2012 A8 L,a8l Quattro,driver Assist,led,20-inch,panor,10k Miles,1.4% Financing on 2040-cars

Auto blog

Horn, Hackenburg, Hatz to be fired as VW diesel scandal deepens

Volkswagen will sack three more high ranking executives, including the head of its US division, as the company's diesel scandal deepens. Reuters reported Thursday morning that the executives are: Michael Horn, who has led VW's US operations since January 1, 2014; Ulrich Hackenberg, who oversaw Audi's research and development; and Wolfgang Hatz, who was in charge of R&D for Porsche. A VW spokesman wouldn't comment in response to an Autoblog email. The moves come in the wake of longtime VW chief executive Martin Winterkorn stepping down on Wednesday. Volkswagen's board said at the time that it expected more personnel changes to follow. Volkswagen's board is scheduled to meet Friday, and Porsche CEO Matthias Muller has reportedly been named as Winterkorn's successor. The German auto giant was plunged into crisis last Friday when the EPA charged that the company manipulated software in its diesel-powered cars to pass US emissions tests. About 482,000 vehicles in the US are affected, and VW estimates 11 million around the world could have the rigged software. The revelations have prompted outcry from governments and regulatory agencies, and in the US, Volkswagen could face a fine of up to $18 billion. The departure of Horn, Hackenberg, and Hatz is a stunning downfall for three of the company's top and most visible executives. Horn had led US operations for less than two years, taking over from Jonathan Browning, who was well-respected but failed to reach VW's ambitious sales targets. Before overseeing Audi R&D, Hackenberg was hailed as a visionary for work in developing VW's modular architectures, which allow the company to save time and money by building many vehicles off the same chassis. Hatz had led Porsche R&D since 2011 and also was in charge of engines and transmission development for all of Volkswagen. Related Video: News Source: ReutersImage Credit: Getty Images Government/Legal Green Hirings/Firings/Layoffs Audi Porsche Volkswagen Emissions Diesel Vehicles vw diesel scandal vw diesel ulrich hackenberg michael horn wolfgang hatz

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Audi design chief Egger leaving for Italdesign Giugiaro

Wolfgang Egger, Audi's chief designer, is leaving the company according to a Automotive News Europe, which cites a report from Germany's Automobilwoche. Egger won't be going far, though, remaining within the Volkswagen family and taking up head design position Italdesign Giugiaro, a VW subsidiary as of 2010.
Egger took over the position at Audi from Walter de Silva, and has been responsible most recently for the Audi A6 and A3, as well as the 2010 Quattro Concept and the E-Tron Concept. He previously was head of design at Lancia and then at Alfa Romeo, where he was responsible for the achingly gorgeous 8C Competizione.
If Egger does move to Italdesign, his successor is likely to be Marc Lichte, the Volkswagen designer behind the current Golf. Of course, these personnel changes haven't been officially confirmed, and Audi is thus far refusing to comment on either Egger or Lichte's possible career shifts. We'll stay with this one, so sit tight.