Massachusetts Sen. Edward Markey on Thursday sent a letter to the National Highway Traffic Safety Administration asking the agency to re-evaluate millions of fuel economy credits awarded to the automaker by the agency for cheating diesel cars.

The letter, which was addressed to Administrator Mark Rosekind, outlined the automaker’s exceedingly fuel efficient fleet average from 2008, which now could be in jeopardy after the automaker admitted it cheated emissions tests and could impact those cars’ mileage. Read More >

Volkswagen will still invest $900 million in its Chattanooga, Tennessee plant despite company-wide cost cutting from its diesel disaster, the automaker announced Thursday.

The company had long planned on a mid-size, three-row SUV to compete in the U.S.. However, those plans were upended when the Environmental Protection Agency announced in September that Volkswagen’s diesels had been illegally polluting, and the company shed billions from its value in following days.

The three-row SUV, which may follow closely Volkswagen’s CrossBlue Concept, was announced last year for the Tennessee plant. Volkswagen said it would begin building the SUV at the end of 2016. Read More >

Porsche announced Tuesday its Macan GTS crossover; a harder, faster version of its Macan S, but without encroaching too far on the Macan Turbo.

The twin-turbocharged 3-liter V-6 boosts output from 340 horsepower in the Macan S to 360 horsepower in the Macan GTS, and 30 more foot-pounds of twist from 339 to 369 pounds-feet of torque. The difference is nominal; Porsche says the Macan GTS will run up to 60 mph in 5 seconds, 0.2 seconds quicker than a Macan S.

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Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

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Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.

The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars. Read More >

Volkswagen will post Wednesday its first quarterly loss in 15 years after the automaker was rocked this summer with a scandal that affected 11 million vehicles and cost the company tens of billions of dollars in lost value already.

Bloomberg (via Automotive News) reported that 10 analysts estimated that the company would post a $3.6 billion loss for the quarter ending Sept. 30.

Although the company said it reserved more than $7 billion to help pay for the scandal, many agree that the loss will be far greater — from $16 billion to $86 billion.

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Investigators at Volkswagen are not only looking for the culprits who installed illegal emissions cheating software into their cars, but they’re also looking for managers who didn’t immediately report the devices as well, the New York Times reported.

Up to 10 managers and engineers could be suspended by the automaker for the scandal so far, including top-level executives.

According to the New York Times, investigators have been keen to learn who knew what within the automaker, and how quickly those findings were reported.

The investigation by U.S. firm Jones Day could take months, according to the report. A person who was briefed on the inquiry told the newspaper what investigators were looking for.

Volkswagen of America CEO Michael Horn told congressional investigators he was made aware of a potential problem in the spring of 2014, but wasn’t aware of illegal software until Sept. 2015.

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Volkswagen may discount new car purchases for diesel car owners trading in their illegally polluting cars, German news agency DPA (via Reuters) reported.

The discount would apply to older 1.6-liter models, according to the report, which would need more significant fixes than many other cars. According to Reuters, roughly 2.4 million cars in Germany are affected by the diesel scandal that has cost the automaker billions so far.

In America, more than 350,000 diesel cars would need significant fixes, according to Volkswagen of America chief Michael Horn. In the States and Canada, Volkswagen offers a “loyalty discount” to returning Volkswagen buyers. So far, the diesel discount only applies to cars in Germany.

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Honda Europe announced Monday their engine lineup for the new, 10th-generation Honda Civic, and it’s completely different than the engines we will get in North America.

The Civic will once again be a global product with the same architecture and design employed in both North America and Europe. Under the hood though, the compact will be powered by 1-liter and 1.5-liter VTEC turbo engines on the Old Continent. In North America, we get the choice of a new 1.5-liter turbo engine — which is different from the one in Europe — or the legendary K20 2-liter naturally aspirated four cylinder.

However, with automakers downsizing their engines across all products, could that European 1-liter turbo three-cylinder engine end up in our Honda Fit?

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Thomas Sedran, former interim head of Opel and General Motors’ European chief for Cadillac and Chevrolet brands, will join embattled automaker Volkswagen as head of group strategy, according to the automaker.

Sedran was head of Opel in 2012 when that automaker shuttered a plant in Bochum, Germany. Sedran was president and managing director of Cadillac and Chevrolet brands in Europe until June, when he joined global consulting firm Accenture.

According to Volkswagen, Sedran will take over Nov. 1 and report directly to new CEO Matthias Müller.

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German business magazine Manager Magazin reported Saturday (via Reuters) that managerial promotions may be frozen beginning next year as the company looks to save money wherever it can amid the diesel scandal.

The company may also re-use as many parts possible when developing the eighth-generation Volkswagen Golf in order to cut costs.

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Volkswagen said Thursday that early versions of its EA 288 engines could have been equipped with the illegal emissions software at the heart of its diesel scandal, Reuters reported (via Automotive News).

The revelation would largely affect European cars, and could potentially expand the list of 11 million cars Volkswagen will be forced to recall this year.

U.S. cars using the “Generation 3” engine, which include 2015 models of the Volkswagen Golf, Jetta, Beetle and Passat and Audi A3, were already included in the stop-sale and notification by the Environmental Protection Agency. Read More >

Fiat Chrysler Automobiles chief Sergio Marchionne rang the opening bell Wednesday for Ferrari’s first day of trading on the New York Stock Exchange and shares of the supercar maker soared.

The stock, which was up as high as $60 per share, leveled off around $57 in mid-day trading.

“This is not really a car, it’s a unique expression of art and technology,” Marchionne told Bloomberg.

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Volkswagen has suspended its chief of quality control for “incriminating correspondence” it found regarding its illegally polluting diesel cars, German newspaper Bild (via Automotive News) reported Wednesday. Tuch was suspended last week, according to the Wall Street Journal.

Frank Tuch is the fifth high-ranking official suspended from Volkswagen because of the scandal. According to reports, Tuch wasn’t part of the company when it developed the EA 189 engines that have become the center of the cheating scandal. The former Lotus COO and Porsche quality control officer may have known about the illegal software after he joined the company in 2010.

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According to The Truth About Cars’ stock exchange bureau chief, Ferrari is good and Tesla is bad today.*

Tesla shares have dropped 10 percent on news today that Consumer Reports would pull its “Recommended” rating from the Model S because of concerns about the car’s reliability. That’s bad.

Also, initial shares of supercar-maker Ferrari may be going for more than expected due to the stock’s appeal on office walls and potential value people may find in owning another Ferrari-branded item beyond overpriced shirts.  Read More >