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VW delays new Phaeton flagship sedan

The Bugatti Veyron was a crusade begun by former Volkswagen Group CEO Ferdinand Piech. Even though the old patriarch is no longer with the company and the astonishing coupe is rumored to have never made a cash profit, everyone understands why the car remained in the family and why a successor is on the way. The same can't be said for the VW Phaeton, another one of Piech's pursuits. Thirteen years after the budget brand introduced the now 89,650-euro ($101,000) luxury sedan that competes with other in-house products, no one knows why it lives. Since VW made roughly 4,000 of them last year, the news that it's being delayed won't affect many people. The next-generation Phaeton developed on the MLB platform is apparently ready to go right now, but Bloomberg reports that the bosses have demanded lower production and material costs before it gets a final green light. At the moment the Phaeton is put together by hand by white-gloved technicians, which might sound like a great place to start counting pennies, but again, those technicians only built 4,000 sedans last year. That's fewer than the Eos, which is being retired for slow sales, and VW sold 3,411 Eos models in the US alone last year. Recent hire Herbert Diess is the VW exec in charge of the cost-cutting push. The Phaeton is a grain of sand - but a very important one - on the beach he's meant to conquer: Diess plans to raise VW brand profit to more than six percent by 2018 at the same time there's a group-wide push to save $5.5 billion. That number would more than double the brand's current 2.7-percent profit for 2015 so far, that current number being about half the profit over at struggling French maker PSA Peugeot-Citroen. The new Phaeton's on-sale date had been reported as 2017 or 2018 earlier this year. It isn't clear how long the sedan will be pushed back because of the production changes.

Volkswagen, Bosch reach diesel settlement worth $1.6 billion

Volkswagen Group of America and automotive parts maker Bosch reached a settlement in which the two companies will pay a combined $1.6 billion because of their roles in the automaker's diesel-emissions scandal. VW, Europe's largest automaker, will pay about $1.2 billion to either repair or buy back vehicles. Bosch said separately that it will pay more than $300 million to owners of diesel-powered Volkswagens, Audis, and Porsches. The settlement stems from emissions issues related to about 78,000 VW-made cars and SUVs with 3.0-liter V6 diesel engines that were sold in North America. VW will recall and repair about 58,000 vehicles made for the 2013-through-2016 model years. The company will also buy back, offer a trade-in credit, or terminate the leases for about 20,000 cars for the model years 2009 through 2012. The older impacted models are the Volkswagen Touareg and Audi Q7, while the newer ones are the Touareg and Q7 as well as Audi's A6, A7, A8, A8L, and Q5 models, and finally the Porsche Cayenne Diesel. Previous reports estimated the payout at closer to $1 billion. The US settlement follows one reached last year between VW and US regulators in regards to VW's 2.0-liter diesel engines. That settlement was estimated to cost VW about $15 billion and impacted owners of about 500,000 vehicles. VW has had a stop-sale on its diesel vehicles in the US since late 2015 after it was discovered that VW installed software in its diesels that allowed those vehicles to cheat emissions-testing systems. VW on Wednesday also reiterated that it would contribute $225 million towards environmental-remediation efforts in the US. Volkswagen of America CEO Hinrich J. Woebcken, in Wednesday's statement, said that "we will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward." Related Video: News Source: Volkswagen via Automotive News-sub.req.Image Credit: Shannon Stapleton / Reuters Government/Legal Green Audi Porsche Volkswagen AutoblogGreen Exclusive Emissions Diesel Vehicles vw diesel scandal scandal settlement

Ford Mustang Mach-E fails Sweden's moose test

The infamous moose test has claimed another casualty. This time it's the Ford Mustang Mach-E AWD Long Range, which was tested in an electric four-way alongside the Tesla Model Y, Hyundai Ioniq 5 and Skoda Enyaq iV (an electric utility vehicle closely related to the Volkswagen ID.4 that is sold in the United States). According to the Swedish testers at Teknikens Varld, Ford's electric car not only failed to hit the speed necessary for a passing grade, it didn't perform well at slower speeds, either. To pass the outlet's moose test, a car has to complete a rapid left-right-straight S-shaped pattern marked by cones at a speed of at least 72 km/h (44.7 miles per hour). The test is designed to mimic the type of avoidance maneuver a driver would have to take in order to avoid hitting something that wandered into the road, which in Sweden may be a moose but could just as easily be a deer or some other member of the animal kingdom elsewhere in the world, or possibly a child or car backing into the motorway. Not only is the maneuver very aggressive, it's also performed with weights belted into each seat and more weight added to the cargo area to hit the vehicle's maximum allowable carrying capacity. The Mustang Mach-E only managed to complete the moose test at 68 km/h (42.3 mph), well below the passing-grade threshold. Even at much lower speeds, Teknikens Varld says the Mach-E (which boasts the highest carrying capacity and was therefore loaded with more weight than the rest of the vehicles tested in this quartet) is "too soft in the chassis" and suffers from "too slow steering." Proving that it is indeed possible to pass the test, the Hyundai and Skoda completed the maneuver at the 44.7-mph figure required for a passing grade and the Tesla did it at 46.6 mph, albeit with less weight in the cargo area. It's not clear whether other versions of the Mustang Mach-E would pass the test. It's also unknown if Ford will make any changes to its chassis tuning or electronic stability control software, as some other automakers have done after a poor performance from Teknikens Varld, to improve its performance in the moose test. Related video: