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VW and Audi recall Tiguan and Q5 to replace Takata inflators

The Basics: Volkswagen and Audi will recall 734 examples of the 2015 Tiguan with production dates between January 15, 2015, and January 21, 2015, and the 2015 Q5 built between January 13, 2015, and February 3, 2015. The Problem: The vehicles have driver and passenger seat side airbag inflators from Takata that could rupture in a crash. Injuries/Deaths: A side airbag ruptured in a 2015 Tiguan in June 2015, and the driver sustained slight injuries under the left arm. The person didn't need to seek medical attention, Audi spokesperson Mark Clothier told Autoblog. This is the only reported injury. The Fix: VW and Audi dealers will replace the side airbag modules. If You Own One: VW and Audi will advise owners about the recall but don't yet know specifically when repairs begin. RECALL Subject : Seat-Mounted Air Bag Inflators May Rupture Report Receipt Date: JAN 28, 2016 NHTSA Campaign Number: 16V045000 Component(s): AIR BAGS Potential Number of Units Affected: 734 All Products Associated with this Recall Vehicle Make Model Model Year(s) AUDI Q5 2015 VOLKSWAGEN TIGUAN 2015 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Volkswagen Tiguan vehicles manufactured January 15, 2015, to January 21, 2015, and 2015 Audi Q5 vehicles manufactured January 13, 2015, to February 3, 2015. The affected vehicles are equipped with driver and front seat passenger seat-mounted air bag inflators that may rupture in the event of a crash. CONSEQUENCE: In the event of a crash necessitating deployment of a seat-mounted air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death. REMEDY: Volkswagen will notify owners, and dealers will replace the side air bag modules, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Audi customer service at 1-800-822-2834 or Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 69M1 (for Audi) and 69L9 (for VW). NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video:

VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico