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Germany to accept diesel software fix rather than retrofit millions of cars

BERLIN — The German government will not force the car industry to make costly changes to engines to cut diesel emissions but will settle for software updates for around 2 million vehicles, industry and government sources said on Tuesday. The sources were speaking before a summit of politicians and car executives scheduled for Wednesday to discuss ways to cut inner-city pollution to try to head off bans on diesel cars — a sensitive issue ahead of national elections next month. The summit must also start to restore the reputation of one of Germany's major industries which has been badly tarnished since the Volkswagen emissions scandal broke in September 2015. The auto industry has agreed to software updates for around 2 million cars that will cost around 300 million euros ($354 million), a government source said. An industry source said foreign car makers had not agreed to participate for now. The deal suggests the industry has headed off demands for hardware upgrades that would cut more pollution but would also be much more expensive — with the potential costs as high as 10 billion euros. The deal also foresees a range of other measures to reduce emissions, the sources said, such as subsidies for electric buses, taxis and other municipal vehicles, as well as a commitment to increase the number of charging stations. The sector and the government will each contribute half to a 500 million euro fund aimed at helping local governments reduce pollution, blamed for causing respiratory diseases. CITY BANS The compromise might not cut emissions enough to stop bans of diesel cars in German cities - like the one in Stuttgart confirmed by a regional court last week. DUH, the environmental lobby group that brought the Stuttgart case, has said it wants moves to go beyond voluntary software updates or it will take further legal action. Chancellor Angela Merkel's conservatives have come under fire from consumer and environmental groups as well as opposition lawmakers for their close links to carmakers. "The car industry can always rely on the support of the government when things get difficult," said Timo Lange, a campaigner with LobbyControl, a non-profit group. Transport Minister Alexander Dobrindt rejected suggestions on Tuesday that he is too closely tied to the industry. The Environment Ministry has already made clear that software improvements can only be a first step as they reduce nitrogen oxide emissions by about 25 percent on average.

BMW says its diesels are above board

BMW got yanked into the riptide of the Volkswagen diesel scandal thanks to a report in Auto Bild, which Auto Bild has now clarified. On Thursday the German magazine said that when the International Council on Clean Transportation tested the X3 xDrive 2.0d, the ICCT discovered the diesel X3's tailpipe emissions exceeded the European limit by more than 1,100 percent. The key detail, though, is that apparently at no time did the ICCT find that BMW cheated on any emissions tests. No one has explained why the X3 diesel had such high emissions and the ICCT wouldn't comment on the Auto Bild report. But the mag has issued a clarification asserting that in spite of the excessive emissions, there is no evidence BMW engaged in regulatory subterfuge. Every other BMW vehicle ICCT tested was within compliance, but the organization's report from October 2014 - that no one paid attention to - found that nitrogen oxide emissions in 15 vehicles it tested averaged seven times the European limit. The brand's stock is still suffering from the taint. It dropped almost ten percent the day the report came out before rallying to close at five percent down. But on Monday BMW stock closed at 84.01 euros, and as of writing on Friday it's still trying to fight its way back above 80 euros. With so many people still just trying to find out how widespread the the issue is, and trust rather low, it's likely BMW won't be the one dragged down, fairly or not. Related Video:

Andretti Autosport partners with Volkswagen for Global Rallycross season

Michael Andretti and Volkswagen have both been involved in Global Rallycross for a couple of years, but not together. Andretti Motorsports Marketing organized the final round of the 2012 GRC series in Las Vegas, and there were rumors then that Andretti was going to get in. Around the same time there were news reports that Volkswagen was preparing a 600-hp Polo Mk5 to race in the SuperCar class; the photo above is racer Anton Marklund in his privateer Marklund Motorsports Polo at the 2013 X-Games round in Los Angeles.
Now it's official: Andretti Autosport will campaign the 2014 GRC season with VWs. That's all that's been said for now, Andretti being busy at the moment launching four entries for IndyCar, two for Indy Lights and two for Pro Mazda. We have a feeling we'll be seeing the MkVII Golf involved, but the cars and the driver lineup will be presented at the Chicago Auto Show on February 6.