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The VW emissions carnage assessment with an upside

Bombs cause destruction. Even if they're intelligently guided and pinpoint, there's always collateral damage. The strange Volkswagen brew, which is still spontaneously combusting in plain sight, will result in aftershocks for years. And the professional end of the corporation's top leadership will not be the only casualties. Blows are striking shareholder confidence, the residual value of the cars involved, consumer confidence, and the German economy itself. A hard rain's going to fall elsewhere, too. Here are just four damage assessment areas. The High-Compression Past and Low-Compassion Future of Diesels Despite European and especially German manufacturers' high belief that diesel engines were a way to light-duty automotive salvation, VW's scandal started the last nail in the fuel's coffin. Regulations both in the U.S. and in Europe for particulates and nitrogen oxide (NOx) are getting much harder to meet, and this is at the very core of VW's deception. Even with the high-cost exhaust after-treatment systems, sky-high fuel pressure, and sophisticated electronics, the inescapable NOx realities won't be washable by technology in an affordable way. German engineering pride will have to work a real miracle to meet these looming regs and the stain of VW's scandal did the whole diesel movement no favors. Perhaps not so ironically, the E.U. adopted more stringent emission standards this year, which closely mimic the U.S. Tier 2, Bin 5 figures phased in for 2008. Indeed, when VW announced it was able to meet the stringent US NOx emissions standards in 2009 for its diesel engines without urea injection as an exhaust after-treatment, it was a particularly high point of engineering pride for the company. No other manufacturer had figured out how to do so. One Honda official at the time remarked that they had simply no idea how VW was achieving this feat and Honda couldn't come close. Well, neither could VW. On a macro scale, European cities are also starting to face government fines for air quality violations. This is forcing those cities to find various ways to cut smog-related causes like tailpipe emissions. In fact, Paris has gone to the length of restricting car use on a sliding scale when smog persists, while electric cars are free to roam. France's longer and larger plan is banning diesel fuel for light-duty transportation entirely. But why was there a frothy focus by the European manufacturers on diesels in the first place?

Volkswagen Group recalls 281,505 VWs and Audis for fuel leaks

The Basics: Volkswagen Group is recalling 281,505 total Volkswagen and Audi brand products in the United States for potential fuel leaks. Certain versions of the Audi A3, A6, A7, Q5, and Q7 are affected. In addition, some versions of the Volkswagen Golf, Golf SportWagen, and Golf GTI fall under the recall. It's unclear if vehicles outside of the United States will be recalled as well. The Problem: There are actually three separate recalls for three separate issues that all pertain to leaky fuel. All three recalls were issued simultaneously. The risk of unintended ignition is the main concern here. First off, 2012-2013 Audi A6 and Audi A7 models [28,249 cars] are being recalled because of a degrading fuel hose in the engine compartment. Secondly, 143,214 gas-powered 2009-2012 Audi Q5s and 2007-2012 Audi Q7s are being recalled. The fuel cap may crack on these vehicles, leaking fuel. Finally, 110,042 total units of the 2015-2016 Volkswagen Golf, Golf SportWagen, GTI, Audi A3 sedan, and A3 Cabriolet will be recalled because of fuel leaking from the evaporative emissions system. Injuries/Deaths: According to Reuters, Volkswagen has reported no injuries or deaths related to the fuel leaks. In addition, the company has said there have been no fires started due to the leaks. The Fix: Three separate issues means three separate fixes. Volkswagen and Audi will be reaching out to customers soon, though the parts aren't yet available. For the A6 and A7, Audi will simply replace the under hood hose. For the Q5 and Q7, dealers will clean the pump flange and install a butyl rubber band to protect the pump. Finally, the affected Golf and A3 models will have the suction cup in the emissions system replaced. If you own one: Volkswagen and Audi will begin contacting owners starting next month regarding a fix. Related Video: News Source: NHTSA, Reuters Recalls Audi Volkswagen

BMW names new CEO, chairman and head of development

Big changes are afoot in the top ranks at BMW, as the Bavarian automaker has announced not just one, but several appointments in the top floors of its towering headquarters in Munich in what the company itself is referring as "a generational change" in its leadership. The biggest change relates to the chairman of BMW's management board – German-speak for the company's chief executive officer. Effective at the end of the company's Annual General Meeting on May 13, 2015, the company will be run by Harald Kruger. The 49-year-old mechanical engineer has been with BMW since 1992 and has sat on its board since 2008, and has until now been responsible for production for the entire BMW Group. The chairmanship of the board of management currently belongs to Dr. Norbert Reithofer, whom the management is endorsing to chair the supervisory board (which Americans might call the board of directors). That role in turn is currently held by Professor Joachim Milberg, who will step down from his position in order to make way for Reithofer to take his place. Milberg is earmarked to remain with the company to oversee its corporate social responsibility and charitable activities. BMW has also announced the appointment of Klaus Frohlich to serve as its head of development with immediate effect. In his new capacity, Frohlich replaces Dr. Herbert Diess, who in turn has left Munich to take over the Volkswagen passenger car division. Below you'll find statements from both BMW and VW on their new appointments. BMW Group takes steps to initiate a generational change at the head of the Board of Management and Supervisory Board 09.12.2014 - Harald Kruger to become Chairman of the Board of Management in May 2015 - Dr. Norbert Reithofer proposed to succeed as Chairman of the Supervisory Board - Prof. Joachim Milberg to take leading role in the BMW Group's worldwide CSR activities and charitable foundations - Klaus Frohlich appointed to Board of Management with responsibility for Development Munich . At its meeting today, the Supervisory Board of BMW AG took the first steps to initiate a generational change at the head of the company's Board of Management and Supervisory Board. Harald Kruger will become Chairman of the Board of Management effective the end of the Annual General Meeting on 13 May 2015. The current Chairman of the Board of Management, Dr. Norbert Reithofer, will be put forward for election to the Supervisory Board at the 2015 Annual General Meeting.