Volkswagen CEO Matthias Müller told German authorities that the company would begin recalling cars in Europe in January and that fixes those cars take roughly one year to complete, Automotive News reported.

Müller told German newspaper Frankfurter Allgemeine Zeitung that the company found 9.5 million affected cars, not 11 million, that would need to be fixed. Müller didn’t specify what the fixes for cars would be, but said that the company was preparing “thousands” of solutions for its cars that cheated emission tests. Müller said the company would replace cars in certain circumstances.

It’s unclear when recalls for the 482,000 cars in the U.S. would start.

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A Volkswagen of America spokesman said Tuesday that electric, plug-in hybrid and hybrid cars would be a “key part” of the automaker’s research and development strategy after CEO Matthias Müller told 20,000 workers in Wolfsburg that it would postpone or cancel other projects that weren’t critical to sales.

“Electrification, whether full EV, PHEV, or HEV, is a key part of our strategy long term in order to meet worldwide (greenhouse gas) targets,” a Volkswagen spokesman told TTAC on Tuesday.

In 2014, Volkswagen spent $13.5 billion on research and development — more than any other company in all sectors. However, that budget could be severely restricted as the automaker prepares to pay billions for software that cheated emissions tests.

Volkswagen could be looking for ways to not repeat history, when a 1960s lawsuit from Tatra crippled development well into the 1980s.

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United Auto Workers at a Kokomo, Indiana plant have given notice to Fiat Chrysler Automobiles that it would strike Wednesday night, Automotive News reported. The notice is reportedly being used at other plants.

The automaker acknowledged the notification via a statement released Tuesday:

FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement.

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Subaru in Japan released Tuesday details on its face-lifted Forester, which will likely make its way to the States for 2017.

The slightly revised Forester sports an updated fascia, additional safety tech, improved interior materials, and two trim packages that may make the ride over. The Forester S-Limited and X-Break trims will be available in Japan, including the X-Break’s wild-ass* Quartz Blue Pearl, Tangerine Orange Pearl and Desert Khaki colors, lifted from the Crosstrek/Impreza/WRX.

A spokesman for Subaru in America didn’t comment on whether the cars would make their way to the U.S. (They probably will.)

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Morgan Stanley analyst Adam Jonas issued a lower target for Tesla on Wednesday, saying the automaker’s SUV price tag is too hefty for the carmaker to meet its production volume goal for 2016.

Jonas wrote that the $130,000 SUV is just too pricey (via Business Insider):

Even allowing the Model X (average transaction price) to decline over time through the introduction of lower-spec models leaves what we believe to be a higher-priced vehicle than we expected that may struggle to meet the volume expectations of the market and our forecasts.

If you remember correctly, Jonas was the analyst that called for Tesla’s stock to effectively double because he had a good idea for the automaker, which he said was the world’s most important.

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Speaking to roughly 20,000 employees in Wolfsburg on Tuesday, new Volkswagen CEO Matthias Müller outlined the big-picture view for the weeks, months and years ahead. (It’s not good, if you’re wondering.)

Anything that is not absolutely necessary will be cancelled or postponed. And it is why we will be intensifying the efficiency program. To be perfectly frank: this will not be a painless process.

The automaker plans “massive cutbacks” according to Reuters, but Müller stopped short of outlining specifics to slow production or lay off workers. The 62-year-old CEO told workers that the company hasn’t calculated the final toll lying about pollution levels in 11 million cars would take on the company.

… while the technical solutions to these problems are imminent, it is not possible to quantify the commercial and financial implications at present.

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According to Reuters, Volkswagen may have suspended engineers — including top engineers for Audi, Volkswagen and Porsche — without any evidence.

According to the report, more than 10 engineers were suspended in the fallout after it became clear the automaker cheated its way through emissions tests in the U.S. and Europe. It’s not clear if the suspended engineers would be reinstated at the company.

Reuters reported that VW’s internal investigation revealed that the illegal “defeat devices” began appearing in cars around 2008 after engineers discovered that their engine, which was costly to produce, wouldn’t pass emissions tests.

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Interbrand’s annual survey of Top 100 Brands lists Toyota as the most valuable car company (No. 6) with BMW and Mercedes-Benz the next most-valuable brands at Nos. 11 and 12, respectively. Volkswagen’s brand declined 9 percent, according to the survey, down to No. 35.

Mini entered the list for the first time at No. 98. Nissan was among the list’s significant gainers, gaining 19 percent and moving up to No. 49 on the list.

Apple was listed No. 1, ahead of Google and Coca-Cola. Apple’s brand value was estimated by the survey at $170 million.

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Nissan announced Monday that it would show in Tokyo a concept car that would be electric, charge devices and make all the kids search for it on TheInternet.web when they get home from school.

The Teatro for Dayz appears to be a Cube-ish subcompact, powered by electrons for some humans that Nissan’s marketing team are calling “share natives.” Nissan didn’t detail the car’s specifications, other than some pie-in-the-sky functions such as web cameras, LED displays on the outside and illuminated displays for something.

Interestingly, the car sports a steering wheel, pedals and won’t be autonomous, which suggests that some of the car could be rooted in reality. The EV boasts a “short range,” according to the automaker, and could actually be something that makes it on to the roads some day — hopefully without that name.

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Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.

The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.

The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.

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Next year, Volvo said it would make available in Sweden 100 autonomous driving XC90s that will be capable of driving themselves on roughly 50 kilometers (31 miles) of roads near Gothenburg.

The technology, which is dubbed IntelliSafe Auto Pilot, adds self-driving to technology already available in its cars; under 30 mph Auto Pilot will drive an XC90 as long as it senses a hand on the steering wheel.

According to the automaker, the car will notify the driver if it enters a stretch of road where it can drive itself. The driver would need to pull both steering wheel-mounted paddles to engage the autonomous driving features. When the car is about to leave self-driving roads, it alerts the driver that they have one minute to regain control of the car or the XC90 will come to a stop.

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A late-night deal reached between Ford and Kansas City, Missouri auto workers averted a strike over the weekend.

United Auto Workers Vice President Jimmy Settles in a letter to workers said negotiators reached an agreement late Friday night.

As you know, earlier this week, I gave Ford Motor Company 120-hour notice of our intention to strike at the Kansas City facility if a tentative agreement for their local contract could not be reached. Thankfully, with this evenings (sic) announcement, that action has been averted.

The UAW hasn’t yet announced if it will shift its focus to negotiations with Ford after a majority of Fiat Chrysler Automobiles union workers rejected their proposed deal with the automaker.  (Read More…)

A researcher from Leeds University says that at least four other automakers’ cars are polluting above the legal limits for Europe, including Ford, BMW, Mazda and Mercedes-Benz, the Daily Mail reported.

James Tate, a researcher and lecturer at the university measured over 300 new cars to comply with new Euro 6 diesel emissions standards. According to Tate, Mazda’s diesel engines, on average, emitted more than six times the European limit for nitrogen oxide emissions in new cars. Ford’s cars may have polluted more, but Tate said the automaker’s sample size was too small to tell.

According to the report, Tate used a roadside sniffer for testing in the UK, similar to ones used in the United States.

“This research shows that building cars so they perform well in laboratory emissions tests but emit high amounts of NOx in real urban driving is an endemic practice across the industry,” Tate said, according to the Daily Mail. “There is very little known about how the manufacturers conduct their tests because they take place behind closed doors.”

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A possible partnership deal between North American countries and Pacific countries may include provisions to penalize Asian governments for not opening up their markets enough for U.S. automakers, Bloomberg reported.

According to the report, negotiators are close to concluding talks regarding automobiles, which has been a contentious point during the talks. The CBC reported that talks in Atlanta were at a critical stage over pharmaceutical drugs, and any eventual deal may be delayed by an upcoming G20 meeting in Turkey.

Talks regarding automobiles have been focused on sourcing local content for each car. North American Free Trade Association rules mandate that cars made within the zone have 62.5 percent of its content sourced within the zone. Asian manufacturers have pressed for lower standards for sourced content in a bid for reduced manufacturing costs.

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Lexus announced Friday that its RC coupe would get the turbo four treatment for 2016, following the NX, GS, IS and RX Toyota’s eventual march toward smaller-displacement, boosted engines for many of its sedans and coupes.

According to the automaker, the 2-liter turbocharged four-cylinder engine, which produces 241 horsepower, will be available in the coupe with an eight-speed automatic with rear-wheel drive only. It will join three other engines available in the RC.

The all-wheel drive RC300 will come equipped with a 3.5-liter V-6 that makes 255 horsepower mated to a six-speed automatic, a rear-wheel drive RC350 with a 3.5-liter V-6 that makes 306 horsepower married to an eight-speed automatic, and a 468-horsepower 5-liter V-8 in the RC-F and how many engines does Toyota have on its shelves?

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