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EPA message to automakers: You're on notice

With top administrator Gina McCarthy speaking about the "moral obligation for climate action" on Friday, the Environmental Protection Agency announced it would ramp up its oversight of the auto industry in the wake of Volkswagen's emissions cheating. In a letter sent to manufacturers Friday, the agency said it would begin examining cars to see whether they contained defeat devices "in addition to the standard emissions test cycles." "We are putting vehicle manufacturers on notice." Exactly how the agency plans to test for these devices – which are not devices per se, but algorithms contained in millions of lines of software code that govern vehicle functions – remains unclear. Christopher Grundler, the director of the EPA Office of Transportation and Air Quality, divulged few details in how the agency would uncover so-called defeat devices used by cheaters. "Not today – or actually ever – I'm not going to be describing what new ways we'll be using to detect these defeat devices." Later, he said engineers will have to "come up with some clever ways to do this." The only insight he offered was that the EPA, California Air Resources Board, and Environment Canada would partner on testing more cars for emissions and anomalies. Grundler also said the EPA would diversify its testing fleet. In addition to relying on vehicles provided by manufacturers, the federal agency will now also borrow cars from "private citizens" and utilize rental cars for tests. "We are putting vehicle manufacturers on notice," he said. Joint investigations between EPA and CARB have "been very successful in protecting human health and the environment," said Janet McCabe, the agency's acting administrator in the Office of Air and Radiation. "But we also know, and the Volkswagen violations before us now make it clear, we need to adapt and step up our oversight." That may include an increase in on-road testing in addition to the five emissions tests now more relied upon. The EPA owns and maintains 23 portable emissions-monitoring systems like the one used by West Virginia University researchers who first detected elevated levels of nitrogen oxide emissions from two Volkswagen diesel vehicles. Right now, they're almost exclusively deployed to monitor emission from heavy-duty vehicles, whose NOx emissions "dwarf" the amount produced by light-duty vehicles, which produce less than 2 percent of the total, according to the agency's figures.

VW CFO Hans Dieter Potsch nominated as new board chairman

The search for a successor to Ferdinand Piech has come to an end as the Volkswagen Group has nominated a new chairman. The Executive and Nomination committees of VW's Supervisory Board have put their weight behind one Hans Dieter Potsch, who currently serves on the company's management board as its chief financial officer. He's expected to continue in his current role until November when an extraordinary general meeting of the supervisory board can be called to confirm his nomination and a replacement CFO can be found to take his place. As you may recall, the chairmanship of the Volkswagen board fell until recently to Ferdinand Piech, grandson of Ferdinand Porsche and one of the principals of the Porsche family that holds over 50 percent ownership in Volkswagen through Porsche Automobil Holding SE. Piech went head to head with VW CEO Martin Winterkorn and ultimately lost. Piech resigned and Winterkorn is about to have his term as chief executive extended through the end of 2018. In Piech's place, former union head Berthold Huber was named as interim chairman, but is now referred to in the statement below once again as deputy chairman instead. An Austrian native, Potsch is an industrial engineer by training. He started his career at BMW where he ultimately served as group controller, and subsequently served as CFO and as chairman at a number of German corporations. Potsch joined the VW management board in 2003, initially without portfolio, and soon assumed the financial portfolio – a role he has held until now. In 2009 he took on the additional role of chief financial officer at the Porsche holding company, whose supervisory board representatives are the parties proposing Potsch's nomination as the group's new chairman – even though he is not, strictly speaking, one of their own. In a related development, it appears that Julia Kuhn-Piech will be leaving her board seat sooner than expected. The departing chairman Ferdinand Piech opposed his niece's nomination to the board in his place, and now she'll apparently be stepping down to make way for the family's new choice of chairman.

Autoblog Minute: VW CEO Winterkorn out, rebuilding begins

Martin Winterkorn steps down as CEO of Volkswagen. Autoblog's Eddie Sabatini reports on this edition of Autoblog Minute, with commentary from Autoblog's Editor-in-Chief, Mike Austin. Show full video transcript text [00:00:00] Dr. Martin Winterkorn steps down as CEO of Volkswagen. I'm Eddie Sabatini and this is your Autoblog Minute. Dr. Winterkorn resigns in the wake of the VW emissions scandal. In a statement released to the press Dr. Winterkorn had this to say: "I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group... [00:00:30] I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part..." For more on what Winterkorn's resignation means for Volkswagen and the industry at large we go to Autoblog's Editor-in-chief, Mike Austin: [00:01:00] [Mike Austin Interview] The investigation into Volkswagen is ongoing and Autoblog will continue to cover the story as it develops. [00:01:30] For Autoblog, I'm Eddie Sabatini. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.