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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.

Recharge Wrap-up: Tesla truck's close call, Tesla age discrimination suit

A semi with a trailer full of Teslas has a close call on the highway in this video. With a half-dozen electric vehicles in tow, the truck has to swerve onto the shoulder as a commuter bus nearly hits it after crossing multiple lanes. An example of human error, this near miss is the type of thing Tesla would like to prevent by advancing and widely deploying autonomous vehicle technology. Watch the heavy-duty mishap in the video above, and read more at Teslarati. A former Tesla engineer is suing the automaker for age discrimination. 69-year-old Thomas Flessner, who was fired from his Materials Engineer position in February, says he "was isolated due to his age and routinely chastised for completing projects slower than his coworkers." The suit claims younger engineers working at a similar pace were not subject to the same criticism. Flessner encountered further problems after taking time off for surgery, when a supervisor told him, "these guys are gunning for you." Read more from Fusion. Audi has placed orders with Ballard as part of Volkswagen Group's HyMotion fuel cell technology program. Audi has taken over responsibility for Volkswagen's program to develop its next-generation fuel cell stack. Ballard is providing engineering services to the automaker until at least March 2019. "Our HyMotion team of engineers and scientists are collaborating closely with Audi's experts and together we are on-track with respect to key technical and financial goals set for the current year," says Ballard VP of Technology and Product Development, Dr. Kevin Colbow. Read more at Yahoo Finance. Car2go has reached 2 million members worldwide. The world's largest car sharing service has 800,000 members in North America, 1.1 million in Europe, and 100,000 in Chongqing, China. Car2go claims 43 percent year-over-year growth, with a trip taken by a member every 1.5 seconds. "The rise of car sharing can be attributed to a changing paradigm of demographics, social preference shifts towards usage of vehicles instead of ownership, and technology that enables the seamless short term rental of vehicles," says Frost & Sullivan Principal Mobility Analyst Martyn Briggs. Read more from Car2go. Related Gallery Volkswagen Golf SportWagen and Passat HyMotion News Source: Teslarati, YouTube: Rumble Viral, Fusion, Yahoo Finance via Electrek Government/Legal Green Audi Tesla Volkswagen Alternative Fuels Transportation Alternatives Electric Hydrogen Cars Videos recharge wrapup

Volkswagen to 'refit' 11 million diesel vehicles [UPDATE]

UPDATE: This post has been updated with an official comment from Volkswagen of America. In response to its devastating diesel-emissions scandal, Volkswagen will ask some 11 million of its customers to report into dealerships to have their diesel-powered vehicles "refitted," Reuters is reporting. According to new CEO Matthais Muller, customers will be asked to report in "in the next few days" for the refit, although it's not entirely clear exactly what the 'refit' entails. Mueller apparently made the announcement during a closed-door meeting with 1,000 of the German company's top managers, although he didn't explain exactly how the emissions-cheating software would be sorted out, or what impact it would have on the performance of mileage of the company's diesel-powered products. It's expected that the refit work will cost VW $6.5 billion, Reuters claims. "We are facing a long trudge and a lot of hard work," Muller allegedly said. "We will only be able to make progress in steps and there will be setbacks." Autoblog reached out to Volkswagen of America to see when American consumers would be asked to report to dealers, what the refit involves, how long it's expected to take to repair all the cars in the US and globally, and what impact this fix will have on the performance and fuel economy of its diesel-powered cars and SUVs. Unfortunately and unsurprisingly, VWoA wasn't too forthcoming. "We don't comment on media speculation on internal meetings," Volkswagen of America spokesman Mark Gillies told Autoblog, adding, "We don't have any information on what the remedy might be at the moment, but we are working on it as a matter of the utmost urgency."