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Germany to accept diesel software fix rather than retrofit millions of cars

BERLIN — The German government will not force the car industry to make costly changes to engines to cut diesel emissions but will settle for software updates for around 2 million vehicles, industry and government sources said on Tuesday. The sources were speaking before a summit of politicians and car executives scheduled for Wednesday to discuss ways to cut inner-city pollution to try to head off bans on diesel cars — a sensitive issue ahead of national elections next month. The summit must also start to restore the reputation of one of Germany's major industries which has been badly tarnished since the Volkswagen emissions scandal broke in September 2015. The auto industry has agreed to software updates for around 2 million cars that will cost around 300 million euros ($354 million), a government source said. An industry source said foreign car makers had not agreed to participate for now. The deal suggests the industry has headed off demands for hardware upgrades that would cut more pollution but would also be much more expensive — with the potential costs as high as 10 billion euros. The deal also foresees a range of other measures to reduce emissions, the sources said, such as subsidies for electric buses, taxis and other municipal vehicles, as well as a commitment to increase the number of charging stations. The sector and the government will each contribute half to a 500 million euro fund aimed at helping local governments reduce pollution, blamed for causing respiratory diseases. CITY BANS The compromise might not cut emissions enough to stop bans of diesel cars in German cities - like the one in Stuttgart confirmed by a regional court last week. DUH, the environmental lobby group that brought the Stuttgart case, has said it wants moves to go beyond voluntary software updates or it will take further legal action. Chancellor Angela Merkel's conservatives have come under fire from consumer and environmental groups as well as opposition lawmakers for their close links to carmakers. "The car industry can always rely on the support of the government when things get difficult," said Timo Lange, a campaigner with LobbyControl, a non-profit group. Transport Minister Alexander Dobrindt rejected suggestions on Tuesday that he is too closely tied to the industry. The Environment Ministry has already made clear that software improvements can only be a first step as they reduce nitrogen oxide emissions by about 25 percent on average.

Mercedes considering Audi Allroad rival

The Audi Allroad is something of an anomaly in the automotive world. Its competitors are limited to the recently released Volvo V60 Cross Country and perhaps the far cheaper Subaru Outback. The lifted premium wagon hasn't exactly done great for Audi, only selling a few hundred examples each month. Its best sales year was 2013, and even then, only 5,300 left US showrooms. Despite these limited prospects, word from Australia is that Mercedes-Benz is looking at launching its own competitor to the Allroad. "We are looking at every single niche, so we are studying this [Allroad] at the moment, but it is not confirmed," Matthias Luhrs, VP of sales and a member of the product management at MB, told Motoring.com.au. "We are looking obviously at C-Class and E-Class, but no confirmation at the moment." Fortunately, Luhrs recognizes that the Allroad isn't exactly a smash in the US. "In the US, no matter how long, short, high ... they don't like station wagons," Luhrs said, while adding that the Allroad concept is "developing quite successfully" in Italy and southern Europe. And for those hoping for a lifted C- or E-Class sedan, Luhrs also put the kibosh on that, saying, "We are not studying that." So what does this tell us? Well, it's still far from a sure thing that Mercedes will launch a lifted C-Class or E-Class Estate. And even if the company does go ahead with it, like the rest of the brand's long roofs (E-Class aside), don't expect to see it on US roads.

Win a trip to the Porsche Experience Center, including track time in a 911

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