2014 Volkswagen Passat 1.8t Wolfsburg Edition on 2040-cars

Auto blog

VW brings back the bus, and Jeep might be on the block | Autoblog Podcast #524

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Joel Stocksdale. We discuss the week's news including the introduction of the VW T-Roc, the confirmed production of the VW I.D. Buzz and the Hyundai Santa Cruz truck. We also cover the cars we've been driving, talk about whether the Woodward Dream Cruise is better than the Pebble Beach Concours, and we try to spend your money. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast@autoblog.com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #524Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Rundown Volkswagen T-Roc reveal Volkswagen I.D. Buzz confirmed for production Chinese automaker interested in FCA and Jeep Ferrari celebrates 70th anniversary at Pebble Beach Hyundai Santa Cruz confirmed for production What we're driving Unpopular opinion Spend My Money Feedback Email – Podcast at Autoblog dot com Review the show on iTunes

California orders VW Group to fix 15,000 3.0L diesel vehicles

The California Air Resources Board has ordered Volkswagen to come up with a plan for repairing approximately 15,000 cars sold in the state that contain illegal software that may circumvent emissions testing. In a letter sent to Volkswagen Group of America and several company brands, CARB's chief emissions officer says the company has 45 business days to submit a recall plan that will fix affected Volkswagen, Audi, and Porsche models equipped with 3.0-liter diesel engines sold in the state since 2009. "We expect full cooperation in this investigation so this issue can be addressed expeditiously and appropriately," wrote Annette Herbert, chief of emissions compliance. The violations first surfaced in a meeting last week between California regulatory officials and Audi executives. In that meeting, Audi admitted certain versions of A6, A7, A8, Q5 and Q7 models contained three previously undisclosed auxiliary emissions control devices. An auxiliary device is not necessarily the same as a defeat device that intentionally cheats on emissions testing, but Audi and other affected brands hadn't disclosed the existence of the AECDs, which is a violation of the state's health and safety code. Had they been disclosed prior to vehicle certification, there's a possibility CARB may have approved use of the devices. In a statement Wednesday, CARB did not elaborate on whether it considered the three devices mere AECDs or defeat devices. When Volkswagen submits its plan to fix the cars, CARB says it must include an assessment of how the repairs will affect fuel economy, performance, drivability, and the safety of each vehicle. The 15,000 cars affected in California are part of roughly 85,000 nationwide which contain the affected 3.0-liter engines. The US Environmental Protection Agency may soon address how it expects Volkswagen to fix the remaining cars. "EPA and CARB are working closely and continue to investigate following the admission by Volkswagen that the issues EPA identified in the November 2nd NOV (Notice of Violations) extend to all 3.0-liter diesel Volkswagen, Audi, and Porsche vehicles," an agency spokesperson said in a statement Wednesday. "EPA will take all appropriate enforcement action." The 3.0-liter developments, of course, come on top of the company's September admission that 482,000 diesels equipped with 2.0-liter engines contain defeat devices that detect emissions testing and alter the cars' performance.

VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.