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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

2015 Audi A3 TDI Challenge

I officially gave up after 758 miles. The 15 or so miles leading up to this decision were spent in the right lane of Southern California's I-8 freeway, hazard lights blinking, climbing uphill at just over 40 miles per hour. After two days of sweating to the oldies (okay, a mix of SiriusXM Classic Rewind and First Wave), I had covered those 758 miles in a 2015 Audi A3 TDI on one tank of diesel fuel. And when I say sweating, I mean it quite literally. In order to maximize fuel efficiency, my co-driver and I kept the air conditioning off, even when the direct sunlight in the California desert had outside temperatures hovering around 90 degrees. I had been doing this hypermiling exercise for two days, the car was getting stinky, and I was ready to hear the sweet "thhhhhhhwack" of satisfaction that would finally come from peeling my sweat-soaked self off the A3's leather seat. Sexy, I know.
Audi had challenged me to drive 834 miles from Albuquerque, NM to San Diego, CA, on just one 13.2-gallon tank of diesel fuel. If you believe the EPA's highway fuel economy rating of 43 miles per gallon, this means I should have sputtered to a stop after 568 miles. But I went a grand total of 758 - that's 59.4 mpg - and I could have kept going. In fact, two teams made it the full 834 miles on their one allotted tank of fuel. That's over 63 mpg. That's twenty miles per gallon better than EPA estimates.
The TDI Challenge took me through three states over the course of two days, and the 834-mile journey wasn't just a simple highway cruise. I negotiated uphill climbs, long series of involving switchbacks through the mountains and elevations that ranged from 220 feet below sea level to nearly 8,000 feet above. I learned that super-crazy-efficient driving like this an incredibly challenging game that takes serious skill. But I also learned that if you're going to attempt to stomp all over the EPA's numbers, the Audi A3 TDI is one heck of a car for the journey.

VW orders external probe into diesel emission scandal

There are well over 480,000 Volkswagen-made, diesel-powered vehicles currently traveling roads in the United States that do not meet the Environmental Protection Agency's emissions requirements. This, as you can probably imagine, is a very big deal, and has led VW CEO Professor Doctor Martin Winterkorn to release an official statement on the matter. "I personally am deeply sorry that we have broken the trust of our customers and the public," he said. It's important to note that these vehicles run software with a so-called "defeat device" that kicks in when the on-board computer senses that it is being tested for emissions. When the car is operating normally – in other words, when its exhaust isn't being sniffed – the cars do not meet US emissions standards. According to the EPA and the California Air Resources Board, affected cars emit as much as 40 times the allowable level of certain pollutants. "We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case," according to Winterkorn, who added, "Volkswagen has ordered an external investigation of this matter." It's not yet known who will carry out this investigation. At present, there are still a number of 2015 Volkswagen models on dealer lots that do not meet emissions requirements. VW has issued a stop sale on vehicles equipped with the 2.0-liter TDI diesel engine. What's more, the German automaker has been barred from selling 2016 model-year vehicles that use this engine, according to The Detroit News. Last year, diesel vehicles made up about 22 percent of all VW sales, which means these restrictions will have a big impact on the brand's sales performance until a remedy is found and the vehicles are approved for sale. Interestingly, the EPA has started a campaign of sorts to test vehicles from other automakers that sell diesel-powered vehicles in the United States to make sure they comply with emissions requirements under all operating circumstances. The EPA says it "will be reviewing [its] compliance protocols and introducing ways in which [it] can effectively test not only for emissions performance but also for the potential presence of defeat devices," according to a statement provided to The Detroit News. Check out the full statement from VW CEO Martin Winterkorn below. Related Video: STATEMENT OF PROF. DR.