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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.

Recharge Wrap-up: BYD sales surge, new Mazda MX-5, plug-in VW Passat

BYD has enjoyed a tremendous leap in sales since last year, according to Want China Times. Sales from January to April were ten times that of the same period last year, with much of the credit going to government subsidies for clean cars. BYD claims, though, that battery production is limiting the number of vehicles it sells, and that by increasing that production capacity, it will see even more success. BYD's Qin plug-in hybrid, introduced in December, has already sold 4,500 units with another 8,000 orders already placed. Read more here. Mazda will reveal the fourth generation of its MX-5 roadster in September. To celebrate the car's 25th anniversary, the all-new two-seat convertible will debut during simultaneous private events in Spain, Japan and the US on September 3 and 4. Furthermore, the new Miata will be the center of a more public event in Barcelona on September 6. For fans in the US, Mazda will hold a Miatas at Mazda Raceway event from September 5 to 7. The 2016 MX-5 promises to continue to offer a lightweight, balanced design for fun and efficiency. The new Volkswagen Passat will feature a plug-in hybrid version. Volkswagen confirmed the Passat PHEV for Europe at the model's unveiling at the Volkswagen Design Centre in Potsdam, Germany. The plug-in Passat uses a 154-horsepower TSI engine and an 80-kilowatt electric motor for a total output of 208 horsepower. With a full charge, it can travel up to 31 miles on electricity alone. All versions of the eighth-generation Passat use stop-start and regenerative braking. Read more at Green Car Congress. BBC warns that the costs of charging an electric vehicle in the UK could surpass those of fueling a gasoline engine. Not so fast, says The Green Car Website. While the BBC cites charging services like Charge Master introducing fees for rapid charging making it cost about as much per mile to drive as traditional internal combustion engines. The Green Car Website points out that most people usually charge at home for much less, that paying for rapid charging is still not that expensive and that the BBC article misses the point about EVs, anyway. See the BBC article here or click here to read the rebuttal. News Source: Want China Times, Mazda, Volkswagen, BBC News, The Green Car Website via Charged, Green Car Congress Green Mazda Volkswagen Green Automakers Electric PHEV recharge wrapup qin

VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.