China and Germany signed a collection of commercial accords valued at $23.5 billion this week. Meanwhile, the nations’ leaders publicly affirmed their commitment to a multilateral global trade order, while the United States adopts a more protectionist policy.

“We both want to sustain the system of World Trade Organization rules,” German Chancellor Angela Merkel said during a press conference. Chinese Premier Li Keqiang, also present, agreed and stated protectionism must be prevented for the good of the global economy.

Chinese President Xi Jinping has already pleaded for governments to maintain an open trading policy. “We reject selfish, shortsighted, closed, narrow policies, [we] uphold World Trade Organisation rules, support a multi-lateral trade system, and building an open world economy,” Xi said in an incredibly hypocritical speech from last month.  Read More >

It’s open season on compression ignition vehicles in the Fatherland. The birthplace of the diesel engine now says German cities can implement diesel driving bans whenever, and wherever, they want.

The Friday ruling by the country’s top court comes after a lawsuit against Germany and four other European Union member states by the EU, the result of higher-than-allowed air pollution levels in numerous urban areas.

“Thanks, dad,” the country’s auto industry must be thinking. Read More >

The auto industry has become so unconventional, so bizarro world, that I became momentarily confused after reading a report that Porsche has a Panamera coupe in development.

Automakers don’t develop new coupes. They develop slightly more curvaceous versions of four-door crossovers and SUVs and call them coupes, but they’re certainly not coupes. Thus, I found myself picturing a curvaceous four-door liftback version of a curvaceous four-door liftback. Reality bent and flexed around me and the universe crumbled.

That’s apparently what Porsche is up to, though, and it’s looking like the two-door version of the Panamera — if built — will serve as a spiritual successor to the long departed 928. Read More >

Jörg Kerner, Porsche’s head of powertrain development, has reportedly been arrested by German authorities for playing an alleged role in Volkswagen Group’s diesel emissions scandal.

Kerner, who sources say is being held on remand due to the potential of being a flight risk, was appointed director of Porsche’s powertrain development division in October 2011. Before that, Kerner worked for supplier Robert Bosch GmbH from 1986 to 2004, after which he oversaw development of engine electronics and software for Audi.  Read More >

The investigative parade continues in Germany. Prosecutors investigating Volkswagen Group’s diesel-emissions scandal have now turned their attention to Porsche. Roughly 10 facilities owned by the automaker in Bavaria and Baden-Wuerttemberg were searched by around 160 investigators.

Stuttgart-based prosecutors claimed to be interested in three specific individuals suspected of fraud and fraudulent advertising as it relates to the manipulated emissions-control systems of diesel passenger cars. The office clarified that Porsche CEO Oliver Blume was not among them, however.  Read More >

While companies are often found guilty of sketchy and illicit behavior, it’s becoming increasingly difficult not to feel some measure of sympathy for German automakers. The same goes for the government officials whose job it is to repeatedly raid the homes and offices of people employed by those manufacturers. Once gain, German prosecutors have searched both Volkswagen and BMW over diesel-related shenanigans.

Volkswagen saw 13 of its offices raided in Wolfsburg throughout the month of March. Braunschweig-based authorities seized physical and digital files in the hopes of catching the automaker in a lie from 2015. At the time, VW claimed an in-house investigation found it had understated fuel consumption and carbon dioxide emissions on no more than 36,000 vehicles. Considering the diesel emissions scandal affected far more vehicle than this, as well as the company’s much higher earlier estimate, prosecutors hope to catch the company out.

Meanwhile, BMW saw its facilities searched over suspicions that it employed a defeat device to circumvent diesel emission testing. The automaker said authorities were looking into “erroneously allocated” software on the BMW 750d and BMW M550d.  Read More >

As sometimes happens, there’s a war brewing in the heart of Europe. This one isn’t like the others, though — instead of nation versus nation, it’s a case of lawmakers versus privately owned vehicles, primarily those of the diesel persuasion.

So eager are some city governments to ban the operation of diesel-powered cars and trucks in or near urban centers, BMW Group has taken the unusual step of issuing a promise. In a bid to allay fears of new (or newish) vehicles becoming useless to their owners, the automaker claims it will let German lessees return their diesel vehicles and switch to a gas-powered model.

Don’t worry about the government, BMW wants its customers to know. Just enjoy that compression ignition engine while you can. Read More >

Despite a multi-billion-dollar emissions scandal, a massive corporate black eye, and all signs pointing towards a future devoid of diesel passenger cars, Volkswagen Group CEO Matthias Müller isn’t willing to let go of the past.

While addressing media at the the Geneva Motor Show, the VW boss — perhaps angered by all the newfangled electric cars in attendance, one of which is a Volkswagen — predicted the public would soon realize the error of its ways and return to the comforting arms of diesel propulsion. There’s a renaissance on the way, he said.

However, the fly in Müller’s soothing ointment appears in the form the The Government and the industry’s (and public’s) inclination to go where the incentives are. Read More >

After last week’s announcement of a $9 billion Daimler stock buy-up by China’s Geely Group, an old story is once again rearing its head. Remember last year’s buzz surrounding a possible takeover of Fiat Chrysler Automobiles? The rumors CEO Sergio Marchionne subsequently refuted? Yes, that story.

A new report claims Geely did indeed give FCA the once-over, even engaging in preliminary talks. Obviously, this first date went nowhere, as Geely now owns nearly 10 percent of German auto giant Daimler, not the maker of Jeeps and Rams. Read More >

Thanks to years of governmental promotion, Europe is still awash with diesel-powered passenger vehicles. However, in the wake of emission scandals and research suggesting diesel fumes might not be all that great to inhale, the region has changed its mind. It has gotten to a point where entire countries are now aiming to ban all internal combustion engines as local municipalities try to put the kibosh on diesels as soon as possible.

In Germany, birthplace of the diesel engine, this led to many asking if towns even had the right to regulate what people drove. According to a recent ruling from the nation’s highest administrative court, they absolutely do. With a precedent now set in Europe’s auto manufacturing hub, citywide diesel bans are likely to catch on — not only in Germany, but across the continent. Our condolences if you’re living east of the Atlantic and wanted to sell your diesel secondhand.  Read More >

Is a seemingly unstoppable Chinese automaker slowly amassing a significant ownership stake in Germany’s Daimler AG? That’s what sources tell Bloomberg.

According to the news outlet, sources claim Geely Auto Group, which owns the Volvo, Lotus, and the mysterious Lynk & Co. car brands, is steadily acquiring a $9.2 billion stake in the German giant. That would give the Chinese a near 10-percent stake in the maker of Mercedes-Benz vehicles.

Are we witnessing the birth of a new alliance? Read More >

There’s significant changes in store for the freshened 2019 Mercedes-Benz C-Class, though you wouldn’t know it from a casual glance. German automakers aren’t known for messing around too much with something that works — even full redesigns, at least as of late, remain on the cautious side.

The 2019 C-Class’ exterior changes very little, adding standard LED headlamps and taillamps, larger lower air vents, and a sparkly grille you’ll recognize from the C-Class coupe. Inside the compact rear-drive sedan, however, lies the bigger story. Read More >

Volkswagen, most recently seen lecturing European governments on the need to ditch the diesel subsidies that, until recently, made it the continent’s most popular fuel, has a bad case of timing.

Just a day after Volkswagen Group CEO Matthias Müller not-so-subtly touted his company’s newfound green bona fides, telling a German newspaper, “We should question the logic and purpose of diesel subsidies,” another diesel-related scandal broke. On Tuesday, Germany’s automobile regulator, KBA, issued a recall of VW’s top-end diesel SUVs.

The reason? Undeclared defeat devices, apparently designed to make the late-model 3.0-liter vehicles run cleaner while undergoing emissions testing. If this doesn’t sound familiar, you’ve been dead for the past two years. Read More >

Curious as to whether Volkswagen’s management agreed to “excessive” payments of its chief labor representative, German prosecutors raided the carmaker’s headquarters. While a raid certainly sounds bad, it seems like the only way the country’s government bothers to acquire information from automotive manufacturers anymore.

This year alone, VW has been subjected to numerous raids relating to its diesel emission scandal and possible pricing collusion between BMW and Daimler. While one imagines a swarm of suits, backed by uniformed officers, as employees frantically shred documents, the frequency of such impromptu investigations probably just leaves staffers annoyed. I’m starting to think the German government likes showing up unannounced more than the country’s car builders enjoy illicit activities. Read More >

Following an earlier raid at BMW, Daimler AG and Volkswagen Group were also searched by antitrust officials from the European Union Commission and German government this week. Despite claiming whistleblower status, Daimler is still subject to investigation — though it’s less likely to incur the same financial penalties if the collusion charges go to court.

Over the summer, investigators from the EU stated there would be an investigation into several German carmakers after allegations surfaced that companies conspired to fix prices on various automotive technologies over several decades. But it wasn’t until Monday that officials searched Daimler’s corporate offices and collected documents from Volkswagen’s headquarters in Wolfsburg and at Audi’s home base in Ingolstadt. Read More >