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Volkswagen finds CO2 'irregularities' for 800k vehicles

The latest issue for Volkswagen affects another 800,000 vehicles, and this time its for irregularities in CO2 emissions certifications. VW estimates this issue could cost the company $2.2 billion to fix. The company officially makes no specific mention of which engines are covered, the models they are in, or even where they are located. VW discovered the situation during its ongoing internal investigation, and, according to the automaker, "it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process." Most of the affected vehicles are diesels, and the company is now reaching out to "the responsible type approval agencies" to figure out the next step. While VW isn't officially confirming which models and engines are involved, Automotive News reports that it affects some 2012 and later VW, Audi, Seat, and Skoda models with the company's 1.4-, 1.6-, and 2.0-liter diesel engines, as well as the 1.4-liter ACT gasoline engine. The issue mainly affects vehicles sold in Europe. "The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency," CEO Matthias Muller said in the announcement. Volkswagen Group of America spokesperson Jeannine Ginivan was able to provide some further clarification to Autoblog. "This is not related to US-certified vehicles," she said. Clarification moving forward: internal investigations at Volkswagen identify irregularities in CO2 levels Matthias Muller: "Relentless and comprehensive clarification is our only alternative." Around 800,000 Group vehicles could be affected Initial estimate puts economic risks at approximately 2 billion euros The Volkswagen Group is moving forward with the clarification of the diesel issue: during the course of internal investigations irregularities were found when determining type approval CO2 levels. Based on present knowledge around 800,000 vehicles from the Volkswagen Group could be affected. An initial estimate puts the economic risks at approximately two billion euros. The Board of Management of Volkswagen AG will immediately start a dialog with the responsible type approval agencies regarding the consequences of these findings. This should lead to a reliable assessment of the legal, and the subsequent economic consequences of this not yet fully explained issue.

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Are more diesel scandals about to erupt?

More automakers may soon be embroiled, like Volkswagen, in diesel emissions scandals. According to the Daily Kanban, either the International Council on Clean Transportation (ICCT) or the Deutsche Umwelthilfe (DUH) will soon announce from 10 to 15 more cases of automakers cheating national diesel emissions rules. The outlet says three of the incidents are attributed to Opel. Studies conducted by the DUH, the University of Applied Sciences in Bern, Switzerland, and the UK's Leeds University found that Opel's diesel Zafira, Corsa, and Vectra models emit more NOx than European regulations allow when tested in ways that go beyond the European testing protocol, such as when done on a four-wheel rolling road instead of a two-wheel rolling road. Opel said the accusations had no merit. Specifically on the Zafira, the DUH asked Opel about the emissions findings, and Opel said that no General Motors software contains any measures to enable cheating. Opel then tested a Zafira of its own "both on a two- and a four-wheel roller dynamometer," finding that "The emission behavior determined in each case does not differ from one another." That makes this a case of he-said-she-said for the moment. The Daily Kanban's sources say the cheating methods "range from the crude to the highly sophisticated," with those at the latter end complex enough to render Volkswagen's methods "pedestrian." As for any automakers who might be named, the matter of real-world emissions exceeding a legal limit doesn't mean a carmaker has designed systems that cheat, it might mean the company designed the car to pass a test. Related Video: News Source: Daily KanbanImage Credit: PATRICK PLEUL/AFP/Getty Images Government/Legal Green Volkswagen Opel Emissions Diesel Vehicles vw diesel scandal icct