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Audi A3 outselling Mercedes CLA 2 to 1 in its first 3 months on sale

The Audi A3 is on fire in US showrooms. Not literally of course, that would be horrible, and the situation we're referring to is a good thing indeed, as the Four Rings has a serious hit on its hands with the compact luxury sedan. Looking at just its first three months on the market, the entry-level model is outselling the Mercedes-Benz CLA-Class by nearly two to one.
The CLA was one of the hottest new cars of last year. Mercedes even called it the company's best launch in 20 years, but it sees as if that early sales performance has not been sustainable. According to Bloomberg, the CLA has seen its sales drop year-over-year in seven of the last eight months, and the new A3 came at just the right time to fill that void.
In June, Mercedes shifted 1,658 CLAs in the US, compared to 2,452 for the A3. The Merc has sold more units so far this year but only because the Audi sedan has only been on sale for three full months. With the two cars being relatively comparable as compact, front-wheel-drive, German luxury sedans, it appears buyers prefer the Four Rings over the Mercedes star, so far at least.

VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

Audi A3 E-tron guest stars in Muppet video for Emmys

Following on its tiny role in 2015's hilarious Emmys promo, Audi is grabbing a somewhat bigger guest spot by throwing in an A3 Sportback E-tron in this year's video starring the Muppets. Jim Henson's famous creations are returning to television in the coming weeks, and they get this extra bit of marketing for the upcoming 67th Primetime Emmy Awards on September 20. Starring Kermit the Frog and Miss Piggy going out for lunch, the spot includes cameos by Julie Bowen from Modern Family and Viola Davis from How to Get Away with Murder. Joel McHale is the one that actually gets behind the wheel of the Audi, though. While the PHEV's appearance feels more forced more than last year, the clip provides a dose of nostalgia to Muppets fans ahead of their new show. The outtakes at the very end might actually be the major highlight here. Related Video: