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Volkswagen finds CO2 'irregularities' for 800k vehicles

The latest issue for Volkswagen affects another 800,000 vehicles, and this time its for irregularities in CO2 emissions certifications. VW estimates this issue could cost the company $2.2 billion to fix. The company officially makes no specific mention of which engines are covered, the models they are in, or even where they are located. VW discovered the situation during its ongoing internal investigation, and, according to the automaker, "it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process." Most of the affected vehicles are diesels, and the company is now reaching out to "the responsible type approval agencies" to figure out the next step. While VW isn't officially confirming which models and engines are involved, Automotive News reports that it affects some 2012 and later VW, Audi, Seat, and Skoda models with the company's 1.4-, 1.6-, and 2.0-liter diesel engines, as well as the 1.4-liter ACT gasoline engine. The issue mainly affects vehicles sold in Europe. "The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency," CEO Matthias Muller said in the announcement. Volkswagen Group of America spokesperson Jeannine Ginivan was able to provide some further clarification to Autoblog. "This is not related to US-certified vehicles," she said. Clarification moving forward: internal investigations at Volkswagen identify irregularities in CO2 levels Matthias Muller: "Relentless and comprehensive clarification is our only alternative." Around 800,000 Group vehicles could be affected Initial estimate puts economic risks at approximately 2 billion euros The Volkswagen Group is moving forward with the clarification of the diesel issue: during the course of internal investigations irregularities were found when determining type approval CO2 levels. Based on present knowledge around 800,000 vehicles from the Volkswagen Group could be affected. An initial estimate puts the economic risks at approximately two billion euros. The Board of Management of Volkswagen AG will immediately start a dialog with the responsible type approval agencies regarding the consequences of these findings. This should lead to a reliable assessment of the legal, and the subsequent economic consequences of this not yet fully explained issue.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Volkswagen Caddy gets the Alltrack treatment for Frankfurt

We've seen Alltrack versions of the VW Golf and Passat. The German automaker's commercial vehicles division has even done a concept version of the Multivan with a similar treatment. And now it's taking that same rugged off-road approach with the Caddy van. The new Caddy Alltrack starts off with the latest, fourth-generation city van revealed earlier this year in Geneva, and beefs it up to replace the previous Cross Caddy. That comes down principally to black trim on the wheel arches, side sills, bumpers, and underbody protection with metallic accents. It also packs unique 17-inch alloys, fog lights, chrome trim on the grille, silver roof rails, a new optional beige metallic paint (pictured), and Alltrack logos galore. The interior has similarly been worked over with unique trim. Though no mention has been made of any suspension upgrades, the Caddy Alltrack can be specified with 4Motion all-wheel drive. Prospective buyers (in markets where VW offers its commercial vehicles line) will also have to choose between passenger and panel van body-styles, and between four diesel and three gasoline engine options. They range in output from 74 to 123 horsepower and come mated to manual or dual-clutch transmissions with five, six, or seven gears. Look for the new Caddy Alltrack to highlight the Volkswagen Commercial Vehicles display at the Frankfurt Motor Show opening later this week. Related Video: The new Caddy – now available as Alltrack version with off-road styling - World premiere of Cross Caddy successor at IAA 2015 - Fourth generation of the Volkswagen best-seller once again available in rugged off-road style - Passenger car and panel van Alltrack variants optionally available with 4MOTION Hannover/Frankfurt, 10 September 2015 – Volkswagen Commercial Vehicles will be showcasing the latest off-road style version of its best-selling Caddy at the IAA (International Automobile Show) from 15 to 27 September, 2015. The successor to the Cross Caddy is called the Caddy Alltrack. Like its predecessor, it is available both in passenger car and panel van formats. The latest version of the urban delivery van and family MPV is clearly distinct from the other Caddy models with its exclusive 17-inch alloy wheels 'Quito', new Mojave Beige metallic paintwork and optional 4MOTION all-wheel drive technology.