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VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen

Recall on VW diesels begins in January, Mueller claims

A recall on Volkswagen's diesel vehicles with cheating software has been inevitable since the scandal first came to light, but there has been little official word on a timeframe for the fix. The automaker's new CEO Matthias Muller has finally put a tentative date on repairs, though. "If all goes according to plan, we can start the recall in January. All the cars should be fixed by the end of 2016," Muller said to the Frankfurter Allgemeine Zeitung, Reuters reports. While this plan affects Europe, the timing for repairs in the US could be slightly different. The Environmental Protection Agency needs to test the fix first here to make sure that it brings the vehicles in line with emissions regulations. Before the scandal came to light publicly, VW already tried a software update, but the California Air Resources Board still found NOx levels to be too high. Some experts have speculated that whatever the automaker comes up with this time could affect performance and fuel economy. To make lemonade out of these very sour lemons, Muller is trying to position the scandal as a chance to change. "This crisis gives us an opportunity to overhaul Volkswagen's structures," the CEO said, according to Reuters. "We want to make the company slimmer, more decentralized and give the brands more responsibility." Still, the effects are definitely being felt inside the automaker. When addressing employees recently, Muller admitted the necessity of cutbacks and the likelihood of setting aside even more money to pay for international fines and settlements. "What isn't absolutely vital will be canceled or delayed," he said. Related Video:

Texas sues VW over consumer protection, clean air violations

Texas has filed two suits against Volkswagen, charging that the automaker's emissions rigging violated state consumer protection laws and clean air standards. The lawsuit is part of a probe into the German automaker's diesel scandal being undertaken by 45 states and the District of Columbia. There are also over 250 class action suits that have been filed in US federal courts. Texas Attorney General Ken Paxton said Thursday that his state would seek restitution for consumers, and an injunction and civil penalties to prohibit future violations. Paxton, who himself has been indicted for securities fraud, said in a statement, "When companies willfully violate the public's trust, a penalty must be paid." Paxton said Texans purchased around 32,000 affected vehicles. There are about 49 authorized VW dealerships statewide. The Texas suit is asking for pollution fines of somewhere between $50 and $25,000 per vehicle (quite a spread, we know) for each day the vehicles were in use in the state. Volkswagen admitted in the middle of September that it installed devices designed to defeat government emissions tests on many Volkswagen and Audi diesel cars dating to model year 2009. Globally, 11 million VW group vehicles are affected. The automaker declined to comment to Bloomberg on the Texas lawsuit. Last month, Harris County, which includes Houston, filed a multimillion dollar lawsuit against VW, alleging the automaker contributed to air quality problems. You can find PDFs of the two state lawsuits here (the deceptive-practices case) and here (the environmental case). The AP contributed to this report. News Source: Bloomberg Government/Legal Green Volkswagen Diesel Vehicles vw diesel scandal lawsuit