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German carmakers recall 630,000 diesel vehicles in Europe

Mercedes, Opel, Porsche, and Volkswagen will recall over 630,000 cars in Europe, according to reports Friday. No diesel car has been able to get under the legal emissions limit in real-world driving, according to a German government investigation. While only Volkswagen Group has been using a specific "defeat device", other carmakers have been playing with their exhaust gas recirculation (EGR) systems. Depending of the manufacturer, the systems have been cut off at a certain temperature. In a specific test cycle the systems operate to fulfill the legal requirements, but in everyday use the limits are exceeded. According to the magazine Der Spiegel, the supplier Bosch is behind this programming and has provided it to all German automakers. The mentioned carmakers have announced recalls, but many other manufacturers are also mentioned by name in the report, including Alfa Romeo, Chevrolet, Dacia, Fiat, Ford, Hyundai, Jaguar, Jeep, Land Rover, Nissan, Renault, and Suzuki. PSA Group, which produces Peugeot, Citroen, and DS cars, declared yesterday that its offices were raided following an emissions investigation. Related Video: News Source: AutocarImage Credit: Getty Images Government/Legal Green Recalls Mercedes-Benz Porsche Volkswagen Opel Emissions Diesel Vehicles diesel emissions investigation

VW and Renault end talks to develop affordable EV, sources say

PARIS/BERLIN – Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo subcompact car, three sources familiar with the situation said, in a setback for the EU carmakers' efforts to fend off Chinese rivals. The collapse of negotiations could mean the German carmaker may have to go it alone in developing its own affordable EV. Renault will continue designing its electric Twingo, scheduled to hit the market in 2026. Both had hoped that sharing the work would cut costs that represent a key hurdle for European carmakers in the face of cheaper cars from China. Volkswagen broke off discussions mainly because Renault had wanted to build the car in one of its plants at a time when VW is seeking to fully utilize its European production network, one of the sources said. Ampere, Renault's EV operation overseeing the Twingo program, declined to comment. A spokesperson for Volkswagen also declined to comment on the talks between the companies but said that the German carmaker was still studying its options on cheap EVs. The companies "did not succeed in finding an agreement" after several months of negotiations, one of the sources said. Another source said that an agreement had been very close, but that VW walked away from the talks and has decided to develop its own car. The sources declined to be named because the talks are confidential. VW sources said a decision on the EV plan is expected within weeks. Thomas Schaefer, CEO of the Volkswagen brand, has said he wants to launch a lower-priced EV by 2027. The second source said Renault would continue work on the Twingo without VW, but also remained open to other partners, for instance from the alliance with Nissan and Mitsubishi. It is also a blow for Renault CEO Luca de Meo's hopes for greater cooperation between European carmakers against their Chinese competitors, akin to Airbus which has stakeholders and operations across European countries. The VW-Renault tie-up for the Twingo could have formed the "basis" of an Airbus for autos, the second source said. China's automakers, the world's top EV producers, are making fast inroads in the European market, pressuring incumbents like Renault and VW to cut costs and speed up the time it takes to bring a new model to market. European automakers are aiming to produce smaller EVs that sell below 20,000 euros ($21,686) to help them compete with Chinese brands like BYD.

Skoda unveils Volkswagen Up!-based Citigo

This is the all-new Skoda Citigo, and if you're thinking that it looks rather familiar, that's because its Volkswagen-badged kin recently debuted at the 2011 Frankfurt Motor Show. That's right, the long-rumored Skoda version of Volkswagen's new Up! city car has finally arrived.
Buyers will have a choice of two 1.0-liter three-cylinder engines - one with 59 horsepower, the other with a 74 hp and a blistering 106 mph top speed - both mated to a five-speed manual transmission. Powerful they are not, but these three-bangers should prove to be extremely efficient, with Skoda quoting fuel economy numbers of 62.8 and 60.1 miles per gallon, respectively (on the European cycle).
Being a Skoda, the Citigo will go on sale in its home market of the Czech Republic this fall, with the rest of Europe getting the car next summer. Follow the jump for Skoda's official release.