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EPA message to automakers: You're on notice

With top administrator Gina McCarthy speaking about the "moral obligation for climate action" on Friday, the Environmental Protection Agency announced it would ramp up its oversight of the auto industry in the wake of Volkswagen's emissions cheating. In a letter sent to manufacturers Friday, the agency said it would begin examining cars to see whether they contained defeat devices "in addition to the standard emissions test cycles." "We are putting vehicle manufacturers on notice." Exactly how the agency plans to test for these devices – which are not devices per se, but algorithms contained in millions of lines of software code that govern vehicle functions – remains unclear. Christopher Grundler, the director of the EPA Office of Transportation and Air Quality, divulged few details in how the agency would uncover so-called defeat devices used by cheaters. "Not today – or actually ever – I'm not going to be describing what new ways we'll be using to detect these defeat devices." Later, he said engineers will have to "come up with some clever ways to do this." The only insight he offered was that the EPA, California Air Resources Board, and Environment Canada would partner on testing more cars for emissions and anomalies. Grundler also said the EPA would diversify its testing fleet. In addition to relying on vehicles provided by manufacturers, the federal agency will now also borrow cars from "private citizens" and utilize rental cars for tests. "We are putting vehicle manufacturers on notice," he said. Joint investigations between EPA and CARB have "been very successful in protecting human health and the environment," said Janet McCabe, the agency's acting administrator in the Office of Air and Radiation. "But we also know, and the Volkswagen violations before us now make it clear, we need to adapt and step up our oversight." That may include an increase in on-road testing in addition to the five emissions tests now more relied upon. The EPA owns and maintains 23 portable emissions-monitoring systems like the one used by West Virginia University researchers who first detected elevated levels of nitrogen oxide emissions from two Volkswagen diesel vehicles. Right now, they're almost exclusively deployed to monitor emission from heavy-duty vehicles, whose NOx emissions "dwarf" the amount produced by light-duty vehicles, which produce less than 2 percent of the total, according to the agency's figures.

UAW angered over VW workers getting right to defend anti-union vote

The United Auto Workers have called a decision by the National Labor Relations Board allowing anti-UAW employees at the Volkswagen factory in Chattanooga the right to defend voting down unionization at the plant "an outrage."
You'll recall that the union was defeated by a vote of 712 to 626 in a contentious February election. The UAW claims the outcome was unfairly swayed by pro-business, anti-union forces, including Senator Bob Corker and political advocate Grover Norquist.
This new decision by the NLRB essentially gives workers backed by the anti-UAW National Right to Work Legal Defense Foundation and Southern Momentum a formal voice in the impending hearing on the UAW's appeal of the vote.

VW still set on Phaeton redux despite cost-cutting drive and losing $32k per car

While critically well regarded, the Volkswagen Phaeton has proven to be a vehicle largely unloved by luxury buyers around the world. Despite this, it refuses to die. While VW's luxury sedan hasn't been sold in the US since 2006 due to low sales here, it has soldiered on in Europe with occasional updates. As the model's long lifespan has been winding down, VW has decided to keep pushing the Phaeton into a new generation, despite in-house alternatives like the Audi A8 and Bentley Continental Flying Spur. The move might not make much business sense, but Volkswagen executives are determined to make the Phaeton work. According to market analysts speaking to Reuters, developing the next-gen luxury sedan on the MLB platform could cost as much as 650 million euros ($737 million), despite relying on the same underpinnings in the A8. It's not like the Phaeton is leading the luxury sedan sales ranks, either. Reuters notes VW produced just 5,812 of them in 2013 (the most current year with data), and from 2002 to 2012, the automaker reportedly lost 28,000 euros ($32,000) on each example sold. Conversely, Mercedes-Benz sold 103,737 units of its new S-Class in 2014, an astonishing 82.2 percent jump over the previous year. The decision to keep the Phaeton going doesn't seem to square with the VW brand's cost-cutting strategy. Boss Martin Winterkorn announced last year a plan to save 5 billion euros ($5.7 billion) annually in the coming years. That plan reportedly also includes killing off less profitable models. Apparently, VW can't just rip off the band-aid and get rid of the Phaeton. Even some VW bosses seem somewhat perplexed at the sedan's business case. When Reuters asked the company's US boss Michael Horn about selling the Phaeton here, he said. "That's a dangerous question. It's an image bearer with no relevance for volume." The next-gen Phaeton is scheduled to go on sale in Europe in 2017 or 2018, according to Reuters, which is about a year later than previous rumors. A US launch will reportedly follow in 2018 or 2019 with the plug-in hybrid and potentially even diesel versions on offer. A starting price around $70,000 is estimated. Featured Gallery 2011 Volkswagen Phaeton View 15 Photos News Source: ReutersImage Credit: Volkswagen Plants/Manufacturing Volkswagen Luxury Sedan vw phaeton cost cutting