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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.

Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.

Volkswagen Group recalls 281,505 VWs and Audis for fuel leaks

The Basics: Volkswagen Group is recalling 281,505 total Volkswagen and Audi brand products in the United States for potential fuel leaks. Certain versions of the Audi A3, A6, A7, Q5, and Q7 are affected. In addition, some versions of the Volkswagen Golf, Golf SportWagen, and Golf GTI fall under the recall. It's unclear if vehicles outside of the United States will be recalled as well. The Problem: There are actually three separate recalls for three separate issues that all pertain to leaky fuel. All three recalls were issued simultaneously. The risk of unintended ignition is the main concern here. First off, 2012-2013 Audi A6 and Audi A7 models [28,249 cars] are being recalled because of a degrading fuel hose in the engine compartment. Secondly, 143,214 gas-powered 2009-2012 Audi Q5s and 2007-2012 Audi Q7s are being recalled. The fuel cap may crack on these vehicles, leaking fuel. Finally, 110,042 total units of the 2015-2016 Volkswagen Golf, Golf SportWagen, GTI, Audi A3 sedan, and A3 Cabriolet will be recalled because of fuel leaking from the evaporative emissions system. Injuries/Deaths: According to Reuters, Volkswagen has reported no injuries or deaths related to the fuel leaks. In addition, the company has said there have been no fires started due to the leaks. The Fix: Three separate issues means three separate fixes. Volkswagen and Audi will be reaching out to customers soon, though the parts aren't yet available. For the A6 and A7, Audi will simply replace the under hood hose. For the Q5 and Q7, dealers will clean the pump flange and install a butyl rubber band to protect the pump. Finally, the affected Golf and A3 models will have the suction cup in the emissions system replaced. If you own one: Volkswagen and Audi will begin contacting owners starting next month regarding a fix. Related Video: News Source: NHTSA, Reuters Recalls Audi Volkswagen