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VW offers to buy back new diesels if bans introduced

By Maria Sheahan FRANKFURT, Germany — Volkswagen will buy back new diesel cars if German cities ban them, it said on Thursday, seeking to reassure potential buyers and stem a plunge in sales of diesel vehicles. Europe's biggest automaker also said it would extend incentives for buyers of new diesel cars. The moves come after a German court ruled last month that cities in the country could ban the most polluting diesel vehicles from their streets. Many German cities exceed European Union limits on atmospheric nitrogen oxide, known to cause respiratory diseases. Fears of bans have led to a plunge in demand for diesel vehicles, which are also key to carmakers' attempts to meet new EU rules on carbon dioxide (CO2) emissions. While diesel cars are heavily criticized for emitting nitrogen oxide, they spew out less CO2 than gasoline equivalents. Diesel car sales plunged 19 percent in Germany last month. At its core VW brand, Volkswagen said its buyback offer applied to new diesels bought between April 1 and the end of 2018 and would kick in if the city in which the buyer lived or worked banned diesels within three years of the purchase. It said its dealerships would buy back diesel vehicles affected by bans at their current value if their owners at the same time bought a new vehicle that was not affected by cities' driving restrictions. At Czech brand Skoda, the guarantee applies to cars bought between April 1 and the end of June, but will cover bans introduced within four years of the purchase date. At premium brand Audi, the offer only covers leased vehicles. Volkswagen also said it was extending to the end of June incentives for customers trading in older diesels for new ones. Fellow German carmaker BMW said earlier this month it would offer to take back leased vehicles if diesels were banned within 100 kilometers (62 miles) of the operator's home or place of work. There has been a global backlash against diesel-engine cars since Volkswagen admitted in 2015 to cheating U.S. exhaust tests. But Germany's government is seeking to avoid widespread bans on heavily polluting diesel vehicles, which companies say could cut the resale value of up to 15 million vehicles in Europe's biggest car market. In Germany, where motorists expect to drive powerful cars on motorways with no speed limits, any restrictions will be unpopular.

More automakers working to turn your smartphone into a shareable digital car key

The smartphone killed the phone book, audio player, the pocket digital camera, handheld GPS devices and voice recorders. Now that addictive, transistor-filled candy bar is coming for your car keys. The Car Connectivity Consortium (CCC) announced that it's unveiled Digital Key Release 1.0 Specification for its member companies, which is the first step in standardizing protocols. As of now, the potential is there for drivers to download a digital key that can lock and unlock the car, start it, and transfer the key to another operator in order to share the car. The CCC's aim is to save development costs, stave off a glut of similar-yet-competing technologies, and create keys that reflect the expanded use cases for cars, i.e., car-sharing services and to-your-car delivery. Next year's Release 2.0 Specification will standardize an authentication protocol between the phone and the vehicle — how a digital key is generated on a secure server and transmitted to the car and the device — and "promise more interoperability between cars and mobile devices." The CCC says that "NFC distance bounding and a direct link to the secure element of the device" will assure security. We take that to mean the phone will need to be in direct contact with the vehicle, at least to open the door. Carmakers and suppliers have been working on digital keys for years now, and the ecosystem for individual owners to open individual cars is growing. Audi showed off its Mobile Key at the 2015 Consumer Electronics Show, and now calls it Audi Connect Key, but we haven't seen much of it in the field. That same year, Volvo said it expected to sell cars with digital keys only by 2017, which clearly didn't happen. Last year, the head of sales at BMW asked, "Honestly, how many people really need [keys]? They never take it out of their pocket, so why do I need to carry it around?" Even though a digital key offers an owner more convenience and long-distance control over their vehicle, car sharing is the target — and that can even include traditional rental cars. In 2013, Continental began testing a digital key in France, aimed at integrating and simplifying the electric-car-sharing business; everything from finding a free vehicle to driving it and charging it could be done on a phone. A key could be programmed with the driver's information, so that any car the driver gets in will be automatically updated with that driver's preferences, say for audio or seating position.

Car companies may need to start curbing model proliferation

Looking at the current automotive landscape, especially from German makers, you quickly get the impression that less definitely isn't more. BMW alone offers its 3 Series platform in practically every segment possible, including the regular sedan and 4 Series Gran Coupe, which would seem to be direct competitors. Porsche might be the winner, though, with 20 different variants of the 911 listed for sale on its US website. However, some of this model madness might be reaching an end as companies begin cutting back spending or shifting money to other priorities.
According to Yahoo Finance, the offerings from the German automakers are up 25 percent over the past three years to over 200 models in Europe. The peak is expected to come around 2018 at 230 separate vehicles, according to consulting company PwC.
Amazingly, BMW, which is among the poster children for this model explosion, might be changing its tune. "I'm sure there will be points in the future where we look at certain cars and say, 'Maybe we need to think differently now,'" said head of sales Ian Robertson in an interview, according to Yahoo Finance. The statement certainly sounds shocking coming from a company rumored to have 23 front-wheel-drive vehicles all using a single platform on the way.