The Federal Trade Commission will join the U.S. Department of Justice and the Environmental Protection Agency in investigating claims that Volkswagen cheated consumers and regulators with bogus emissions claims of its diesel cars, Politico reported (via Bloomberg).

The FTC’s inquiry will focus on whether the German automaker lied to consumers about “clean diesel” claims in its advertisements when, in fact, the cars were engineered to deceive emissions tests.

The FTC, Justice Department and EPA’s investigations also joins an investigation by the U.S. Senate Finance committee on whether the automaker illegally obtained $50 million in federal subsidies through car buyers who purchased its cars and received the lean-burn technology motor vehicle credit.   Read More >

German magazine Der Spiegel reported Wednesday that at least 30 Volkswagen insiders and managers had knowledge of the illegal “defeat device” and there may be more.

The claim would somewhat refute to what Volkswagen of America chief Michael Horn testified in front of a congressional subcommittee last week when he told representatives that “a couple of software engineers” at Volkswagen in Germany were responsible for the the scandal that has cost the company billions of dollars.

Volkswagen hired U.S. firm Jones Day to conduct an external investigation while the company inquires internally how engineers installed software on 11 million diesel cars that would cheat emissions tests.

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Volkswagen in Germany announced Tuesday that its diesel cars on sale in Europe and the U.S. would be fitted with an emissions-scrubbing urea tank instead of a lean nitrogen-oxide trap and the automaker would develop further its all-electric vehicles, starting with the Phaeton.

“The Volkswagen brand is repositioning itself for the future. We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program,” Volkswagen passenger cars board chairman Herbert Diess said in a statement.

The automaker announced it would trim €1 billion ($1.1 billion) from current projects, but didn’t specify what three-row SUVs those projects would be.  Read More >

Volkswagen’s chief in the United Kingdom told representatives Monday that cars in that country likely wouldn’t need expensive urea tanks retrofitted to those cars to comply with emissions standards, AutoCar reported.

Volkswagen UK managing director Paul Willis told members of parliament that most of the 1.2 million cars in that country fitted with illegal “defeat devices” to cheat emissions tests would only need a software fix and not an additional urea tank that is widely believed to be needed in U.S. cars. About 400,000 cars would need a fuel injector replacement instead of the costly tank.

It’s likely that many of the cheating Volkswagens in the U.S. would need all or a combination of three fixes — software update, fuel injectors and a urea tank — to bring those cars into compliance.

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While Honda has traditionally been a company of engineers pushing the boundaries of their know how, the 1.5-liter turbocharged engine in the 10th generation Civic almost didn’t happen for 2016 due to some reluctance within the company, reported Automotive News on Sunday.

The new mill was initially slated to be offered as part of a mid-cycle refresh in 2017 or 2018 (possibly for the 2018 or 2019 model years), but with the Civic getting such a thorough overhaul, key people involved in the Civic project made a case for the turbo engine to be offered earlier.

“The thinking was that the new Civic needs this engine to go where we want it to go, to make this model such a leapfrog event, such a strong competitor, not just in North America but around the world,” Gary Evert, the Civic’s chief engineer and North American development leader, told AN.

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As Opel begins its retail roll out of the new Astra across Europe, some enterprising spy shooters have found the Opel’s Chinese-market twin wearing Buick tri-shields and Verano GS badging.

And holy shit, this is about to get very, very confusing.

According to Autohome, the Verano GS — marketed as Buick Weilang GS in China — is expected to be revealed at the Guangzhou Auto Show with GM’s 169 horsepower, 1.5-liter turbocharged engine and 7-speed dual-clutch automatic transmission. The same engine will be used in North America in the new Malibu, albeit with a six-speed automatic transmission.

Now before you get too excited about those GS badges, it may not mean what you think it means, at least in this case.

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Update: Official statement from EPA.

During his voluntary testimony for a congressional committee Thursday, Volkswagen of America CEO Michael Horn announced the company would withdraw their application for emissions certification for 2016 model year Volkswagens powered by 2-liter diesel engines.

However, the reason for that withdrawal is not directly related to the “defeat device” that’s been at the center of the ongoing diesel controversy.

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Volkswagen of America CEO Michael Horn told a congressional committee Thursday that the fixed diesel cars would achieve the fuel economy figures advertised on the cars when they were purchased as new.

“We know we can fix these vehicles to achieve emissions standards,” Horn said.

Horn said that performance such as horsepower and torque for the cars could be impacted, but by keeping those cars at or above advertised mileage, the carmaker could mitigate damage brought by forthcoming class-action and federal lawsuits.  Read More >

The Ministry of the Environment and Climate Change in Ontario, Canada, has launched an official investigation into Volkswagen Canada and Audi Canada regarding their roles in the ongoing diesel emissions scandal that affects some 35,000 vehicles in the province, the ministry announced Wednesday.

The investigation is related to possible violations under Ontario’s Environmental Protection Act that prohibits the sale of vehicles that do not meet emissions standards.

(But, why is there a picture of a Chevrolet Silverado painted in army green at the top? Hold on. We’ll get there.)

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A former federal official and the Environmental Protection Agency said that German supplier Bosch didn’t supply Volkswagen — or other automakers — with cheating software, implying that Volkswagen engineers acted alone in deceiving emission tests, Reuters reported (via Automotive News).

According to the report, Bosch supplies the engine control management unit for most four-cylinder diesel passenger cars, including Mercedes-Benz, BMW and others. Both BMW and Mercedes have said their cars do not have software that cheats emission tests.

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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.

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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.

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Volkswagen lobbied hard in 2011 to receive the same — or higher — clean vehicle credits as electric cars, the New York Times reported Wednesday.

“They wanted a special deal for diesel cars that we now know weren’t even meeting the standard,” Margo Oge, a former director of the E.P.A. Office of Transportation and Air Quality, told the New York Times.

The LA Times reported that roughly $51 million in credits was paid by taxpayers in 2009 for diesel cars that lied about mileage and emissions — essentially a cheap bar trick.

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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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