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Which will Dieselgate hurt more, Volkswagen or US diesels?

The most damning response to the news Volkswagen skirted emissions regulations for its diesel models may have actually come from the Los Angeles Times. On Saturday, the Times published an editorial titled "Did Volkswagen cheat?" The answer was undoubtedly yes. When you can't drive down Santa Monica Boulevard without seeing an average of one VW TDI per block, the following words are pretty striking: "... Americans should be outraged at the company's cynical and deliberate efforts to violate one of this country's most important environmental laws." VW has successfully cultivated a strong, environmentally conscious reputation for its TDI Clean Diesel technology, especially in states where emissions are strictly controlled. A statement like that is like blood all over the opinion section of the Sunday paper. The effect on VW's business, even Germany's financial health, was already felt Monday when the company's shares plummeted 23 percent in morning trading. The statement on Sunday from VW CEO Dr. Martin Winterkorn says "trust" three times. That probably wasn't enough in nine sentences. Writers over the weekend have compared VW's crisis to one at General Motors 30 years ago, when it was the largest seller of diesel-powered passenger cars until warranty claims over an inadequate design and ill-informed technicians effectively pulled the plug on the technology at GM. In a sense, VW is in the same boat as GM because it has fired a huge blow into its own reputation and that of diesels in passenger cars. And just as automakers like Jaguar Land Rover, BMW and, ironically, GM, were getting comfortable with it again in the US. VW of America was already knee-deep in its other problems this year. Its core Jetta and Passat models are aging and it needs to wait more than a year for competitive SUVs that American buyers want. The TDIs were the only continuous bright spot in the line and on the sales charts. Even as fuel prices fell and buyers shunned hybrids, VW managed to succeed with diesels and show that Americans actually care about and accept the technology again. Fervent TDI supporters might actually lobby for that maximum $18 billion fine to VW. I've personally convinced a number of people to look at a TDI instead of a hybrid. Perhaps not so much for stop-and-go traffic, but I know buyers who liked the idea that a TDI drove like a normal car and wasn't packed with batteries.

Audi TT Offroad gets the green light

The TT family already has a coupe and convertible, with various engines available in each. But over the past year or so, Audi has been toying with the idea of expanding the range with another bodystyle. And now the latest report from Car confirms that Ingoldtadt has given the production go-ahead to the TT Offroad concept. Unveiled at the Beijing Motor Show last year, the yellow TT Offroad concept envisioned a high-riding five-door crossover form with trademark TT styling cues. It was preceded by the blue three-door Allroad Shooting Brake concept at the Detroit show and followed by the sleek, red five-door TT Sportbrake concept at the Paris salon later the same year, but the impracticality of both those show cars is what we understand prompted Audi to go with the Offroad concept instead. So if it's a crossover, why not badge it with the letter Q, you ask? Because Fiat, that's why. The Italian automaker owns the names Q2 and Q4, which it has used on a variety of models (particularly Alfa Romeos and Maseratis) to connote their traction system. And though the Volkswagen Group has asked nicely, Sergio Marchionne has been as reluctant to give his biggest rivals a leg up as he has been to part with Alfa Romeo, despite their repeated advances. As a result, word has it that the production version of the TT Offroad concept will be sold as the TTQ, which kinda makes us giggle, but it would at least provide a nomenclature bridge between the TT and Q families within Audi's lineup. That is, unless Audi marketing chief Luca de Meo manages to convince his former boss to part with the Q2 and/or Q4 labels. Whatever it's called, the production crossover coupe would share similar dimensions to the Q3 when it arrives in 2017, but would potentially stand even further apart from its more utilitarian counterpart than the BMW X4 does from the X3 on which it is based.

Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.