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European car sales up 8% in February

Three weeks ago an analyst increased projections for European car sales this year, expecting them to climb three percent compared to last year instead of 2.7 percent. That number is a postive sign after years of hard times but it turns out February was especially good, overall European sales climbing eight percent on a wave of southern European recovery and discounts - and this comes after five months of gains including January's 7.2-percent jump over the year before.
The only country of Europe's five largest markets to post a decline was France, just as it did in January, Germany, the UK and Italy posting solid double-digit numbers, Spain rocking the charts with an 18-percent increase because of a government program to encourage trade-ins.
The only brand to miss the wave was Volkswagen, dropping 0.8 percent as it watched the double-digit growth at sister brands Audi, Seat and Skoda lift the Volkswagen Group sales up by seven-percent. Peugeot overcame flat sales at Citroën to improve the group by 3.5 percent, BMW and the Mercedes-Benz/Smart combo rose by four percent, the Fiat group jumped 5.8 percent, Ford was up 11 percent, the Renault Group 11.5 percent, General Motors 12 percent and the Toyota clan by 14 percent.

Lamborghini and Bentley may hold off on SUVs so VW can conserve cash

After surveying the European economic scene, Volkswagen may have decided now is not the time to launch utility vehicles with Bentley and Lamborghini badges. Bentley officials say they will continue to push for support for the EXP 9 F and Lamborghini CEO Stephan Winkelman has said planning for the Urus will continue until VW tells it to stop.
That decision could come on November 23, when VW's board will vote on the company's budget for equipment, factories and vehicles. With VW's sales slowing and the Euro economy slumping further, some industry watchers say the company is more likely to build its cash reserves than to introduce super-expensive luxury SUVs or crossovers.
"Such vehicles are anything but obligatory during a crisis," says Frankfurt-based Equinet AG analyst Tim Schuldt in a new Automotive News Europe story. "Delaying their launch would be no drama but help save costs."

VW fix would have cost $335 per vehicle

Since the Volkswagen diesel kerfuffle began, Bosch, the world's largest auto supplier, has been hooked up to a bullhorn trying to make sure everyone knows its side of the story. Bosch supplied VW with the engine management testing software, including delivery and metering modules, that VW then used to skirt emissions laws in the US. Bosch told VW in 2007 that it was illegal to use the software in cars it planned to sell yet VW did it anyway, according to reports coming out in German newspapers Bild am Sonntag and Frankfurter Allgemeine Zeitung. That first warning came two years after VW started developing the small-displacement diesel, around the time that the two men pushing its development, then-brand chief Wolfgang Bernhard and engineer Rudolf Krebs, were telling their superiors that the engine needed AdBlue urea injection to pass US emissions. VW cost controllers wouldn't approve the AdBlue solution because it would add 300 euros ($335 US) to the cost of the vehicle. Bernhard and Krebs left the same year that Bosch advised VW about the software, two years before the engine went into production. That's when things get cloudy. A report in Automotive News says that when Martin Winterkorn took over in 2007 as head of the VW Group and brand, he asked Ulrich Hackenberg and Wolfgang Hatz to keep working on the engine, and "[the] engine then ended up in VW Group diesels" with that problematic software still intact. No one has yet pointed any fingers at this latter chain of command, but like a game of Clue, right now they're the professors in the library holding the candlesticks. Warnings didn't only come from the supplier: Frankfurter says VW's initial investigation has found that an engineer issued the same caution to the company in 2011. Neither Bosch nor VW would comment on the reports.