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Volkswagen reportedly to name Matthias Muller CEO

Porsche chief executive officer Matthias Muller is expected to be named CEO of Volkswagen AG, the Wall Street Journal and other sources reported Thursday morning. Muller, 62, has led Porsche since Oct. 1, 2010, and jumpstarted the sports-car brand's expansion around the world. He replaces Martin Winkerkorn, who stepped down Wednesday amid the company's worsening diesel scandal. At least three more executives are also expected to be fired, including Volkswagen's US chief and the heads of Audi and Porsche research and development. Both brands are divisions of VW. A US spokesman wouldn't confirm the reports. An official announcement is expected at VW's board meeting on Friday. Muller's ascension caps a stunning week of turmoil for Volkswagen, which manipulated software to make its diesel-powered vehicles appear cleaner during testing that they are in real-world driving. The charges were revealed last week by the EPA, which cited the work of researchers at West Virginia University. About 482,000 vehicles are affected in the United States, which will be subject to recall, and VW estimates about 11 million of its vehicles around the world have the rigged software. The well-regarded Muller was viewed as a front-runner for the job even before Winterkorn stepped down. Before helming Porsche, he oversaw all vehicle projects globally for VW from 2007-2010. Previously, he was in charge of the Audi and Lamborghini product lines, and earlier in his career was responsible for the Audi A3 program in the 1990s. He joined Audi in 1977. He's trained as a toolmaker and studied information technology in Munich. His last name is sometimes spelled Mueller in English. Muller faces immediate challenges as he takes over VW's sprawling 78-year-old industrial empire, including recalls and regulatory actions around the world. In the US alone, the company faces a fine of up to $18 billion. VW, an industrial symbol of Germany, is also far larger than any unit Muller has run in his career. While Porsche sold 189,849 vehicles in 2014 globally, it's one of many VW brands. Collectively they sold 5.04 million vehicles through the first six months of this year, making Volkswagen the world's largest automaker. Related Video:

Audi reveals virtual reality 'dealership in a briefcase'

Virtual reality still seems like technology that should be lumped in with the flying car and colonizing the moon as the sort of perennially "almost-here" Next Big Thing that never quite arrives. However, devices like gaming's Oculus Rift suggests that it's too soon to write off VR just yet, and Audi apparently agrees. The heart of its new VR Experience is a headset that customers wear that lets them see a virtual car before their eyes. Using the technology, the potential buyer can sit behind the wheel or open up the trunk. A camera tracks their head movements and adjusts the image on the goggles accordingly. To make the whole experience even more immersive, headphones let them hear the sound of the door or listen to the radio. The German automaker claims that the VR Experience technology will be available in "dynamic growth markets" by the end of 2015. The system will essentially offer the entire dealership experience in a device the size of a briefcase, and it'll be possible to view every possible equipment combination and color on all of the brand's models. The immersive hardware sounds amazing, if it's as good as the automaker claims. Among other things, VR will allow buyers to pick out just the right color and trim, even if the dealer doesn't have that specific combo in stock. Read below for Audi's announcement of this sci-fi gadget that the company claims is on the way. Audi VR experience: the dealership in a briefcase Innovative virtual reality headset extends advisory service at Audi dealers Sales chief Luca de Meo: "Further proof of Audi's pioneering role in sphere of digitization" First Audi dealerships to introduce new sales tool by end of 2015 Audi is taking the next big step in integrating digital technologies into automotive retail: The Audi VR experience gives customers the opportunity to configure their preferred car at the dealership through virtual reality headsets and experience it in a unprecedentedly realistic way. The headset showcases the entire model portfolio of the four rings, including all possible equipment combinations. Audi has become the first automotive manufacturer to develop a dedicated retail software solution for virtual reality headsets.

Audi RS3 Sportback is the hottest hatch

Fans of compact, European vehicles that mix luxury and performance should be in paradise right now. There's already the 320-horsepower M235i from BMW and the 355-hp CLA45 AMG (or A45 elsewhere) from Mercedes-Benz, but you can now add one more to the list. Meet the Audi RS3 Sportback, which boasts 362 hp and five doors, too. With propulsion coming from Audi's turbocharged 2.5-liter five-cylinder that makes 343 pound-feet of torque (465 newton-meters), the RS3 Sportback can scramble to 62 miles per hour in 4.3 seconds. Top speed is limited to 155 mph, but buyers can opt to raise that top end to 174 if desired. The inline-five is mated to a seven-speed S-tronic dual-clutch gearbox, sending power to the ground via Quattro all-wheel drive with torque vectoring, which can send between 50 and 100 percent of the power to the rear wheels as needed. To cope with the boosted output, the suspension has been lowered by an inch compared to the standard A3 Sportback, and magnetic dampers are a further option. Buyers can also tick the box for carbon-fiber-ceramic brake rotors at the front. The RS3 goes on a diet its latest iteration, too, weighing 121 pounds less than its predecessor. While buyers get potent power, Audi keeps the looks understated. The exterior wears a front airdam with larger openings and some aluminum flourishes, and a diffuser at the back gets some more matte trim. A roof spoiler and aluminum look for the mirror housings add a few other touches to catch the eye. Inside, all versions get sport seats covered in Nappa leather and a flat-bottom steering wheel wrapped in leather and Alcantara. But for the really sporty look, buyers can spec optional RS buckets with a carbon shell that weigh 15 pounds less than the standard units. European deliveries of the RS3 Sportback begin in the summer. Autoblog reached out to Audi spokesperson Mark Dahncke who told us there are currently "no plans to bring it to the US." Scroll down to read Audi's full announcement of this five-door hot hatch. Power in compact form – the new Audi RS 3 Sportback Ingolstadt, 2014-12-12 Sporty top model of the A3 model series Most powerful production five-cylinder in RS history with 270 kW (367 hp) 0 – 100 km/h (62.1 mph) in 4.3 seconds – 0.3 seconds faster than the previous model Hot, throaty sound, exhilaratingly free-revving and brawny power – the five cylinder engines from Audi are legendary.