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Dealers, owners feel betrayed by VW scandal

Bob Rand bought his Volkswagen Passat last year for its clean emissions and high gas mileage. He liked the car so much he convinced his son and a friend to buy one, too. Now, as Volkswagen comes clean about rigging diesel emissions to pass US tests, Rand is desperately trying to sell the fully loaded model with white leather seats for $10,000 below what he paid. His sole bite has been from a man who offered $7,500 on speculation that he could resell it in Mexico. "Volkswagen was somebody that you could rely on for cutting-edge products and quality and all those things and now you find out that they're not above lying just flat out," said Rand, who plans to join a class-action lawsuit against VW. "That's probably about as bad a thing as a company can do is lie to your face when you're buying a $35,000 car." Rand's anger at the world's top-selling car company was echoed Wednesday by private dealers, auto wholesalers and owners across the US as fallout from the smog test trickery mounted. The US Environmental Protection Agency first disclosed Friday that stealth software makes VW's 2009-2015 model cars powered by 2.0-liter diesel engines run cleaner during emissions tests than in actual driving. On Wednesday, CEO Martin Winterkorn resigned and took responsibility for the "irregularities" found by US inspectors - a scandal that has wiped out billions in the company's market value and raised the possibility of criminal investigations and billions more in fines. The revelations left dealers sitting on hundreds of diesel cars they could not sell. Many also dealt with a flood of angry calls, emails and tweets from Volkswagen owners who felt betrayed because they believed they had bought a car that polluted less without sacrificing the good gas mileage and performance that comes with a diesel engine. "I think their feet should be held to the fire." - Joe DeCarolis "I think their feet should be held to the fire. I think apologies don't mean anything when something is so premeditated," said Joe DeCarolis, of Cary, NC, who owns a 2012 TDI Jetta Sport Wagon — a car he bought after careful comparison shopping for its clean emissions and good gas mileage. Dealers can't give customers good answers because Volkswagen hasn't said a whole lot, said AutoNation CEO Mike Jackson, the leader of the largest auto dealership chain in the US.

VW promises 7-seat CUV for America in 2016

On the eve of the Detroit Auto Show, Volkswagen chief executive Martin Winterkorn has confirmed the imminent arrival of a new crossover. The model, previewed at the same show last year by the CrossBlue concept pictured here, will be unique to the North American market when it arrives here in 2016. The new three-row, seven-seat crossover is part of an ambitious expansion plan on the part of Volkswagen and Audi in North America, where the two brands aim to sell a million vehicles by 2018.
That's a mighty big increase over the 600,000 vehicles which the Volkswagen Group sold here last year, but it's moving in the right direction: That number is already a 100-percent increase of what it sold here just five years ago. At that rate, VW should have little trouble meeting its goals, particularly with the arrival of the new crossover and the introduction of Golf production at its assembly plant in Puebla, Mexico. Read the full statement below for more.

Volkswagen poised to enter F1 with Red Bull

The Volkswagen Group could finally be preparing to enter Formula One, and enter it in a big way. That is, at least, if the latest reports prove accurate. And given the source, we're taking notice. The word around the paddock this weekend in Singapore has it that VW is entering into a partnership with Red Bull Racing that would see the German auto giant not only supply the team with engines, but buy the team altogether. The move would come as a welcome development for Red Bull, which took four consecutive world championships between 2010 and 2013, but has fallen off pace over the past couple of seasons due in large part to the under-performance of its Renault engines. The deal, which according to the report is currently being finalized, would see VW develop an all-new engine for Red Bull (and potentially for Toro Rosso and other customer teams), but the new power unit wouldn't be ready before 2018. In the interim, Red Bull would break off its current deal with Renault a year early and switch to another customer engine arrangement, with Ferrari currently rumored to be the favorite. The energy drink company that currently owns the team, in turn, would revert to a (prominent) sponsorship role - similar, it bears noting, to the role it plays with VW's World Rally Championship team. The termination of the relationship with Red Bull could spell the end of Renault's current F1 program, unless the French manufacturer carries through with plans to reacquire its stake in the Lotus team that was once its own. The VW deal would also ostensibly put to rest the mooted arrangement that would have seen Red Bull switch from Infiniti sponsorship and Renault engines to a similar deal with Aston Martin and Mercedes. What isn't clear at this moment is which brand Volkswagen would choose to promote with the new F1 program. Audi is speculated to be the favorite, which would likely spell the end of its Le Mans prototype endurance racing program – leaving that realm to Porsche after a solid decade and a half of dominance. The board in Stuttgart could, however, opt to hand the opportunity to one of its other brands, including Bugatti, Bentley, Lamborghini, Seat, Skoda, or the Volkswagen brand itself. The news comes from not only from the BBC, but from its analyst Eddie Jordan – a man who knows a thing or two about running an F1 team... and selling one. Jordan ran his eponymous grand prix team from 1991 through 2005.