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VW CEO under fire after emissions scandal, stock slide

Pressure piled on the head of Volkswagen on Monday in the wake of an emissions-testing scandal that's seen around 15 billion euros ($16.9 billion) wiped off the company's market value. Following revelations that the German carmaker had rigged US emissions tests for about 500,000 diesel cars, VW CEO Martin Winterkorn apologized Sunday for the fact that his company had "broken the trust of our customers and the public." But saying sorry wasn't enough for investors as they digested the financial and reputational implications of the scandal on the world's biggest carmaker by sales – in mid-afternoon trading in Frankfurt, Volkswagen's share price was down a stunning 17.8 percent at a near three-year low of 132.15 euros. Earlier it had tumbled by more than 20 percent. In the wake of Friday's revelations from the US's Environmental Protection Agency, VW has already halted sales of some vehicles in the US and pledged to cooperate with regulators in an investigation that could, in theory, see the company fined up to $18 billion. Industry analysts said the VW CEO faces difficult questions in the coming days, particularly when the company's board is scheduled to meet Friday. "At the moment, I'd be surprised if Winterkorn can ride this out." - Christian Stadler "At the moment, I'd be surprised if Winterkorn can ride this out, but in Germany there's often a slightly slower process in these matters," said Christian Stadler, a professor of strategic management at Warwick Business School who researches the car industry. Stadler said that if VW were a US company, then the CEO would have gone more or less immediately. In essence, Volkswagen stands accused of skirting the US's clean air rules. The EPA said VW used a device programmed to detect when the cars are undergoing official emissions testing. The software device then turns off the emissions controls during normal driving situations, allowing the cars to emit more than the legal limit of pollutants. Guido Reinking, a German auto expert, said that for a company to engage in such blatant trickery the company's top executives would have to be informed. Winterkorn, an engineer by training, led research and development across the VW group from 2007. He became chairman of the management board the same year. "It's almost impossible to imagine that he didn't know about this special way of programming the engine," Reinking told German television station n-tv.

2015 Volkswagen Touareg TDI Quick Spin [w/video]

There are two particularly great things about diesel-powered cars: torque and range. The 2015 Volkswagen Touareg TDI has both in spades. We put 190 miles on our test car, and upon return, the computer claimed we still had 490 miles to go. We weren't even averaging the EPA-estimaged 29 miles per gallon highway. Plus, that's in a sport-utility vehicle with tons of room and a whopping 406 pound-feet of torque. That said, our most recent adventure with the Touareg wasn't totally positive. This thing feels decidedly long in the tooth, despite a 2014 refresh. Driving Notes The Touareg TDI's powertrain really is the star of the show. The 3.0-liter, turbodiesel V6 has been in service since 2009, but it's still a dynamite engine. With 240 horsepower and 406 pound-feet of torque, the latter of which can be called upon at just 2,000 rpm, there's no shortage of thrust under your right foot. Turbo lag is an issue when you get aggressive with the throttle, but don't drive like a boob and you'll be fine. ZF's critically acclaimed eight-speed automatic delivers that power to all four wheels. But where other ZF-equipped vehicles deliver a crisper, sharper character, the TDI's trans is tuned for a far more relaxed driving experience. Upshifts are leisurely; the eight-speed keeps you right in the thick of the Touareg's broad torque curve. The suspension tuning follows a similar philosophy. It's far more comfortable than dynamic, soaking up all manner of bumps and general imperfections with aplomb. That said, the Touareg does not feel floaty or disconnected – just smooth. The greasy bits of the Touareg are very desirable, but the package they're wrapped in is less so. It's not that the interior or exterior designs are necessarily bad – fans of Earth tones will love our tester's Black Oak Brown Metallic paint and Cornsilk Beige interior – they're just kind of bland, or anonymous. The switchgear and buttons come from the Volkswagen parts bin, and while they're fine on a $20,000 Golf, these pieces aren't as appropriate in a vehicle that starts at more than twice the price. The dash plastics and faux wood don't look as nice as what's inside an Acura MDX, or even a Jeep Grand Cherokee. This mid-level Touareg TDI Lux starts at $57,580.

Rimac inks deal to purchase 55% of Bugatti from VW Group

ZAGREB, Croatia — Croatian electric supercar builder Rimac is taking over the iconic French manufacturer Bugatti in a deal that is reported to be worth millions of euros. Rimac said GermanyÂ’s Volkswagen Group, including the Porsche division — which owns a majority stake in Bugatti — plans to create a new joint venture. The new company will be called Bugatti-Rimac. Rimac Automobili announced Monday that it will be combining forces with Bugatti to “create a new automotive and technological powerhouse.” Rimac has progressed in 10 years from a one-man garage startup to a successful company that produces electric supercars. Mate Rimac, who founded the company in 2009, says the venture is an “exciting moment” and calls the combination of the companies “a perfect match for each other.” Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55% stake, according to Croatian media reports. Financial details of the deal were not published. Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia. “In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of RimacÂ’s operations," the company said. “Uniting RimacÂ’s technical expertise and lean operations with BugattiÂ’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds." Earnings/Financials Green Bugatti Automakers Porsche Volkswagen Green Automakers Electric Supercars