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VW recalls 220,000 Atlases, Atlas Cross Sports for airbag defect [Updated]

[Update: Audi of America has confirmed that no U.S. models are among the recall population for plug-in hybrid fire issue.] Volkswagen has issued yet another recall for its Atlas SUV, this time for side airbags that may not deploy correctly in an accident due to a problematic connection in one of the vehicle's wiring harnesses. The campaign covers 222,892 Atlas and Atlas Cross Sport models built for the 2019-2023 model years.  The issue stems from a connection with the wiring harness that runs from the A-pillar into the door. VW says that harnesses produced by one of its suppliers were not built with additional measures to prevent movement at the connection point. Small movements can cause abrasion of the metal contacts which could lead to a whole host of electronic misadventures, including the potential for airbag deployment to be delayed in a crash.  "Micro-movement of the wire harness (terminal A-Pillar to front door) can result in damage to the wire terminal surface. Damage to the surface can [result] in fretting corrosion which may cause sporadic interruption in the electrical connection to the components of the front door," VW said in its defect notice. "The airbag warning light may illuminate if a malfunction is detected. Other symptoms of a sporadic interruption of the affected electrical connection can be: inadvertent rolling down windows, inadvertent park brake engagement at low speeds (below approx. 3km/h or 1.8mph), warning regarding faulty door sensor," VW said.  Not every model built within the range defined above is subject to the recall; terminals from other suppliers were manufactured with the necessary safeguards in place. If you own a 2019-2023 Atlas or Atlas Cross Sport, keep your eyes peeled for a notification from VW regarding the campaign, likely some time in early-mid May.  PHEV problems Across the Atlantic, the VW Group mothership confirmed that it will recall more than 100,000 plug-in hybrid models worldwide to address a fire risk. The recall was launched in response to 16 reported incidents of fires stemming from insufficient insulation of the PHEV battery pack that allows the engine cover to make contact if it is not completely secure. If that happens, the heat from the battery can ignite the engine cover. The recall will cover PHEVs build by VW, Audi, Seat and Skoda, Reuters reports, including the VW Passat, Golf, Tiguan and Arteon — plug-in variants of which are not sold in the United States.

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

VW invests in QuantumScape for potentially fireproof, long-range EV batteries

VW might be getting ready to push its plug-in technology in a big way thanks to an investment in the battery startup QuantumScape. Key point: the solid-state battery is said to be fireproof and will offer tremendous range advantages. Details are not abundant yet, but according to Bloomberg, VW of America bought a five-percent stake in QuantumScape (and has an option to raise its holding). The tech could "more than triple" the EV range of VW, Porsche and Audi plug-in vehicles as soon as the middle of 2015, according to unnamed sources that Bloomberg talked to. Former Stanford University researchers started QuantumScape in 2010. The bare-bones QuantumScape website (there's nothing there other than some contact information) doesn't offer many hints about what's happening at the company, but GigaOM's Katie Fehrenbacher notes that QuantumScape is licensing tech from the "All Electron Battery" project at Stanford a few years ago. It certainly sounds amazing: [It's] a completely new class of electrical energy storage devices for electric vehicles that has the potential to provide ultra-high energy and power densities, while enabling extremely high cycle life. The All-Electron Battery stores energy by moving electrons, rather than ions, and uses electron/hole redox instead of capacitive polarization of a double-layer. ... If successful, this project will develop a completely new paradigm in energy storage for electrified vehicles that could revolutionize the electric vehicle industry. If that's what's coming in a future e-Golf or E-Tron, sign us up.