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VW previews huge screens, gesture control with Golf R Touch Concept at CES

Volkswagen is showing off the future of infotainment and connected driving at CES 2015 with a fleet of concepts that highlight its latest technology. According to its displays, the coming years might mean gesture-based vehicle controls and electric cars that drive themselves to find their own charging locations. VW's biggest debut at CES is its next-gen infotainment system, dubbed MIB II. The setup supports a wide array of smartphone integration standards, including MirrorLink, Apple CarPlay and Google Android Auto, to make sure that practically every smartphone user can pair the device's interface with the vehicle. Beyond just keeping occupants entertained, MIB II offers a system called Regular Routes that detects traffic along the driver's regular commute to work and suggests alternatives. The Parking Guide also helps find parking spots that are likely open. If MIB II represents the near future of VW infotainment, then the technology on the Golf R Touch Concept is the next step from there. It takes the brand's hot hatch and adds support for gesture controls inside, plus a trio of massive infotainment screens. This R features a 12.8-inch central infotainment screen, an 8-inch screen below it for things like the climate control and switching media and a customizable 12.3-inch display that digitizes the instrument panel. A camera in front of the central display waits for the driver's hands to make specific movements that activate various vehicle functions. Despite all of the potentially distracting screens, VW says the system offers control without requiring a look away from the road. VW hopes the technology reduces driver distraction and creates a closer relationship with the car. Another of the German automaker's big tech showcases is an e-Golf that demonstrates the potential future of both electric and semi-autonomous driving. This version can be charged inductively, rather than through a traditional power cord, and the exterior lights show when the vehicle is fully recharged. It's also equipped with the e-Station Guide that helps drivers find a charging location and tells them about the payment options there. This e-Golf's other major innovation is VW's Trained Parking system. A camera at the front scans the route to a parking space, and if the driver returns later, then the process can be done semi-automatically.

VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen

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.