1966 Vw Split Window Bus on 2040-cars

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Brazil contemplates safety exemption for VW Kombi as it goes out of production today [w/poll]

Brazil: the country of carnivals, indescribable beauty adjacent to abject poverty, Ayrton Senna and old Volkswagen models. Only they're not old - they're new, they're just based on old designs. The original Beetle continued production there long after it had been phased out elsewhere, but the original Kombi van has lasted much longer. That ends today, however, with the iconic VW Microbus ambling out of production on the last day of 2013.
VW kept making the van in Brazil with the original air-cooled 1.2-liter boxer four until 2005, after which the original design was updated with a 1.4-liter water-cooled engine. Today, however, it ultimately falls prey to safety regulations that mandate that all vehicles - no matter how old their design - need to have airbags and ABS, forcing Volkswagen do Brasil to cease production of the Microbus after a 56-year production run. But the latest word is that the Kombi (as it's presently known) could get a stay of execution - or at least a resurrection in short order.
According to reports, the Brazilian government is looking into granting the Type 2 Microbus an exemption from said safety regulations, reasoning that the van was designed long before the advent of airbags and ABS. If the measure goes through, the Kombi Last Edition (pictured above) could prove not to be the last at all. So what do you think, should the Microbus get an exemption from Brazilian safety regulations for nostalgia's sake? Vote in our poll below, then have your say in Comments.

VW diesel scandal: South Korea could be next

To no one's surprise, there are constant new developments in the VW diesel scandal. We hit the main points in a number of posts recently, but there were other, smaller developments that we didn't put into their own post. Instead, we've collected them here. For our complete coverage of this issue, click here. There's a lot to digest, so here goes. To try and keep dealers happy, VW announced that it guarantee bonus payments to its US dealers this month worth $300 for every new car sold ($600 for each Passat). The automaker is also going to guarantee payments from the company's customer experience bonus program. A memo from VW's US chief Michael Horn said, "We understand the pressure these recent events have put your business under and we are committed to providing you support," according to Automotive News. You can see Horn speaking at an event Monday night above. There will be at least one more official investigation into just how widespread this issue. South Korea has now said it will look into the emissions numbers for around 4,000-5,000 cars there. The affected TDI engines can be found in two VW and one Audi models (Jetta, Golf and A3) in South Korea. In the US, there could be another investigation as well, since Senator John Thune, (R-SD), the chairman of the Commerce, Science and Transportation Committee, has asked the Federal Trade Commission to take a closer look. A scandal this big is not only going to affect VW. To get ahead of any possible criticism, Bosch has issued a statement saying that yes, it does make parts for the 2-liter, 4-cylinder TDI engine that is at the heart of the problem. But, in a statement emailed to Reuters, said, "We produce the components after specification of Volkswagen. The responsibility for application and integration of the components lies with Volkswagen." Looking ahead, VW said in a new statement (available below) that its new EU 6 diesel engines do, " comply with legal requirements and environmental standards." That means that, supposedly, there's no "defeat device" needed to make these engines clean enough to pass strict environmental regulations. That'll be important if VW wants to keep marketing diesel as a clean fuel. For now, the tide seems to be turning against the automaker. Volkswagen AG has issued the following information: Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines.

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.