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EPA discovers defeat device in more VW TDI engines

In a sternly worded letter, the United States Environmental Protection Agency has issued a new set of allegations against Volkswagen claiming that so-called emissions defeat software has been found in the company's 3.0-liter TDI V6 diesel engines. This is a completely different engine than the 2.0 TDI that has already been identified as an emissions cheater. In addition to VW, the EPA has included Audi and Porsche in this notification, as the non-compliant engine has been used in vehicles from all three manufacturers from model years 2014 through 2016. The EPA claims that cars equipped with the 3.0 TDI engine know when they are being tested for emissions, and their on-board computers switch into a mode designed to pass the stringent requirements in the United States for diesel exhaust. Vehicles sold in the United States with this engine include the 2014 VW Touareg, 2015 Porsche Cayenne, and 2016 Audi A6, A7, A8L and Q5. The EPA says there are 10,000 vehicles currently on the road with this second defeat device, along with an unknown number of 2016 models either on dealer lots or in the driveways of consumers. According to the EPA, VW's 3.0-liter TDI, like the 2.0 TDI that was found to circumvent US regulations, has code in its computer specifically written to intentionally put the vehicle's engine into a mode that allows it to meet exhaust requirements. When the vehicle is unhooked from testing equipment, it will go back into a mode that emits nine-times higher nitrogen oxide emissions than is allowable under US law. "VW has once again failed its obligation to comply with the law that protects clean air for all Americans," said Cynthia Giles, Assistant Administrator for the Office for EPA's Enforcement and Compliance Assurance. "All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect." Richard Corey, Executive Officer of the California Air Resources Board, said in a statement, "Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open." This story will be updated as new information becomes available.

Audi plans RS3 for US

Rejoice, performance-car fans. The Audi RS3 (pictured above) is probably coming across the Atlantic. If that happens, the US-market RS3 will likely be a sedan, not the five-door body style offered in Europe. Hot hatch fans might shed a tear at this news, but we'll the RS3 any way we can get it. Audi of America CEO Scott Keogh feels the same way. "We really, really want the RS3," he said to Automotive News. "I'm very confident we'll see that car in the market. That's as far as I'm going to go. In Europe, the RS3 Sportback packs a 2.5-liter turbocharged five-cylinder with 362 horsepower and 343 pound-feet of torque mated to a seven-speed dual-clutch gearbox. That grunt get to the ground via a torque-vectoring all-wheel drive system that can route up to 100 percent of the power to the rear wheels when necessary. The sprint to 62 miles per hour goes by in just 4.3 seconds. Of course, a tiny, hardcore sedan isn't on every buyer's shopping list. For those who want a little more room with their luxury, the Q8 is also on the way. "That is absolutely a car that we will see in the United States," Keogh said to Automotive News. The big crossover shares its platform with the next Q7, but will have sleeker bodywork similar to vehicles like the BMW X6 and Mercedes-Benz GLE Coupe. The Q8 is slated to launch in 2017 with US sales following the European debut. Recent rumors suggest that a fully electric E-Tron version could be part of the lineup as well. Audi's American arm isn't as crossover crazy as some other automakers, however. According to Keogh, the tiny Q1 CUV might not come to the US because it's not the right fit for the market. Related Video:

Winterkorn remains CEO of Volkswagen's majority shareholder

Martin Winterkorn may have stepped down as the chief executive of Volkswagen in the wake of the diesel emissions scandal, but he's not out from under the company's large umbrella just yet. In fact, according to a report from Reuters, he still holds four top-level positions not only within the industrial giant's bureaucracy, but at the top of it. And one of those is as CEO of the company's largest shareholder. That holding company is Porsche SE, the investment arm of the Piech and Porsche families (Ferdinand Porsche's descendants) which holds over 50 percent of VW's shares. In 2008, Porsche SE acquired majority interest in the Volkswagen Group which in turn acquired Porsche the automaker – and placed VW's Winterkorn at the head of the executive board of the holding company. Though Winterkorn has resigned from his position as chairman of VW's management board, he has apparently yet to step down from running Porsche SE. That's not the only job that Winterkorn still retains in VW's senior management. He also continues to serve as chairman of Audi, as well as truck manufacturer Scania, and the new Truck & Bus GmbH into which Scania has been grouped together with Man. It remains unclear if or when Winterkorn might resign from those positions as well, or how his tenure in those posts might affect the company's effort to start over in the aftermath of the scandal in which it is currently embroiled. Also unclear, Reuters reports, is how much, exactly, Winterkorn will receive in compensation after having stepped down from his chair at the head of the VW executive board. His pension is reported at over $30 million, but he could be awarded a large severance package as well amounting to as much as two years' worth of his annual compensation, which amounted to around $18 million last year. Whether he receives the severance pay or not is expected to depend on whether his resignation is considered by the supervisory board to have been the result of his own missteps or independent of the situation that resulted in his resignation. One way or another, he's not likely to go poor anytime soon.