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VW diesel incentives could be fuel for prosecutors

In the 2000s, Volkswagen was among the companies that lobbied the government to get buyers of diesel vehicles a tax credit. The automaker even brought some of these models to Washington to show them to politicians. The incentive eventually passed, and about 39,500 customers of the 2009 Jetta TDI and Jetta SportWagen TDI got a $1,300 benefit – for a total cost of around $51 million. Now, according to Reuters, that politicking might come back to bite the automaker when prosecutors finally get cases to trial. The US Department of Justice, the Environmental Protection Agency, and attorneys general in at least 29 states are already investigating VW, and politicians are pushing for criminal and civil actions against the company. According to Reuters, there could be several legal routes available, too. One option is to bring tax fraud charges, and that would require proving the automaker knew it was making untrue claims about the diesel models. There's also the option of bringing a case under the False Claims Act, which prohibits fraud against the government. According to Reuters, a maximum penalty under the law would be three times the tax credit and another $5,000 for each vehicle that received it. The company is also facing a class-action lawsuit from disgruntled owners. To aid its defense against all of these claims, VW has hired the same firm that worked with BP during the Deepwater Horizon oil spill. Outside of the US, prosecutors in Germany have just started to build a case against former CEO Martin Winterkorn for alleged fraud. In addition to these potential legal penalties, VW could be fined around $18 billion by the EPA for the emissions infractions. The agency's investigation is getting the added backing of its Canadian counterpart. Although, the actual settlement is expected to be far less.

Skoda unveils Volkswagen Up!-based Citigo

This is the all-new Skoda Citigo, and if you're thinking that it looks rather familiar, that's because its Volkswagen-badged kin recently debuted at the 2011 Frankfurt Motor Show. That's right, the long-rumored Skoda version of Volkswagen's new Up! city car has finally arrived.
Buyers will have a choice of two 1.0-liter three-cylinder engines - one with 59 horsepower, the other with a 74 hp and a blistering 106 mph top speed - both mated to a five-speed manual transmission. Powerful they are not, but these three-bangers should prove to be extremely efficient, with Skoda quoting fuel economy numbers of 62.8 and 60.1 miles per gallon, respectively (on the European cycle).
Being a Skoda, the Citigo will go on sale in its home market of the Czech Republic this fall, with the rest of Europe getting the car next summer. Follow the jump for Skoda's official release.

How the VW diesels perform in cheat mode

Are you tired of the Volkswagen diesel emissions scandal? Yeah? We are, too. But here's a story that, at the very least, gives us something resembling answers about one of the most important questions surrounding the firestorm – how will the affected cars perform when they're in their emissions-cheating test mode? Consumer Reports was able to find out, tapping into what it believes is the cheat mode. By turning the car to accessory mode, flipping on the hazards, and tapping the gas pedal five times, CR was able to defeat the auto-engaged traction and stability controls, which it believes activates cheat mode. The safeties will reengage if it detects the rear wheels spinning, so the next step was what CR called "a hack." The team unplugged the rear wheel sensors, so the car's computers couldn't tell whether the wheels were spinning. By the way, don't try this at home. With that done, CR hit the road, testing both a 2011 Jetta Sportwagen TDI and a 2015 Jetta TDI sedan in their normal and cheat modes. Why both cars? Well, the 2011 uses the EA188 diesel, which represents the bulk of the affected cars, while the newer Jetta uses the latest EA288, which just arrived for model year 2015. The results are, in a word, interesting. The EA188 engine lost 0.6 seconds on the way to 60 miles per hour while in emissions-compliant cheat mode, and fuel economy fell from 50 miles per gallon to 46. For the newer EA288, the 0-60 difference was negligible – just a tenth of a second – while the fuel economy dipped from 53 to 50 mpg. There are a few takeaways here. First of all, and as suspected, running in cheat mode did hurt both performance and fuel economy. But perhaps more importantly, even in emissions-compliant mode, both vehicles easily beat their EPA fuel economy estimates. According to FuelEconomy.gov, the highest rated 2011 TDI Sportwagen, the manual-trans model, was rated at 30 mpg city and 42 mpg highway, with a combined rating of 34 (the auto drops the city and combined ratings by one mpg, while the highway falls by three). The best a 2015 Jetta TDI sedan can do according to Uncle Sam, meanwhile, is 31 city, 46 highway, and 36 combined with the manual (again, the auto is worse, but only by a single highway mpg). Related Video: