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Italian investigators search Lambo headquarters in VW probe

Italian investigators searched Lamborghini headquarters on Oct. 15 to look for evidence of managers' involvement in Volkswagen's emissions cheating. VW's main office in Verona was also inspected, according to Reuters. Lamborghini is owned by Volkswagen, and Lambo in turn is listed as the owner of VW Group Italia. Authorities wanted to find out if employees were conscious that the vehicles were skirting emissions rules. "It is one thing if I sell water and pretend it's wine, but if I sell water believing it is wine it's different." Verona chief prosecutor Mario Giulio Schinaia said to Reuters. Italian newspaper Gazetta del Sud reported that several managers in Italy were under investigation for alleged fraud. Prosecutors in Germany have also been rigorously investigating VW, and they recently staged a similar raid on the company's headquarters in Wolfsburg, Germany. The automaker reportedly turned over documents and other data relating to the software defeat device. Meanwhile, VW's internal investigation has turned up little wrongdoing, though a recent leak suggested otherwise, and at least 30 managers could have known about the defeat device. The automaker has disputed that figure. Volkswagen of America CEO Michael Horn testified before Congress that he believed only a few individuals were involved. The situation hasn't been easy on VW in the US, either. The Department of Justice has also been pursuing an investigation into the automaker. Plus, state attorneys general are filing lawsuits against the company for defrauding customers. VW has until Nov. 20 to explain a repair for the problem to the California Air Resources Board. Related Video:

Ex-Fiat exec: VW diesel scandal will hurt plug-in hybrids

It doesn't sound right at first blush, but former Fiat executive and noted diesel-powertrain expert Rinaldo Rinolfi thinks that plug-in hybrid sales may be more impacted by the VW diesel-emissions scandal than diesel sales. Rinolfi, who worked for Fiat for 40 years, told Automotive News Europe, said that the Euro 6 emissions rules that went into effect in 2015 have already increased diesel-engine production costs enough to raise prices and ultimately flatten demand. By the end of the decade, diesel-vehicle sales will settle in at a 40-percent market share of new European vehicles, and that was going to happen with or without the scandal. "Every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions." - Rinaldo Rinolfi Makers of plug-in hybrids have more to lose, though, because every PHEV maker has figured out a way to keep emissions figures artificially low, Rinolfi said. Under New European Driving Cycle (NEDC) standards, PHEVs can be tested part of the time with the electric motor in action, meaning emissions get driven down to 30 percent to 40 percent less than real-world figures. With the VW scandal pushing regulators to use real-world figures, those PHEV emissions numbers are expected to rise substantially. To a lesser extent, hybrid emissions figures are also tested as artificially low. "Over the years, even without defeat devices, every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions the customer experiences," Rinolfi said in the Automotive News Europe interview. Rinolfi is a little sunnier about compressed natural gas (CNG) vehicles, estimating that CNG emissions are as much as 25 percent lower compared to conventional vehicles. As for battery-electrics, he's not so optimistic, estimating that there needs to be at least a tenfold improvement in energy efficiency for EVs to be truly competitive with conventional vehicles. "I've been waiting for a true breakthrough for the past 25 years, but I've not seen it yet," Rinolfi said about EVs in the Automotive News Europe interview. Related Video: News Source: Automotive News Europe-sub.req.Image Credit: Arnd Wiegmann / Reuters Green Fiat Volkswagen Diesel Vehicles Electric Hybrid diesel emissions scandal nedc

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?