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VW will delay projects to cope with diesel scandal

Volkswagen's diesel emissions scandal will require the sacrifice of far more than just executives and money. It's also going to result in the cancellation of various projects, a process that new CEO Matthias Mueller said "won't be painless." "We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller said while addressing the embattled company's employees. The former Porsche boss also said the money set aside by the German giant – about $7.29 billion – won't be enough to cover recall expenses, fines from governments in affected countries, and the expected deluge of lawsuits from disgruntled TDI owners. According to Bloomberg, that figure probably won't even be enough to match the fines Uncle Sam is likely charge, pegged to be around $7.4 billion, according to one analyst. It's expected that VW could delay a further push for share in the North American market, which would include a $1-billion investment in its Puebla, Mexico, factory. But it will take more than cancellations and delays, analysts claim. "It's going to be tough to find projects they could chop that will actually move the needle," JPMorgan Chase's Jose Asumendi told Bloomberg. "What they really need to do is get costs under control." That, according to Bloomberg, is already setting up a showdown between management and labor. The latter wants a reduction in VW's $17.4-billion research-and-development budget – the world's largest and more than what Ford and General Motors spend combined – while the former wants to slash personnel costs. Bloomberg also spoke to analysts who claimed the company should look into reductions in purchasing costs as well as trimming sponsorships. It's impossible to know just how extreme Volkswagen will need to get with cancellations, delays, and cost-cutting, but it's becoming increasingly clear that the effects of this scandal will likely be felt far longer than the controversies that surrounded other automakers like General Motors and Toyota. Related Video: News Source: BloombergImage Credit: John Macdougall / AFP / Getty Images Earnings/Financials Green Plants/Manufacturing Recalls Volkswagen Diesel Vehicles vw diesel scandal matthias mueller

Senators want civil, criminal actions against VW

With the Department of Justice just beginning its investigation into Volkswagen's emissions evading diesels, Senators Richard Blumenthal and Amy Klobuchar are pushing for the automaker to be prosecuted to the fullest extent of the law both civilly and criminally. In a letter to Attorney General Loretta Lynch, they press the agency to make its scrutiny "thorough but expeditious." The politicians allege that VW misled people while pumping huge amounts of pollution into the air. The Senators believe that all the information about VW's actions needs to make it to the public eye, and the DOJ must have a strong response to the automaker breaking the law. "Officials at Volkswagen should be granted no get out of jail free card, and the Department should accept no plea agreement with Volkswagen that does not ensure any and all information regarding criminal acts by high level officials is provided to the Department," they write. Senator Blumenthal is no stranger for championing changes in the auto industry as of late. He was an advocate for the General Motors Ignition Switch Compensation Fund and pushed for a similar organization for Takata airbag victims. He has also been a staunch supporter for greater automotive cyber security. Blumenthal, Klobuchar: Department of Justice Should Take Strong Civil and Criminal Actions Against Volkswagen for Any Violations Monday, September 28, 2015 Condemns Volkswagen's actions that misled hundreds of thousands of consumers and resulted in tens of thousands of tons of additional pollution emissions Calls for thorough but expeditious investigation (Washingtion, DC) – U.S. Senator Richard Blumenthal (D-CT) and U.S Senator Amy Klobuchar (D-MN) today urged the U.S. Department of Justice (DOJ) to take strong civil and criminal actions against Volkswagen for any violations following the German carmaker's actions that misled hundreds of thousands of American consumers and resulted in tens of thousands of tons of additional pollution emissions. In a letter to Attorney General Loretta Lynch, the senators called for a "thorough but expeditious" investigation. "Officials at Volkswagen should be granted no get out of jail free card, and the Department should accept no plea agreement with Volkswagen that does not ensure any and all information regarding criminal acts by high level officials is provided to the Department," wrote Blumenthal and Klobuchar. "The U.S.

Recharge Wrap-up: Audi's EV SUV to be built in Brussels, Mercedes-Benz to extend EV range

European Union Industry Commissioner Elzbieta Bienkowska is demanding that Volkswagen compensate owners of cars affected by the diesel emissions scandal. She says European customers should receive the same goodwill compensation as American drivers, whom VW is providing with $1,000 worth of recompense. "The issue of compensation goes beyond the difference in the legal setup between the US and the EU and plays a fundamental role in viewing VW as a responsible and trustworthy company," says Bienkowska in a letter to Volkswagen CEO Matthias Mueller. Bienkowska has also requested detailed data about the vehicles and "corrective measures" VW is planning. Read more from Automotive News Europe. Mercedes-Benz will equip its plug-in vehicles with higher-capacity batteries as it expands its electric model range. While the PHEVs it has released so far have electric driving ranges between 14 and 20 miles, better batteries should extend that range starting around model years 2018 or 2019. After releasing a slew of plug-ins by the end of next year, Mercedes-Benz development director Dr. Thomas Weber says, "The next-generation vehicle will overcome the 30-km to 50-km hurdle and then the next generation after that will be 80-100 km when they run as pure electric cars." Read more at Green Car Reports, or from Motoring. Audi will build its pure electric SUV at its plant in Brussels, Belgium. The batteries for the vehicle based on the Audi E-Tron Quattro concept (perhaps to be called the Q6) will also be built at the Brussels plant when production begins in 2018. With this announcement comes news that production of the A1 will shift from Brussels to Martorell, Spain, while Q3 production will move from Spain to Gyor Hungary. Audi says the Brussels facility will "become a key plant for electric mobility at the Volkswagen Group." Read more at Green Car Congress, or in the press release below. Audi production network: ready for electric mobility - Premium manufacturer to produce large series of electric cars in Brussels as of 2018 - New models for Martorell (Spain) and Gyor (Hungary) - Audi CEO Rupert Stadler: "We are increasing our efficiency and bundling key competencies" Audi is preparing its international production network for the mobility of the future. Large series production of the first purely electric driven SUV from Audi will begin at the site in Brussels in 2018. The plant will also produce its own batteries.