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VW sets aside $7.3B war chest for diesel scandal fallout

The crisis enveloping Volkswagen AG, the world's top-selling carmaker, escalated Tuesday as the company issued a profit warning following a stunning admission that some 11 million of its diesel vehicles worldwide were fitted with software at the center of a US emissions scandal. The German company said it was setting aside around 6.5 billion euros ($7.3 billion) to cover the fallout from the scandal that has tarnished VW's reputation, raised questions over the future of CEO Martin Winterkorn and battered its share price. The reputational damage to Volkswagen is implicit in the market's response. Volkswagen's share price slid a further 16.2 percent Tuesday to a near four-year low of 112 euros. The fall comes on top of Monday's 17 percent decline. The shockwaves from the scandal enveloping Volkswagen were being felt far and wide across the sector as traders wondered who else may get embroiled. Germany's Daimler AG, the maker of Mercedes-Benz cars, was down 6.5 percent, while BMW AG fell 5.4 percent. France's Renault SA was seven percent lower. The scandal is hugely damaging to a business that relies heavily on a hard-won reputation for quality and trustworthiness. "Brands are all about trust and it takes years and years to develop. But in the space of 24 hours, Volkswagen has gone from one people could trust to one people don't know what to think of," said Nigel Currie, an independent UK-based sponsorship and branding consultant. The trigger to the company's market woes was last Friday's revelation from the US's Environmental Protection Agency that VW rigged nearly half a million cars to defeat US smog tests. The company then admitted that it intentionally installed software programmed to switch engines to a cleaner mode during official emissions testing. The software then switches off again, enabling cars to drive more powerfully on the road while emitting as much as 40 times the legal pollution limit. "We have totally screwed up." - Michael Horn "In my German words: we have totally screwed up," the head of Volkswagen's US division, Michael Horn, told an audience in New York on Monday. In its statement Tuesday, Volkswagen gave more details, admitting that there were "discrepancies" related to vehicles with Type EA 189 engines and involving some 11 million vehicles worldwide. The number of vehicles involved is more than the 10 million or so cars it sold in 2014.

Volkswagen Scirocco GTS set for Shanghai reveal

Though we still can't get one over here, buyers in other markets can get the Scirocco in an array of trim levels. And at the Shanghai Motor Show this month, Volkswagen is introducing another. The new Scirocco GTS slots between the base models and the R performance version. Reviving the spirit of the original introduced more than 30 years ago and picking up where the last model left off, the new GTS splits the Scirocco lineup the way the GTI fits into the Golf range. It even packs the GTI's engine: a 2.0-liter turbo four with 210 hp, mated to either a six-speed manual or DSG. The GTS also packs standard 18-inch (or optional 19-inch wheels), a further departure from the R-Line aero kit and racing stripes running up the top. The interior is similarly upgraded with special trim, a golf-ball shifter (on manual versions) and more. All of this makes the Scirocco an even more tempting proposition – if only we could get our hands on one. Wolfsburg/Shanghai, 16 April 2015 Comeback of a GT icon: World premiere of the 220 PS Scirocco GTS in Shanghai - Exclusive GTS trim with new 18-inch alloy wheels - Scirocco GTS* has a new generation of infotainment equipment on board as standard Ten key facts about the Scirocco GTS*: 1. The new Scirocco GTS makes its debut as a separate and especially sporty GT version 2. 220 PS Scirocco GTS has a top speed of 246 km/h and accelerates from 0 to 100 km/h in 6.5 seconds 3. Individualised exterior with new 18-inch alloy wheels and optional GTS decor (decor standard in China) 4. Red brake callipers as an identifying feature 5. Exclusive GTS interior with black trim features, red stitching and the legendary golf ball gear knob 6. Included as standard: the "Composition Colour", from the latest generation of infotainment systems 7. Modular infotainment matrix (MIB II) available for all Scirocco models from the end of May 8. The Scirocco GTS can also be ordered with an extremely quick-shifting 6-speed DSG gearbox as an option 9. The spirit of the first Scirocco GTS (which made its debut in 1982) was carried forward into the year 2015 in the new GTS 10. With over a million sold, the Scirocco is one of the most successful sports cars in the world Some cars live for ever because they are constantly reinvented. The Scirocco, a pure-bred European sports car, is one of these cars that is forever young. Presented at the Geneva Motor Show in March 41 years ago, it became an icon of compact German coupes.

VW stripped of Green Car Of The Year awards for Jetta, A3 diesels

In the wake of the ongoing VW diesel scandal, Green Car Journal has announced it will rescind the two Green Car Of The Year awards that the Volkswagen Group won with diesel vehicles that have been since been proven to not meet the stated emissions levels. The two vehicles are the 2009 VW Jetta TDI, which won in 2008, and the 2010 Audi A3 TDI, which won in 2010. Green Car Journal (GCJ) did not say if it would retroactively name any replacement winners. This is the first time in the history of the Green Car Of The Year Awards that the honor has been taken away from the winner. In a statement announcing the change, GCJ publisher Ron Cogan wrote that, "this award rescission should not cast a negative light on advanced diesel technology in general. Many diesel models from a variety of auto manufacturers meet EPA and CARB emissions standards, bringing with them higher fuel efficiency, decreased petroleum use, and lower carbon emissions – all important environmental goals." VW AND AUDI RETURNING GREEN CAR OF THE YEAR® AWARDS, VEHICLES DEEMED INELIGIBLE SAN LUIS OBISPO, Calif., Sept. 30, 2015 – Green Car Journal is rescinding the Green Car of the Year® awards previously honoring the 2009 VW Jetta TDI and 2010 Audi A3 TDI, the first time this has occurred in the award program's decade-long history. Audi of America President Scott Keogh has informed Green Car Journal that Audi will return its 2010 Green Car of the Year® award in the wake of Volkswagen Group's admission that it deliberately deceived government authorities about emissions from the Audi A3 TDI. Volkswagen of America has also informed Green Car Journal it will return its 2009 Green Car of the Year® award for the VW Jetta TDI. "Rescinding the Green Car of the Year® awards for the VW Jetta TDI and Audi A3 TDI is unfortunate but appropriate," said Ron Cogan, editor and publisher of the Green Car Journal and CarsOfChange.com. "These models were selected as Green Car of the Year® above others for compelling reasons, including high fuel efficiency, reduced carbon emissions, a fun-to-drive nature, and the ability to meet 50 state emissions requirements with advanced diesel technology." However, VW Group has now admitted that its software programming intentionally caused in-lab emissions testing to read significantly lower nitrogen oxide emissions than these vehicles actually produced on the road.