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By
Aaron Cole on October 26, 2015
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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By
Mark Stevenson on October 25, 2015

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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By
Aaron Cole on October 23, 2015

According to Kelley Blue Book, auction prices for Volkswagen’s diesels cars are dropping faster than similar models that are powered by gasoline.
According to auction data gathered before and after news broke that Volkswagen had admitted to federal investigators that their cars illegally polluted, prices for Volkswagen diesel cars dropped 16 percent. Prices for Volkswagen gasoline cars only dipped 2.9 percent over the same period.
According to the car industry site, interest on the Volkswagen diesel models has only declined 2.4 percent.
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By
Aaron Cole on October 22, 2015
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 >
By
Aaron Cole on October 21, 2015
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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By
Aaron Cole on October 19, 2015

Because a lot of Uber riders are 7-Series buyers (maybe), BMW said Monday that it would make available its newest sedan for selected rides in Los Angeles, New York, Miami and Chicago before the sedan goes on sale to the public.
The drives will be offered by BMW product specialists, according to the company. Riders can request 7 Series cars by entering a promotional code for their respective city; i.e. for New York, riders need to enter “7seriesnyc” into the Uber app.
(Do the Uber riders still have to pay the fare? Update: According to a BMW spokeswoman, they do not.)
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By
Aaron Cole on October 19, 2015

Weeks after European Audi owners could look to see if their cars were affected by the Volkswagen cheating scandal, Volkswagen of America added a VIN lookup to its diesel scandal site (which is buried by Google) for U.S. owners, Auto Guide reported.
The service redirects to Volkswagen’s recall site, where owners can enter their vehicle’s VIN. During congressional testimony Oct. 8, VW of America chief Michael Horn admitted that the U.S. site didn’t include the VIN tool and agreed with representatives who said it would be a “good idea” to include that for American customers.
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By
Aaron Cole on October 19, 2015
Reuters reported that sources within Volkswagen and its ongoing investigation have said the automaker created multiple versions of its “defeat device” to cheat emissions tests.
The news agency said a manager within Volkswagen and an official close to the external investigation ordered by the automaker have revealed the multiple programs, which were developed for four different engine types.
If true, the multiple emissions programs could indicate a widespread cheating program — stretching nearly a decade — that could have needed funding to continue, which would be in stark contrast to the “rogue engineer” explanation offered by executives so far.
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By
Aaron Cole on October 18, 2015
An investor and analyst argued in column that appears in the New Yorker that Volkswagen engineers may have rationalized illegal behavior by incrementally cheating up to the infamous levels uncovered by researchers last year.
Using the catastrophic failure of the space shuttle Challenger as an example, Paul Kedrosky wrote that “normalization of deviance” could have led Volkswagen engineers to systemically cheat on emissions in the same way engineers rationalized colder and colder launches for the space shuttle until it finally disintegrated in 1986 because of failed, cold o-rings.
It’s more likely that the scandal is the product of an engineering organization that evolved its technologies in a way that subtly and stealthily, even organically, subverted the rules.
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By
Aaron Cole on October 17, 2015

Volkswagen will bring the next-generatrion Golf Cabrio to the U.S., the first time since 2002, Car and Driver reported.
The next-generation convertible will be based on the Mark VII Golf and arrive sometime in 2017, according to the report. The Golf Cabrio fill the gap left by the Eos when that ends production — eventually.
The Golf Cabrio has been on sale in other markets, but has been absent from the U.S. lineup for more than a decade. The Golf Cabrio can be equipped with four different gasoline engines and two different diesel options worldwide, although the diesel option probably won’t be making an appearance.
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By
Aaron Cole on October 16, 2015
Volkswagen announced Friday that Christine Hohmann-Dennhardt would join the embattled automaker from a similar post at Daimler after receiving approval from that automaker’s board of directors.
The Daimler board member and former judge will join Volkswagen on its Board for Integrity and Legal Affairs to help the automaker clean up its severely tarnished image after it admitted it had cheated emissions tests on more than 11 million cars worldwide. From Daimler:
In the interests of the Good Corporate Governance of the German automotive industry, the Chairman of the Supervisory Board of Daimler AG has agreed to this request after consultation with the Presidential Committee of the Supervisory Board, after Compliance is anchored firmly at Daimler and its corporate culture.
(Emphasis mine on the sick, corporate burn.)
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By
Mark Stevenson on October 15, 2015

Volkswagen Group will recall 8.5 million vehicles in the European Union’s 28 member states, including the 2.4 million vehicles it is already being forced to recall by the KBA, Germany’s transportation authority, the automaker announced Thursday.
Vehicles from the Volkswagen, Audi, Seat and Skoda brands are included in the recall. The latest EA 288 diesel engine is not part of the recall.
Volkswagen said it will begin to rollout fixes in January 2016.
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By
Aaron Cole on October 15, 2015
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 >
By
Aaron Cole on October 15, 2015

German transportation authority KBA on Thursday ordered the mandatory recall of 2.4 million Volkswagen cars with illegally polluting diesel engines, in part, because the German automaker’s proposed timetable wasn’t fast enough, Automotive News reported.
The forced recall will mean Volkswagen would likely spend more to fix its cars faster and German officials have told the automaker to submit a proposed fix by the end of November. Volkswagen initially planned for a voluntary recall to begin next year.
Authorities in Switzerland and Austria followed Germany and announced the forced recall would apply to those cars too, Bloomberg reported.
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By
Aaron Cole on October 14, 2015
Daimler announced Wednesday that it would help Germany’s growing refugee crisis by offering “bridge internships” to 40 people along with German classes, transportation for aid organizations and food donations.
The company would put to work some refugees who have flooded the country to escape violence in nearby Middle Eastern countries. In all, Daimler announced it would put to work “several hundred” refugees after a 14-week course in helping them to learn the nation’s language and construction practices.
Daimler joins Audi in offering help to refugees in Germany, after that automaker announced this summer that it would donate €1 million ($1.1 million) to aid organizations.
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