1979 Volkswagen Super Beetle Convertible, Triple White on 2040-cars

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VW announces recall of 26,000 2014 models with 1.8T engines

Volkswagen has followed up on a stop-sale order from earlier this month, announcing a voluntarily recall of 26,400 vehicles that are powered by the brand's 1.8-liter, turbocharged four-cylinder engine. The new mill replaced the despised 2.5-liter five-cylinder in the Jetta, Passat, Beetle and Beetle Convertible last year. Weirdly, though, of the 26,452 units covered in the recall, only 1,655 are customer vehicles.
According to VW, the affected models were built between February 1 and April 6 of this year, and feature bad O-ring seals in the transmission oil cooler. Apparently, the faulty O-rings could cause a fluid leak, as they won't seal between the oil cooler and transmission. VW is blaming a material change from a supplier for the problem.
There have been no fires, injuries, accidents or fatalities relating to this issue, which VW will be fixing free of charge. Customers will need to report to dealers to have the O-rings replaced.

Germany is finally getting serious about self-driving cars

Germany cleared the way for its giant automotive industry to develop and test self-driving cars, when the upper house of its parliament approved on Friday a law setting out the conditions under which they could take to German roads. Under the law, first mooted by Chancellor Angela Merkel last year, a driver must be sitting behind the wheel at all times ready to take back control if prompted to do so by the autonomous vehicle. Germany is home to some of the world's largest car companies, including Volkswagen, Daimler and BMW, all of which are investing heavily in a technology seen by transport minister Alexander Dobrindt as the "greatest mobility revolution since the invention of the car." That's not to say that German automakers have been standing still in the face of autonomous technology. VW recently outlined its vision for autonomous vehicles. BMW has already demonstrated self-driving vehicles in the United States, and Mercedes-Benz has partnered up with German auto supplier Bosch on autonomous technology. The new legislation allows German car companies to road-test vehicles in which drivers will be allowed to take their hands off the wheel and their eyes off the road to browse the web or check e-mails while the vehicle handles steering or braking autonomously. The legislation requires that a black box record the journey underway, logging whether the human driver or the car's self-piloting system was in charge at all moments of the ride. This will be crucial for apportioning blame in accidents. The driver will bear responsibility for accidents that take place under his or her watch, under the legislation, but if the self-driving system is in charge and a system failure is to blame, the manufacturer will be responsible. The law will be revised in two years' time in the light of technological developments, with data protection and the use of the data collected during rides a key point that has yet to be fully addressed. Companies around the globe are working on prototypes for self-driving vehicles, but such cars are not expected to be available for the mass market before 2020. (Reporting By Markus Wacket; Writing by Thomas Escritt; Editing by Toby Davis) Related Video: Image Credit: Chris Ratcliffe/Bloomberg via Getty Government/Legal Audi BMW Mercedes-Benz Volkswagen Technology Autonomous Vehicles

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.