The Environmental Protection Agency took the rare step of recalling more than 500,000 Volkswagen and Audi cars for using a “defeat device” to force the cars to comply with emissions standards, the New York Times reported.

The California Air Resources Board and EPA slammed the automaker for using the device that can detect when the car is being tested for emissions and implement full pollutant controls to curb nitrogen oxide emissions.

“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance, said in a statement. “Working closely with the California Air Resources Board, E.P.A. is committed to making sure that all automakers play by the same rules. E.P.A. will continue to investigate these very serious violations.”

Last month, TTAC reader Stephen reported that his newly ordered 2016 Audi A3 TDI was being held at port for months for months for an EPA hold. We reached out to Audi, and they reported the same, directing us to the EPA who reported that the cars had not yet received a Certificate of Compliance. Read More >

Two sources have told Reuters that the government will levy a $900 million fine on General Motors for its failure to recall and subsequent attempts to cover-up of faulty ignition switches linked to at least 124 deaths.

Criminal charges will be filed against GM for its role in hiding the defect from regulators, but will defer prosecution while the automaker complies with its penalty. The agreement is expected to be announced Thursday.

The massive fine is smaller than the $1.2 billion Toyota paid in March 2014 for its role in concealing that its cars could accelerate suddenly.   Read More >

The Alliance of Automobile Manufacturers on Thursday sent a letter to the heads of the Federal Communications Commission, U.S. Department of Transportation and U.S. Department of Commerce, urging the groups to keep dedicated a frequency spectrum for future car communication systems.

The spectrum, which is between 5.850 GHz and 5.925 GHz, was allotted to automakers for car-to-car communication and road-to-car communication. Telecommunications and Wi-Fi industry officials have asked to share the spectrum.

“Um, no,” in the nicest possible way, from the Alliance:

We are committed to finding the best path forward to protect the development and deployment of advanced automotive safety systems while also considering the need for additional unlicensed spectrum to meet the increasing demand for wireless broadband Internet services.

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California’s ambitious climate change bill was stripped Wednesday night of its toughest provision that would have cut the state’s gasoline consumption 50 percent by 2030, Automotive News is reporting.

A pared down version of California’s wide-rangning transportation bill will reach Gov. Jerry Brown’s desk, but won’t include the gas target nor a plan to fix California’s roads.

The controversial bill was met last month by an automotive lobby that flooded the state with advertisements and money to combat the provisions.

“Oil has won the skirmish. But they’ve lost the bigger battle,” Brown said, according to the LA Times. “Because I am more determined than ever.”

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This has not been a banner summer for Fiat Chrysler Automobiles. In the past 90 days, FCA has recalled nearly 4 million cars and trucks for various issues including hackable cars, volatile fuel tanks, faulty airbags and now, in some of its Ram trucks, airbags with minds of their own.

In a statement Thursday, FCA said it was recalling more than 1 million pickups for a faulty steering wheel wiring harness that could rub against a spring and deploy the driver’s side airbag. The company said it was aware of two injuries related to the airbag deployment. Ram trucks — all models — made between 2012-2014 are affected by the recall. More than 235,000 trucks in Canada will be recalled as well.

In addition, FCA is recalling roughly 350,000 trucks for faulty welds and non-compliant side-curtain airbags.

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Slate has a story about hit-and-run crashes in China that proves that truth is usually stranger than fiction.

Geoffrey Sant, who teaches law at Fordham and is on the board of the New York Chinese Cultural Center, details a trend among Chinese drivers to kill the people they hit with their cars to keep from paying millions in medical costs over their lifetimes. Often, the drivers plead ignorance — that they thought it was a bag of trash, or a box — and rarely serve significant jail sentences.

Incidents captured on video show drivers sometimes backing over their victims several times to insure that they’ve been killed, according to the report.

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California electric vehicle drivers may pay $100 more in registration fees each year under a proposed bill that aims to raise $3.6 billion each year through gas taxes and fees that would repair and maintain California’s roads, according to the Associated Press (via Autoblog).

The proposed fees would be a sweeping reform to transportation funding that would increase California’s gas taxes by $0.10 per gallon, add $35 to vehicle registrations and increase vehicle fees by 35 percent over five years.

Already, gas and oil companies are lining up against the proposal. Read More >

AutoNation won’t sell any cars with open recalls, used or new, at its dealerships, according to Automotive News.

AutoNation CEO Mike Jackson said the costly policy would mean that roughly 5 percent to 10 percent of cars on its lots would be unsellable at any one time. The change in policy for AutoNation comes while different bills work their way through Congress that could prohibit used car dealers to sell cars without recall repair work.

“The recall situation for the U.S. auto industry is a black eye. It is a dysfunctional nightmare that the industry should be ashamed of, and customers are right to be angry and confused,” Jackson told Automotive News. “As part of the industry, we have to hold a mirror up and say, ‘What can we do better as a company?'”

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Details on Tesla’s “free” Model X for the first 10 referral buyers have been few since the beginning. First it appeared that the program would be limited by time, then it appeared it would be limited by country, now it appears that it’ll be limited by continent.

The first person to refer ten friends in each sales region— North America, Europe, and the Asia-Pacific — will receive a free Founder Series Model X.

But even more unclear is exactly how Tesla will give its winner their new Model X. Depending on how that happens, there are very few scenarios in which the new Model X owner (with 10 friends wealthy enough to buy new Model S cars) wouldn’t qualify for up to $7,500 back from the feds. Read More >

BlueIndy, the nation’s first electric car sharing service, launched in Indianapolis on Wednesday, according to Time, but with controversy.

The car service, which uses Bollore Group electric cars, has met initial opposition with the Indianapolis City Council, who’ve taken aim at the mayor who launched the project with Bollore — whose other EV car-sharing cities include Paris and London.

The cars shouldn’t be parked in downtown spots, council members say.

“The mayor needs to understand that even though this is one of his pet projects, he is not above the law,” City council member Zach Adamson, told WXIN.  Read More >

Chicago wants $300 million from the company it hired to photograph, ticket and follow drivers after it was revealed that executives bribed city officials for the contract, the Chicago Tribune is reporting.

Executives for Redflex paid over $2 million to city officials through a bag man for the $124 million contract from the city, which started in 2003. City officials are suing for roughly triple that amount, including penalties.

Redflex has been accused of handing out thousands of unnecessary tickets to motorists, including 13,000 in Chicago alone, according to the Tribune.  Read More >

Self-driving cars could usher in a new form of terrorism, an investment analyst writes (via SlashDot).

Alex Rubalcava, who is an investment advisor in California, says that autonomous cars would be “the greatest force multiplier to emerge in decades for criminals and terrorists.

“A future Timothy McVeigh will not need to drive a truck full of fertilizer to the place he intends to detonate it. A burner email account, a prepaid debit card purchased with cash, and an account, tied to that burner email, with an AV car service will get him a long way to being able to place explosives near crowds, without ever being there himself.”

Criminals in Denver have already used burners, pre-paid cards and fake names to rent Car2go cars for drive-by shootings.

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Matt Gephardt and KUTV in Salt Lake City have a good story about a Utah man who was hit by a state vehicle and its insurance company — which is the state itself — shortchanged him on his 1985 Mercedes-Benz SL Convertible.

The car was totaled, and the state offered to pay $8,000 for the car. Tyler Winger, who said he restored the car with his grandfather, said the car was worth $12,000 to $13,000. (He’s not completely wrong.)

Winger said the state told him that they wouldn’t budge and that he couldn’t complain to the state’s insurance oversight board since that board doesn’t have oversight over the state’s self-insurance company.

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Metals found in hybrid batteries, diesel fuel and headlight glass could again be subject to China’s ever-changing rules for rare earth exports.

On Wednesday, Molycorp announced that it would be suspending its mining operations of rare earth metals in California, but keep its mines in China and Estonia open for the time being.

The company, which went public in 2011, has fallen on hard times. In June, the company filed for Chapter 11 bankruptcy protection and slowing demand in China isn’t helping. However, without a mine in the U.S., much of the rare earth metal mined in the world could be under Chinese government purview, and that’s not good. Read More >

The head of the AFL-CIO in the United States is criticizing the current presidential administration for its pursuit of a trade zone in the Pacific that could open up Asian markets to America and vice versa, the Detroit News is reporting.

AFL-CIO President Richard Trumka wrote the administration a letter saying that a free-trade agreement with countries such as Japan jeopardizes American jobs because those countries may be able to source cheaper parts from outside the negotiated area, according to the report.

“I hope it is not the case that the Canadian and Mexican negotiators are actually holding a harder line than our own government on this issue. But due to the unaccountable lack of transparency from USTR, absolutely critical decisions are being made without our input or voice. Thousands of good American jobs and an iconic American industry are at risk, and we don’t even know what our government’s negotiating position is.”

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