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VW orders external probe into diesel emission scandal

There are well over 480,000 Volkswagen-made, diesel-powered vehicles currently traveling roads in the United States that do not meet the Environmental Protection Agency's emissions requirements. This, as you can probably imagine, is a very big deal, and has led VW CEO Professor Doctor Martin Winterkorn to release an official statement on the matter. "I personally am deeply sorry that we have broken the trust of our customers and the public," he said. It's important to note that these vehicles run software with a so-called "defeat device" that kicks in when the on-board computer senses that it is being tested for emissions. When the car is operating normally – in other words, when its exhaust isn't being sniffed – the cars do not meet US emissions standards. According to the EPA and the California Air Resources Board, affected cars emit as much as 40 times the allowable level of certain pollutants. "We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case," according to Winterkorn, who added, "Volkswagen has ordered an external investigation of this matter." It's not yet known who will carry out this investigation. At present, there are still a number of 2015 Volkswagen models on dealer lots that do not meet emissions requirements. VW has issued a stop sale on vehicles equipped with the 2.0-liter TDI diesel engine. What's more, the German automaker has been barred from selling 2016 model-year vehicles that use this engine, according to The Detroit News. Last year, diesel vehicles made up about 22 percent of all VW sales, which means these restrictions will have a big impact on the brand's sales performance until a remedy is found and the vehicles are approved for sale. Interestingly, the EPA has started a campaign of sorts to test vehicles from other automakers that sell diesel-powered vehicles in the United States to make sure they comply with emissions requirements under all operating circumstances. The EPA says it "will be reviewing [its] compliance protocols and introducing ways in which [it] can effectively test not only for emissions performance but also for the potential presence of defeat devices," according to a statement provided to The Detroit News. Check out the full statement from VW CEO Martin Winterkorn below. Related Video: STATEMENT OF PROF. DR.

VW close to decision on selling Bugatti to Rimac

FRANKFURT — Electric hypercar maker Rimac Automobili and Volkswagen's supercar brand Bugatti are a good technological fit, Porsche's CEO told German weekly Automobilwoche, fueling hopes that a deal between the two could happen soon. British automotive magazine Car last year reported that Volkswagen was on the verge of selling Bugatti to Rimac Automobili, citing sources. In exchange, Porsche, also owned by Volkswagen, would raise the 15.5% stake it owns in Rimac, founded by Croatian entrepreneur Mate Rimac, Car said. "At the moment there are intense deliberations on how Bugatti can be developed in the best possible way. Rimac could play a role here because the brands are a good technological fit," Porsche CEO Oliver Blume said. "There are various scenarios with different structures. I believe that the issue will be decided by the group in the first half of the year," said Blume, who also sits on the management board of parent Volkswagen. Rimac has developed an electric supercar platform, which he supplies to other carmakers, including Pininfarina. Blume also confirmed higher savings targets for Porsche, saying the carmaker plans to support results by 10 billion euros ($12.1 billion) of cost cuts by 2025, up from 6 billion previously. Related Video:

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.