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VW will expand goodwill package to larger diesels

Volkswagen Group of America will expand its goodwill package to affected owners of the VW Touareg and other models with the 3.0 TDI. The company may also replace the catalytic converter on some cars equipped with the 2.0-liter four-cylinder TDI engine to bring it into compliance with US emissions. VW Group of America boss Michael Horn told Reuters he plans announce the goodwill program's expansion to the 2009-2016 Touareg during the Detroit Auto Show, and company spokesperson Jeannine Ginivan also confirmed this to Autoblog. Audi intends to extend the offer to its affected owners, too. As with the previous goodwill package, participating customers would receive a $500 prepaid Visa card and $500 to use at dealers. The EPA issued a violation notice against the 3.0 TDI in November and later extended it to additional model years. Audi later admitted that the engine, which was also in the Touareg and Porsche Cayenne, had undisclosed emissions management software. However, the automaker limited the goodwill package only to the 2.0-liter powerplant while it investigated the allegations against the larger mill. VW has not announced a recall plan in the US for the 2.0 TDI so far, but VW Group CEO Matthias Muller recently outlined a possible solution that could fix about 430,000 of the 482,000 affected vehicles. "We have one [catalytic converter] in the works and we believe that will be a part of the technical solutions," he told Reuters. Muller plans to discuss the repair while in Washington D.C. on Wednesday to meet with the EPA. "I think we can now offer a package that will come very close to what the EPA is expecting from us," Muller said to Reuters. He also suggested the company might buy back some affected models but didn't confirm the recent rumor claiming that the buy-back may cover as many as 115,000 cars.

As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

UCS replaces VW's green title with 'dirtiest tailpipe'

When it comes to tailpipe emissions, Volkswagen may have leapfrogged Ford and General Motors. Just not in the right direction. That's what the Union of Concerned Scientists (UCS) is saying in the wake of the German automaker's diesel-emissions scandal. After recalculating what it thinks are the real-world diesel-engine tailpipe emissions levels now that we know about VW's "defeat devices," the UCS says the actual diesel emissions would cause the company's total fleet to worsen its environmental impact by about 25 percent. The VW diesels alone, which account for just 0.7 percent of new-vehicle sales, would most likely make up eight percent of total light-duty-vehicle tailpipe emissions, UCS says. Prior to the scandal, the UCS had VW tied with Toyota and Nissan for the third-cleanest fleet, behind Hyundai/Kia and Honda. The recalculated VW has been downgraded to Chrysler territory, which is, in effect, the bottom of the heap when it comes to tailpipe emissions. The UCS adds that the current VW diesels spew out the amount of emissions similar to a typical 2005 vehicle. So much for moving forward. You can read UCS' rather scathing synopsis here. UCS isn't the first entity to bump down Volkswagen's green-car credentials after the discovery that its diesels might be emitting as much as 40 times the nitrogen oxide (NOx) emissions during typical driving than official test results said they did, and isn't likely to be the last. In September, Green Car Journal stripped the 2009 VW Jetta TDI and 2010 Audi A3 TDI diesels of their Green Car Of The Year Awards. The American Council for an Energy-Efficient Economy (ACEEE) also removed VW diesel vehicles off of its "Green Scores" list last month.