Ford will pay only 1.5-percent more in labor costs each year under a new contract with the United Auto Workers, the automaker reported Monday.

Ford announced it would take a $600 million charge this year to pay out the $10,000 ratification bonuses to their workers as part of the new deal.

The new deal allows the automaker to hire more low-cost workers who will either be temporary or entry-level employees, shift production of some of its cars overseas and continue using controversial “alternative work schedules” that favor fewer, longer shifts instead of traditional work days.

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Volkswagen will officially recall all of its illegally polluting diesel engines in Germany, German newspaper Die Welt reported Monday (via Reuters), the first step in a wave of recalls to fix 11 million cars worldwide.

Roughly 2.5 million cars in Germany will be recalled — 1.5 million Volkswagens, 500,000 Audi and 500,000 Skoda- and Seat-branded cars — with work beginning in January. Last week, the German transportation authority approved Volkswagen’s fix for 1.6-liter cars, which included an “air calming” pipe ahead of the intake’s air sensor. The company’s 1.2- and 2-liter cars may only need software fixes.

Officials from the U.S. Environmental Protection Agency and the California Air Resources Board will review Volkswagen’s proposal submitted earlier this month for fixing 482,000 cars in the U.S. It’s unclear what those fixes may be. During congressional testimony in October, Volkswagen of America chief Michael Horn said it would be a combination of hardware and software fixes.

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Porsche announced Friday that it opened its first classic Porsche center in the Netherlands, the first among nearly 100 centers that will sell, service and make money on maintain old sports cars.

The network will eventually include a center (or centers) within North America, according to the automaker.

Porsche says that nearly 70 percent of all the cars that it has made are still on the road, and that its centers would be staffed with specially trained technicians that can identify and work on any problem. (Plus, Singer can’t make all the money on old Porsches.)

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German newspaper Bild Am Sonntag (via Reuters) reported Sunday that engineers within Volkswagen knew more than one year ago that its cars didn’t meet reported fuel consumption and even pulled a model from sale because of the deception.

Volkswagen admitted in October that 800,000 cars sold in Europe didn’t meet advertised fuel economy and that the company would pay more than $2.1 billion for the scandal.

According to Reuters, Volkswagen didn’t comment on the claim that executives knew about the cheating crisis before October, and said that the slow-selling Polo BlueMotion was pulled due to poor sales.

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Speaking to Automotive News, Cadillac chief Johan de Nysschen said that the automaker’s strategy will be to price cars much lower than the Germans and eventually raise prices as the brand gains traction.

Cadillac has to heap incentives on its cars to move them off lots, he said.

“Knowing that, it seemed to be more sensible to price CT6 right and let the car gain traction,” de Nysschen told Automotive News. “We need to give the car time to establish a reputation. With a very compelling product offering and a good price, I think that’s the way to do it.”

When the 2016 Cadillac CT6 goes on sale in March, that car will cost nearly $55,000 to start — well below the BMW 7 Series, which starts at around $82,000 and the Mercedes S Class that’s around $95,000.

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It’s hard not to look at the newly announced Volkswagen Beetle Dune and hear at the same time that Volkswagen will be saving $2 billion by cutting unnecessary trims and variants from their lineup.

I mean, it’s like they’re not even giving the little guy a chance.

Nonetheless, Bloomberg (via Automotive News) reported Friday that Volkswagen will axe trims and variants of its cars to reduce complexity and cost from its lineup to help pay for the company’s massive emissions scandal. Bernd Osterloh, Volkswagen’s labor chief, told journalists Friday that the company has needed to trim some of its fat for a while, apparently.

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Most midsize sedans don’t have a happy ending. Many get passed down as second-hand family cars, looking for their second wind from being a daily commuter only to find themselves as daily bangers in high school parking lots. Or worse. Mid-sized sedans can be sold at used car lots as forgettable appliances; used like washing […]

Paul Walker’s father, acting on behalf of the late-actor’s estate, filed a lawsuit against Porsche this week for failing to include safety features, such as stability control, side impact protectors and a fuel-line cutoff that the family said could have saved the actor’s life in a crash, the Associated Press reported.

The 2005 Porsche Carrera GT lacked basic safety features to protect Walker in his fatal crash in November 2013, the wrongful death lawsuit alleges. A similar lawsuit was filed against Porsche by Walker’s widow and daughter in September. Porsche has denied wrongdoing in those lawsuits.

According to the report, Porsche said this month that the car Walker was riding in while Roger Rodas was driving — which spun out of control, hit three trees and burst into flames — had been modified and improperly maintained. Walker was “a knowledgeable and sophisticated user of the 2005 Carrera GT,” the company wrote in response to the lawsuit.

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While the rest of the world warms up to our Thanksgiving tradition of football and mountains of potatoes and gravy, we must admit that the world goes on without us some days.

Thankfully, the Internet never forgets. So here’s a roundup of the stories we missed in our Tryptophan-induced naps.

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Audi has suspended two engineers for their involvement in helping Volkswagen’s larger 3-liter diesel engine pass emissions, according to Audi’s CEO. (Or you know, Volkswagen’s other, other emissions scandal.) The engine is used in the Porsche Cayenne and Audi’s range of sedans and crossovers.

Audi CEO Rupert Stadler told German newspaper Donaukurier that two engineers were suspended Wednesday and that the company was learning about its engines along with the rest of us.
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Editor’s note: This article originally ran September 22, 2015. TTAC has yet to be proven or disproven on these numbers, but hopefully we will learn the truth soon.

In all reality, Volkswagen probably won’t pay $37,500 for each car that cheated its way through U.S. emissions standards, but the German automaker will probably pay thousands for each car to fit a device that would clean up their acts.

The presumed fix would come by retrofitting a Selective Catalytic Reduction (Adblue or urea) system although that wouldn’t be the only fix necessary. Researchers discovered that the Passat TDI that they tested, fitted with the SCR system, was 5 to 20 times over the NO limit — less than the 10 to 40 times by the lean NO filter cars, but still illegal.

The long list of items needed to fit models of the Volkswagen Golf, Jetta, Beetle and Audi A3 doesn’t include the engineering needed to retrofit the cars and the costs to crash test the models after the significant modifications. That’ll add hundreds of millions to the bottom line.

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A federal judge Wednesday denied a request to make available communication between GM and its lawyers over certain cases involving defective ignition switches, Reuters reported. The documents will remain secret because of attorney-client privilege, the judge wrote.

Lawsuits against GM allege that the company tried to further cover up its defective ignition switches. Those lawsuits sought to uncover documents between the automaker and its lawyers in three separate cases.

“… the case evaluations have all the hallmarks of dispassionate, sober evaluations (perhaps, in hindsight, too dispassionate and sober for their own good) by counsel of the costs and benefits of litigating the cases to their conclusion — just what one would might expect in a defense file and in the absence of a crime or fraud,” Judge Jesse Furman wrote in his ruling. (Read More…)

The fourth estate has a rich history of drinking their turkey on our annual day of giving thanks. As a newspaper editor and reporter for more than 10 years, I know why: journalists are miserable human beings and gratitude feels awkwardly close to Catholic guilt that some of us have deep, deep inside. Numbing our feelings are always better than actually feeling them.

But once a year, some of us trot out our humanity for readers poke fun at, and to help keep sane because sometimes this business will drive us crazy. I am thankful for much in my life: health, work, humor and family.

I’m also thankful for much, much more.

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I swear someone was cutting onions right next to me just now. 

A Utah high school custodian, whose broken-down car left him commuting two hours each way to work, was surprised by a mechanic who purchased and fixed a car for him with money collected from crowd funding.

Sean Merrill, who owns Nobori Auto near Salt Lake City, along with his wife, picked up Robert Ford last month when he was walking home late one night. Ford told the couple about his hardship and his commute, and Merrill said he was compelled to help. (Read More…)

General Motors may contract production of its commercial vans to AM General to free space to build its popular Chevrolet Colorado/GMC Canyon midsize trucks, Automotive News reported.

In a note to Wentzville, Missouri workers obtained by Automotive News, production of cutaway versions of the Chevrolet Express/GMC Savana, which are used for ambulances and moving trucks, could be moved to Indiana-based AM General. According to the report, about 30,000 cutaway vans will be made this year at GM’s Wentzville facility.

The available capacity will be used to build the Canyon/Colorado, which have outperformed expectations this year and sell like hell. (Read More…)