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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?

VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

What the Volkswagen I.D. concept tells us about the post-TDI future

If you've been paying attention, 2016 hasn't been a great year for Volkswagen. The TDI scandal removed VW's last crutch between our internal combustion present and the electric future, and so the company found itself scrambling to shift resources to show what's next right now. It's naive to assume that this is truly the sort of fairytale comeback story that VW's spin doctors would have us all believe, but it's notable that instead of flinching or pointing fingers, the engineers got to work. What they've produced is the I.D. concept, the third wave in VW's volume car history after the Beetle and Golf. The transaxle Golf was more than simply an updated Beetle, and likewise the I.D. is more than an electrified Golf. VW says the I.D. won't replace the Golf, but they said the same thing about that car replacing the Beetle. It's only a matter of time. VW says the I.D. won't replace the Golf, but they said the same thing about that car replacing the Beetle. It's only a matter of time. The I.D. approach is refreshingly simple: no carbon fiber chassis, no exotic battery chemistry, no outrageous concept car styling. The MEB chassis (the German acronym for modular electric platform) is made out of a traditional mix of high-strength steel grades to save costs and utilize existing factories. The battery is integral, not swappable, to reduce complexity and increase structural rigidity. It's also uses lithium-ion chemistry because of a proven track record and an existing (albeit deficient) supply chain. Contrast that with the e-Golf, which shares its chassis with the conventional internal-combustion cars. Fitting the battery and its ancillary systems became complicated and expensive. The skateboard installation in the I.D. will allow the pack to be optimized for the space available, reducing costs. As we've already reported, MEB will be shared across all VW Group brands to achieve an economy of scale, and the modular platform can be stretched to the size of roughly a Passat and down to a car slightly smaller than the I.D. It can be given all-wheel drive, although VW's e-mobility chief Christian Senger is quick to point out that the standard rear-drive configuration provides plenty of traction because of optimal weight distribution achieved with battery in the middle of the chassis. It makes all-wheel drive more of a bonus rather than a necessity in bad weather.