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Daimler boss says VW scandal dings 'Made in Germany' brand

"Made in X." "A product of X." "From X with pride." Virtually every country on the globe attaches some kind of moniker to the products it sells, and they generally carry a lot of weight. A Swiss-made watch is better than one made in China, and an Italian suit is better than something from Vietnam. For cars, the "Made In" label is a bit trickier, and is certainly open to opinions. That doesn't mean there isn't some nationalistic pride in play. With the Volkswagen diesel emissions scandal, there's real concern among at least one German that Wolfsburg has caused serious damage to the "Made In Germany" label. Daimler-Benz boss Dr. Dieter Zetsche called VW's use of emissions-cheating devices "a blow to our industry." "I think a strength of 'Made in Germany' and of the German auto industry is a perception that these are reliable brands and you can trust them," Zetsche said at a meeting of the Economic Club of Washington, The Detroit News reports. "It's up to us to rebuild that trust because we haven't done anything wrong." Zetsche also took the opportunity to reaffirm that Mercedes-Benz has never and will never use defeat devices in its vehicles. The exec also said he doesn't think the company has lost any sales from VW's cheating.

VW budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun. For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany. In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe." Even Fiat, another automaker long considering a budget brand beneath its Fiat line-up, wasn't sure how to squeeze any extra money from lower-cost products but was sure that it couldn't be done by manufacturing in Europe. If VW hasn't yet made the math work with a joint venture in China, it will be interesting to see how it might build a European go-it-alone business case.

Germany is finally getting serious about self-driving cars

Germany cleared the way for its giant automotive industry to develop and test self-driving cars, when the upper house of its parliament approved on Friday a law setting out the conditions under which they could take to German roads. Under the law, first mooted by Chancellor Angela Merkel last year, a driver must be sitting behind the wheel at all times ready to take back control if prompted to do so by the autonomous vehicle. Germany is home to some of the world's largest car companies, including Volkswagen, Daimler and BMW, all of which are investing heavily in a technology seen by transport minister Alexander Dobrindt as the "greatest mobility revolution since the invention of the car." That's not to say that German automakers have been standing still in the face of autonomous technology. VW recently outlined its vision for autonomous vehicles. BMW has already demonstrated self-driving vehicles in the United States, and Mercedes-Benz has partnered up with German auto supplier Bosch on autonomous technology. The new legislation allows German car companies to road-test vehicles in which drivers will be allowed to take their hands off the wheel and their eyes off the road to browse the web or check e-mails while the vehicle handles steering or braking autonomously. The legislation requires that a black box record the journey underway, logging whether the human driver or the car's self-piloting system was in charge at all moments of the ride. This will be crucial for apportioning blame in accidents. The driver will bear responsibility for accidents that take place under his or her watch, under the legislation, but if the self-driving system is in charge and a system failure is to blame, the manufacturer will be responsible. The law will be revised in two years' time in the light of technological developments, with data protection and the use of the data collected during rides a key point that has yet to be fully addressed. Companies around the globe are working on prototypes for self-driving vehicles, but such cars are not expected to be available for the mass market before 2020. (Reporting By Markus Wacket; Writing by Thomas Escritt; Editing by Toby Davis) Related Video: Image Credit: Chris Ratcliffe/Bloomberg via Getty Government/Legal Audi BMW Mercedes-Benz Volkswagen Technology Autonomous Vehicles