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How should Volkswagen deal with its diesel problems?

The hounds of hell are bearing down on Volkswagen in the wake of allegations of cheating on diesel emissions testing. In just a single day, Volkswagen's stock has dropped 23 percent and the German government has announced that it is going to investigate a far larger number of vehicles over emissions violations. The American storm is quickly becoming a global one. Volkswagen sells over a million diesel vehicles a year and also has more than 13 percent of the automotive market overall – it was the number one automaker in the world up until the scandal. Yet in a matter of hours, Volkswagen has also become a pariah with potential fines and recalls that may be dwarfed by how the alleged lies and deceit change how governments and consumers view the company. Consumers are really going to be the key to the company's survival. It's those consumers who are really going to be the key to the company's survival. Every single one of them now finds themselves with a product that was sold illegally and may not be registered until recall work is done. What's worse is that Volkswagen doesn't yet have a solution for the emissions issue to offer these customers. It should also be noted that this is not the first time Volkswagen has found itself in violation of EPA emission regulations. Volkswagen is in a world of trouble, so what now? As a car dealer and former financial analyst who took several companies public, I believe Volkswagen can and should consider three points of action that would make an enduring difference in the times to come. 1. Offer affected TDI owners a compelling reason to stay with the brand. Recall work and a cup of coffee at the dealership are not going to be enough to placate current owners. Volkswagen should provide compensation for customers at the earliest opportunity and offer some type of inducement that keeps them within the fold. This shouldn't be the industry's version of a Chuck E. Cheese coupon - a small discount on a new vehicle. Volkswagen needs to offer something along the lines of a strong warranty extension of the entire powertrain (not just the emissions system) or some type of valuable feature upgrade for these vehicles so that owners feel that they have been treated fairly. Perhaps a combination of a brand new navigation system, software upgrades for the infotainment components, or some type of basic free WiFi service would be a healthy act of generosity.

US-bound Audi A3 Sedan spied testing

As the Audi A3 sedan gets closer to its debut, Audi has camouflaged prototypes to take it on the streets for final testing. Last time we saw the A3, it was testing almost in the buff, but it was on a closed track so our spy shooters were kept at quite a distance.
Now that the newest Audi sedan is testing on public roads, our latest batch of spy shots gives us a more detailed look at the entry-level luxury player despite the swirly camo. Except for the oversized wheels and the fancy exhaust outlets and door mirrors, the production version of the car should look almost identical to the A3 sedan concept we saw in Geneva a couple years ago. Some of the details we can see include a good-sized panoramic roof that stretches almost halfway into the rear passenger space and signature Audi LED-accented headlights and taillights.

Audi bringing TT Clubsport Turbo concept to Worthersee

Is the world ready for an Audi TT with 600 horsepower? Well it had better be, because that's exactly what Ingolstadt has in store for this year's GTI-Treffen at Worthersee, Austria. Billed as a "technology concept," this TT show car packs a 2.5-liter inline-five with two electric turbochargers. Audi is developing electric turbos for its diesel engines, but has found a performance application here in a gasoline engine. The result is a whopping 600 horsepower and 479 pound-feet of torque, driving all four wheels through a six-speed manual transmission. Weighing in at 3,078 pounds and with those electric turbos spooling up quick, it's said to reach 62 in 3.6 seconds en route to a top speed of over 192 miles per hour. In a TT. The turbos are powered by a 48-volt electrical system, juiced by a compact lithium-ion battery in the trunk that can store regenerated power. It's also got a coilover suspension and electric jack to get over obstacles like curbs and speed bumps. The whole thing rides on 20-inch alloys with a two-tone finish, with carbon-ceramic discs to keep it all in check, and as you can see, a rather aggressive-looking widebody aero kit. All of which makes for a rather stunning concept, even if its encroachment on the R8 means it will likely never see production. Related Video: Ingolstadt/Reifnitz, 2015-05-08 Tremendous thrust right from the start: the Audi TT clubsport turbo technology concept car - Premiere at Worthersee: show car has 2.5 TFSI and electric biturbo - 441 kW (600 hp) and 650 Nm (479.4 lb-ft), 0 to 100 km/h (62.1 mph) in 3.6 seconds - Development chief Prof. Dr. Hackenberg: "Technology close to production readiness" Wide add-on parts, a powerful rear wing and a power output of 441 kW (600 hp) – the Audi TT clubsport turbo impresses with its power and design. From May 13 to 16, Audi will be showing its technology concept car on the Worthersee Tour in the Austrian town of Reifnitz. The inspiration for the show car came from the successful Audi 90 IMSA GTO of the late 1980s. A new technology is making its debut under the hood. The car's electric biturbo adds even more dynamism to the driving experience with its spontaneous response. "The electric biturbo signifies a new dimension in driving enjoyment; it boosts sprinting ability and torque and enables high peak power," explains Prof. Dr. Ulrich Hackenberg, Audi Board Member for Technical Development. "In our TDI engines, we are close to production readiness with this technology.