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VW offers to buy back new diesels if bans introduced

By Maria Sheahan FRANKFURT, Germany — Volkswagen will buy back new diesel cars if German cities ban them, it said on Thursday, seeking to reassure potential buyers and stem a plunge in sales of diesel vehicles. Europe's biggest automaker also said it would extend incentives for buyers of new diesel cars. The moves come after a German court ruled last month that cities in the country could ban the most polluting diesel vehicles from their streets. Many German cities exceed European Union limits on atmospheric nitrogen oxide, known to cause respiratory diseases. Fears of bans have led to a plunge in demand for diesel vehicles, which are also key to carmakers' attempts to meet new EU rules on carbon dioxide (CO2) emissions. While diesel cars are heavily criticized for emitting nitrogen oxide, they spew out less CO2 than gasoline equivalents. Diesel car sales plunged 19 percent in Germany last month. At its core VW brand, Volkswagen said its buyback offer applied to new diesels bought between April 1 and the end of 2018 and would kick in if the city in which the buyer lived or worked banned diesels within three years of the purchase. It said its dealerships would buy back diesel vehicles affected by bans at their current value if their owners at the same time bought a new vehicle that was not affected by cities' driving restrictions. At Czech brand Skoda, the guarantee applies to cars bought between April 1 and the end of June, but will cover bans introduced within four years of the purchase date. At premium brand Audi, the offer only covers leased vehicles. Volkswagen also said it was extending to the end of June incentives for customers trading in older diesels for new ones. Fellow German carmaker BMW said earlier this month it would offer to take back leased vehicles if diesels were banned within 100 kilometers (62 miles) of the operator's home or place of work. There has been a global backlash against diesel-engine cars since Volkswagen admitted in 2015 to cheating U.S. exhaust tests. But Germany's government is seeking to avoid widespread bans on heavily polluting diesel vehicles, which companies say could cut the resale value of up to 15 million vehicles in Europe's biggest car market. In Germany, where motorists expect to drive powerful cars on motorways with no speed limits, any restrictions will be unpopular.

China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

Audi promises next A8 on sale by year's end, LED Matrix lamps to be available [w/video]

Audi has just released details about its new Matrix LED headlamps, but just as illuminating as the new lighting technology is confirmation that the next A8 will appear "on the market at the end of 2013." While Audi is calling the model new, expectations - and the spy shots above - suggest more of a traditional mid-cycle refresh.
Audi says that its new A8 Matrix lights are comprised of 25 high-beam LEDs, clustered in groups of five paired with reflectors. Unlike traditional automatic high-beam setups, the Matrix array is so precise that it "blanks out light that would shine directly onto oncoming and preceding vehicles" while continuing to use full high-beam power on other sections of the road and shoulder not occupied by other vehicles. Further, the camera- and electronic brain-governed system can dim or extinguish LEDs as necessary to deal with traffic. The active system also differs from today's adaptive headlamps by not requiring servo motors to direct light, yet they can still function as cornering headlamps - ones that can predict a road's trajectory because they are linked with the car's GPS system. Interestingly, the system also works with Audi's optional night vision system. When the latter detects a pedestrian in the dark, it automatically flashes a batch of LEDs to put both the driver and pedestrian on notice about each others' presence.
Only one problem in all of this trick lighting business: they aren't legal here in the US, at least not yet. Audi and other automakers are currently petitioning the National Highway Traffic Safety Administration, trying to sell the government agency on the technology's safety benefits. For the moment, Matrix headlamps are likely to remain forbidden fruit, but you can check them out and see what you might be missing in the video below. As for the 2015 A8, we're guessing it'll surface at the Frankfurt Motor Show in September.