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VW lawyers up with firm that defended BP

The string of bad news for Volkswagen shows no sign of slowing yet, especially with the recent resignation of CEO Martin Winterkorn. For aid in its legal defense in the US over its ongoing diesel emissions scandal, the automaker has now employed Kirkland & Ellis LLP, which was the same law firm BP used for the Deepwater Horizon oil spill, according to Automotive News. VW is surely hoping that things go easier for it than BP. After the massive oil spill, the company paid $4 billion to settle criminal allegations and another $18.7 billion for the other federal and state claims, Automotive News reports. We'll see. Based on fines for each of the 482,000 diesel vehicles with this evasive software in the US, VW could be on the hook for $18 billion from this lapse. In addition, 11 million units are potentially affected across the globe, and the company is already setting aside 6.5 billion euros ($7.25 billion) in expected costs. The automaker's stock on the German exchange is being hit hard by this scandal. The original discovery of high pollution levels in VW's 2.0-liter TDI engine began with researchers last summer, and the Environmental Protection Agency and the California Air Resources Board had been working on the problem for months before the EPA issued its notice of violation on September 18. A criminal investigation has now begun. The day before his resignation, Winterkorn issued a video where he apologized profusely for the scandal and promised to make things right.

West Virginia researcher describes how Volkswagen got caught

The cheating scandal engulfing the world's largest automaker started with a road trip. In the spring of 2014, researchers from West Virginia were evaluating the tailpipe emissions of diesel cars made for the American market by European manufacturers, something never before studied in the academic realm. Excited by the prospect of breaking new ground, the team of two professors and two students wanted to gather as much data as possible. "And being academics, we went a little overboard," said Arvind Thiruvengadam, one of the students. "Being academics, we went a little overboard." Overboard included driving the cars for more miles than they needed to test and verify results. Drivers put about 1,500 miles on each of the first two cars in the study, a Volkswagen Jetta and BMW X5, along California roadways. For their final car, a Volkswagen Passat, they wanted even more mileage. So they took the car on a road trip from Los Angeles to Seattle and back again, collecting data from more than 2,000 miles of testing. The road trip was Volkswagen's undoing. When the West Virginia team returned to Los Angeles, they were befuddled by the test results. In theory, the Passat should have spewed the lowest levels of pollutants among the three cars. Equipped with the more modern selective catalytic reduction technology, the team expected to find minimal levels of nitrogen oxide. But the car, which had been certified at a California Air Resources Board facility prior to the start of the road trip, had elevated levels of NOx that were 20 times the baseline levels established beforehand. The researchers, comprised of professors Gregory Thompson and Dan Carder and students Marc Besch and Thiruvengadam, knew their on-board equipment functioned properly because, early in their research, they had double-checked its accuracy after recording sky-high NOx readings from the Jetta that showed 30 times the level of its baseline testing at the CARB facility. It was particularly noteworthy because the Jetta contained the first-generation Lean NOx Trap technology, not the more efficient SCR, yet both produced large discrepancies. The BMW, on the other hand, performed as expected. Today, Thiruvengadam is careful to say the research team never suspected Volkswagen of cheating on emissions testing, nor did the researchers report such a finding. They merely reported their findings to CARB officials who then further investigated.

Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.