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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.

VW launches cheaper 2016 e-Golf SE to challenge Nissan Leaf

Volkswagen is taking the fight to Nissan in the battle of EV hatchbacks for the 2016 model year with the new, less expensive e-Golf SE trim level. With a starting price of $29,815 (after $820 for destination but before incentives), the model undercuts the $29,860 2015 Leaf S (after $850 destination) by just $45. Lease rates are $199 a month. The 2016 e-Golf SEL Premium is $150 more than last year at $36,415, making the difference between the two trims a significant $6,600. VW isn't letting out much of the info on the SE yet, and the company's release simply says the trim "offers most of the features of the SEL Premium model." The new entry does come standard with a 3.6-kW onboard charger, and a 7.2-kW DC fast charging package is optional later in the year. Inside, there's VW's 6.5-inch MIB II infotainment system, versus an eight-inch version in the SEL Premium with the company's Car-Net App-Connect and Travel Link. The e-Golf is rated at an 83-mile range by the EPA, and it's electric motor produces 115 horsepower and 199 pound-feet of torque. The electric hatchback has already proven itself a moderate success in Europe through the first two months of 2015, and the VW actually beat the Leaf there in sales volume. In the US, the model has moved 1,831 examples through July, compared to 10,990 for the rival Nissan.

VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.