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2016 VW diesels are still 'months' out

Many 2016 model year vehicles are already for sale at dealers in the US but none of them have Volkswagen's 2.0-liter TDI. Don't expect to see the diesels on lots for several months either. The Environmental Protection Agency is preparing an onslaught of evaluations on the engine to make sure that it doesn't get fooled again, Automotive News reports. Before the new tests can even begin, VW must resubmit the 2016 diesels to the EPA, and the company isn't saying when that might be. The automaker took back the models' previous application after telling the EPA about an undisclosed software feature, according to Automotive News. There was absolutely no evidence that this was another defeat device, but the emissions agency wanted more information about what the tech's effect was. EPA boss Christopher Grundler has been quite clear about not disclosing any details about the new tests. He doesn't want to give automakers a chance to create more defeat devices, and the agency intends to evaluate diesels from other companies with more rigor, too. That process is already beginning in cases like subjecting the 2016 Chevrolet Colorado Duramax to on-road emissions checks. Once the 2016 VW models are certified, the EPA intends to run the same tests on the proposed repairs for the company's earlier diesels. That process could take months, as well, according to Automotive News. VW CEO Matthias Muller recently said that the first recalls likely wouldn't happen until January.

2016 Volkswagen Golf GTE First Drive [w/video]

For the past few years I've enjoyed a simple automotive tradition: When planning a European vacation, I request a relatively attainable loaner car that's unavailable in the States. These slices of can't-get-it-at-home automotive exotica have tended to be clean diesels, and experiencing them in their native habitat ahead of their US debuts often gives some form of four-wheeled revelation. For instance, before the mainstream emergence of clean diesels stateside, I racked up 1,500 miles on a then-brand-new 2008 Mercedes-Benz C220 CDI. The otherwise unassuming sedan enabled me to cannonball from the South of France to Barcelona on a single tank of fuel, while delivering satisfying torque around town and averaging 41 mpg. The following year, I bombed through the Italian Alps in a Volkswagen Golf SportWagen TDI, which eked a claimed 17 percent better fuel economy than its predecessor. Once again, I was in car guy heaven, returning home with nothing but praise for these efficient, entertaining diesels that seemed to defy conventional wisdom. And then came the Volkswagen scandal, single-handedly besmirching so-called clean diesels and everything they purported to represent. With a European pleasure trip around the corner (and a request for a press car pending with VW), I wondered what would be waiting for me curbside when I touched down at Aeroporto di Firenze-Peretola. The GTE packs what is essentially an Audi A3 E-Tron beneath its familiar skin. Enter The High Performance Hybrid Volkswagen, quite understandably, didn't want to arm a journalist with potentially damning commentary about the technology that has already inspired environmental outrage and the ousting of CEO Martin Winterkorn. For the automaker in peril (and the auto writer in waiting), I soon discovered that the 'clean' diesel elephant in the room would be supplanted with a vehicle that could single-handedly deflect controversy. My loaner? A still-can't-get-it-back-home alternative to diesel, the 2016 Volkswagen Golf GTE plug-in hybrid. First off, let me admit to some prejudicial bias against the GTE. Maybe it's my personal views on hybrids, tainted by the eco self-righteousness exuded by their drivers back home, and epitomized by teeming swarms of Prius drivers who couldn't give a single damn about driving. Or maybe it's the added weight and complexity of a hybrid drivetrain that runs counter to my petrol-loving soul.

That time when VW thought its diesels were holier than hybrids

When it comes to its diesel engines, Volkswagen was publicly trying to work the regulation system as far back as 2011. That's when the Obama Administration announced stricter US greenhouse-gas emissions standards for 2025. At the time, VW was saying its diesel engines were as clean or even cleaner than hybrids and some plug-in vehicles, The New York Times says, citing former Environmental Protection Agency (EPA) officer Margo Oge. VW did indeed boycott Obama's announcement of the 2025 Corporate Average Fuel Economy (CAFE) standards four years ago. The reason given at the time was that VW's attempt for its diesel engines to get special consideration and extra credits for fulfilling the emissions mandate was ultimately rejected by the EPA. Oge said VW's US executives were conciliatory but the automaker's German officials were "arrogant" in their belief that diesel technology was far superior, from an emissions standpoint, than hybrids or plug-ins. As we know now, that was not the case. Last month, we learned that VW fitted as many as 11 million vehicles around the world with software that programmed its diesel engines to show artificially low emissions levels during testing. In the ongoing fallout, VW has set aside $7.3 billion to address the scandal and the CEO resigned. New VW CEO Matthias Muller says recalls on the diesels in question may go into effect as soon as January in Europe. Meanwhile, among other indignities, Green Car Journal rescinded Green Car of the Year Awards it had bestowed on the 2009 Jetta TDI and 2010 Audi A3 TDI, while Volkswagen's Stock was delisted from the Dow Jones Sustainability Index. News Source: New York TimesImage Credit: Matt Cardy / Getty Images Government/Legal Green Read This Volkswagen Emissions Diesel Vehicles CAFE standards vw diesel scandal Barack Obama

German investigators search VW headquarters, take documents

German investigators are no longer pursuing an official investigation against former Volkswagen CEO Martin Winterkorn, but prosecutors aren't giving up their detective work into the automaker's actions surrounding its diesel emissions scandal. In their latest move, authorities have searched VW's headquarters in Wolfsburg and confiscated documents and other data to learn more about how a software-based "defeat device" made it into the real world, according to Reuters. VW described the amount of material that it handed over as "comprehensive." The automaker is also conducting its own, internal investigation, but the company isn't releasing those results, yet. It has allegedly responded by suspending over 10 employees, including three top engineers. There has been reportedly no actual evidence found against this trio of men. In addition to the work of German prosecutors, many US investigators are looking into VW's actions, as well. The West Virginia Attorney General is suing the company for fraud, and there are pending class-action lawsuits. In written testimony for a Congressional hearing, Michael Horn, President and CEO of VW Group of America, said he first learned of the emissions noncompliance when the West Virginia University study was published in the spring of 2014. A recall on the affected Volkswagens isn't expected to begin until at least January, according to CEO Matthias Muller, and it could be later for some models. The costs to fix them all and deal with potential fines means that VW must delay some projects to save money. Put another way, VW will be dealing with the repercussions of this scandal for years. Related Video:

VW of America boss Horn was aware of diesel cheat 18 months ago

We're just going to make a prediction: Volkswagen of America boss Michael Horn's congressional testimony, slated to begin today, is not going to go well. Based on a written testimony submitted by Horn, the exec is expected to tell Congress he knew his company was violating emissions regulations at least 18 months before it actually came clean. "In the spring of 2014... I was told that there was a possible emissions non-compliance that could be remedied," Horn wrote, in testimony published on the US House of Representatives' website (PDF warning). "I was informed that EPA regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include 'defeat device' testing or analysis. I was also informed that the company engineers would work with the agencies to resolve the issue." Horn's written testimony went on to outline how the company will "develop a remedy for our customers." It includes five points, ranging from the "world-wide investigation" being conducted by the company to reassurances that VW's engineers are "working tirelessly" on fixes to the four-cylinder diesel problems. Horn went on to confirm that each generation of the affected diesel – there are three – will require its own distinct fix. Finally, Horn went on to say that the company will "examine our compliance, processes, and standards" to prevent a repeat of the diesel catastrophe, while promising "open communication with our customers, dealers, employees, and the public as we move forward." We've included Horn's complete, three-page written testimony below. Have a look. Testimony of Michael Horn, President and CEO of Volkswagen Group of America, Inc. Before the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations October 8, 2015 Chairman Upton, Chairman Murphy, Ranking Member Pallone, Ranking Member DeGette, other Members of the Committee, thank you for inviting me to testify before the Committee today. My name is Michael Horn, and I am the President and CEO of Volkswagen Group of America, a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. I have volunteered to come before this Committee at the very outset of these inquiries in an effort to show our commitment to cooperation. We have not had the opportunity to review all aspects of this matter, indeed the investigation is just beginning.

Recall on VW diesels begins in January, Mueller claims

A recall on Volkswagen's diesel vehicles with cheating software has been inevitable since the scandal first came to light, but there has been little official word on a timeframe for the fix. The automaker's new CEO Matthias Muller has finally put a tentative date on repairs, though. "If all goes according to plan, we can start the recall in January. All the cars should be fixed by the end of 2016," Muller said to the Frankfurter Allgemeine Zeitung, Reuters reports. While this plan affects Europe, the timing for repairs in the US could be slightly different. The Environmental Protection Agency needs to test the fix first here to make sure that it brings the vehicles in line with emissions regulations. Before the scandal came to light publicly, VW already tried a software update, but the California Air Resources Board still found NOx levels to be too high. Some experts have speculated that whatever the automaker comes up with this time could affect performance and fuel economy. To make lemonade out of these very sour lemons, Muller is trying to position the scandal as a chance to change. "This crisis gives us an opportunity to overhaul Volkswagen's structures," the CEO said, according to Reuters. "We want to make the company slimmer, more decentralized and give the brands more responsibility." Still, the effects are definitely being felt inside the automaker. When addressing employees recently, Muller admitted the necessity of cutbacks and the likelihood of setting aside even more money to pay for international fines and settlements. "What isn't absolutely vital will be canceled or delayed," he said. Related Video:

Piech is back (kinda) at VW

Before the company was rocked by the diesel emissions scandal, you would've thought that the ouster of Ferdinand Piech as chairman of the Volkswagen Supervisory Board in April was the biggest corporate news from the automaker all year. After all, the longtime exec was a towering figure in the German auto industry. He wasn't gone for long, though. In a fascinating article, The Wall Street Journal breaks down how Piech is now wielding influence within the giant corporation yet again. Piech's continued sway has come in part because two people close to him have started running the company. His resignation reportedly came because Piech was supporting Matthias Muller as next group CEO, rather than Martin Winterkorn. Now, Muller has achieved exactly that role. In addition, Hans Dieter Potsch has taken over as supervisory board chairman. He's also the chief financial officer at Porsche SE, the family holding company that controls a vast swath of VW stock. "The Porsche-Piech family will exert more influence over the company in the future," an anonymous person close to the board said to The Wall Street Journal. Piech appears fully aware of his changing fortunes within the company, too. According to the WSJ, he and his wife Ursula arrived at the VW factory's main gates in a red Bentley the day after WInterkorn's resignation. If you find all of these corporate machinations fascinating, then the piece is well worth a read.

West Virginia sues VW for fraud, asks for major financial penalty

It took just four researchers, including two students, at West Virginia University doing some emissions tests eventually to engulf Volkswagen in an international scandal that has been raging for weeks. Now, the state's attorney general Patrick Morrisey has filed a formal complaint against the automaker's US branch for violating the West Virginia Consumer Credit and Protection Act. His argument alleges that VW "fraudulently manufactured, advertised, and sold" these polluting diesel vehicles as being good for the environment. If the West Virginia case is successful, VW could be on the hook for serious monetary punishment. Morrisey asks that any consumers in the state get refunds totaling the premium paid over a gasoline model, the loss in resale value, and the expected costs of lost performance from the upcoming recall repair. On top of that, the automaker would pay the state $5,000 for each violating vehicle and all of the related costs for preparing for the trial. According to the complaint's legal documents (here, as a PDF), the state's DMV currently shows 2,684, diesel 2009-2015 VW vehicles registered there. Morrisey isn't the only state attorney general to take a stern look at VW's actions, and his counterparts in at least 29 other states are investigation similar courses of action, as well. In addition, the Department of Justice and Environmental Protection Agency have their own probes underway. The final result could be very expensive for the automaker. Attorney General Patrick Morrisey Files Complaint Against Volkswagen of America, LLC 10/5/2015 CHARLESTON — Attorney General Patrick Morrisey announced today that his Office filed a complaint against Volkswagen of America, Inc. (Volkswagen), alleging the business violated the West Virginia Consumer Credit and Protection Act. The complaint alleges that Volkswagen fraudulently manufactured, advertised and sold a line of "clean diesel" vehicles with Turbo-charged Direct Injection (TDI) engines. "Volkswagen allegedly knowingly engineered certain vehicles to cheat U.S. emissions tests," Attorney General Morrisey said. "That is one reason why we have filed this complaint." A May 2014 study conducted by the Center for Alternative Fuels, Engines & Emissions at West Virginia University found elevated levels of emissions on several Volkswagen cars. Their data was then turned over to the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board.

VW will delay projects to cope with diesel scandal

Volkswagen's diesel emissions scandal will require the sacrifice of far more than just executives and money. It's also going to result in the cancellation of various projects, a process that new CEO Matthias Mueller said "won't be painless." "We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller said while addressing the embattled company's employees. The former Porsche boss also said the money set aside by the German giant – about $7.29 billion – won't be enough to cover recall expenses, fines from governments in affected countries, and the expected deluge of lawsuits from disgruntled TDI owners. According to Bloomberg, that figure probably won't even be enough to match the fines Uncle Sam is likely charge, pegged to be around $7.4 billion, according to one analyst. It's expected that VW could delay a further push for share in the North American market, which would include a $1-billion investment in its Puebla, Mexico, factory. But it will take more than cancellations and delays, analysts claim. "It's going to be tough to find projects they could chop that will actually move the needle," JPMorgan Chase's Jose Asumendi told Bloomberg. "What they really need to do is get costs under control." That, according to Bloomberg, is already setting up a showdown between management and labor. The latter wants a reduction in VW's $17.4-billion research-and-development budget – the world's largest and more than what Ford and General Motors spend combined – while the former wants to slash personnel costs. Bloomberg also spoke to analysts who claimed the company should look into reductions in purchasing costs as well as trimming sponsorships. It's impossible to know just how extreme Volkswagen will need to get with cancellations, delays, and cost-cutting, but it's becoming increasingly clear that the effects of this scandal will likely be felt far longer than the controversies that surrounded other automakers like General Motors and Toyota. Related Video: News Source: BloombergImage Credit: John Macdougall / AFP / Getty Images Earnings/Financials Green Plants/Manufacturing Recalls Volkswagen Diesel Vehicles vw diesel scandal matthias mueller

VW offers $2,000 to keep owners loyal

Volkswagen stands to lose a large portion of its customer base in the aftermath of the diesel emissions scandal, but the German automaker isn't about to sit back and watch its customers defect to other brands. To that end, VW is offering significant incentives to keep its buyers coming back. This latest incentive program will award a $2,000 loyalty bonus to existing VW drivers in the United States, to be applied to towards the purchase or lease of a new gasoline- or hybrid-powered vehicle. What's more, the offer can be combined with any other incentive on offer (save for employee or fleet discounts). The automaker is offering discounts of between $2,000 for a Passat to as much as $4,000 for a Touareg, CC, or Eos. The incentives are aimed to stave off a potential dip in sales as public trust of the company plummets in the wake of the diesel scandal. Despite the admission that it had manipulated emissions testing, Volkswagen's sales in the US actually increased in September. But they could stand to drop significantly over the course of October. The discounts may soften that blow some, but the manufacturer is not likely to be able to keep up those incentives in the long run. The move follows a similar initiative undertaken by Fiat Chrysler Automobiles in Europe. There the Italian-American automaker is offering owners of Volkswagen Group vehicles – diesel or otherwise – significant discounts of up to $1,700 to trade into an FCA vehicle. Related Video: