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Renault to name VW manager Luca De Meo as CEO

PARIS — Renault's board is set to meet later on Tuesday to approve the nomination of Luca de Meo, the former head of Volkswagen's Seat brand, as its next chief executive, two sources familiar with the matter said. The Italian-born executive, who stepped down from Seat earlier this month, is not due to take up his post at the French carmaker until towards July, due to negotiations around his contract, according to one of the sources. Renault declined to comment. De Meo is not expected to face any last minute hurdles in his nomination, and has already won tacit backing from parties including the French government, a Renault shareholder. His appointment fills one of the major gaps left at the firm as it tries to move past a year of turmoil following the 2018 arrest in Tokyo of former boss-turned-fugitive Carlos Ghosn, and reset its strained alliance with Japan's Nissan. Ghosn, who forged and oversaw the Renault-Nissan partnership for almost two decades, has since fled Japan and resettled in Lebanon, from where he has contested the financial misconduct charges against him and said the alliance was at risk of collapse. De Meo, along with Renault Chairman Jean-Dominique Senard, brought in last January from tire maker Michelin, will have his work cut out to turn around the firm. Like rivals, Renault is grappling with a downturn in demand, and has said it expects a slight decline in the car market in Europe, Russia and China this year. The firm has also presented 2020 as a make-or-break year for the alliance with Nissan and is under pressure to deliver on cost savings and joint projects. Automakers face pressure to meet stringent new emissions targets with less polluting models, and are also competing to produce innovations such as self-driving cars, which require large investments. De Meo, who speaks French, will be one of a growing handful of outsiders in senior company jobs in France. The 52-year-old started his career at Renault and has worked at Fiat and Audi among other brands. He is credited with revitalizing sales at Barcelona-based Seat, imbuing it with a more sporty image, though his portfolio will be markedly larger at Renault, whose brands include Dacia and Lada. Renault's finance chief Clotilde Delbos has been CEO on an interim basis since last October, when Thierry Bollore, a former Ghosn ally, was ousted by the board. Related Video:     Hirings/Firings/Layoffs Rumormill Volkswagen Renault

'Clean Diesel' leaves dirty taste for green-minded VW owners

Volkswagen developed the advertising campaigns for its "Clean Diesel" cars far better than the actual technology. In dozens of complaints filed with the Federal Trade Commission in September, green-minded consumers said they were enticed into buying diesels by the company's advertising, which touted the environmental benefits of new diesel technology. Those alleged benefits convinced many to buy cars they otherwise would not have considered. In actuality, Volkswagen installed secret software in its cars that allowed the company's diesels to brazenly circumvent emissions standards. For environmentally conscious consumers, those decisions backfired. Instead of helping the environment, they drove cars that polluted at up to 40 times beyond the legal threshold for certain emissions. Now, those consumers are angry. They've asked the Federal Trade Commission to investigate Volkswagen for alleged deceptive advertising, and are hoping the federal agency can intervene and force Volkswagen to either buy back their compromised cars or negotiate trade-ins on favorable terms. An FTC spokesperson confirmed the agency is investigating. Many of those who wrote or called the agency said they felt like they had nowhere else to turn. For green-friendly drivers, it wasn't only about the money. It was also about the betrayal. "I am ashamed to drive this car on the road, as doing so is evidence that I have been taken for a fool." "It's awful for the environment," wrote one consumer from Shreveport, Louisiana, on September 24, days after the diesel scandal unfolded. "It's caused me anxiety thinking about the amount of emissions I have been producing." The motorist's comments echoed others filed with the FTC. Many owners felt trapped with cars they couldn't sell and cars they felt they could no longer drive in good conscience, knowing they spew nitrogen oxide at levels that violate the Clean Air Act. "I do not see how I can drive it knowing highly toxic pollutants are being produced," wrote another driver from Middletown, Rhode Island. "I have not driven the car since this news came to light." The two statements were among the 89 filed with the FTC's Consumer Sentinel Network in the week following the Environmental Protection Agency's announcement that Volkswagen had admitted rigging approximately 482,000 cars in America with software that allowed them to cheat emissions testing.

To solve diesel problem, VW might need two fixes

Volkswagen says that a fix is on the way for its 11 million vehicles around the globe that are equipped with diesel engine software that can evade emissions tests. The problem might be far more complicated than simply creating a single solution for all of them, though. According to Automotive News citing Reuters, two remedies to cover different NOx-reducing systems could be necessary, and both potentially affect performance. Earlier examples of the EA 189 diesel engine used a lean NOx trap to reduce the harmful material coming from the tailpipe. According to experts in the Automotive News report, a software update might allow the engines to achieve compliance, but that could affect fuel economy. VW already tried this route once before the scandal came to light, but tests by the California Air Resources Board still showed the figures were too high. Later, some of the 2.0 TDI engines began using Selective Catalytic Reduction that reduced NOx by injecting a urea solution into the exhaust stream. According to Automotive News, a software update for this equipment might increase the amount of the substance used. Not only would that mean topping up the fluid more often, but there still could be some reduction in fuel economy. But, since the 2-liter, 4-cylinder TDI engine that sits inside the diesel vehicles first mentioned as being affected by the issue in the US don't have a urea treatment system, VW would need to install them into these cars. VW still hasn't officially outlined its solution (or solutions) to the emissions issue but is expected to soon. The automaker's long-term evasion of regulations with these diesel engines pumped vast quantities of additional NOx into the air. The substance is known to be linked with smog and acid rain. The US Department of Justice is already beginning an investigation into the company, and politicians are pushing for harsh punishments.