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VW to announce $1B investment in Mexico plant

Big news south of the border could be slated for later this week, as Automotive News is reporting that the Volkswagen Group will announce a $1-billion investment in the company's Puebla factory. The company officially declined to comment, but AN is claiming the investment in the Puebla facility, which has been operating for over five decades, will add 1,900 jobs to the nearly 16,000-strong workforce. According to AN, a person familiar with the situation in Puebla claims the investment will support production of the next-generation Tiguan, slated to arrive in 2017. The Puebla factory currently produces Golf, while total output last year nearly hit half a million vehicles, or about 15 percent of Mexico's total automotive output. News Source: Automotive News - sub. req.Image Credit: Susana Gonzalez / Newsmakers/ Getty Plants/Manufacturing Volkswagen Mexico vw tiguan puebla

VW admits 430,000 2016 models have implausible CO2 ratings

Volkswagen finally explained more details about its CO2 rating scandal in Europe and admitted that 430,046 of the estimated 800,000 affected vehicles with "implausible" figures came from the 2016 model year. They included some from Audi, Seat, Skoda, VW, and VW Commercial Vehicles, according to the automaker's list (as a PDF). The problem mostly impacts diesel engines, but the inventory also shows some gasoline mills. VW will next determine the accurate CO2 emissions for these vehicles, and the German Federal Vehicle and Transport Authority will supervise that process to ensure the data's veracity. The automaker will also launch websites in Europe to let owners enter their model's VIN to check whether it's affected. Because governments there often link vehicle taxes and CO2 production, the company promises to work with regulators in each country to cover any fees that result from the inaccurate figures. VW announced the CO2 scandal earlier in November and estimated the equivalent of $2.2 billion to fix it at the time. A later report claimed that a group of engineers were responsible for fabricating the emissions data. They allegedly couldn't meet reduction goals from Martin Winterkorn, and between 2013 and this spring the workers did things like overinflate the tires during testing to achieve the desired results. VW is also closer to a fix in the diesel emissions scandal. According to an anonymous insider to Bloomberg, the company has a repair for the 1.6-liter engine that's reportedly neither very complex nor expensive. German regulators would still need to approve the solution before it could roll out to owners. Next step in clarifying the CO2 issue Affected Volkswagen Group models of the current model year have been identified Customers being informed via website Discussions with the authorities have begun The Volkswagen Group reports that the vehicles of the 2016 model year affected by the CO2 issue have been identified. There is thus now clarity about the new vehicles of the current model year out in the marketplace. On 3 November 2015, the Group had already reported that irregularities may have arisen in determining the CO2 figures for type approval of around 800,000 vehicles. This was identified during its own currently ongoing investigations and had been made public. The internal investigations into the current vehicles of the 2016 model year provide results for narrowing down the actually affected vehicles with implausible CO2 figures.

Volkswagen's emissions deception brings more scrutiny to entire industry

Volkswagen's emissions deceptions have hurt the entire auto industry's credibility with federal regulators. Days after the world's largest automaker confessed to installing software that circumvents emissions standards on approximately a half-million diesel vehicles in the United States, a top federal safety official says the company's dishonesty will force government officials to view the entire auto industry with heightened skepticism. "Your first question has to be, 'How extensive is it through the whole industry?' You don't know if it's a unique case or if other people are doing it," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "The unfortunate part is you're not going to worry about one person. It's extended to the entire industry. If they did it, someone else could do it." "They tell you one thing, you question it." - Mark Rosekind Rosekind's agency doesn't bear responsibility in investigating the emissions cheating. That falls to the Environmental Protection Agency, which served Volkswagen with a Notice of Violation on Friday that alleged the company's diesel vehicle equipped with 2.0-liter engines contained a defeat device that allowed the cars to detect when emissions testing was taking place. In normal driving situations, the cars spewed pollution at as much as 40 times allowable thresholds. But because of the emissions cheating, NHTSA wonders if the German automaker has been cutting corners on safety standards or disingenuous on safety-related discussions. Speaking at an auto-industry event in Novi, MI, on Tuesday, Rosekind indicated no information can now be taken at face value. He used the phrase "Question assumptions" several times in discussing the case. "Of course, question assumptions means, 'Is there some other safety element there that we're now going to have to investigate?" he said. As it did in the General Motors ignition-switch probe, the Department of Justice has initiated an investigation of Volkswagen and the House Committee on Energy and Commerce announced it will hold hearings on the cheating. For NHTSA, criminal cases complicate matters. The agency core function is to regulate safety, not conduct criminal investigations. But in the early going, their investigators may be the first ones to spot wrongdoing.