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Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.

Analyst calls on Apple to buy Tesla

This is the layman's understanding of how the tech world works: come up with an idea; execute idea; start making money; get bought out by Apple, Google or some other wealthy company seeking the Next Big Thing; retire to Fiji at age 23. Occasionally, though, one of those startups grows quickly enough to avoid being bought out by the big boys of Silicon Valley. Tesla is one such startup, and while it's an automaker as much as a tech company, the mingling of both worlds in its business model has helped the company survive since 2003, become publicly traded in 2010 and avoid being bought out by a bigger company (though the personality of its co-founder and CEO, Elon Musk, may have something to do with that, too).
This record of independence hasn't stopped the analysts from talking, though. According to CNN Money, Andaan Ahmad, a London-based investment banker with German bank Berenberg, has petitioned Apple CEO Tim Cook to buy out Tesla and bring Elon Musk into the Apple family. On paper, the move would sort of make sense: since the death of Steve Jobs, Apple appears to some to have been sagging, releasing better iterations of its currents products but lacking the big, new, industry-investing widget that makes people go mad. Expanding into the automotive market, a long-rumored destination for Apple, would allow the Cupertino, CA-based brand to stretch its legs in a new direction. As Ahmad notes, Apple needs to go "out of the box" or "the key debate will always be about [Apple's] ability to sustain these abnormal margins in [the] iPhone business."
Although not expressly discussed in the CNN story, we could also see some big benefits for Tesla. The Palo Alto-based automaker has been locked in a war over direct sales to customers with a number of dealership groups across the country, many of which have particularly powerful political lobbies. If Tesla had the backing of the world's most powerful company, which also has success in the business of upgrading traditional retail experiences, it could help establish the direct-sale model on a wider scale.

Apple's merger chief met in secret with Tesla CEO Elon Musk

There's no lack of connections between two of the most darling Silicon Valley companies, Apple and Tesla Motors. Most recently, the electric car manufacturer hired away Apple's "Hacker Princess," Kristin Paget, but it's possible to look back as far as 2010 to see when Tesla hired the man who worked on the Apple Store experience, George Blankenship, to get the Tesla Stores in order (he left in late 2013). More recently, there's been outside calls for the two to link arms, namely from banking analyst Adnaan Ahmad who said Apple should just up and buy Tesla (some have also predicted that General Motors could do just that in 2014) in late 2013. But nothing in this list ties the two companies together as strongly as a new report in the San Francisco Chronicle: Apple's chief of mergers and acquisitions, Adrian Perica, secretly met with Tesla CEO Elon Musk last spring. Neither company is talking publicly, and the Chronicle's source is choosing to remain anonymous, but it appears that Tesla and Apple may have been at least a little bit interested in working together well ahead of Ahmad's call. He wrote that buying Tesla would bring another Steve Jobs-like figure (Musk) to the computer giant as well as give the maker of iPhones and iPads another market to explore (remember the iCar idea?). The Chronicle does admit that there's no upside for Tesla that's quite as obvious, and one analyst said a partnership would make more sense than a buy out. There could be other scenarios on the table, as well. Perhaps it was to discuss a joint giga-battery plant? Or maybe Musk's visit to Cupertino was just a courtesy call, in case Tesla ever needs access to Apple's famously deep pockets. We don't know, but the news does give us a slew of interesting possibilities to ponder. There's a lot more over in the Chronicle, including how Apple may be branching out into new medical devices. Related Gallery Tesla Model S View 24 Photos News Source: San Francisco Chronicle, 9to5MacImage Credit: Copyright 2014 Drew Phillips / AOLTip: Ellen K. Auto News Green Tesla Electric icar