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Volkswagen could outsell GM in China for the first time in nine years

As of the end of November, Volkswagen had sold 70,000 more cars than General Motors in China in 2013, making it appear inevitable that VW will outsell GM there. The feat would return the German brand to the top of chart in China for the first time in nine years, but even the second-place getter won't be complaining too loudly: both automakers sold more than three million vehicles in a market pegged to hit 16 million sales this year.
Volkswagen said it could have sold more cars if it had had more production capacity in China. The arrival of a new-to-China Audi A4, a China-built A3 sedan, the VW Bora and Skoda Octavia, as well as an $18.2-billion-euro investment in the country to construct new factories, means VW should see its numbers grow in 2014. GM's lineup is expanding next year, too, adding four Chevrolet nameplates and two vehicles to its Baojun brand as it tries to get to five million in sales by 2015.
Among other automakers, Ford benefited from good product and woes for Japanese automakers over a territorial dispute with China, outselling Toyota by almost 32,000 units through the end of November. The Ford Focus is China's best-selling vehicle so far this year.

VW probes more diesels for emissions issues [UPDATE]

UPDATE: Volkswagen has released an official statement (embedded below) clarifying that neither the Euro 5 nor Euro 6 versions of the EA 288 contain software defeat devices. While this is the case for Europe, a VW spokesperson tells Autoblog: "Remedies and certifications for the vehicles in the United States are still subject to approval from the EPA and CARB." Volkswagen's diesel emissions scandal could mushroom to include even more vehicles in Europe because another engine there might be equipped with the cheating software. According to the company, it now needs to check whether early examples of the EA 288 for the Euro 5 standard can also evade tests, Automotive News reports. German regulators find that the later Euro 6 versions of the powerplant are compliant. VW initially said that 11 million EA 189 engines were affected worldwide by the cheating, and it recently included them in a stop-sale order in Europe. However, if the EA 288 diesels also have evasive software, they would only add to the millions of vehicles the company is already recalling there. At the same time, VW is facing a crunch to have a fix ready in time for mandated repairs to start in Germany in early 2016. New software should be enough to make most models compliant, but some of them might need more costly hardware changes. While the effects could be huge for Europe, the EA 288 has been included in VW's stop-sale in the US since Sept. 18. The engine is found on an estimated 67,000 examples of the 2015 model-year 2.0-liter TDI vehicles that the company calls Generation 3, according to spokesperson Jeannine Ginivan to Autoblog. US regulators are also taking a close look at the powerplant for evidence of VW altering its cheating software between engines. If proven, the changes might be evidence of a wider effort within the company to perpetuate the emissions evasion. Related Video: Volkswagen confirms: EA288 engines designed for EU5 and EU6 are not affected • Thorough appraisal of the Diesel emissions issue Wolfsburg, October 22, 2015. Volkswagen confirms today that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5 as well as EU6-engines in the European Union. Consequently, new vehicles of the Volkswagen Group offered within the European Union with those engines comply with legal requirements and environmental standards. Volkswagen AG is systematically reviewing this issue worldwide.

VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.