“This is a life-saving endeavor,” Rep. Fred Upton, R-Mich., said according to Reuters (via Automotive News). Trading pollution for safety, “incentivizes automakers to invest in new safety technology that will save more lives.”
The plan would relax future carbon dioxide requirements up to 9 percent in cars with advanced safety systems. An automotive lobby group said reducing crashes would reduce CO2 emissions.
Volkswagen of America CEO Michael Horn testified to a congressional committee Thursday that he wasn’t aware until last month of the illegal “defeat device” installed on nearly 500,000 cars in the U.S. — approximately 11 million worldwide — and that the car company could take several years to fix its cars.
Horn testified in front of the U.S. House Energy and Commerce’s subcommittee for oversight and investigations for more than two hours.
“I would like to offer a sincere apology for Volkswagen’s use of a software program that served to defeat the regular emissions testing regime,” Horn said in a prepared response before answering questions from representatives.
In a prepared statement released ahead of congressional testimony Thursday, Volkswagen of America CEO Michael Horn said the automaker knew of emissions issues last spring when West Virginia University researchers published findings that the automaker’s cars were illegally polluting. (Emphasis mine.)
In the spring of 2014 when the West Virginia University study was published, I was told that there was a possible emissions non-compliance that could be remedied. 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.
(Should have followed up a little more on that email, probably.)
Two sources have told Reuters that the government will levy a $900 million fine on General Motors for its failure to recall and subsequent attempts to cover-up of faulty ignition switches linked to at least 124 deaths.
Criminal charges will be filed against GM for its role in hiding the defect from regulators, but will defer prosecution while the automaker complies with its penalty. The agreement is expected to be announced Thursday.
The massive fine is smaller than the $1.2 billion Toyota paid in March 2014 for its role in concealing that its cars could accelerate suddenly. Read More >
California electric vehicle drivers may pay $100 more in registration fees each year under a proposed bill that aims to raise $3.6 billion each year through gas taxes and fees that would repair and maintain California’s roads, according to the Associated Press (via Autoblog).
“The recall situation for the U.S. auto industry is a black eye. It is a dysfunctional nightmare that the industry should be ashamed of, and customers are right to be angry and confused,” Jackson told Automotive News. “As part of the industry, we have to hold a mirror up and say, ‘What can we do better as a company?'”
Last week, Bloomberg Business profiled the one woman who may have more influence in the automaking universe for the next decade than any other person on the planet.
California Air Resources Board Chairwoman Mary Nichols’ story about running the nation’s most stringent air quality standards board is compelling, fascinating and terrifying — if you’re an automaker.
The state’s ambitious goal of reducing greenhouse gases 80 percent by 2050 is met by an equally ambitious — and onerous — goal for automakers: don’t sell new cars with internal combustion engines in California by 2030.
Fiat Chrysler Automobile dealers won’t be able to sell cars without recall repair work or they risk losing their incentive money under a new agreement with the federal government, Automotive News is reporting.
The agreement was part of the sweeping package penalties imposed by the National Highway Traffic Safety Administration, including up to $105 million in fines. According to the consent agreement by the federal bureau and FCA, the company already asks dealers to complete recall work, but the new mandate would reinforce that existing policy.
A U.S. Senate committee for transportation passed along a bill Thursday that included provisions to help domestic automakers develop and build cleaner vehicles, the Detroit News is reporting.
The proposal, dubbed the Vehicle Innovation Act, was included in a larger clean energy bill taken up by the committee. The Vehicle Innovation Act would set aside $313.6 million next year for research and development of hybrid technology, battery development and alternative fuels such as natural gas. Funding would increase by 4 percent every year up to 2020.
Nearly all major U.S. automotive lobbies representing manufacturers supported the proposal. Read More >
In an order detailing the largest civil penalty for an automaker so far, the National Highway Traffic Safety Administration said Monday that Fiat Chrysler Automobiles could have to buy back 500,000 defective trucks and accept trade-in above market value for 1 million defective Jeeps .
The automaker’s record $105 million fine includes a $70 million penalty, $20 million set aside for meeting safety standards dictated by the federal bureau and an additional $15 million in penalties if an independent monitor discovers further safety violations.
U.S. rental cars will need to comply with open recalls before being driven off the lots, a U.S. Senate panel decided Wednesday, according to Bloomberg.
Jalopnik has an interesting story today about how General Motors negotiated its way into recalling 200,000 Hummers only after the National Highway Traffic Safety Administration threatened to launch a formal investigation.
Last week, Hummer recalled nearly 200,000 SUVs due to an increased fire risk because of a faulty HVAC harness that could melt and catch fire.
GM knew about the problem in 2008, Jalopnik writes, and did nothing until issuing a recall this July.
Car dealerships may be forced to pay some of their employees more under new overtime rules proposed by President Barack Obama, Automotive News is reporting.
The proposed overhaul for employees who make less than $50,000 a year could impact dealers who make a significant portion of their earnings from salary, rather than commission.
The suggested overtime rules would apply to roughly 40 percent of the American workforce, rather than the 8 percent the current rules apply to now. The Department of Labor estimates more than 5 million workers would be covered by the new rules.
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