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Former Ferrari F1 chief could be new Lamborghini CEO

The word on the street in Bologna is that Lamborghini is in for a changing of the guard. Current CEO Stephan Winkelmann is tipped to step down after 14 years at the helm in Sant'Agata, likely to move to another role at Audi. And in his place, the German automaker is anticipated to appoint Stefano Domenicali. Domenicali was formerly the head of Scuderia Ferrari, rising through the ranks at Maranello to succeed Jean Todt as team principal in 2008. He resigned in 2014 to be replaced first by Ferrari US chief Marco Mattiacci and then by Marlboro man Maurizio Arrivabene as the team has struggled to find its form again. Shortly after leaving Maranello, Domenicali took up a new position at Audi, where he was rumored to be working on the company's anticipated foray into Formula One with Red Bull. But after that program was shut down in the wake of the diesel emissions scandal, Domenicali is now tipped to move back to Italy to take over the supercar business. Stefano would be the second Domenicali to head an Italian performance brand under the VW/Audi umbrella, joining Ducati CEO Claudio Domenicali (they not believed to be related). The move would also be a particularly emphatic gesture to Sergio Marchionne. The Fiat Chrysler Automobiles chief has previously lost top lieutenants to Volkswagen, most notably Luca de Meo, who headed up VW brand's passenger car marketing department before taking over at Seat. While previous Ferrari chiefs Todt and Montezemolo came up through the racing department, Marchionne assumed the chairmanship in Maranello and brought in outside talent instead. Meanwhile Winkelmann has been in charge of Lamborghini since 2005, when he was appointed by Audi to run the company it had just acquired a few years prior. Under the tenure of the German-Italian executive, Lamborghini sales have risen from 1,600 units per year to over 2,500 last year. The introduction of the forthcoming Urus crossover, birthed under Winkelmann's leadership, is expected to more than double that overall figure. Given his success in transforming Lamborghini, it isn't likely that the Volkswagen Group will simply show Winkelmann the door. Word has it that he'll receive another posting at Audi, potentially taking over the growing Quattro GmbH division in Neckarsulm. The division is responsible for all of Audi's RS models as well as the R8 – the latter of which Audi sells as many units as the entire Lamborghini division does in a year.

2016 Audi R18 whooshes around Sebring to test for WEC

The 2016 Audi R18 is a radically different endurance racer than the model it replaces. The designers drape the chassis in an angular body rather than the previous curves, and the engineers added lithium-ion batteries for energy storage. Now, we get to see these big changes in motion thanks to a video of the new car testing at Sebring. Like previous iterations of Audi's diesel-fueled racers, the latest R18 is quiet around the track. It seems to sneak up on corners with just a whoosh and a whir from the powertrain. The updated design also looks a lot better in motion than in static photos. Audi had a rough time in the 2015 FIA World Endurance Championship after losing to rival Porsche both at Le Mans during the summer and in the manufacturers' standings at the end of the year. Related Video:

Audi says fixing diesel emission problem is simple

Audi reportedly has a simple repair nearly ready to fix the emissions problem on 85,000 vehicles with the 3.0-liter TDI V6 in the US. "Swift, straightforward and customer-friendly solutions are in discussion," company exec Rupert Stadler told workers in Germany, according to Reuters. In late November, Audi announced that the 3.0 TDI had three previously undisclosed auxiliary emission control devices, including one that was potentially considered a defeat device under US law. At the time, the German automaker claimed it could repair the problem with just a software update. Stadler's statement indicates that just such a simple fix might be on the way. Even before Audi's disclosure of the emission control devices, the Environmental Protection Agency issued a notice of violation against the 3.0-liter TDI for allegedly having software to defeat emissions tests, and the agency later expanded the scope to any vehicle with the engine from 2009 through 2016. The affected models include the Audi A6, A7, A8, Q5, Q7, Volkswagen Touareg, and Porsche Cayenne. New diesel versions of these vehicles have a stop-sale. Audi offered owners of affected vehicles the same $1,000 Goodwill Package that parent company VW offered to its affected diesel owners. The money is split up into a $500 gift card and $500 to spend at the Audi dealer. The package also comes with extended roadside assistance. Audi needs to find a solution quickly because it's under a 45-day deadline from the California Air Resources Board to submit a recall plan for the 15,000 vehicles with the 3.0 TDI in the state. The automaker also must include a report on any effects to fuel economy and performance from the proposed repair. Related Video:

Mueller named Audi boss, too

Matthias Muller, chairman of the board for the Volkswagen Group, has officially taken the role of chairman of the supervisory board for subsidiary Audi. Muller takes over the role from the disgraced Martin Winterkorn. This appointment should come as a shock to no one, and not just because we told you about it last week. Since Audi is part of the Volkswagen Group, which Muller leads, he's effectively been the head of the subsidiary brand since his appointment in late September. This news simply formalizes his positioning at the Ingolstadt-based company. This, of course, is not Muller's first go-around at Audi. He previously served as Head of Product Management Audi (along with Lamborghini and Seat), before taking the lead on product planning at the entire VW Group. Check out the official press release from VAG. MATTHIAS MULLER BECOMES CHAIRMAN OF THE AUDI SUPERVISORY BOARD Ingolstadt/Neckarsulm, December 7, 2015 – The Chairman of the Board of Management of Volkswagen AG, Matthias Muller, has joined the Supervisory Board of AUDI AG and becomes its Chairman with immediate effect. Berthold Huber will continue to be Deputy Chairman. Furthermore, the two vacant seats for members representing the shareholders will be newly occupied by Julia Kuhn Piech and Josef Ahorner. Matthias Muller has been a member of the Board of Management of Volkswagen AG since March 1, 2015 and its Chairman since September 25, 2015. After completing high school in Ingolstadt, he did a toolmaker's apprenticeship at Audi. He then studied informatics at the Munich University of Applied Sciences. After graduating in informatics, Muller continued his career at Audi in 1978, progressing to become the Head of Product Management for the Audi, Lamborghini and SEAT brands. From 2007 onwards, Muller was Head of Product Management for the Volkswagen Group and the VW brand as well as Executive Vice President of the Volkswagen Group. From 2010 until September 2015, Matthias Muller was Chairman of the Board of Management of Dr. Ing. h.c. F. Porsche AG. Josef Ahorner (55) is the chairman of the supervisory board and main shareholder of Emarsys AG, and was a member of the shareholder committee of Salzburger Porsche Holding from 1996 until 2008. Julia Kuhn-Piech (34) is a real estate manager and a member of the supervisory boards of MAN SE and the Truck & Bus division of MAN AG.

Suspended VW exec Hackenberg resigns in wake of scandal

Ulrich Hackenberg, father of the innovative modular architecture that underpins many modern Volkswagen and Audi products and a 30 year veteran of the giant company, has resigned his position as the lead engineer for the entire Volkswagen Group as well as his seat on Audi's management board, reports Automotive News. The resignation closes out a two-month suspension while the investigation into VW's deceptive emissions practices continues.The resignation follows the admission by Audi that the 3.0-liter TDI V6 engine was also fitted with emissions-control defeating software, like some of its four-cylinder TDI counterparts. In turn, this lead to changes in Audi's management structure. AN reports that Matthias Muller, who has already taken over Martin Winterkorn's position as VW Group CEO, will also be named chairman of the Audi brand.Hackenberg's successor was named as part of this announcement. Stephan Knirsch, who has lead engine development at the Audi division, will assume Hackenberg's roles as both board member for Audi in charge of technical development, and as the head for technical development across the whole group.Related Video:

VW will need to recall 323,700 diesel vehicles in India

Volkswagen Group's diesel emissions scandal continues to spread, and now the automaker must recall 323,700 diesel vehicles in India because of too much pollution, according to Bloomberg. The campaign covers models from several of the group's brands including VW, Audi, and Skoda. The Automotive Research Association of India first discovered the emissions irregularities after conducting its own real world and lab tests, and the Indian government then commanded VW to explain what was happening. The country's regulators will allow the automaker to set the recall schedule for the repairs, according to a government official who spoke to Bloomberg, and the campaign will likely happen in phases. Among the affected vehicles, there will be about 100,000 from the VW brand including the Jetta, Passat, and some variants of the Polo. VW already has repairs for some of the affected diesel engines in Europe, and the company can allegedly fix the emissions problem with new software and small hardware changes. The situation is harder in the US where regulators still need to approve any proposed solutions, and VW also must now recall its 3.0-liter V6 TDI in California to eliminate other problematic code. The German automaker faces investigations from regulators all over the world into its emissions evasions, and they could be quite costly. One estimate already suggests the minimum price of the potential repairs, fines, and other expenses at about $24.5 billion. Officials in Brazil have already fined the company $13 million for pollution issues with the diesel Amarok pickup and requested a recall to fix them.

Audi pins hopes on 2016 R18 Le Mans prototype

Down but not out, Audi is carrying forward its endurance racing program with the new R18 you see here. Unveiled on Saturday at the Audi Sport Finale end-of-season event in Munich, the new LMP1 is billed as the company's its most powerful and efficient race car yet. And it has been thoroughly redesigned to bring the Four Ring brand back to the winner's circle. Though technical details remain a closely guarded secret, Audi says that the latest evolution of the R18 (now apparently labeled sans the E-Tron Quattro) benefits from revised aero, lightweight construction, and "a modified hybrid system with lithium-ion batteries for energy storage, plus an efficiency-optimized TDI engine." That spells the end of the mechanical fly-wheel setup of the previous version, but sticks to the diesel fuel that Audi has championed instead of the gasoline favored by rivals Porsche and Toyota. With all its revisions, Ingolstadt undoubtedly hopes this latest version will perform better than the last. This past season was the worst Audi has endured since 2009. Its sister company Porsche beat it to both the drivers' and manufacturers' titles in the FIA World Endurance Championship and to the winner's circle at the 24 Hours of Le Mans. That marked the second straight year of defeat in the championship, following Toyota's domination last season, and marked only the third time Audi was defeated at Le Mans since 2000, following Bentley's win in '03 and Peugeot's in '09. In order to avoid costly inter-agency arms race, Audi and Porsche have agreed to each field two entries instead of three in both the championship and the headline race in Western France. Audi has yet to confirm its driver lineup, but Porsche has revealed its lineup consisting of defending champions Timo Bernhard, Brendon Hartley, and Mark Webber in one car, and Romain Dumas, Neel Jani, and Marc Lieb in the other. That leaves out the Le Mans-winning trio of Nico Hulkenberg, Nick Tandy, and Earl Bamber, with the former already counted out due to an F1 conflict. More powerful and efficient than ever before: Audi R18 celebrates world premiere in Munich - New hybrid race car for the 2016 Le Mans 24 Hours - Unchanged driver line-up in the DTM - High demand for new Audi R8 LMS GT3 sports car The brand with the four rings will be entering the 2016 motorsport season with the most powerful and efficient race car Audi has ever built.

VW won't let emissions scandal keep it from racing

The Volkswagen Group may have its hands full dealing with the diesel emissions scandal. But that doesn't mean it will be curbing its considerable racing programs. At least not in any significant way. This according to Matthias Muller, who recently moved up from his previous position as Porsche CEO to preside over the entire group. Speaking with Autosport at the World Endurance Championship finale in Bahrain this past weekend, Muller emphasized the importance of racing to the company. "The motorsports programs are not in danger of being dropped or significantly reduced because motorsports is very important for the group and the brands," said Muller. "Basically we do not question our motorsport efforts." Of all the brands under the group's umbrella, several have prominent, top-level factory works racing programs, and others support customer racing teams. The Volkswagen brand has emerged as the dominant force in the World Rally Championship, securing both titles over the past three years. Both Porsche and Audi compete in the top tier at Le Mans and in the World Endurance Championship, trading places in the winner's circle. Audi also competes in DTM, and alongside Lamborghini, Bentley, and Porsche, and also offers GT3 and GTE racing cars to private customers. Lamborghini, Porsche, Audi, and Seat (once the leader in touring cars) all run their own spec racing series as well. Skoda continues to compete in lower-level rallying, leaving only Bugatti to draw on its prominent pre-war grand prix racing history. To hear Muller tell it, those racing programs – or at least the top-levels ones among them – aren't going away anytime soon. But there may still be some tweaks here and there, and we shouldn't expect any new programs to be launched in the near future. Porsche, for example, is anticipated to wind down its factory involvement in GT racing, after winning both the drivers' and manufacturers' titles in the WEC GTE Pro class this year in addition to its LMP1 victories. Instead it will focus on preparing new racing versions of the 911 for client racing teams. The auto giant was also reportedly close to branching out into Formula One in partnership with Red Bull. But after negotiations were interrupted by emergence of the diesel emissions scandal, that deal fell apart. It remains unknown which brand might have been represented in the F1 engine-supply program.

Audi looking for Tesla-style, non-traditional way to sell EVs

As part of Audi's notable EV emphasis at the Los Angeles Auto Show last week, there was a bit of a secondary discussion on just how the automaker might get to the point where 25 percent of all of its sales would be electric vehicles. After all, no major automaker has figured out how to crack into the double-digit percentage of plug-in vehicle sales. The problem might be, as The New York Times noted recently, that traditional dealerships just don't know how to sell EVs. While no one at Audi was saying that the automaker is going to open up its own EV stores, like Tesla has, but two Audi of America executives were certainly warm to a different style of how an automaker can encourage EV sales. Filip Brabec, AoA's director of product management, said that Audi is at least considering making changes, including some sort of different dealership experience and perhaps a new kind of test drive. "The traditional automotive approach is not necessarily working," Brabec said. "A lot of it has to do with the complexity of the product and the complexity of the offer and it's difficult, I think, to bring that into a classical dealership and sort of treat is as another car and off we go. I think there needs to be some differences in how we go in the future." AoA president Scott Keogh said that Tesla has shown the rest of the industry how to make selling EVs a complete experience. It's not just about the car, he acknowledged. "I think we have to give Tesla credit where it's deserved," he said. "I think the charging network, at least from a public relations point of view, is quite strong and that's definitely added to the message." So many automakers want to have that, "Tesla fighter," as we've heard over and over recently, but Keogh hinted that Audi could do a better job than Tesla is doing today. "I think they've done a good job of looking at the full package. I think we have some resources and the network and everything else that we can put a fuller package together." The most important part is getting people into the cars, Brabec said. "I think exposing consumers to EVs, letting them experience EVs is another big aspect, and probably different than we have today, because test driving a car today is a very conventional thing. It's probably not going to be as conventional with EVs, particularly if you've never been in one before." We can't wait.

California orders VW Group to fix 15,000 3.0L diesel vehicles

The California Air Resources Board has ordered Volkswagen to come up with a plan for repairing approximately 15,000 cars sold in the state that contain illegal software that may circumvent emissions testing. In a letter sent to Volkswagen Group of America and several company brands, CARB's chief emissions officer says the company has 45 business days to submit a recall plan that will fix affected Volkswagen, Audi, and Porsche models equipped with 3.0-liter diesel engines sold in the state since 2009. "We expect full cooperation in this investigation so this issue can be addressed expeditiously and appropriately," wrote Annette Herbert, chief of emissions compliance. The violations first surfaced in a meeting last week between California regulatory officials and Audi executives. In that meeting, Audi admitted certain versions of A6, A7, A8, Q5 and Q7 models contained three previously undisclosed auxiliary emissions control devices. An auxiliary device is not necessarily the same as a defeat device that intentionally cheats on emissions testing, but Audi and other affected brands hadn't disclosed the existence of the AECDs, which is a violation of the state's health and safety code. Had they been disclosed prior to vehicle certification, there's a possibility CARB may have approved use of the devices. In a statement Wednesday, CARB did not elaborate on whether it considered the three devices mere AECDs or defeat devices. When Volkswagen submits its plan to fix the cars, CARB says it must include an assessment of how the repairs will affect fuel economy, performance, drivability, and the safety of each vehicle. The 15,000 cars affected in California are part of roughly 85,000 nationwide which contain the affected 3.0-liter engines. The US Environmental Protection Agency may soon address how it expects Volkswagen to fix the remaining cars. "EPA and CARB are working closely and continue to investigate following the admission by Volkswagen that the issues EPA identified in the November 2nd NOV (Notice of Violations) extend to all 3.0-liter diesel Volkswagen, Audi, and Porsche vehicles," an agency spokesperson said in a statement Wednesday. "EPA will take all appropriate enforcement action." The 3.0-liter developments, of course, come on top of the company's September admission that 482,000 diesels equipped with 2.0-liter engines contain defeat devices that detect emissions testing and alter the cars' performance.