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After VW scandal, new emissions tests may drive up diesel prices

However much Volkswagen has to aside to address the flak from the company's ongoing diesel-emissions scandal, it could still be less expensive than the cost of making diesels realistically adhere to stricter emissions-testing mandates. New rules are likely to be put into place as a result of the revelations that as many as 11 million VW diesel vehicles were programmed to game the emissions-testing system by triggering artificially low emissions levels. There's a potential problem, though, according to the European Automobile Manufacturers' Association (ACEA). Governments around the world are calling for more intense tests that would better simulate real-world driving conditions. Some of the mandates suggested by the European Union could make the process a costly one, however. And that would boost diesel-vehicle production costs to the point that the lower refueling costs via cheaper fuel and better fuel economy won't be able to justify the higher purchase price. According to Reuters, the ACEA issued a statement that said: The automobile industry agrees with the need for emissions to more closely reflect real-world conditions, and has been calling for proposals for years. However, it is important to proceed in a way which allows manufacturers to plan and implement the necessary changes, without jeopardizing the role of diesel as one of the key pillars for fulfilling future CO2 targets." Diesels have long been pushed in Europe because the lower carbon dioxide from the better fuel economy was thought to outweigh the additional nitrous oxides spit out by the oil burners. The push for "clean diesel" in recent years was supposed to reduce NOx emissions as well, but the VW story shows that this wasn't always the case. Rejiggered testing in Europe may start as early next year, and results may be available as soon as late 2017, but the whole point may become moot if automakers cut back on making diesel vehicles. The French government is already talking about eliminating diesel-vehicle subsidies in the wake of the scandal. Still, while new-diesel vehicle prices may rise, used-diesel prices may be falling. US auction prices for VW diesel vehicles are already down about 13 percent. UK diesel-vehicle prices have also declined, just not as much. Related Videos:

Volkswagen Passat gets Wolfsburg Edition, priced from $23,495*

Volkswagen has just announced a new Passat Wolfsburg Edition, which slots between the base S and mid-grade SE trims in terms of content and price. The automaker has not released any official photos of the car as of this writing (aside from the badge shot you see here, of course), but the Wolfsburg Passat will be visually set apart from the rest by a unique set of 16-inch alloy wheels.
The big host of upgrades for the Wolfsburg Edition are found inside, where buyers will enjoy standard amenities like leatherette seats (with bun-warmers on the front chairs), a power driver's seat, satellite radio and a media interface with iPod connectivity. Of course, this comes on top of the already standard Passat features like Bluetooth and auto on/off headlamps. The Wolfsburg Passat will only be available with the 2.5-liter five-cylinder engine and a six-speed automatic transmission.
Look for the 2013 Wolfsburg Edition Passat to hit dealerships in the very near future, priced from $23,495, *not including $795 for destination. Have a look below for Volkswagen's official press blast.

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.