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CARB found another emissions-defeating device, this time from Audi

The California Air Resources Board has discovered another emissions-cheating device on an Audi earlier this summer, reports German newspaper Bild am Sonntag. The device is different from the software found in the VW Group's diesel-powered engines, as it alters the way the cars' automatic transmission shifts. The latest device, according to Bild am Sonntag, measures how far the cars' steering wheel is being turned. If the wheel is turned less than 15 degrees, indicating that the vehicle is being tested in laboratory conditions, a program in cars with certain automatic transmissions changes the way the gearbox shifts. The change in the transmission allows the engine to produce less carbon dioxide than when driving in normal conditions. When the wheel is turned more than 15 degrees, the program automatically turns off, claims Bild am Sonntag. The paper reports that Audi took the software out of its vehicles, which was used in both diesel- and gasoline-powered vehicles in Europe and the US, earlier this May after CARB discovered the program on one of the automaker's older cars. Several engineers that were connected with the emissions-cheating device have already been suspended, reports Bild am Sonntag. As the German newspaper points out, the device, which is fitted to certain Audis with an automatic transmission, is different from the cheat devices found on the automaker's 3.0-liter TDI turbodiesel V6 engine and Volkswagen's 2.0-liter turbodiesel motor, even those were also designed to beat emissions tests. The 3.0-liter engine is found in the Audi Q7, Volkswagen Touareg, and Porsche Cayenne models. Audi didn't immediately respond to our request for a comment. Related Video: News Source: Bild am Sonntag via ReutersImage Credit: Reuters / Michaela Rehle Government/Legal Green Audi Volkswagen Emissions Diesel Vehicles vw diesel scandal

VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

GM outsold VW globaly in first quarter, Toyota reports numbers next week

General Motors released its first quarter sales figures this week, reporting that it sold 2.36 million cars and trucks worldwide. That figure represents an increase of 3.6 percent when compared to the same period last year. GM's growth was attributed to many factors, including global Cadillac sales that were up 26 percent and Chevrolet posting a one percent increase over last year (this marked Chevy's tenth straight year of record global sales).
Volkswagen came in just behind GM, as the German automaker reported global sales from January through March at 2.27 million vehicles, an increase of five percent when compared to last year. While that number was strong, VW is cautioning that markets outside China and the US, such as those in Europe, are becoming a challenge as economies falter.
Yet to report sales is Toyota, current holder of the global world sales crown (the Japanese company sold 9.75 million cars last year, against 9.29 million sold by GM and 9.1 million vehicles sold by VW). Even though GM and Toyota both say they don't care who sells the most units, it is unquestionably a strong bragging point and sales equate to revenue. That said, Toyota will report its first quarter numbers next week.