Volkswagen broke the law.

Scratch that. Volkswagen knowingly went out of their way to break the law, did as much as they could to cover up that fact, and only admitted to wrongdoing when the evidence was so heavy that the German giant couldn’t stand under the weight of its own conspiracy.

Nearly 11 million vehicles worldwide — of which 482,000 made their way to the United States — were fitted with a “defeat device” which used a different engine map when being tested for emissions. That device allowed the Volkswagen TDIs to pass sniffer tests on a dyno, but on-road evaluations by the International Council on Clean Transportation showed the four-cylinder diesels were emitting up to 40 times the allowable nitrogen oxides in the real world.

A few things are going to happen. None of it will be pretty. Nobody is going to walk away from this without oily blowback on their faces.

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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…)

A U.S. Senate committee has shot down a number of auto safety measures including one that would hold executives criminally accountable for not disclosing known automotive defects, reports the New York Times.

“Hiding these deadly defects with near impunity is what the industry has succeeded in doing,” said Sen. Richard Blumenthal, D-Conn., according to the story. He introduced many of the failed provisions.

Another proposal that would have made it illegal for used-car dealers to sell vehicles with outstanding recalls was rejected by the committee.

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All power is not created equal.

That’s one of many takeaways from a comprehensive study by the National Bureau of Economic Research, one of the nation’s prominent think tanks.

The paper focused on the relative impact of green-energy cars, concluding that an electric car in New Jersey doesn’t have the same environmental impact as an electric car in California.

The initial reaction has been largely surface-deep: electric cars on the East Coast and in the South are powered by “dirty energy” and aren’t as clean as their gas-powered counterparts. That much is a quasi-fair assessment — the source for the electric cars’ power should be considered when it comes to ultimately determining their environmental impacts.

The study, however, is a larger look at the federal subsidies offered on electric cars.

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It’s the kind of disgraceful corruption that would have seen its perpetrators swinging from a tree in a more forthright age: an alleged $2 million bribery program that has already seen a Redflex consultant plead guilty to charges of delivering over $570,000 in cash and other bribes to Chicago’s former managing deputy commissioner of transportation. (Chicago Mayor Rahm Emmanuel, who was long, ahem, a tireless ally of Redflex before reluctantly ending the city contract with the firm when all the evidence on the issue because too obvious to be ignored any further, was re-elected in a runoff election recently.)

But the blood-soaked hands of Redflex, whose cameras often increase accidents at the intersections where they are making money for the company, have been putting money in other pockets outside Chicagoland.

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In Silicon Valley tech parlance, the acronym “WFIO” stands for “We’re F***ed, It’s Over“. When it comes to the Corporate Average Fuel Economy requirements imposed by the Obama administration in 2012, it’s increasingly looking like that scenario is playing out, as the “nudge” meant to get consumers into more fuel efficient cars has given way to increased purchasing of trucks and SUVs.

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Some call it a hybrid, some call it an EV. Some have called it a REx, a BEVx, a landmark vehicle in EV production, and others simply call it ugly. One things is for sure however, the 2015 BMW i3 turns more heads in Northern California than a Tesla Model S. Not since I last drove the Jaguar XKR-S have I received as many questions while parked at the gas pump, or visited a gas pump so frequently, but I digress. In a nutshell, the i3 is technically a hybrid or an EV depending on the version you get.

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Yesterday’s announcement of record fines for Hyundai and Kia regarding their incorrect fuel economy claims is the strongest message yet that the Department of Justice ” firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law.” But if your cars kill scores of people due to neglience, you’re getting off easy.

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Aston Martin won a crucial exemption from the U.S. government regarding safety standards, allowing them to continue selling their line-up of sports cars in America.

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Following GM Financial’s subpoena from the Department of Justice, Santander Consumer said that it had received a subpoena as well related to

“production of documents and communications that, among other things relate to the underwriting and securitization of nonprime auto loans since 2007,”

 

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Although we’ve covered CAFE and its effects on the new car market before, the launch of the Lexus NX provides us with an interesting example of just how far auto makers will go to have their offerings classified as “light trucks” under the U.S. regulatory scheme which incentivizes manufacturers to offer these sorts of vehicles beyond mere market forces.

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An event held at Washington D.C’s Brookings Institute saw FCA CEO Sergio Marchionne and former National Economic Council head Larry Summers discuss the auto bailout on its five-year anniversary. As always, Marchionne had some colorful commentary, with a one interesting nugget about Fiat.

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Globally, auto makers spent $17.6 billion on expanding manufacturing facilities – and none of that was spent in Canada.

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Via Zero Hedge, we have a listing put up by the Italian government of 1,500 luxury cars that are being auctioned off. Italy, which is deep in the throes of austerity, is doing the wise thing from an optics perspective, as the cars have come to symbolize government waste and unnecessary opulence.

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Rep. Ileana Ros-Lehtinen (R-FL) took to the House floor last night to speak on behalf of her recently-introduced resolution, House Resolution 488, a resolution “supporting the people of Venezuela as they protest peacefully for democratic change and calling to end the violence”.

Following her was Representative Steve King, a Republican from Iowa. In his monologue to democracy the congressman brought up a (legal) trip he took to Cuba where he got to ride in one of Cuba’s finest taxis – a 1954 Chevrolet powered by “a Russian diesel engine”, the driver of which who also happend to be a doctor. Such communism. Very Russian. Much oppressed. Below is a clip from his speech compliments of CSPAN’s awesome Create Clip Option.
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