienkowska in a letter to Volkswagen CEO Matthias Mueller. Bienkowska has also requested detailed data about the vehicles and "corrective measures" VW is planning. Read more from Automotive News Europe. Mercedes-Benz will equip its plug-in vehicles with higher-capacity batteries as it expands its electric model range. While the PHEVs it has released so far have electric driving ranges between 14 and 20 miles, better batteries should extend that range starting around model years 2018 or 2019. After releasing a slew of plug-ins by the end of next year, Mercedes-Benz development director Dr. Thomas Weber says, "The next-generation vehicle will overcome the 30-km to 50-km hurdle and then the next generation after that will be 80-100 km when they run as pure electric cars." Read more at Green Car Reports, or from Motoring. Audi will build its pure electric SUV at its plant in Brussels, Belgium. The batteries for the vehicle based on the Audi E-Tron Quattro concept (perhaps to be called the Q6) will also be built at the Brussels plant when production begins in 2018. With this announcement comes news that production of the A1 will shift from Brussels to Martorell, Spain, while Q3 production will move from Spain to Gyor Hungary. Audi says the Brussels facility will "become a key plant for electric mobility at the Volkswagen Group." Read more at Green Car Congress, or in the press release below. Audi production network: ready for electric mobility - Premium manufacturer to produce large series of electric cars in Brussels as of 2018 - New models for Martorell (Spain) and Gyor (Hungary) - Audi CEO Rupert Stadler: "We are increasing our efficiency and bundling key competencies" Audi is preparing its international production network for the mobility of the future. Large series production of the first purely electric driven SUV from Audi will begin at the site in Brussels in 2018. The plant will also produce its own batteries.

VW still set on Phaeton redux despite cost-cutting drive and losing $32k per car

While critically well regarded, the Volkswagen Phaeton has proven to be a vehicle largely unloved by luxury buyers around the world. Despite this, it refuses to die. While VW's luxury sedan hasn't been sold in the US since 2006 due to low sales here, it has soldiered on in Europe with occasional updates. As the model's long lifespan has been winding down, VW has decided to keep pushing the Phaeton into a new generation, despite in-house alternatives like the Audi A8 and Bentley Continental Flying Spur. The move might not make much business sense, but Volkswagen executives are determined to make the Phaeton work. According to market analysts speaking to Reuters, developing the next-gen luxury sedan on the MLB platform could cost as much as 650 million euros ($737 million), despite relying on the same underpinnings in the A8. It's not like the Phaeton is leading the luxury sedan sales ranks, either. Reuters notes VW produced just 5,812 of them in 2013 (the most current year with data), and from 2002 to 2012, the automaker reportedly lost 28,000 euros ($32,000) on each example sold. Conversely, Mercedes-Benz sold 103,737 units of its new S-Class in 2014, an astonishing 82.2 percent jump over the previous year. The decision to keep the Phaeton going doesn't seem to square with the VW brand's cost-cutting strategy. Boss Martin Winterkorn announced last year a plan to save 5 billion euros ($5.7 billion) annually in the coming years. That plan reportedly also includes killing off less profitable models. Apparently, VW can't just rip off the band-aid and get rid of the Phaeton. Even some VW bosses seem somewhat perplexed at the sedan's business case. When Reuters asked the company's US boss Michael Horn about selling the Phaeton here, he said. "That's a dangerous question. It's an image bearer with no relevance for volume." The next-gen Phaeton is scheduled to go on sale in Europe in 2017 or 2018, according to Reuters, which is about a year later than previous rumors. A US launch will reportedly follow in 2018 or 2019 with the plug-in hybrid and potentially even diesel versions on offer. A starting price around $70,000 is estimated. Featured Gallery 2011 Volkswagen Phaeton View 15 Photos News Source: ReutersImage Credit: Volkswagen Plants/Manufacturing Volkswagen Luxury Sedan vw phaeton cost cutting

VW sales increase 0.6% in September despite diesel scandal

Volkswagen was spared in the month of September from posting a sales disaster, but in reality, the impending doom and gloom is likely just postponed until October. According to VW, it delivered 26,141 vehicles to its dealerships last month, which represents a 0.6-percent gain over the same period a year ago. While up, that meager increase represents the smallest uptick of all major brands in the United States, which is currently in the middle of the best vehicular sales year in the last decade. Audi, the German automaker's mainstream luxury unit, saw a bigger gain at 16.2 percent with 17,340 total units sold, thanks in large part to the popularity of its crossover models. These numbers can't totally be taken at face value, however. In 2014, Labor Day weekend was counted as part of August's sales figures; in 2015, that traditional car-buying holiday fell early in September and is therefore partly responsible for the huge increases from all brands doing business in the United States. Remember, the diesel emissions scandal didn't hit the news until September 18, which means VW was free to sell its 2.0-liter TDI engine for the majority of the month. In other words, October is going to be the real indicator of sales reckoning as it will be the first full month that the brand can't sell its popular diesel models and the first since its emissions scandal broke. Still, TDI sales were down last month. VW reports a total of 3,060 sales of vehicles equipped with TDI engines, which represents 11.7 percent of total volume. That's nearly cut in half from the TDI's year-to-date volume percentage of 20.4 percent. "We would like to thank dealers and customers for the support of the Volkswagen brand," said Mark McNabb, chief operating officer for Volkswagen of America in a statement. "Volkswagen will continue to work diligently to regain trust and confidence in our brand." It's not yet clear exactly when VW will issue a fix to make its 2.0-liter TDI engine emissions legal, or when the EPA will recertify those models for sale. Once those two things happen, dealers will again be free to sell vehicles equipped with the powertrain, but even then it remains to be seen how consumers react when the sales ban is lifted. Scroll down below for all the sales data from Volkswagen in September.