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VW must explain diesel fix by Nov. 20 in California

The state of California has long been ahead of the game when it comes to enacting laws limiting greenhouse gas emissions from light-duty vehicles in the US. Now, it looks like the Golden State is again leading the pack as it tries to get to the bottom of the Volkswagen diesel-emissions scandal that has shaken up much of the automotive industry. In fact, while VW has come out and said vehicle recalls wouldn't likely start happening until at least January, the state is giving VW until Nov. 20 to outline how it will repair its diesel-powered vehicles to comply with emissions mandates, Reuters says, citing a spokesman with the California Air Resources Board. That deadline coincides with the 45-day mark after VW received its Sept. 18 compliance letter about the diesel issue. In fact, California regulators may well start testing non-VW diesel vehicles to see if any other automaker installed software that would cause diesel emissions to be underestimated. Other German automakers such as BMW have boosted their diesel-vehicle production in recent years in an effort to meet tightening greenhouse-gas emissions and fuel-economy standards. VW has estimated that as many as 11 million light-duty diesel vehicles may include cheating software. Given that California is the largest US auto market, many of those vehicles are tooling around the state. In all, Volkswagen has earmarked $7.3 billion to address the scandal's issues, while former CEO Martin Winterkorn has stepped down and has been replaced by Matthias Muller. Related Video:

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

Skoda racing Up! to Worthersee with Citigo Rally concept

If you thought the Volkswagen Group was about to wind down the endless stream of concept cars based on the new Up! city car, think again. Because not only is the Volkswagen brand itself keeping the train a-moving, so are its sister brands.
Skoda has its own version of the Up called the Citigo. But what racing fans know the Czech subsidiary for best is its rally program that has become a dominant force in the Intercontinental Rally Challenge and the basis for VW's own foray into the World Rally Championship. Now Skoda is bringing the two together with an exciting concept car previewed by the rendering above and confirmed in the press release below.
Following in the footsteps of the tantalizing Fabia roadster unveiled last year, the Citigo Rally concept is to be the centerpiece of the Skoda display at the Volkswagen Group's annual hot-hatch gathering at Lake Wörthersee in Austria. Details are scarce, but the show car will feature rally-inspired bodywork complete with 18-inch white alloys packed into aggressively flared wheel arches, a substantial rear wing and vents aplenty.