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How the Volkswagen cheating probe developed

Fallout from Volkswagen's revelation that it engaged in cheating on emissions testing continued Monday, with the company's stock falling more than 15 percent and a Congressional subcommittee announcing an investigation into the German auto giant's conduct. Both the Environmental Protection Agency and California Air Resources Board served Volkswagen with a Notice of Violation on Friday, saying the company intentionally circumvented emissions standards by using "defeat devices." Here's a look back at the agencies' emissions enforcement history and how the charges involving Volkswagen developed. August 1998 – Honda spends $267 million to settle charges it violated the Clean Air Act by disabling "misfire monitoring devices" installed on more than 1.6 million vehicles. Ford spends $7.8 million to settle a charge it violated the Clean Air Act by installing defeat devices on 60,000 Ford Econoline vans. May 2014 – Working with the International Council on Clean Transportation, researchers at West Virginia University find significantly higher in-use emissions from a 2012 Jetta and 2013 Passat and alert the EPA to their findings. November 3, 2014 – Korean automakers Hyundai and Kia agree to pay a $100 million fine for overstating the fuel economy on several of their models by as much as six miles per gallon. In announcing the fine, government officials sought to make an example of the two companies to deter further cheating. VW officials admit the vehicles were designed with a defeat device to "bypass, defeat and render inoperative elements of the vehicle emissions control systems." "This type of conduct quite simply will not be tolerated," said then-Attorney General Eric Holder. "And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities – whenever and wherever they are uncovered." December 2, 2014 – Following discussions that stemmed from West Virginia University's findings, Volkswagen agrees to initiate a recall of 500,000 cars. The company says a software update will fix the nitrous oxide trap technology and selective catalytic reduction technology causing the cars to miss emissions thresholds. May 6, 2015 – CARB wanted to see whether the software fix implemented by Volkswagen worked. Using portable emissions measurement systems, the regulatory officials found NOx emissions were still significantly higher than expected.

A fix and buyback program for Audi V6 diesels may be on the way

While Volkswagen reached a settlement to buy back 2.0-liter diesel inline-fours with emissions defeat devices, the roughly 80,000 cars with 3.0-liter diesel V6s built by Audi have yet to be addressed. But a new report from Bloomberg indicates that a solution is near. The publication says that sources familiar with the situation say the company has a fix ready for the majority of the cars, and that the EPA and California Air Resources Board are ready to approve it. According to Bloomberg, this fix would involve a software update and would work for about 60,000 of the Audi A8, Q5, Q7, Porsche Cayenne, and VW Touareg models with the engine. The rest of the vehicles won't be fixable without major modification, so those would have to be purchased back from the owners. Bloomberg does point out that approval from the EPA and CARB are only one piece of the puzzle. The publication said that this deal has yet to be approved by owners of the cars and the Federal Trade Commission, both of which may demand that VW offer a buyback to all owners, even those whose cars can be fixed. The good news for owners of VW products with this engine, is that they should have some closure pretty soon. And owners that still like their diesel V6 can take solace that they might actually be able to get them fixed, as opposed to owners of the 2.0-liter diesels. VW offered buybacks to owners of all 475,000 cars with the turbo four-cylinders, or a fix when it's available. However, there have been no signs of an approved fix. Related Video: News Source: Bloomberg via Automotive NewsImage Credit: Sebastian Blanco Government/Legal Green Audi Porsche Volkswagen Diesel Vehicles vw diesel scandal audi diesel

Average transaction prices climb to a record $36,270 in January

The automotive sector made a hash of the numbers last month, a mess of pluses and minuses clogging the transaction-price charts according to Kelley Blue Book. The overall industry rose one percent, even though buyers bought fewer cars and light vehicles in January 2018 vs 2017 using the selling-day adjusted rate. Due to January transaction prices rising to $36,270, a record for January, the value of new vehicles sold climbed more than $1 billion compared to January 2017. KBB's transaction prices don't include customer incentives, which changes the complexion slightly; average incentive spending rose to just over ten percent. The average transaction price in December 2017 was $36,756, so January dropped a bit - nothing unexpected, with the month annually blamed for "January doldrums." More revealing is the fact that the average transaction price in January 2017 was $34,910. This year's plumped-up figure came courtesy of the continued shift to crossovers, SUVs, and light trucks, which shouldn't surprise anyone who's read an automotive blog in the past 20 years. That category comprised nearly 70 percent of new vehicle sales for the month. Some manufacturers profited more than others, though. Fiat Chrysler managed 12.8 percent fewer sales in January compared year-on-year, but the company's vehicles sold for $1,300 more. The Ford brand suffered a 6.3-percent dip in sales, but brand transaction prices increased $2,000, while a Lincoln sold for $8,700 more on average. General Motors sold more cars and sold them for more money; overall GM transaction prices rose four percent, or $1,270, while a GMC traded hands for seven-percent more than in January 2017 and a Cadillac got $2,300 more on average. Of KBB's listed automakers, the Volkswagen Group got the most of out its customers, transaction prices rising at the German automaker by 5.6 percent to $42,243 in January 2018 compared to a year earlier. American Honda followed with a 4.3-percent increase to $28,991, GM in third at 4.1 percent to $40,313. Find your next car at Autoblog using our new and used car listings or the Car Finder tool. Broken out by segment, minivans rocked the table, transaction prices leaping by 7.9 percent to $35,380 compared to January a year earlier. Luxury cars boasted the next-highest rise, at 3.6 percent to $58,533.