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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.

Audi, MIT, GE start cab ridesharing study in New York City

Audi, Massachusetts Institute of Technology's (MIT) and General Electric are getting together to study something that won't likely be thrilling for New York City cab drivers. But there are bigger fish to fry and keeping cabbies happy. The German automaker is working with MIT's Senseable City Lab and GE on a study designed to get a better handle on how ridesharing in the city's cabs could work and how such a practice could cut both emissions and traffic in the largest US city. The program, dubbed HubCab, will track more than 150 million taxi trips in a year. The broader idea is to figure out how ridesharing could cut trips by 40 percent. That's not likely to please the holders of those coveted NYC taxicab medallions but would certainly benefit the city in other ways. "The aim of HubCab is to spark thinking about ways of utilizing publicly available data as we explore new concepts for mobility, especially in crowded urban contexts," said Audi spokesman Brad Stertz. Stertz allowed that there remained many legal and "customer acceptance" issues to address with ridesharing and that there was no timeframe for concluding the study or when the findings would be put into effect via an actual ridesharing system. At least it's a start. Check out Audi's press release below. MIT, Audi launch HubCab project in New York City • HubCab will track more than 150 million taxi trips in NYC to gain insight on ride share scenarios • Insights will inform researchers on how car sharing systems can lower vehicle emissions, reduce congestion, and save money and time • Scientific study conducted at Massachusetts Institute of Technology's Senseable City Lab with support of VW Group's ERL, Audi and GE MIT, in partnership with Audi and GE, launches HubCab – a transportation tracking tool aimed at reducing commuting congestion, decreasing vehicle emissions and dramatically lowering the cost of mobility infrastructure. HubCab tracks more than 150 million taxi rides in New York City over the course of a year. With this information, researchers can identify commuter travel patterns and work to develop a more efficient car share system. MIT researchers say HubCab technology could not only save people money and time, but allow users to better plan their taxi rides around the city, potentially reducing the number of trips by 40%.

Audi working on new Quattro-centric horizontal design language

If we were to opine that Audi needed a new design language, we certainly wouldn't be the first. Because while most of the vehicles wearing the Four Rings these days look slick enough, they all tend to look rather similar, and perhaps lack a certain amount of character. If the latest rumors are to be believed, Audi is working on just such a design overhaul.
The new design language being developed in the studios at Ingolstadt is said to differ from the current theme in two ways. For one, it's set to be dominated by a more horizontal approach, eschewing the tall vertical grille that dominates the noses of many of Audi's current models in favor of one that stretches more widely across the fascia.
For another, Edmunds projects that the new design language will emphasize the four-wheel-drive setup that has become Audi's hallmark. We understand that to mean more muscular wheel arches, with the rest of the design revolving around that element for an overall look that's more visually planted on the road. We'll have to wait to see how this theme develops, but the rumors at least indicate that Audi is aware of its design issues and is working to address it.