The state of New York wants its pound of flesh from Volkswagen, as well as $450 million.

A lawsuit filed against the automaker by New York Attorney General Eric Schneiderman alleges widespread knowledge of the emissions-cheating “defeat device” used in millions of diesel vehicles, according to the Wall Street Journal. Read More >

The federal agencies reviewing the country’s corporate average fuel economy (CAFE) targets are pleasantly surprised by the amount of fuel-saving technology in modern vehicles, and hint that the target they decided on back in 2011 is still doable.

Those agencies just released a technical assessment report (TAR) to guide the review process. In it, they figured that vehicles will average between 50 and 52.6 miles per gallon by the target year of 2025 — if gas stays stable and consumers continue buying SUVs and trucks.

That’s not too far off the original target, and judging by the optimistic tone of the report, it’s likely the 54.5 mpg mandate will stay intact. Read More >

Fiat Chrysler Automobiles is in hot water with federal authorities over the way it reports its sales.

Late yesterday, it was revealed that the U.S. Department of Justice and the Securities and Exchange Commission both launched investigations into the automaker, following months of accusations of inflated sales figures. Read More >

Business is about to get much more expensive for automakers with thirsty fleets.

The penalties leveled by the National Highway Traffic Safety Administration against automakers who miss their annual corporate average fuel economy (CAFE) standards are about to go up in August. Way up. Read More >

California’s Air Resources Board wants nothing to do with Volkswagen’s proposed fix for its 3.0-liter VW, Audi and Porsche TDI models equipped with emissions-cheating defeat devices.

The regulator rejected the automaker’s plan yesterday, and later issued a release calling it “incomplete and deficient in a number of areas.” For Volkswagen, CARB’s rejection is a major setback to its goal of settling the rest of its diesel emissions scandal fallout without another expensive buyback program. Read More >

Tesla CEO Elon Musk has no plans to remove the Autopilot feature from his vehicles, despite demands from safety and consumer groups.

Musk told the Wall Street Journal that lack of education is the problem, not the technology behind the semi-autonomous driving system. The executive’s comments come after the National Highway Traffic Safety Administration delivered a lengthy list of questions to Tesla as part of its investigation into the fatal May 7 crash of a Model S. Read More >

Was the fatal May crash of a Tesla Model S driving in Autopilot mode significant enough for the automaker to inform its shareholders? The Securities and Exchange Commission plans to find out.

The federal agency recently opened an investigation into Tesla to determine if the automaker broke securities laws by not notifying investors of the crash, according to the Wall Street Journal. Read More >

The Garden State remains the cheapest place to fill up in the Northeast, and you can thank government indecision for it.

Lawmakers in New Jersey can’t decide on what to do about their state’s bone-dry transportation fund, and residents are equally divided on how to pay for future road projects. That means pump prices will stay low for the time being. Read More >

The National Transportation Safety Board plans to investigate the fatal May 7 Tesla crash to see if the trend of increased automation in driving functions has a dark side, Bloomberg reports.

Already, the National Highway Traffic Safety Administration is looking into the incident and the role the vehicle’s semi-autonomous Autopilot system played in the crash, but the NTSB has a broader scope in mind. As vehicles increasingly rely on electronic aids for safety, drivers could be letting down their guard. Read More >

Columbus, Ohio was chosen as the winner of the U.S. Department of Transportation’s “Smart City Challenge,” beating out six other mid-size cities for the $40 million federal grant.

With that grant and $100 million pledged from philanthropic and business sources on tap, the city’s plan will see improvements in social infrastructure and green, connected transportation — including greater electric vehicle use and new recharging infrastructure — despite the fact that Ohio’s power grid isn’t very green. Read More >

Halfway through its mandate to have 15.4 percent of the state’s vehicles generate zero emissions by 2025, the California Air Resources Board (CARB) is now considering changing its requirements.

The problem is too many credits handed out to green car manufacturers, who then sell them to dirtier automakers to bolster their standing with CARB, Bloomberg reports. Read More >

There’s a good chance that the former managing director of Audi Volkswagen Korea will soon find himself pleading for a sip of Coke during the 11th hour of a grueling interrogation process.

Park Dong-hoon, now CEO of Renault Samsung Motors, was recently identified as a suspect in South Korea’s investigation into the Volkswagen emissions-cheating scandal, according to Wards Auto. That means a date with the “VIP Suite.” Read More >

Numerous reports of an exhaust smell in the cabin of late-model Ford Explorers prompted the National Highway Traffic Safety Administration to open an investigation.

According to Reuters (via Automotive News), safety officials began looking into 2011–2015 Explorers last Friday after receiving 154 complaints of an exhaust odor. The issue, which is reported to be a factor in one crash (that didn’t result in injuries), persists in some vehicles even after they were repaired to correct the problem. Read More >

Safety advocates are claiming Tesla’s reputation as a leading innovator in the automotive world could breed overconfidence in its new technology, putting drivers in danger.

The May 7 death of a Tesla driver whose vehicle collided with a tractor trailer while in “Autopilot” mode sparked renewed calls for proper vetting of advanced technology in production vehicles — especially if the technology allows the vehicle to drive itself. Read More >

Good news, owners of Volkswagen, Audi and Porsche models powered by a 3.0-liter TDI engine — your heavily polluting diesel probably won’t have to be bought back and scrapped.

A lawyer for the automaker said in court today that Volkswagen believes the 85,000 vehicles can be cleaned up with a not-too-complicated fix, Reuters reports. Read More >