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EPA upping its game amid Volkswagen probe

In the wake of the Volkswagen emissions-cheating scandal, the Environmental Protection Agency vowed to crack down on the auto industry with renewed vigor. That process has started. Janet McCabe, the agency's assistant administrator, said Tuesday that the EPA has already obtained a range of vehicles for testing purposes and that its enforcement staff is working as quickly as possible to determine whether other automakers are gaming emission results. "That's another detail we'd rather be obscure about, so that we can make sure people don't know what we're doing." For now, she said the agency is focused on diesel vehicles. But the scope of the new examinations could broaden to include gasoline-powered cars. The renewed efforts could include more light-duty vehicles or focus on heavy-duty trucks. The testing procedures could use dynamometers or portable emissions equipment. Right now, pretty much everything is a possibility. "We're going to become unpredictable, we're upping our game and we're going to use the whole range of technology that we have," she said. That technology now includes a heavy-duty truck chassis dynamometer at the EPA's national Vehicle and Fuel Emissions Laboratory in Ann Arbor, MI. Officials unveiled the $3 million piece of equipment Tuesday and hailed it as the first of its kind in North America. A Freightliner Super Truck, which boosted its fuel efficiency to 12 miles per gallon with the help of a $40 million federal grant, rolled onto the dynamometer in a ribbon-cutting ceremony Tuesday. McCabe said the new dynamometer will allow the EPA to assess the performance of the entire truck – not just its engine – and help engineers test 18-wheel tractor trailers measure, hydrocarbons, greenhouse gases, carbon monoxide and more. In the past, it took about a week for engineers to remove an engine from a truck and prep it for testing. With the new equipment, drivers can open a garage door and drive the rigs straight onto the dynamometer. A wealth of new, real-time data will be helpful as the EPA works with the National Highway Traffic Safety Administration in planning for the second phase of the government's greenhouse gas emission and fuel-efficiency standards for medium and heavy-duty engines and vehicles – a process now underway. While there's been a crush of attention on Volkswagen's scheming to circumvent emissions test, in the real world, it's these medium and heavy-duty trucks that are the bigger polluters.

More automakers working to turn your smartphone into a shareable digital car key

The smartphone killed the phone book, audio player, the pocket digital camera, handheld GPS devices and voice recorders. Now that addictive, transistor-filled candy bar is coming for your car keys. The Car Connectivity Consortium (CCC) announced that it's unveiled Digital Key Release 1.0 Specification for its member companies, which is the first step in standardizing protocols. As of now, the potential is there for drivers to download a digital key that can lock and unlock the car, start it, and transfer the key to another operator in order to share the car. The CCC's aim is to save development costs, stave off a glut of similar-yet-competing technologies, and create keys that reflect the expanded use cases for cars, i.e., car-sharing services and to-your-car delivery. Next year's Release 2.0 Specification will standardize an authentication protocol between the phone and the vehicle — how a digital key is generated on a secure server and transmitted to the car and the device — and "promise more interoperability between cars and mobile devices." The CCC says that "NFC distance bounding and a direct link to the secure element of the device" will assure security. We take that to mean the phone will need to be in direct contact with the vehicle, at least to open the door. Carmakers and suppliers have been working on digital keys for years now, and the ecosystem for individual owners to open individual cars is growing. Audi showed off its Mobile Key at the 2015 Consumer Electronics Show, and now calls it Audi Connect Key, but we haven't seen much of it in the field. That same year, Volvo said it expected to sell cars with digital keys only by 2017, which clearly didn't happen. Last year, the head of sales at BMW asked, "Honestly, how many people really need [keys]? They never take it out of their pocket, so why do I need to carry it around?" Even though a digital key offers an owner more convenience and long-distance control over their vehicle, car sharing is the target — and that can even include traditional rental cars. In 2013, Continental began testing a digital key in France, aimed at integrating and simplifying the electric-car-sharing business; everything from finding a free vehicle to driving it and charging it could be done on a phone. A key could be programmed with the driver's information, so that any car the driver gets in will be automatically updated with that driver's preferences, say for audio or seating position.

Volkswagen Diesels: Buy, sell, or hold?

Everyone who owns or has remotely considered a Volkswagen diesel over the past 45 days has tried to figure out the right formula. Is it worth buying after the recall? If I own one, should I sell it? How will it perform if I want to keep it? Questions create doubts, and doubts create a stunning lack of activity when it comes to the new and used car market. I seriously doubt Volkswagen will be rolling out its 2016 TDI models anytime soon. The company already failed to create a fix nearly a year ago and has spent an unusually long amount of time trying to get the formula right. There's also the fact that it rescinded its EPA application for 2016 models. I can't provide the ultimate oracle's guide on whether any recalled Volkswagen diesel will fall under the "good value" perceptions of car buyers. But I do believe four factors in particular will be largely independent of the outcome of that recall, and they're what you should pay particular attention to if you plan on buying any Volkswagen diesel – new or used. 1. Demand Creating Bad Supply There are a large number of car buyers who believe that they can zig while the marketplace tells them to zag. Unfortunately, those are the ones that get sent to the slaughter once articles like the one linked above proclaim, "resale values are down 13 percent." These heavily biased write-ups ignore the fact both the supply and demand of new and used recalled Volkswagen diesels are no longer operating in that free market. The supply side is obvious since the EPA has put a stop-sale on all Volkswagen diesels. However, on the demand side, those Volkswagen dealers who have exclusive access to off-lease vehicles and certified pre-owned programs for 2012 and newer VW diesels are now sitting on the sidelines with all those cars. When your best players no longer play, consumers don't come to the ballpark. What exists right now is a lot like a professional sports strike where the talent sits out until a collective agreement is reached. When your best players no longer play, consumers don't come to the ballpark. The marketplace only offers scabs that can play an inferior game. In the wholesale car business, the scabs are salvage vehicles that are wrecked or flood damaged, vehicles that can't be put under a CPO program due to frame damage and lemon law requirements, and the wholesale repossession market. All of these substandard vehicles make up the new supply, the collective underbelly of low-end quality in the used car marketplace.