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German authorities claim 2.8 million VW diesels evaded testing

While Volkswagen admits that there are 11 million diesel vehicles around the world that may be able to evade emissions testing, investigations by government authorities are starting to provide a glimpse of where some of those actually are. According to German Transport Minister Alexander Dobrindt, there are 2.8 million VWs in the country with the tech to cheat environmental rules, Reuters reports. In the US, at least 482,000 cars are believed to be affected. German regulators claim not knowing about the automaker's emissions testing evasions until quite recently, and Dobrindt didn't begin a fact-finding mission into the situation until just this week. Environmental agencies around the world have also begun their own inquiries into the scandal, including in Canada, South Korea, and many countries in Europe. In the US, where the story originally broke, the Department of Justice has started a criminal investigation into VW, and a maximum fine from the Environmental Protection Agency could tally $18 billion. The automaker has responded so far by setting aside about $7.3 billion to fix the affected models. CEO Martin Winterkorn is also already gone, and Porsche boss Matthias Muller is taking the top spot. The company's next moves still aren't clear, though. "VW needs to be very open about what has happened, how it was possible that this could happen to make sure that this never happens again in the future," an anonymous, top shareholder in the company said to Reuters.

Dyno run hints VW GTI power might be significantly underrated

Are you one of the lucky owners of the 2015 Volkswagen GTI? If yes, you should be happy, because your 210- or 220-horsepower hot hatchback might actually have more like 260 ponies under its hood. That's according to a dyno test from a vendor on, of all places, a Ford Focus ST enthusiast forum. The company is estimating a 15-percent drivetrain loss with the GTI's best result a whopping 263 horsepower and 314 pound-feet of torque at the crank. That's a tremendous difference from the 210 hp and 258 lb-ft of torque that Volkswagen claims. Of course, this is merely one dyno session on one car. We'll have to wait until more 2015 GTI owners get on the rolling road to see if Volkswagen really was as conservative about its hot hatch's output as FocusST.org claims. Featured Gallery 2015 Volkswagen GTI: First Drive View 32 Photos News Source: FocusST.orgImage Credit: Copyright 2015 AOL Volkswagen Hatchback Economy Cars Performance vw gti dyno

VW makes $9.2B offer for rest of truckmaker Scania

Volkswagen owns or has controlling interests in three commercial truck operations: besides its own, VW began buying shares in Sweden's Scania in 2000 and now controls 89.2 percent of its shares and 62.6 percent of its capital, then bought into Germany's Man in 2006 - in order to prevent Man from trying to take over Scania - and now owns 75 percent of it. The car company has managed to work out 200 million euros in savings, but believes it can unlock a total of 650 million euros in savings if it takes outright control of Scania and can spread more common parts among the three divisions.
It has proposed a 6.7-billion-euro ($9.2 billion) buyout, but according to a Bloomberg report, Scania's minority investors don't appear inclined to the deal. Although effectively controlled by VW, Scania is an independently-listed Swedish company, and a profitable one at that: in the January-September 2013 period its operating profit was 9.4 percent compared to Man's 0.4 percent. Some of the other shareholders believe that Scania is better off on its own and will not approve the deal, some have asked an auditor to look into the potential conflict of interest between VW and Man, while some are willing to examine the deal and "make an evaluation based on what a long-term owner finds is good," which might not be just "the stock market price plus a few percent." The buyout will only be official assuming VW can reach the 90-percent share threshold that Swedish law mandates for a squeeze-out.
Many of the arguments against boil down to investors believing that Scania's Swedishness and unique offerings are what keep it profitable, and ownership by the German car company will kill that. (Have we heard that somewhere before?) If Volkswagen can buy that additional 0.8-percent share in Scania, perhaps its buyout wrangling with Man will give it an idea of what it's in for: "dozens" of minority investors in the German truckmaker have filed cases against VW, seeking higher prices for their shares. It is likely only to delay the inevitable, though. If VW is really going to compete with Daimler and Volvo in the truck market, it has to get the size, clout and savings to do so.