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Cost-cutting measures put VW Beetle in jeopardy

Volkswagen is on a mission to cut costs. That means producing more models across its various brands based on the same platforms and powertrains, but the latest word from Germany has it that it will also mean cutting some of the VW brand's less successful models. First on the chopping block, according to German publication Der Spiegel, is the three-door version of the Polo, which will reportedly cede its place to the five-door version exclusively. The elimination of that model alone is said to save VW a good 200 million euros, putting it on its way towards reducing the brand's costs by a targeted five billion euros. The Polo isn't the only one in danger, though. The Eos, as we know, is not due to be replaced, but the future of the Beetle could be in jeopardy as well. The Beetle may be one of VW's most iconic models, but is hardly its most successful in terms of sales. With the 2014 annual report due to be released shortly, the last full-year sales figures had Volkswagen selling 109,517 Beetles in 2013. That may be more than four times the number of Scirocco models it sold, but hardly puts a dent in the 871,413 Jettas, 824,629 Golfs and 725,291 Polos it sold during the same year.

EPA message to automakers: You're on notice

With top administrator Gina McCarthy speaking about the "moral obligation for climate action" on Friday, the Environmental Protection Agency announced it would ramp up its oversight of the auto industry in the wake of Volkswagen's emissions cheating. In a letter sent to manufacturers Friday, the agency said it would begin examining cars to see whether they contained defeat devices "in addition to the standard emissions test cycles." "We are putting vehicle manufacturers on notice." Exactly how the agency plans to test for these devices – which are not devices per se, but algorithms contained in millions of lines of software code that govern vehicle functions – remains unclear. Christopher Grundler, the director of the EPA Office of Transportation and Air Quality, divulged few details in how the agency would uncover so-called defeat devices used by cheaters. "Not today – or actually ever – I'm not going to be describing what new ways we'll be using to detect these defeat devices." Later, he said engineers will have to "come up with some clever ways to do this." The only insight he offered was that the EPA, California Air Resources Board, and Environment Canada would partner on testing more cars for emissions and anomalies. Grundler also said the EPA would diversify its testing fleet. In addition to relying on vehicles provided by manufacturers, the federal agency will now also borrow cars from "private citizens" and utilize rental cars for tests. "We are putting vehicle manufacturers on notice," he said. Joint investigations between EPA and CARB have "been very successful in protecting human health and the environment," said Janet McCabe, the agency's acting administrator in the Office of Air and Radiation. "But we also know, and the Volkswagen violations before us now make it clear, we need to adapt and step up our oversight." That may include an increase in on-road testing in addition to the five emissions tests now more relied upon. The EPA owns and maintains 23 portable emissions-monitoring systems like the one used by West Virginia University researchers who first detected elevated levels of nitrogen oxide emissions from two Volkswagen diesel vehicles. Right now, they're almost exclusively deployed to monitor emission from heavy-duty vehicles, whose NOx emissions "dwarf" the amount produced by light-duty vehicles, which produce less than 2 percent of the total, according to the agency's figures.

Audi will submit emissions fix for 3.0 TDI V6 to EPA and CARB

Audi will develop a software update for the emissions control system on Volkswagen Group's 3.0 TDI V6 and will submit the changes to the Environmental Protection Agency and California Air Resources Board for approval. If the government regulators accept it, the tweaks could end the emissions problems for an estimated 85,000 of these engines in the US in Audi, Porsche, and VW models. However, the stop-sale still covers these vehicles until further notice. Audi admits in its statement to failing to disclose three "auxiliary emission control devices" on the V6 to regulators, and US law considers one of these systems a defeat device. VW Group offered the engine in the US on the Audi A6, A7, A8, Q5, and Q7 since the 2009 model year. The mill was also available on the VW Touareg and Porsche Cayenne. The EPA filed a violation against the 3.0 TDI on November 2 because the agency reported that the engine's software contained a defeat device to circumvent emissions tests. The regulator recently extended that notice to cover these powerplants in the US from the 2009 to 2016 model years. Audi's statement vaguely estimates the price of this problem to be in the "mid-double-digit millions of euros," and the automaker could face financial punishment by regulators. "Determinations regarding potential penalties and other remedies will be assessed as part of the investigation EPA has opened in conjunction with the US Department of Justice," an EPA spokesperson told Automotive News. Related Video: Statement on Audi's discussions with the US environmental authorities EPA and CARB Auxiliary emission control devices (AECD) for US version of V6 TDI 3 liter engine to be revised, documented and submitted for approval Technical solution for North America versions from 2009 model year onwards to be worked out in conjunction with the authorities Audi will revise, document in detail, and resubmit for US approval certain parameters of the engine-management software used in the V6 TDI 3 liter diesel engine. That is the result of the discussions held between a delegation from AUDI AG and the US Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). The updated software will be installed as soon as it is approved by the authorities. The three brands Audi, Porsche and Volkswagen are affected. Audi estimates that the related expense will be in the mid-double-digit millions of euros.