The investigation that Volkswagen installed illegal “defeat devices” on its cars to cheat emissions tests will reach the U.S. Department of Justice, Bloomberg (via Automotive News) reported.

Sources within the department said they would investigate the automaker, but no details were given.

The Justice Department recently suspended prosecution of General Motors for covering up a faulty ignition switch that was linked to 124 deaths. It’s unclear what, if any charges, could be brought against Volkswagen for the illegal emissions, however the Justice Department charged GM with wire fraud violations in conjunction with its ignition switch coverup. Read More >

Volkswagen in Canada will suspend sales of its Volkswagen Passat, Golf, Jetta, Beetle and Audi A3 cars after the U.S. Environmental Protection Agency announced the engines in those cars had an illegal device that “cheated” emissions tests.

“We will work with our colleagues at Volkswagen of America as well as our parent company in Germany to resolve this matter in the most timely fashion,” Volkswagen Canada spokesman Thomas Tetzlaff said in a statement.

Audi Canada has also issued a stop-sale of the Audi A3 TDI, stated Audi Canada spokesman Cort Nielson. No details were available regarding Audi’s plan for continued availability of the A3 TDI.

VW hasn’t announced a timeline for fixing its cars and resuming sales. Over the weekend, VW’s CEO Martin Winterkorn apologized for the scandal.

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Subaru said Monday it would invest $140 million at its Lafayette, Indiana plant to expand production and add 1,200 more jobs at the facility. The announcement is only two years after the growing Japanese automaker said in 2013 they would spend $400 million at the plant to build its Impreza in the U.S. by 2016. Read More >

More than $17 billion has been erased Monday from Volkswagen’s value in shareholders’ eyes as the company awaits more fallout from news that the company cheated through emissions tests.

Volkswagen’s stock dropped more than 20 percent Monday after the German automaker announced it would stop sales of its diesel cars on Sunday. New CEO Martin Winterkorn issued a statement Sunday to apologize:

I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter.

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Long before Volkswagen tasked itself with overcoming the expenses of a developing dirty diesel scandal and the harm it caused to the brand’s already lackluster image in the United States, Volkswagen Of America was struggling to sell its small SUV during a small SUV boom.

Incidentally, that vehicle – the first-generation Tiguan – was never available in the United States with a diesel engine, a rarity in a Volkswagen lineup that provides diesel options to buyers of the Golf, Jetta, Passat, Beetle and Touareg.

Perhaps the option of a diesel would have made the original Tiguan more popular in the United States, but there were other profound problems that Volkswagen hopes to resolve when a stretched version of the second-generation Tiguan eventually arrives in North America late next year or in early 2017. Yes, Tiguan Mk2 is still a ways off. Read More >

Salt is a killer. Any time I travel south, I’m amazed when I see pristine, 30-year-old cars being used as daily transportation. Up here in the Great White North [Don’t you live in Ohio? —Mark], most everything built prior to Y2K has been perforated horrendously.

Considering this, I laugh anytime a distant friend asks me to check out a local car. Invariably, the car in question is more air than metal, and what remains is held loosely together by the sheer adhesion of the paint, duct tape, chewing gum and dreams.

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Back in July, TTAC reader Stephen told us that his recently ordered 2016 Audi A3 TDI was sitting at port for an unknown reason and his dealer and Audi couldn’t give him much of a reason why.

“(The cars) are being held at the port as they have not been cleared by Quality and Logistics to be released for port processing yet,” a distribution advocate for Audi wrote in July.

As weeks wore on, Stephen alerted us to the varied responses he received from Audi, which ranged from “quality review” to “government certification.” We reached out to Audi on his behalf and heard from a spokesman that the cars were sitting at port awaiting a certificate of compliance from the Environmental Protection Agency, despite being identical to 2015 models that had already been certified.  Read More >

Included in the United Auto Workers latest round of negotiations was language that protected workers at Fiat Chrysler Automobiles from discrimination based on gender identity.

“During this round of bargaining the union expressed the importance of the parties both maintaining and strengthening policies that ensure the equal treatment of all employees,” the union wrote in its white paper to members.

Michigan and Ohio do not protect workers from discrimination based on gender identity, according to the ACLU. Only Illinois, where FCA currently builds the Dodge Dart, Jeep Compass and Patriot at its Belvidere plant, has a law that protects workers from gender-identity discrimination.  Read More >

French automaker PSA may be preparing to bring its luxury arm Citroen DS, to the United States within the next few years, Car and Driver reported.

Citing a source within the company, a U.S. market launch would be “necessary” for the brand’s viability and a decision on whether to bring the French luxury cars would be coming within the next few years.

Any return for the French automaker would be fraught with difficulty: no dealer network, no service and their cars are decidedly less-than-American sized. The automaker currently offers a DS3 premium minicar, a DS4 premium subcompact and a DS5 family wagon.  Read More >

This is hardly the most severe fallout from Volkswagen admitting that it installed “defeat devices” on some of its diesel models to help pass emission tests, but it’s the first of many.

Consumer Reports announced Friday that it was stripping the models of its “recommended” rating until recall repair work was complete on those cars. The publication had bestowed the ratings on Volkswagen’s Jetta TDI and Passat TDI models.

On Friday, the Environmental Protection Agency said it would force VW to recall nearly 500,000 diesel cars for the illegal “defeat device” that could detect when it was being tested for emissions and reduce nitrogen oxide emissions by 10 to 40 times beyond its normal operations. The EPA could fine VW up to $37,500 for each car that violates its standards, which could tally up to $18 billion in fines.

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Mitsubishi is planning to end operations at its Normal, Illinois plant and notify workers at the end of September of their plans to close the facility after failing to find a buyer for the plant, Reuters (via Automotive News) reported.

It’s unclear what may happen to the 900 hourly workers who make Mitsubishi Outlanders if a buyer for the plant isn’t found by November. According to the report, last year the plant churned out nearly 70,000 crossovers.

Mitsubishi and the United Auto Workers union this month were negotiating a contract for the workers that would extend to the original closing date for the plant, which was slated for next spring.

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Dongfeng dealership in Mohe

We continue on our exploration of Chinese regions and after Harbin we head north to Mohe, still in the Heilongjiang province. This is the northernmost city in the whole of China, completely rebuilt in 1985 after a devastating fire, with striking Russian imperial-era style with colourful facades, spired domes and pillared entrances. A further 60 km (37 miles) north via a very quiet highway is Beijicun (literally “Arctic Village”), the northernmost settlement in China on the Amur River, the border with Russia.

In fact, from a couple places in Beijicun you can clearly see a Russian settlement on the other bank of the river. Even though it was the end of April when I visited, the river was carrying a large amount of ice blocks thawing their way toward the Japan Sea. As you can see on the map below the jump, in Mohe we are further north than any point in Mongolia and around the same latitude as the north of Lake Baikal — two regions I reported on in a previous Trans-Siberian series. You can see the Russian part of the Trans-Siberies Photo Series here and the Mongol part here.

So what are the most popular vehicles in Mohe?

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I like Denver. I grew up here. I moved back here a few years ago to be closer to the mountains I remember and the type of people I love loved to be around.

But Denver, like Austin and Portland, Oregon, has boomed in the past five years, thanks to a variety of factors including marijuana the popularity of John Denver. If you could say one thing about most people in Denver, it’s how painfully nice they could be. Like a lot of cities in the Midwest, doors are held open, apologies exchanged for everything and “pardon me” flows like the salmon of Capistrano.

Now: Here is a woman going all Tiananmen Square on a Land Rover LR2 over a parking spot near Larimer Square (via Denver Post). They aren’t exactly that hard to find, I have to say.

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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 >

Daimler announced Friday that it would spend $1.3 billion in its Tuscaloosa, Alabama factory to upgrade its equipment and technology, and to also add a 1.3 million square-foot body shop.

The investment will also add 300 jobs to the plant, which produces the C-Class and GL-class — and perhaps GLT? — and work is reportedly already underway. The plant has been open since 1997 and has predominantly produced SUVs, although its future products are less clear.

Mercedes is reportedly preparing to make a truck, based on the Nissan Navara, to release in global markets. In Frankfurt, the updated Nissan Navara and related Renault Alaskan made their debuts, although only the Navara will have a life in the U.S. — probably as the next Frontier. Mercedes would need to produce its pickups in the NAFTA zone to avoid a Chicken Tax if they were to sell one here. (Sprinter doesn’t care.)

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