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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.

An amazing Group B rally car collection heads to auction

Kicking off in 1982, the Group B era spawned some of the most fearsome rally cars of all time. The technologically advanced pioneers of all-wheel drive and turbocharging defined a time when automakers had carte blanche to build machines with unrestricted power, without the burden of homologating a large number of road cars to qualify. The results were sometimes deadly, leading the FIA to ban the class after 1986. Now, a collection of seven Group B monsters is headed across the block in Paris as part of the Artcurial auction, held in partnership with France's famed Retromobile show. The show has been delayed to June, however. There's a 1985 Peugeot 205 Turbo 16, one of 20 Evo II models that helped the company achieve two championships in Group B's short run. This particular example was driven by world champion Timo Salonen at the 1986 Swedish Rally, where it finished seventh due to an oil filter seal failure. Bruno Saby subsequently drove it at the 1986 Tour de Corse and Peugeot entered it at the 1986 Acropolis Rally as well. It's still registered to Peugeot Talbot Sport and represents a French technological achievement, according to Artcurial, comparable to the Concorde or TGV train. Representing Italy are a pair of Lancias in the iconic Martini livery. The Lancia 037 helped Bel Paese clinch its only Group B victory in 1983, after a hard-fought rivalry with Audi. It's one of the few Group B cars that weren't AWD, achieving its success the old-fashioned way, through lightness and superb handling. A second Lancia, a 1986 Delta S4, was the culmination of the Italian firm's later Group B efforts and one of Saby's favorites. While Group B was no more in 1987, the S4 was the predecessor to the Delta Integrale that would dominate WRC from 1987 through 1992. While the collection also includes greats like a Ford RS200, Renault 5 Maxi Turbo, and MG Metro 6R4, the centerpiece is the Audi Quattro Sport S1. The ultimate Group B machine, it introduced all-wheel-drive and turbocharging to the sport. It also employed the wildest use of wings and air dams to generate downforce. Tunable up to 590 horsepower, it could rocket to 60 mph in about three seconds. The car offered for sale came straight from Ingolstadt, a 1988 model built for the Race of Champions of ex-Group B cars. The collection was amassed in the late 80s and early 90s, not long after Group B's dissolution.

Shuffle at Lamborghini sends CEO to Quattro GmbH

A management shakeup in Volkswagen Group's high-performance divisions will make Stephan Winkelmann (above) the new chief executive of Audi's Quattro GmbH on March 15. On the same day, former Scuderia Ferrari team principal Stefano Domenicali will replace Winkelmann as Lambo's boss. These changes are necessary because current Quattro chief Heinz Hollerweger is retiring. Rumors of these exact shifts cropped up in Italian media in December. Winkelmann began leading Lamborghini in 2005, and he has been at the helm for massive growth at the company. In 2015, the Italian supercar maker delivered a record 3,245 vehicles, and it had just set its previous best of 2,530 units in 2014. His new role at Quattro GmbH puts Winkelmann in charge of Audi's equivalent to M at BMW or AMG at Mercedes-Benz. The division is responsible for the Four Rings' R and RS production models, the Audi Sport customer racing program, and Audi Exclusive customization service. "In the future, the Audi Sport brand is to be positioned more clearly," the company's announcement said, which hints at one of Winkelmann's duties. Domenicali has been closely associated with Lamborghini rival Ferrari during his career and had years of experience within the automaker's racing team. He started in financing at the Prancing Horse in 1991 and moved to business planning for the Scuderia Ferrari F1 squad in 1993. He held many positions there and eventually ascended to the top as team principal in 2008. Domenicali resigned from leadership in 2014 because of the team's poor performance, but Audi quickly snapped him up as its as Vice President New Business. He now gets the reins of one of Italy's premiere supercar makers. Related Video: Stephan Winkelmann to be new CEO of quattro GmbH As of March 15, 2016, Stephan Winkelmann (51) will be the new CEO of quattro GmbH, a 100 percent subsidiary of AUDI AG, which produces and distributes the high performance R and RS models. Winkelmann was President and CEO of Automobili Lamborghini S.p.A. since January 1, 2005. Heinz Hollerweger (62), the current Head of quattro GmbH, is to retire after almost 40 years of successful work for Audi. "With his experience from more than eleven years in charge of Lamborghini, Stephan Winkelmann will be a key contributor to the further growth of quattro GmbH," says Rupert Stadler, Chairman of the Board of Management of AUDI AG.