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New safety and connected features help distinguish VW's lineup

Volkswagen may have wrested the title of world's largest carmaker away from Toyota this week, but the company still has some work to do in the United States. Despite its worldwide dominance, Volkswagen's American sales have languished. Unlike its red-hot Audi brand, mainstream Volkswagen sales have been afflicted by an assortment of maladies. An aging lineup, a reputation for mechanical gremlins and a lack of a competitive crossover vehicle have all hurt. In the US, the brand's cars claim only two percent of the overall market. As we reported earlier today, Volkswagen took steps this week to upgrade some broader aspects of its weaknesses here. At its Electronics Research Laboratory in Silicon Valley, the company announced it would make several advanced safety features and connectivity options available throughout the bulk of its lineup. Features that have long been available on its premium Audi cars will spread to its more economical offerings. In one big way, they will overstep their premium siblings. Volkswagen said Apple CarPlay, Android Auto (pictured below) and MirrorLink will all be available on a revamped infotainment system. Cars equipped with the new Car-Net-branded systems are arriving in showrooms now. Only last month, Hyundai became the first to offer CarPlay, debuting the smartphone-projection system in its 2015 Sonata. Chevy, Honda, and now Volkswagen, have quickly followed suit. On the safety-minded side, features like adaptive cruise control, forward collision warning, autonomous emergency braking, park steering assist and automatic post-collision braking will be optional equipment on most of the brand's 2016 model-year cars. Previously, the features had only been available on the Touareg SUV. They're now available on most Golf variants, the CC, Jetta, Sportwagen and some Beetles. Though the Passat sedan is one of the company's most competitive cars, it was curiously absent from the announcements, though an update could come later this year. While the advanced safety equipment is a boon for motorists increasingly interested in the technology, Volkswagen also added some basic safety tech that's long been available in mainstream competitors' cars, adding features like blind-spot monitoring and lane-departure warning. One of the big differences consumers might note is the cost of the driver-assistance systems.

As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

Elon Musk says VW scandal proves limits of fossil fuel cars

Tesla Motors chief Elon Musk didn't appear to mince words when commenting on Volkswagen's diesel-emissions scandal when making comments at the Federal Ministry for Economic Affairs and Energy conference in Berlin this week, according to Bloomberg News. Musk called the news of scandal "obviously bad." He also used the opportunity to note that he thought the German automotive industry may be lacking when it came to getting its powertrains to cut emissions. Pretty tough talk in Berlin. Musk did note that, when it came to clean electricity generation, Germany was ahead of many countries. But he also used the occasion to note that global industries could do a better job addressing "the chemical constituency" of the world's air and oceans. Musk also spoke to the Belgian press about the VW scandal this week. Asked if people might lose their faith in green technology, Musk said that what the scandal shows is that "we've reached the limit of what's possible with diesel and gasoline. And so, the time, I think, has come to move to a new generation of technology." You can see his comments in the video above, starting at 1:12. Musk made these comments as the automotive industry reacts to news that Volkswagen tried to game the system by manipulating its diesel-powered vehicles to meet worldwide emissions regulations. VW has set aside $7.3 billion to address the issue, and has estimated that at least 11 million vehicles may have been programmed to cheat emissions mandates. As a result of the scandal, VW CEO Martin Winterkorn has stepped down and Porsche chief executive officer Matthias Muller has taken over. For those keeping track, VW sold almost 51,000 diesel vehicles in the US through the first eight months of the year. That is about eight percent less than a year earlier but is probably about three times the number of Tesla Model S electric vehicles Musk sold in the US (we say probably because Tesla discloses neither monthly nor country-specific sales). So, while this may not be a case of diesel envy, Musk did have a pretty wide-open shot to tweak VW and its reliance on diesel technology. News Source: Bloomberg News, EV AnnexImage Credit: AP Photo/Ringo H.W. Chiu Government/Legal Green Tesla Volkswagen Emissions Diesel Vehicles Electric vw diesel scandal