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Which will Dieselgate hurt more, Volkswagen or US diesels?

The most damning response to the news Volkswagen skirted emissions regulations for its diesel models may have actually come from the Los Angeles Times. On Saturday, the Times published an editorial titled "Did Volkswagen cheat?" The answer was undoubtedly yes. When you can't drive down Santa Monica Boulevard without seeing an average of one VW TDI per block, the following words are pretty striking: "... Americans should be outraged at the company's cynical and deliberate efforts to violate one of this country's most important environmental laws." VW has successfully cultivated a strong, environmentally conscious reputation for its TDI Clean Diesel technology, especially in states where emissions are strictly controlled. A statement like that is like blood all over the opinion section of the Sunday paper. The effect on VW's business, even Germany's financial health, was already felt Monday when the company's shares plummeted 23 percent in morning trading. The statement on Sunday from VW CEO Dr. Martin Winterkorn says "trust" three times. That probably wasn't enough in nine sentences. Writers over the weekend have compared VW's crisis to one at General Motors 30 years ago, when it was the largest seller of diesel-powered passenger cars until warranty claims over an inadequate design and ill-informed technicians effectively pulled the plug on the technology at GM. In a sense, VW is in the same boat as GM because it has fired a huge blow into its own reputation and that of diesels in passenger cars. And just as automakers like Jaguar Land Rover, BMW and, ironically, GM, were getting comfortable with it again in the US. VW of America was already knee-deep in its other problems this year. Its core Jetta and Passat models are aging and it needs to wait more than a year for competitive SUVs that American buyers want. The TDIs were the only continuous bright spot in the line and on the sales charts. Even as fuel prices fell and buyers shunned hybrids, VW managed to succeed with diesels and show that Americans actually care about and accept the technology again. Fervent TDI supporters might actually lobby for that maximum $18 billion fine to VW. I've personally convinced a number of people to look at a TDI instead of a hybrid. Perhaps not so much for stop-and-go traffic, but I know buyers who liked the idea that a TDI drove like a normal car and wasn't packed with batteries.

Volkswagen kills planned 10-speed DSG

If there are two things in this wild and crazy industry that keep growing, they are the size of cars and the number of gears in their transmissions. It wasn't ten years ago that cars with six forward gears – either manually or automatically shifted – were a relative rarity. Now, there are a multitude of sub-$30,000 cars with at least a six-speed automatic. But while eight- and nine-speed automatics are becoming increasingly common, no automaker has delivered a production ten-speed automatic (which may be a good thing, considering the reception to most nine-speed gearboxes). Ford and General Motors were collaborating on one as recently as April 2013, and Hyundai has was allegedly working on one way back in 2011. Most recently, though, Volkswagen announced a ten-speed, dual-clutch automatic in November 2014. And now, less than two years later, the project has apparently been shelved. That's according to our Vegemite-loving friends at Motoring.com.au, which report that both the cost and complexity of project has proved unfeasible for VW. "In the end, we had to balance what our priorities were with our transmissions and other things are more important and more urgent," an unnamed source at the Frankfurt Motor Show told the Aussie website. The ten-speed DSG was slated for a number of three- and four-cylinder models from VAG's entire range of affordable vehicles. It was also, allegedly, to feature in the ultra-high-performance Golf R400, Motoring reports. It's unclear how its cancellation will impact the company's future projects, if VW will look elsewhere for its small-car gearboxes, of if there's another – perhaps conventional – new transmission in the pipeline. Currently, VW's highest gear-count dual-clutch is the seven-speed DSG, shown above with company CEO Martin Winterkorn.

VW recalls 1.1M Jetta, Beetle models in US, China over suspension fears

Volkswagen is recalling about 1.1 million vehicles in China and North America in a newly announced campaign affecting the rear suspensions on some models. For the US, the action covers about 442,265 vehicles, including 400,602 examples of its 2011-2013 Jetta and 41,663 units of the 2012-2013 Beetle and Beetle Convertible. According to Reuters, the recall affects a further 126,000 vehicles in Canada and about 581,090 in China, including related market-specific models like the Sagitar.
The problem can occur if the affected models have a collision to the rear or the side-rear of the vehicle. It's then possible for the trailing arms on the torsion-beam rear suspension to be damaged. If the harm isn't noticed, then the part could fracture while driving. Obviously, a broken rear suspension is going to have an adverse effect on handling.
To fix things, VW dealers will inspect the trailing arms on the models, and they will all receive a sheetmetal part that will make a distinctive sound if broken in the future. If already damaged, the entire torsion beam will be replaced. Obviously, this work will be done at no charge to owners.