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VW fix would have cost $335 per vehicle

Since the Volkswagen diesel kerfuffle began, Bosch, the world's largest auto supplier, has been hooked up to a bullhorn trying to make sure everyone knows its side of the story. Bosch supplied VW with the engine management testing software, including delivery and metering modules, that VW then used to skirt emissions laws in the US. Bosch told VW in 2007 that it was illegal to use the software in cars it planned to sell yet VW did it anyway, according to reports coming out in German newspapers Bild am Sonntag and Frankfurter Allgemeine Zeitung. That first warning came two years after VW started developing the small-displacement diesel, around the time that the two men pushing its development, then-brand chief Wolfgang Bernhard and engineer Rudolf Krebs, were telling their superiors that the engine needed AdBlue urea injection to pass US emissions. VW cost controllers wouldn't approve the AdBlue solution because it would add 300 euros ($335 US) to the cost of the vehicle. Bernhard and Krebs left the same year that Bosch advised VW about the software, two years before the engine went into production. That's when things get cloudy. A report in Automotive News says that when Martin Winterkorn took over in 2007 as head of the VW Group and brand, he asked Ulrich Hackenberg and Wolfgang Hatz to keep working on the engine, and "[the] engine then ended up in VW Group diesels" with that problematic software still intact. No one has yet pointed any fingers at this latter chain of command, but like a game of Clue, right now they're the professors in the library holding the candlesticks. Warnings didn't only come from the supplier: Frankfurter says VW's initial investigation has found that an engineer issued the same caution to the company in 2011. Neither Bosch nor VW would comment on the reports.

Volkswagen breaks 40-year-old sales record in 2012

The last time Volkswagen moved this many vehicles in America in one year, Richard Nixon was still a President in good standing, Let It Be was a radio hit and each car wearing the VW badge boasted an air-cooled engine. That's right, with a grand total of 580,286 vehicles sold in the US last year, the VW Group has broken its own four-decades-old sales record by 2,899 vehicles.
Of that 580k total sold, 438k were Volkswagens and 139k were Audi products - increases of 35.1 percent and 18.5 percent, respectively, in year-over-year sales. The ultra-premium members of the VW group also fared well; Bentley delivered 2,315 vehicles for a 23.3-precent increase, and Lamborghini delivered 520 units for a 52.9-percent jump. Bugatti, we're told is "right on track."
Jetta (pictured) sales paced the marque with 170k models sold, and Passat also finished very strong with sales of 117k total. Tiguan also racked up its best year on file, with 31,731 models shifted.

Audi Q1 captured wearing production metal for first time

Audi is getting closer and closer to introducing its smallest crossover ever in the form of the new Q1. Now, we have our very first shots of the mini cute ute wearing its production skin. Expected to make its debut in 2016, it would seem that the Q1 will follow the trend set by the Q3 and draw inspiration from the brand's Q5 mid-sizer. Proportionally, it doesn't look dramatically smaller than the Q3. The front overhang is similarly sized, although there's a smaller rear overhang and a more aggressive rake to the rear window. The front windshield looks more aggressive too, and overall, the Q1 looks to sit lower to the ground than its big brother. While it shares a number of parts with the current Audi A1, when the Q1 debuts, it won't be based on the same platform. Audi's smallest car rides on the Volkswagen Polo's platform, while our spies report that the Q1 will instead be based on the Volkswagen Group's MQB platform. Despite the different platforms, though, expect there to be some sharing of powerplants. That means a variety of gas engines, and likely a version of the A1's 1.6-liter, turbodiesel four-cylinder. There should also be an SQ1 coming shortly after the standard model debuts. You know, for all the folks demanding a high-performance, all-wheel-drive, luxury mini crossover. Check out the full gallery of spy photos at the top of the page.