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Porsche CEO Matthias Mueller throws hat back in ring for VW CEO job

Toward the end of February it got leaked that Porsche CEO Matthias Muller was being promoted to Volkswagen's supervisory board. Muller's credentials and his success over 36 years at the VW Group have, for observers, put his name in the pool of potential candidates to succeed current group CEO Martin Winterkorn when Winterkorn retires in two years. But the 61-year-old Muller told German newspaper Frankfurter Allgemeine Zeitung earlier in February, "It's no solution to put a 63-year-old at the head of Volkswagen," and the statement was taken to mean he wasn't considering the job. Muller now says the quote was misunderstood. In a report in Automotive News, the newly minted board member says he was commenting on what it would mean for the supervisory board and the Group if they nominated a 63-year-old to replace a 69-year-old - that it wouldn't result in a "generation change." However, if that's what they choose to do, Muller feels great: "I stand ready to take over any assignment," he said. Muller's name re-enters the candidacy pool, but we still have no idea who leads the running for the role and Winterkorn isn't saying a word. It could be three years before we know: Winterkorn's contract concludes at the end of next year but there is speculation he'll re-up for two years to see out the end of the Strategy 2018 initiative.

Audi, Porsche ensnared in new Volkswagen cheating allegations

The scope of the Volkswagen emissions cheating scandal that has enveloped the global automaker for the past six weeks widened Monday. Now, some of the automaker's premium brands are further ensnared in the mess. Officials with the Environmental Protection Agency issued a second notice of violations Monday, accusing Volkswagen of violating the Clean Air Act by using defeat devices that circumvent emissions testing on diesel versions of certain vehicles equipped with 3.0-liter engines. Roughly 10,000 vehicles in the United States contain the illegal software, the EPA alleges. That's a far smaller number than the 482,000 vehicles affected by the first instances of cheating, which Volkswagen confessed to in September. But this latest violation alleges the cheating occurred broadly through the Volkswagen empire and includes vehicles from the Porsche and Audi brands. Audi had one model, the A3, involved in the first round of announced violations. But the brand, which has enjoyed skyrocketing sales in the US in recent years, is more extensively involved in violations announced Monday. The 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 are among the cars which contain the illegal software, which permits the cars to emit nitrogen oxide at up to nine times the allowable thresholds set in the Clean Air Act, according to the EPA. The 2015 Porsche Cayenne and '14 Volkswagen Toureg SUV are also affected. "There is clear evidence of additional violations and it's important to put Volkswagen on notice and to inform the public." - Janet McCabe. "Audi, which has been on a roll in terms of sales, reputation and image of late, now is being drawn deeper into the quagmire," said Michelle Krebs, senior analyst for Autotrader. "Previously, only the low-volume A3 was under scrutiny, but now Audi's core models are under fire." Audi officials did not respond to a request for comment Monday. In a written statement issued late Monday afternoon, a Porsche spokesperson said, "We are surprised to learn this information. Until this notice, all our information was that the Porsche Cayenne Diesel is fully compliant." Porsche said it would cooperate with authorities.

France may scrap diesel fuel subsidies in wake of VW scandal

Now that a particular German automaker has sneezed, it appears that French automotive subsidies will catch a cold. Count France among the growing legion of countries not happy about Volkswagen's admission that some of its diesel vehicles contain software that will artificially reduce emissions levels during testing. As a result, the French government is talking about reducing or eliminating diesel subsidies that make diesel fuel about 15 cents per liter (roughly 89 cents a gallon) cheaper than gas. The change would tax gas and diesel at the same rate. France may end the diesel tax credits as soon as the next fiscal year, Bloomberg News says, citing comments from French Environment Minister Segolene Royal this week. About two-thirds of the cars on France's roads are diesel, according to the CCFA, the French automaker association. In fact, diesels accounted for more than half of the new light-duty vehicles sold in Europe last year. That may drop to 35 percent by 2022 in part because of the scandal, according to automotive consultant LMC Automotive. Things could change even more France is considering letting more vehicles qualify for the 10,000-euro incentive for switching from old diesels to new plug-in vehicles. Last month, VW said that its cheater software might be installed in as many as 11 million vehicles, forcing the German automaker to set aside $7.3 billion to address the fallout from the scandal. Among other issues, VW and its Audi division were stripped of its Green Car of the Year Awards for the first time in the history of the awards bestowed by Green Car Journal. The scandal also forced Martin Winterkorn to resign as VW's CEO last month after eight years on the job and is delaying a number of the automaker's upcoming projects. Related Videos: News Source: Bloomberg NewsImage Credit: Mic V./Flickr Government/Legal Green Volkswagen Emissions Diesel Vehicles vw diesel scandal France subsidies