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VW admits 430,000 2016 models have implausible CO2 ratings

Volkswagen finally explained more details about its CO2 rating scandal in Europe and admitted that 430,046 of the estimated 800,000 affected vehicles with "implausible" figures came from the 2016 model year. They included some from Audi, Seat, Skoda, VW, and VW Commercial Vehicles, according to the automaker's list (as a PDF). The problem mostly impacts diesel engines, but the inventory also shows some gasoline mills. VW will next determine the accurate CO2 emissions for these vehicles, and the German Federal Vehicle and Transport Authority will supervise that process to ensure the data's veracity. The automaker will also launch websites in Europe to let owners enter their model's VIN to check whether it's affected. Because governments there often link vehicle taxes and CO2 production, the company promises to work with regulators in each country to cover any fees that result from the inaccurate figures. VW announced the CO2 scandal earlier in November and estimated the equivalent of $2.2 billion to fix it at the time. A later report claimed that a group of engineers were responsible for fabricating the emissions data. They allegedly couldn't meet reduction goals from Martin Winterkorn, and between 2013 and this spring the workers did things like overinflate the tires during testing to achieve the desired results. VW is also closer to a fix in the diesel emissions scandal. According to an anonymous insider to Bloomberg, the company has a repair for the 1.6-liter engine that's reportedly neither very complex nor expensive. German regulators would still need to approve the solution before it could roll out to owners. Next step in clarifying the CO2 issue Affected Volkswagen Group models of the current model year have been identified Customers being informed via website Discussions with the authorities have begun The Volkswagen Group reports that the vehicles of the 2016 model year affected by the CO2 issue have been identified. There is thus now clarity about the new vehicles of the current model year out in the marketplace. On 3 November 2015, the Group had already reported that irregularities may have arisen in determining the CO2 figures for type approval of around 800,000 vehicles. This was identified during its own currently ongoing investigations and had been made public. The internal investigations into the current vehicles of the 2016 model year provide results for narrowing down the actually affected vehicles with implausible CO2 figures.

Audi execs mulling turbocharged, entry-level R8

The just-launched, second-generation Audi R8 is apparently a pretty fantastic example of Vorsprung durch Technik. While it's sublime to drive, Audi might already be missing some potential sales due to the lack of an true entry-level version in the supercar's lineup. Lending further credence to an earlier rumor about just such a model, company execs are saying to expect an entry-level, turbocharged R8 to launch in the coming years. "It is inevitable that we will go to a turbocharged motor for it at some point," Audi technical development board member Dr. Ulrich Hackenberg said to Motoring. "It would be in this model cycle, to give us a fuller range." The executive certainly isn't mincing words about forced induction, but the V10's position in the lineup is also secure. "It doesn't mean we are not going to do a turbo, but naturally aspirated is here to stay as well," he said. If Dr. Hackenberg's direct assertion isn't enough, Quattro GmbH chief Heinz Peter Hollerweger further clarified to Motoring that the turbocharged engine would slot into the bottom of the R8's range. An unnamed "senior sales and marketing source" within the Audi also said that the company's turbo five-cylinder was among the currently favored choices for the application. The first rumors about the R8 getting a forced induction version arose just a few months ago. At the time, Audi's electrically turbocharged, 2.5-liter inline five-cylinder was considered an option. The model would solve a problem in markets, like China, that severely tax big displacement engines. Customers might not even need to worry about giving up too much performance either. In the Audi TT Clubsport Turbo concept, the powerplant has a total output of 600 horsepower and 479 pound-feet of torque. While 10 fewer ponies than the latest R8 V10 Plus, it would bring 66 lb-ft more twist to the supercar.

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.