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Audi exec suspended over diesel scandal

So far, just one lower-level employee has plead guilty in the ongoing VW diesel scandal. Up high, the VW CEO when the scandal broke, Martin Winterkorn, resigned right after the news came out. Other executives have also quit or been suspended as well. Today, we learn that one more executive is feeling the heat a year into the scandal. Stefan Knirsch, the head of technical development at Audi and Audi board member, is going to be suspended from his position this week because of his ties to the technology that VW Group used to cheat emissions tests. The German newspaper Bild Am Sonntag reports that Knirsch not only knew that the cheating software existed but also lied about it under oath. Knirsch previously worked at Porsche and then Audi's electrification division. He left Audi's EV efforts behind in early 2015. News Source: ReutersImage Credit: REUTERS/Denis Balibouse/File Photo Government/Legal Green Audi Volkswagen Diesel Vehicles vw diesel scandal audi diesel diesel scandal

Recharge Wrap-up: Toyota Prius airbag recall, Peugeot launches eU01s e-bike

Toyota is recalling 7,600 Prius vehicles for an airbag issue. Certain examples of the 2016 Prius could have malfunctioning inflators that could cause the passenger side airbags to deploy accidentally. There are no known injuries from the faulty airbags, but Toyota says, "This has been observed when the vehicle is parked and unoccupied for a period of time." Toyota also says this issue is unrelated to the massive recall of airbags supplied by Takata. The automaker will contact affected owners to arrange free repairs. Read more at Automotive News. Peugeot is adding another e-bike to its portfolio with the eU01s. What sets this electrically assisted bicycle apart from both regular bikes and other pedelecs is its ability to propel the bike to 28 mph under electric power. It comes with either a 400- or 500-Wh lithium-ion battery, providing 47 or 59 miles of range, respectively. It also offers an optional on-board computer with its 4.3-inch screen, through which riders can customize the electric assistance, get directions, receive sports coaching, and connect their smartphone. Earlier this year, Peugeot also launched its e-Kick scooter and folding eF01 e-bike. Read more at Green Car Congress. BYD is expanding its manufacturing facility in the US. In the second of three phases for the plant, BYD is adding onto its factory in Lancaster, California, where it currently builds electric buses. The Chinese company plans to triple the number of employees, up from the current 400, as it expands the facility by 40,000 square feet. BYD plans to build medium- and heavy-duty trucks at the plant, but declined to comment on whether it has plans to build light-duty vehicles there. Read more at Automotive News. The German states of Hesse and Baden-Wuerttemberg are suing Volkswagen over the Dieselgate scandal. The states are joining other investors seeking damages over losses incurred because of the automaker's emissions cheat device. Hesse Finance Minister Thomas Schaefer said the scandal cost the state about $4.4 million in stock losses, while Baden-Wuerttemberg likely lost closer to $450,000. Bavaria said earlier that it would sue Volkswagen on behalf of its pension fund for civil servants, which lost around $780,000. Read more from Automotive News Europe.

The not-Subaru crossover wagon | 2017 Volkswagen Alltrack First Drive

Funnily enough, in light of dieselgate, Volkswagen is one of the few brands (along with Volvo and Subaru) to preserve the notion that you don't need a fuel-sucking SUV to meet your life-carrying needs. And, yes, VW's history of addressing off-road desires with all-wheel-drive dates to the mid-1980s with the Quantum Syncro (a.k.a. Passat) and Golf Country – the latter, sadly, never came stateside. The latest offering toward this effort is the 2017 Volkswagen Alltrack. What's an Alltrack? It's a slightly lifted, cladded, and butched-out version of the Golf Sportwagen (yes, formerly known as a Jetta). Not to steal Alltrack's thunder, but starting in 2017 you can also get the standard Sportwagen with 4Motion AWD, which is basically the same running gear for less money. The Alltrack starts at $26,950; the 4Motion Sportwagen starts at $24,930, both with the dual-clutch automatic available at launch. Any discussion of tall wagons brings Subaru immediately to mind, both with the Outback and the Impreza-based Crosstrek. The Volkswagen Alltrack sits between the two in size at 180.2 inches long – 5 more than the Crosstrek and 9.4 inches shorter than the Outback. The 2017 Subaru Outback starts at $25,645, and VW's comparisons focus on the Outback, which is understandable given the similar starting price. A bare-bones Crosstrek starts at $22,245, but quickly gets into Golf price overlap. The Alltrack and the 4Motion Golf Sportwagen are superior daily drivers to the Subaru, whether you're doing an emergency lane change or just trying to merge onto the interstate. Meanwhile, the Crosstrek doesn't have the refinement of the VW. Can we fault Subaru though? It's set a sales record every year in a row since 2010 and is looking at about triple the sales volume of VW's Golf for 2016. So we'll stick to telling you what we think of the Alltrack and let the dealers fight for your dollars. First thing's first. Yes, you can have the Golf Sportwagen and even the Alltrack with a manual six-speed gearbox. The seven-speed DSG automatic is very good, but it's worth noting that any manual gearbox is a rarity these days, especially when we're not talking about a two-seat sports car. You will have to wait until early 2017 for that option, but it also saves you $1,100 off both models. Second, the Alltrack and 4Motion Sportwagens get identical engines. Whether manual or DSG, VW's EA888 turbocharged 1.8-liter four-cylinder is under the hood.

New info on how VW, Porsche, Audi V6 TDI engine cheat works

The German newspaper Bild am Sonntag is reporting that US investigators have found three pieces of software that work in concert to turn off the emissions control equipment in certain diesel models after a set period of time. The engine in question, the 3.0-liter TDI turbodiesel, was found in certain Volkswagen Touareg, Audi Q7, and Porsche Cayenne models – the sale of which was suspended in the US late last year. Since most emissions compliance testing takes around 20 minutes, the software in the three VW Group models shuts off the emissions control equipment after 22 minutes, a straightforward end run around the testing. Remember that the 3.0-liter TDI engines aren't included in the big buyback and recall program announced for the smaller 2.0-liter, four-cylinder TDI engines. The 3.0-liter engines will likely get their own program, but we don't know when to expect it or exactly what it will look like. Last month, California rejected a proposed fix for the larger TDI engines, and VW went back to the drawing board. Since the company is unlikely to create two fixes, one for California and one for the rest of the nation, the company can't really proceed until they figure out a solution California will accept. The EPA hasn't officially commented on the report, and we don't know how Bild am Sonntag came across the information, but we'll be closely watching what emerges after this report. Related Video:

VW adding particulate filters to gas engines

Volkswagen is working hard to overcome the PR disaster that is its diesel emissions scandal, and part of its efforts is focusing, weirdly, on petrol engines. Starting in June 2017, the embattled German automaker will add particulate filters to the gas-powered Volkswagen Tiguan and Audi A5. The change will eventually impact nearly every direct-injected gas engine the VW Group makes. Audi? Particulate filter. Seat? Particulate filter. Even Bentley is going to get the tech, all in a bid to reduce soot emissions by 90 percent. In fact, by 2022 VAG expects 7 million of its vehicles to boast the emissions-cleaning tech, which has long been a fixture on diesel engines. "Following increases in efficiency and lower CO2 output, we are now bringing about a sustained reduction in the emission levels of our modern petrol engines by fitting particulate filters as standard," Volkswagen Group research and design boss Dr. Ulrich Eichhorn said in a statement. "In the future, all models will be equipped with the latest and most efficient SCR catalytic converter technology." VW's initial rollout focuses on the 1.4-liter, turbocharged Tiguan and the 2.0-liter, turbocharged A5. Considering the popularity of the 2.0-liter across the VW range, we'd expect it's only a matter of time before VW expands its particulate filters tech to additional gas-powered vehicles. Related Video:

Jay Leno brings a rotary-powered VW Beetle to the garage

It takes something really unique or inventive to pique Jay Leno's interest. His show, Jay Leno's Garage, has featured everything from concours-worthy classics to completely custom, home-built machinery. How do you get Leno to feature one of more than 20 million Beetles on his program? Stick a turbocharged rotary engine under the hood. The Beetle's owner, Mario Markakis, swapped the car's stock flat four-cylinder for the Wankel engine from a 1990 Mazda RX-7 Series 5 Turbo. The engine's 250 horsepower are fed through a reinforced version of the Beetle's stock four-speed transmission. That's about five times the original engine's output. It works well, with the car putting down some impressive times at the drag strip. Markakis did most of the work to the Beetle in his garage. In addition to the engine swap, he's modified the car's brakes, suspension, and interior. Check out the video to hear all the details of this custom Wankel-powered Volkswagen. Related Video: Celebrities TV/Movies Mazda Volkswagen Classics Videos Jay Lenos Garage rotary mazda rx-7

Porsche tops JD Power APEAL study for 12th time

JD Power's 2016 Automotive Performance, Execution, and Layout (APEAL) study hasn't changed much this time around with Porsche coming in at No.1 for the 12th consecutive year, while BMW was close behind in second. Jaguar and Mercedes-Benz tied for third with Land Rover, Lexus, and Lincoln tied for No.5. The APEAL Study, according to JD Power, measures owners' level of excitement and emotional attachment across 77 parameters. Brands and cars are rated on a 1,000-point scale. The study found that new cars with modern safety features including low speed collision avoidance and blind spot monitoring have higher APEAL scores than vehicles without the features. The overall industry score increased from 798 to 801, which JD Power claims was helped by the launch of a variety of new vehicles. This year, 22 out of 30 new or redesigned cars received a higher score than the vehicle's respective segment average. Porsche is once again at the top of the list as the automaker's score increased by three points to 877. BMW outscored Jaguar to take second place with a score of 859, while the British automaker dropped three points from last year with 852 points. Volkswagen overtook Mini to become the top-ranked non-premium brand with 809 points, while the latter automaker trailed behind by one point. At the end of the scale, Smart came in at the very bottom for the second year in a row with a score of 745 points, which represents an increase of 62 points over last year. Fiat's score increased by six points to 755, but still confined the automaker to second-to-worst place for a consecutive year. Mitsubishi's score increased to 770, up from 755, to become the fourth-worst brand, while Jeep fell to third-worst with a decrease in seven points to 756. General Motors received six segment-level awards, followed by Hyundai with five, and BMW and VW earning four apiece. Surprise segment victories include the Chevrolet Camaro, which outscored the Dodge Challenger, and the Lexus RC which ranked above the BMW 4 and 3 Series. For more information on how the automakers ranked, check out the official release on the 2016 APEAL Study below or visit JD Power's website to analyze the graphs. Related Video: Porsche Ranks Highest in APEAL for 12th Consecutive Year; General Motors Receives Six Segment-Level Awards, Hyundai Motor Company Receives Five DETROIT: 27 July 2016 — Popular driver-assist technologies help make vehicles considerably more appealing to their owners, according to the J.D.

VW suspends sales in South Korea ahead of government meeting

Volkswagen and Audi have announced they will suspend sales of 79 different models in South Korea ahead of a meeting with the country's environmental ministry. VW will halt sales starting on July 25, the same day that its officials are to sit down with the South Korean environmental ministry, which will likely punish the German company. The Wall Street Journal reports that Korea's response to the situation will likely come in the form of an outright sales ban on Volkswagen products by revoking certifications on 79 different models based on 34 different vehicle types. Affected models include the VW Golf, Jetta, and Tiguan and the Audi A3 and A6, the WSJ reports. Essentially, it looks like VW is merely trying to get out ahead of the South Korean government. If the revocation goes through, it'd likely lead to fines and a relatively large recall of around 79,000 vehicles, the WSJ reports. Despite the dreary forecast, Volkswagen reaffirmed its commitment to the South Korean market. "This decision doesn't mean that Volkswagen is pulling out of Korea, which is a very important market to us," a Korean rep for the company said in a statement. "We'll reapply for certification of our cars if the government revokes it. The process may take several months." While Volkswagen's diesel emissions testing scandal is part of the problem, South Korea is taking a harder line than a lot of other countries. Authorities indicted a Volkswagen exec on charges of submitting falsified emissions documents and noise tests last week, while separately, Korea's trade watchdog is considering criminal charges against execs, according to the WSJ. Banning VW Group sales in South Korea isn't quite as dramatic as if the company stopped sales in China, the United States, or Germany, but it's still going to sting. VW Group products (including Bentley) represented around a third of European cars imported by South Korea last year. News Source: The Wall Street JournalImage Credit: Stefan Wermuth / Reuters Government/Legal Green Audi Volkswagen Emissions vw diesel scandal

Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.