Michael Horn, President and CEO of Volkswagen Group of America, didn’t mince words last night during Volkswagen’s launch of the 2016 Passat midsize sedan, according to Automotive News.

At the vehicle launch in Brooklyn on Monday night, the executive said, “Our company was dishonest with the EPA, and the California Air Resources Board and with all of you. And in my German words: We have totally screwed up. We must fix the cars to prevent this from ever happening again and we have to make this right. This kind of behavior is totally inconsistent with our qualities.”

Volkswagen has opened themselves up to $18 billion in fines in the United States alone. Additional fines could be levied if the group’s 3.0-liter V-6 diesel engine is also found not to comply with EPA emissions regulations.

After Volkswagen admitted to gaming emissions tests with software containing a “defeat device”, German publication Der Tagesspiegel (via Jalopnik) is reporting that Volkswagen CEO Martin Winterkorn will be replaced at the end of the week by Porsche CEO Matthias Müller.

The German outlet — the name of which translates to “The Daily Mirror” — reportedly gained the information from “supervisory circles”.

Volkswagen has not yet confirmed the rumor.

Update 1: Reuters is reporting that a Volkswagen spokesman described the report as “ridiculous.” A spokesman for Porsche said Müller is at a Volkswagen board meeting today in Wolfsburg.

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Until now, the EPA’s investigation into NOx emissions has centered around Volkswagen’s four-cylinder diesel engines equipped in the Jetta, Golf, Golf/Jetta SportWagen, Beetle Coupe/Convertible, Passat and Audi A3. The EPA is now investigating the larger 3.0-liter diesel, used by Volkswagen, Audi, and Porsche, to see if it is compliant or affected by the same “defeat device”, says David Shepardson of the Detroit News.

The larger diesel mill is used in the Touareg, Audi A6/A7/A8/Q7, and Porsche Cayenne.

More as we have it.

Volkswagen announced Tuesday that it “plans to set aside a provision of some 6.5 billion EUR ($7.3 billion) recognized in the profit and loss statement in the third quarter of the current fiscal year,” but that the final number is subject to change as the emissions scandal unravels.

The automaker has also admitted that the software, which includes a “defeat device” to hide on-road NOx emissions, has been used on 11 million vehicles sold worldwide.

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The investigation that Volkswagen installed illegal “defeat devices” on its cars to cheat emissions tests will reach the U.S. Department of Justice, Bloomberg (via Automotive News) reported.

Sources within the department said they would investigate the automaker, but no details were given.

The Justice Department recently suspended prosecution of General Motors for covering up a faulty ignition switch that was linked to 124 deaths. It’s unclear what, if any charges, could be brought against Volkswagen for the illegal emissions, however the Justice Department charged GM with wire fraud violations in conjunction with its ignition switch coverup. Read More >

Volkswagen in Canada will suspend sales of its Volkswagen Passat, Golf, Jetta, Beetle and Audi A3 cars after the U.S. Environmental Protection Agency announced the engines in those cars had an illegal device that “cheated” emissions tests.

“We will work with our colleagues at Volkswagen of America as well as our parent company in Germany to resolve this matter in the most timely fashion,” Volkswagen Canada spokesman Thomas Tetzlaff said in a statement.

Audi Canada has also issued a stop-sale of the Audi A3 TDI, stated Audi Canada spokesman Cort Nielson. No details were available regarding Audi’s plan for continued availability of the A3 TDI.

VW hasn’t announced a timeline for fixing its cars and resuming sales. Over the weekend, VW’s CEO Martin Winterkorn apologized for the scandal.

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More than $17 billion has been erased Monday from Volkswagen’s value in shareholders’ eyes as the company awaits more fallout from news that the company cheated through emissions tests.

Volkswagen’s stock dropped more than 20 percent Monday after the German automaker announced it would stop sales of its diesel cars on Sunday. New CEO Martin Winterkorn issued a statement Sunday to apologize:

I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter.

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Back in July, TTAC reader Stephen told us that his recently ordered 2016 Audi A3 TDI was sitting at port for an unknown reason and his dealer and Audi couldn’t give him much of a reason why.

“(The cars) are being held at the port as they have not been cleared by Quality and Logistics to be released for port processing yet,” a distribution advocate for Audi wrote in July.

As weeks wore on, Stephen alerted us to the varied responses he received from Audi, which ranged from “quality review” to “government certification.” We reached out to Audi on his behalf and heard from a spokesman that the cars were sitting at port awaiting a certificate of compliance from the Environmental Protection Agency, despite being identical to 2015 models that had already been certified.  Read More >

This is hardly the most severe fallout from Volkswagen admitting that it installed “defeat devices” on some of its diesel models to help pass emission tests, but it’s the first of many.

Consumer Reports announced Friday that it was stripping the models of its “recommended” rating until recall repair work was complete on those cars. The publication had bestowed the ratings on Volkswagen’s Jetta TDI and Passat TDI models.

On Friday, the Environmental Protection Agency said it would force VW to recall nearly 500,000 diesel cars for the illegal “defeat device” that could detect when it was being tested for emissions and reduce nitrogen oxide emissions by 10 to 40 times beyond its normal operations. The EPA could fine VW up to $37,500 for each car that violates its standards, which could tally up to $18 billion in fines.

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The Environmental Protection Agency took the rare step of recalling more than 500,000 Volkswagen and Audi cars for using a “defeat device” to force the cars to comply with emissions standards, the New York Times reported.

The California Air Resources Board and EPA slammed the automaker for using the device that can detect when the car is being tested for emissions and implement full pollutant controls to curb nitrogen oxide emissions.

“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance, said in a statement. “Working closely with the California Air Resources Board, E.P.A. is committed to making sure that all automakers play by the same rules. E.P.A. will continue to investigate these very serious violations.”

Last month, TTAC reader Stephen reported that his newly ordered 2016 Audi A3 TDI was being held at port for months for months for an EPA hold. We reached out to Audi, and they reported the same, directing us to the EPA who reported that the cars had not yet received a Certificate of Compliance. Read More >

Hyundai’s compact model, the Elantra, will arrive with the brand’s newly adopted trapezoidal grille, new engines and a number of enhancements to improve perceived quality.

The automaker, who looked at the Dodge Dart and said, “Yeah, that looks good but needs more grille,” revealed the sixth-generation Elantra on Wednesday in South Korea.

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Honda won’t import its tiny S660 convertible to the United States because we are a nation of giant people who drive giant cars, Automotive News is reporting.

John Mendel, executive vice president for Honda, said three weeks ago that the S660 could bring some “spice” to the American Honda lineup, but apparently he looked at a nearby parking lot and changed his mind.

“When the practicalities of the market come in, and the car only so big, that might not be the best car for the U.S. market,” Mendel told Automotive News. “It might be better for India or China or somewhere else.” Read More >

Cadillac CEO Johan de Nysschen said future Cadillac cars in the U.S. will have diesel powertrains, Automotive News is reporting (via Autoblog).

De Nysschen told journalists that oil burners would make their way to the States after they’re launched in Europe, presumably around 2019. He said engineers at Cadillac were working on 4- and 6-cylinder models, but wouldn’t specify what cars those engines would power.

Audi, BMW and Mercedes offer diesel power plants in their compact or mid-size sedans that would compete with the theoretical Cadillac.

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When the 2016 Chevrolet Colorado and GMC Canyon start arriving at dealer lots this fall, they’ll be sporting more than an additional diesel option under the hood. Monroney stickers will be afflicted with much higher prices to the tune of $3,730 more than an equally equipped V-6 model.

However, you will get increased towing capability thanks to a standard towing package, improved fuel efficiency, and a diesel engine brake to minimize wear on brake components.

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The ninth-generation 2017 Audi A4 will sport a diesel engine for the first time in the U.S., Motor Authority is reporting.

When the sedan launches next March, the 2.0-liter turbocharged oil burner will make 190 horsepower and 236 pound-feet of twist. That’s on top of the 2.0-liter turbocharged gasoline engine that’ll make 252 hp and 273 lb-ft.

But that may not be the best part.

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