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Porsche CEO Oliver Blume will be installed as head of the VW brand

Volkswagen Chief Executive Herbert Diess is planning to promote Porsche CEO Oliver Blume to take over as the head of the VW brand, according to a report from Auto Motor und Sport. Citing company sources, the German site said Bernhard Maier, who currently sits at the head of VW's Skoda brand, will lead Porsche in Blume's place. A shuffle at VW isn't surprising. The last thing Volkswagen needs as it transitions away from its long-running "clean diesel" TDI fiasco and into a clean electric ID future is negative press surrounding its burgeoning electrified lineup. Unfortunately, the ID.3 launch has been marred by software issues, with Manager magazine citing company engineers saying "the basic architecture was developed too hastily." Because of that underlying issue, various modules "often do not understand each other" and suffer dropouts. The brand-new eighth-generation Golf launch was also troubled and pushed back due to software problems. And more recently, Volkswagen was forced to pull an advertisement after admitting it was racist and insulting. That marketing misstep, according to the report, will lead to the firing of Chief Marketing Officer Jochen Sengpiehl. Related Video:

Volkswagen building budget car family planned for China in 2018

Volkswagen has publicly pondered a low-cost car for China, something akin to Nissan's Datsun revival in Southeast Asia, for at least three years. In 2013 it tapped Chinese partner FAW to help develop an entire budget brand, with plans to have something on the market in 2016 in the 6,000- to 8,000-euro range. About a year ago, VW said it couldn't figure out how to engineer an inexpensive car that didn't run counter to the brand's values, then three weeks later said it had overcome the issues. Reuters now reports that VW CEO Martin Winterkorn told German newspaper Bild am Sonntag, "We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback." Winterkorn didn't offer any other details like who VW would work with to build it - VW has partnerships with both FAW and SAIC, but the announcement will be welcomed by the brand's Chinese outpost. When this adventure started, VW said it was working to create a model that would cost 6,000 to 8,000 euro. That estimate has increased. Winterkorn is now saying the 2018 offerings will come in between 8,000 and 11,000 euro. In a straight euro-to-yuan conversion, that would equate to Chinese pricing of 56,000 to 77,000 yuan. For comparison, the New Polo with a 1.4-liter engine and a manual transmission starts at 85,900 yuan. Perhaps with an eye on the success of the Nissan-Renault sub-brand Dacia in Europe and emerging markets, Winterkorn told Bild, "We will see if this is something of interest for other markets as well." On the opposite end of the price/performance spectrum, Winterkorn also said that VW is working on two new models for Bugatti, one powered by a traditional gasoline engine and another with some sort of hybrid setup. The latter model would reportedly be the higher-performing of the two, though it's not clear whether there would be two vehicle lines or two versions of the same vehicle. As ever, as soon as we know more, so will you.

Ford Mustang Mach-E fails Sweden's moose test

The infamous moose test has claimed another casualty. This time it's the Ford Mustang Mach-E AWD Long Range, which was tested in an electric four-way alongside the Tesla Model Y, Hyundai Ioniq 5 and Skoda Enyaq iV (an electric utility vehicle closely related to the Volkswagen ID.4 that is sold in the United States). According to the Swedish testers at Teknikens Varld, Ford's electric car not only failed to hit the speed necessary for a passing grade, it didn't perform well at slower speeds, either. To pass the outlet's moose test, a car has to complete a rapid left-right-straight S-shaped pattern marked by cones at a speed of at least 72 km/h (44.7 miles per hour). The test is designed to mimic the type of avoidance maneuver a driver would have to take in order to avoid hitting something that wandered into the road, which in Sweden may be a moose but could just as easily be a deer or some other member of the animal kingdom elsewhere in the world, or possibly a child or car backing into the motorway. Not only is the maneuver very aggressive, it's also performed with weights belted into each seat and more weight added to the cargo area to hit the vehicle's maximum allowable carrying capacity. The Mustang Mach-E only managed to complete the moose test at 68 km/h (42.3 mph), well below the passing-grade threshold. Even at much lower speeds, Teknikens Varld says the Mach-E (which boasts the highest carrying capacity and was therefore loaded with more weight than the rest of the vehicles tested in this quartet) is "too soft in the chassis" and suffers from "too slow steering." Proving that it is indeed possible to pass the test, the Hyundai and Skoda completed the maneuver at the 44.7-mph figure required for a passing grade and the Tesla did it at 46.6 mph, albeit with less weight in the cargo area. It's not clear whether other versions of the Mustang Mach-E would pass the test. It's also unknown if Ford will make any changes to its chassis tuning or electronic stability control software, as some other automakers have done after a poor performance from Teknikens Varld, to improve its performance in the moose test. Related video: