Called Archway Publishing, this new venture is the most egregious of all existing "self publishing" scam operations, costing writers $5-20k to produce an edited, published work through them.
So, I think we now have a decent idea where Penguin is planning to take this. I don't see any indication that they are planning to tone down or make more reasonable the existing Author Solutions scams. They gave the Author Solutions CEO a seat on the Penguin board, and they're using the company to spin off new "publishers" worse (for writers) than the ones which already existed.
Good article on the topic here:
Simon & Schuster Joins Forces With Author Solutions To Rip Off Writers | David Gaughran