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Volkswagen may soon have remedy for more cheating diesels

Nearly a half-million motorists who own Volkswagens equipped with 2.0-liter engines have known for a few weeks the company might wind up buying back their vehicles as part of a settlement surrounding the company's emissions cheating. But about 85,000 drivers who own similarly afflicted diesels with 3.0-liter engines have been stuck without a remedy. They may not be waiting much longer. Bloomberg reports that Volkswagen will soon propose a fix for vehicles, including those from Audi and Porsche, equipped with 3.0-liter engines that will include new software and a new catalytic converter for the vehicles. Discussions with federal regulators are ongoing, according to the news outlet. "We are cooperating with the regulatory agencies and working with them on an approved solution," says Audi spokesperson Mark Clothier. "Beyond that, we cannot comment on ongoing investigations." Regulators have alleged that the company's 3.0-liter engines contain "defeat devices," illegal software that allows a vehicle to detect when it's undergoing an emissions test and turn off pollution control during real-world driving. The defeat device allows these vehicles to increase emissions of nitrogen oxide up to nine times the Environmental Protection Agency's allowable threshold. Affected 3.0-liter vehicles include the 2014 Volkswagen Toureg, 2015 Porsche Cayenne and the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5. Volkswagen is slated to finalize its plans for buying back the afflicted 2.0-liter cars and potentially offer those motorists "substantial compensation" for their troubles by June 21, and it's possible that a formal announcement on the 3.0-liter vehicles would come at the same time. Related Video:

French police search VW offices in emissions probe

French authorities have searched the headquarters of Volkswagen France as part of a local investigation into the emissions testing scandal at the German automaker. Investigators from France's environment and public health office conducted the searches Friday at Volkswagen France's offices in Villers-Cotterets, 52 miles north of Paris, and seized computer equipment, the Paris prosecutor's office said Sunday. A spokeswoman for Volkswagen France, Leslie Peltier, confirmed the searches and said Volkswagen is fully cooperating with the police. In Spain, prosecutors have called on the National Court to open a probe of Volkswagen for possible fraud and environmental offences in connection with the emissions scandal at the German automaker. The court's prosecutor's office sent the recommendation Monday to investigative magistrate Ismael Moreno, saying the alleged offences could have affected people across Spain. It said that given that the cars in question qualified for subsidies from the government, they also constitute possible fraud against the state. The prosecutors were acting on complaints filed by the Spanish anti-corruption group Manos Limpias (Clean Hands) and a victims' association. Volkswagen's Spanish subsidiary SEAT said it fitted 700,000 vehicles with the EA 189 diesel engines that had software enabling them to cheat on emissions tests. Volkswagen says 11 million cars worldwide have such software. The automaker has hired Christine Hohmann-Dennhardt away from Daimler to help the company, and perhaps the entire German automobile industry, recover from VW's diesel emissions scandal. Governments around the world are working on new emissions tests that may drive the price of diesel vehicles higher than buyers are willing to pay. Related Video: The AP contributed to this report.

Skoda plans big investment into electric cars as part of rebound effort

PRAGUE — Czech carmaker Skoda, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic's largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. "This year is likely to be another big challenge," finance director Klaus-Dieter Schuermann said. "We expect Skoda Auto's group performance to improve, with sales revenue significantly above the level of last year." Skoda reported on Wednesday a 54.5% drop in 2020 operating to 756 million euros ($894 million). Sales revenue dropped 13.8% to 17.1 billion euros. Global deliveries remained above 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a fall in China, its biggest single market. Chief Executive Thomas Shaefer said the car company was managing the semiconductor shortage "but it will follow us for awhile" and the impact was not visible yet. Skoda's core market in Europe would be electric in the future, Shaefer said, although it was still not time to completely switch away from traditional models, which include the launch last year of a new generation of its flagship Octavia model. It has also started production of the all-electric Enyaq iV model, which is a version of Volkswagen's ID.4. Skoda plans investments of 1.4 billion euros into electromobility development as part of its five-year investment plan. Investments will also go into digitalization activities and plant modernization. Related video: Green Volkswagen Skoda Electric