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VW suspends sales in South Korea ahead of government meeting

Volkswagen and Audi have announced they will suspend sales of 79 different models in South Korea ahead of a meeting with the country's environmental ministry. VW will halt sales starting on July 25, the same day that its officials are to sit down with the South Korean environmental ministry, which will likely punish the German company. The Wall Street Journal reports that Korea's response to the situation will likely come in the form of an outright sales ban on Volkswagen products by revoking certifications on 79 different models based on 34 different vehicle types. Affected models include the VW Golf, Jetta, and Tiguan and the Audi A3 and A6, the WSJ reports. Essentially, it looks like VW is merely trying to get out ahead of the South Korean government. If the revocation goes through, it'd likely lead to fines and a relatively large recall of around 79,000 vehicles, the WSJ reports. Despite the dreary forecast, Volkswagen reaffirmed its commitment to the South Korean market. "This decision doesn't mean that Volkswagen is pulling out of Korea, which is a very important market to us," a Korean rep for the company said in a statement. "We'll reapply for certification of our cars if the government revokes it. The process may take several months." While Volkswagen's diesel emissions testing scandal is part of the problem, South Korea is taking a harder line than a lot of other countries. Authorities indicted a Volkswagen exec on charges of submitting falsified emissions documents and noise tests last week, while separately, Korea's trade watchdog is considering criminal charges against execs, according to the WSJ. Banning VW Group sales in South Korea isn't quite as dramatic as if the company stopped sales in China, the United States, or Germany, but it's still going to sting. VW Group products (including Bentley) represented around a third of European cars imported by South Korea last year. News Source: The Wall Street JournalImage Credit: Stefan Wermuth / Reuters Government/Legal Green Audi Volkswagen Emissions vw diesel scandal

Porsche offering 250-hp 718 Cayman, Boxster in China

Porsche is studying a new approach in the lucrative Chinese market – less power. Automotive News Europe reports that the famed German manufacturer will sell less powerful versions of the 718 Cayman and Boxster in the People's Republic. In fact, the new cars are already on Porsche's Chinese consumer page. The hope, 718 chief Jan Roth told Automotive News Europe, is to replicate the success Porsche's sister company Audi has had with the TT. "A lot of the TTs that Audi sells in China, the smaller displacement 1.8-liter versions with rear-wheel instead of all-wheel-drive, are priced below that, Mercedes too," Roth said. We're guessing the comments about rear-wheel drive and a 1.8-liter engine are either typos or something was lost in translation, because Audi's Chinese website only lists a 2.0-liter engine, and most gearheads know the TT rides on a front-drive platform. Audi's success is largely down to price – 542,800 yuan ($81,549, at today's rates) for a base TT. Roth called 600,000 yuan "a magical threshold for customers in China." To hit that price point, Porsche is dropping the 718's 2.0-liter, turbocharged four-cylinder – offered North America and Europe with 300 horsepower in base form – to 250 ponies. The Cayman starts at 588,000 yuan ($88,340) while the Boxster is 598,000 yuan ($89,842). The 350-hp Cayman S will carry on unchanged. According to ANE, Roth said Porsche's Chinese strategy could drive 718 sales up to 4,500 units a year by 2017, nearly double the 2,500 Boxsters and Caymans sold in 2015. Could a similar lower-tiered strategy work in the US? We'll need to put on our speculation hats. In the US, the base car is about 81 percent of the price of the 350-horsepower S model. If Porsche were to offer the same discount for the hypothetical, 250-hp 718s, it could set the starting prices at $43,659 for the Cayman and $45,360 for the Boxster. That lines up neatly with the $43,500 TT Coupe, but this theoretical 250-hp Boxster would fall about $1,640 less than Audi's soft top. We shouldn't forget Porsche's expansive options catalog – we doubt there'd be a lot of sub-$50,000 718s on dealer lots. But still, slashing over $10,000 off the price of a $54,000 car is a big ask – Porsche would almost have to de-content such a lower-tier model. But – and this is a Kim K-sized but – moving the 718 downmarket would open the brand to a new range of consumers. Not only would these new cars be the cheapest sportscars from Porsche money could buy.

2017 Audi A4 First Drive [w/video]

Internally, Audi refers to the A4 lineage with a B designation. Why the discrepancy? The model legacy traces back to the 1972 Audi 80, and the A4 name wasn't adopted until 1996 for the North American market. So the fifth-generation A4 is code-named B9. There is no confusion about what this car means to Audi. In 19 years, the brand has sold more than 12 million A4s around the world, which puts this new generation on the A-list when it comes to brand importance. If you squint, the new car looks like a facelifted version of the last-generation facelift unveiled in 2013. We get the same impression of the new A4 as we do with the third-generation Audi TT: it hasn't been comprehensively reconceived, it's been comprehensively re-detailed. But with a move to the updated VW group platform known as MLB Evo, 90 percent of the components on this car are new. On the outside, those changes are reflected through deeper sculpting on a body that's about the same height as before but 0.5-inches wider, one-inch longer, and with a wheelbase stretched 0.7 inches. The tweaked grille separates reworked Bi-Xenon headlights, which are standard across the lineup now – halogens go bye-bye. LED headlights are optional, as are the matrix units in other markets. Audi claims US-market cars will lose anywhere from 70 to 100 pounds depending on specification. Above those lights is a version of a clamshell hood – its shutline forms the front third of the pronounced shoulder line along the sedan's flanks. Audi designed a new hinge that keeps the hood lined up properly over the life of a car because small misalignments show more easily on the vertical seams. In back there are updated taillights, a standard rearview camera, and a trunk opening that's an even one meter across. In the press presentations, any conversation quickly turns to weight loss and aerodynamic efficiency. The only curb weight we have from Audi so far is for the base sedan, empty and without a driver, with the 1.4 TFSI engine that we don't get, coming in at 2,910 pounds. The current US-spec A4 is listed at 3,583 pounds, and Audi claims US-market cars will lose anywhere from 70 to 100 pounds depending on specification. About 35 pounds of that comes from the chassis, with new forged aluminum links on the suspension, fixed-caliper, four-piston brakes up front, and wheels that are never heavier than 26 pounds. The rest of the weight loss comes from the body, mostly through greater use of aluminum.