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Audi's CEO might not have known of VW emissions scheme

There's been no shortage of finger-pointing when it comes to finding people to blame for the Volkswagen diesel-emissions scandal that broke last September. One rather powerful executive, however, appears to have escaped blame. That would be Audi CEO Rupert Stadler, whose company sold about 85,000 diesel vehicles with emissions-cheating software, Reuters says, citing people familiar with the process. US law firm Jones Day questioned executives at both VW and its Audi unit and has found no evidence that Stadler was complicit with the plan, which involved programming Volkswagen-made diesel engines to produce artificially low emissions when the vehicle was being smog-tested. In Audi's case, the engine type in question was the 3.0-liter V6 diesel. Officials with both VW and its Audi unit declined to comment, according to Reuters. That engine was used for the Audi A6, A7, A8, Q5, and Q7 since the 2009 model year, in addition to the VW Touareg and Porsche Cayenne. Audi also sold the VW Group 2.0-liter four-cylinder in the A3 from 2010 to 2013 and 2015. VW has reached an agreement with US regulators concerning that engine, which is also not connected to Stadler. Last month, German newspaper Bild am Sonntag published specifics on how the 3.0-liter diesel cheated the emissions-testing process, including records that the motor was programmed to shut of its emissions-control equipment after 22 minutes of running, or about two minutes longer than typical emissions-compliance testing. Audi said last November that it would work on a software update for the V6's emissions-control system that would be submitted to both the California Air Resources Board (CARB) and the Environmental Protection Agency (EPA), but the VW unit hasn't reached any settlement with US regulators implying that a solution was agreed upon. Volkswagen's settlement with the EPA will cost Europe's largest automaker as much as $15 billion in the form of buybacks, lease buyouts, vehicle repairs, and investments in zero-emissions technology. VW sold about a half-million vehicles in the US that contained the so-called "cheat" software. Related Video: News Source: Reuters Government/Legal Green Audi Volkswagen Diesel Vehicles vw diesel scandal scandal Rupert Stadler

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.

VW Golf R 400 reportedly green-lit (again)

After speaking to Volkswagen powertrain boss Dr. Heinz-Jakob Neusser at the 2015 New York International Auto Show, we uncovered that the Volkswagen Golf R 400 would be sold in the United States... if it ever made it to production at all, that is. That prerequisite looks like it's about to be fulfilled, as the same good doctor that said the super-powered GTI would come to the US has confirmed to Car that development is currently underway. This follows up on reports from late 2014 that the 400-horsepower car would make production. "We have the Golf more sporty than ever before, since we soon will have the Golf R 400 – we will do this car," Neusser told Car. "We are in fact in development of it right now." That is, we think you'll agree, splendid news. Of course, it also begs the question of when the new car will arrive. According to Car, it'll be just "a few short months," indicating that the Frankfurt Motor Show will likely host the Golf R 400's debut later this year. Whether that proves correct, though, likely won't be clear until later this summer.