Volkswagen's Withdrawal of EPA Application Is Not Because of 'Defeat Device' (Update)

Update: Official statement from EPA.

During his voluntary testimony for a congressional committee Thursday, Volkswagen of America CEO Michael Horn announced the company would withdraw their application for emissions certification for 2016 model year Volkswagens powered by 2-liter diesel engines.

However, the reason for that withdrawal is not directly related to the “defeat device” that’s been at the center of the ongoing diesel controversy.

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Meeting Advertised Mileage Could Save Volkswagen Money

Volkswagen of America CEO Michael Horn told a congressional committee Thursday that the fixed diesel cars would achieve the fuel economy figures advertised on the cars when they were purchased as new.

“We know we can fix these vehicles to achieve emissions standards,” Horn said.

Horn said that performance such as horsepower and torque for the cars could be impacted, but by keeping those cars at or above advertised mileage, the carmaker could mitigate damage brought by forthcoming class-action and federal lawsuits.

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Volkswagen in America CEO Had More Than One Year To Deal With Cheating Diesels

In a prepared statement released ahead of congressional testimony Thursday, Volkswagen of America CEO Michael Horn said the automaker knew of emissions issues last spring when West Virginia University researchers published findings that the automaker’s cars were illegally polluting. (Emphasis mine.)

In the spring of 2014 when the West Virginia University study was published, I was told that there was a possible emissions non-compliance that could be remedied. I was informed that EPA regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include “defeat device” testing or analysis. I was also informed that the company engineers would work with the agencies to resolve the issue.

(Should have followed up a little more on that email, probably.)

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Report: Volkswagen Lobbied for More Tax Credits for Diesels

Volkswagen lobbied hard in 2011 to receive the same — or higher — clean vehicle credits as electric cars, the New York Times reported Wednesday.

“They wanted a special deal for diesel cars that we now know weren’t even meeting the standard,” Margo Oge, a former director of the E.P.A. Office of Transportation and Air Quality, told the New York Times.

The LA Times reported that roughly $51 million in credits was paid by taxpayers in 2009 for diesel cars that lied about mileage and emissions — essentially a cheap bar trick.

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Mller: Volkswagen Recalling European Cars Starting in January

Volkswagen CEO Matthias Müller told German authorities that the company would begin recalling cars in Europe in January and that fixes those cars take roughly one year to complete, Automotive News reported.

Müller told German newspaper Frankfurter Allgemeine Zeitung that the company found 9.5 million affected cars, not 11 million, that would need to be fixed. Müller didn’t specify what the fixes for cars would be, but said that the company was preparing “thousands” of solutions for its cars that cheated emission tests. Müller said the company would replace cars in certain circumstances.

It’s unclear when recalls for the 482,000 cars in the U.S. would start.

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Volkswagen CEO Mller Tells Employees That Future Won't Be 'Painless'

Speaking to roughly 20,000 employees in Wolfsburg on Tuesday, new Volkswagen CEO Matthias Müller outlined the big-picture view for the weeks, months and years ahead. (It’s not good, if you’re wondering.)

Anything that is not absolutely necessary will be cancelled or postponed. And it is why we will be intensifying the efficiency program. To be perfectly frank: this will not be a painless process.

The automaker plans “massive cutbacks” according to Reuters, but Müller stopped short of outlining specifics to slow production or lay off workers. The 62-year-old CEO told workers that the company hasn’t calculated the final toll lying about pollution levels in 11 million cars would take on the company.

… while the technical solutions to these problems are imminent, it is not possible to quantify the commercial and financial implications at present.

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Volkswagen Hasn't Found Their Fall Guys (or Gals) Yet

According to Reuters, Volkswagen may have suspended engineers — including top engineers for Audi, Volkswagen and Porsche — without any evidence.

According to the report, more than 10 engineers were suspended in the fallout after it became clear the automaker cheated its way through emissions tests in the U.S. and Europe. It’s not clear if the suspended engineers would be reinstated at the company.

Reuters reported that VW’s internal investigation revealed that the illegal “defeat devices” began appearing in cars around 2008 after engineers discovered that their engine, which was costly to produce, wouldn’t pass emissions tests.

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UK Researcher: Basically Every Diesel Automaker is Illegally Polluting

A researcher from Leeds University says that at least four other automakers’ cars are polluting above the legal limits for Europe, including Ford, BMW, Mazda and Mercedes-Benz, the Daily Mail reported.

James Tate, a researcher and lecturer at the university measured over 300 new cars to comply with new Euro 6 diesel emissions standards. According to Tate, Mazda’s diesel engines, on average, emitted more than six times the European limit for nitrogen oxide emissions in new cars. Ford’s cars may have polluted more, but Tate said the automaker’s sample size was too small to tell.

According to the report, Tate used a roadside sniffer for testing in the UK, similar to ones used in the United States.

“This research shows that building cars so they perform well in laboratory emissions tests but emit high amounts of NOx in real urban driving is an endemic practice across the industry,” Tate said, according to the Daily Mai l. “There is very little known about how the manufacturers conduct their tests because they take place behind closed doors.”

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Volkswagen May Cut R&D Budget to Fend Off "Existence-Threatening Crisis"

Volkswagen has a very steep, very tough hill to climb, and Volkswagen’s incoming chairman said the emissions scandal that affects 11 million cars is “a threat to the firm’s viability albeit a surmountable one,” reports Reuters.

Dieter Pötsch, who will soon take the chairman spot at Volkswagen Group AG, described the challenges ahead as an “existence-threatening crisis for the company” during a corporate meeting with employees in Wolfsburg, Germany’s Welt am Sonntag reported.

In order to take on those challenges, Volkswagen needs to fund the repairs of some 11 million vehicles, meaning cuts may be made to the company’s 100 billion euro R&D investment budget that was expected to last until 2018.

A cut in R&D spending is seen as a way to avoid a downgrade of the company’s credit ratings, a source close to the company’s board told Reuters.

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Volkswagen Canada Offering $2,000 Discount to TDI Owners to Buy Literally Any VW [Update]

Update: We finally heard back from Volkswagen Canada (though, as you can imagine, their media relations department is probably a tad bit busier than usual).

The $2,000 amount is being offered as a “loyalty discount” for current TDI owners, regardless of size or type of diesel engine, for any new Volkswagen, regardless of engine and fuel type (except for stop-sale models, obviously). TDI owners do not need to trade-in their EA 189-equipped cars to qualify.

We attempted as best we could to confirm the ‘discount-on-trade-in’ story and we were given evidence to support the original story in La Presse. However, the truth was to the contrary. We apologize for the error.

The article now reflects the update.

Volkswagen Canada is offering a $2,000 incentive for current TDI owners, regardless of the age of the car or type of TDI engine, toward any other new Volkswagen model.

La Presse spoke to a dealer in Montreal who stated that they are taking affected TDI models in on trade and offering the discount. However, the discount is being offered as a “loyalty discount” to all TDI owners, and a trade-in is not required.

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German Authorities Say Volkswagen Was Alone in Cheating

German transportation authorities said Friday that Volkswagen can’t phone a friend for help, they’re on their own.

“At this point we have no indication of other manufacturers being involved,” a government spokesman, said according to Reuters (via Automotive News Europe).

Being the only automaker embroiled in the scandal — for now — means that Volkswagen will have to face alone the wrath from governments tripping over themselves to charge the automaker with just about anything they want. In the U.S., Volkswagen faces a pending congressional inquiry; in France, prosecutors have opened an investigation for “aggravated deception;” in Italy, the government’s antitrust authority has begun an investigation; in Switzerland — you get the idea.

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Audi Germany Creates Website to Identify Illegal Diesel Cars

Audi in Germany on Friday added information to its main website so customers can determine if their car is affected by an illegal “defeat device” included in 11 million Volkswagen Group cars.

Audi owners can identify if their cars will be part of the unprecedented recall by entering the car’s VIN into the website. Audi said it would roll out a similar service in separate, worldwide markets in coming days. Audi owners can also go to dealerships to see if their cars will require recall work.

Volkswagen created a website in the U.S. this week to answer preliminary questions for its owners, including a video message by Volkswagen of America CEO Michael Horn.

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Did Other OEMs Know Volkswagen Was Cheating?

While working on a story about some very old cars, I stumbled upon something relevant to the latest big story in the automotive world.

I ran into a Model T collector who’s also a powertrain engineer for Ford. Seizing the opportunity, I asked him if he could tell me what he was working on (sometimes they say no). He said that he was responsible for developing computerized engine controls. Because of that expertise, I started to ask him some questions about the software program that Volkswagen apparently used to cheat on the EPA’s diesel emissions testing.

What he was willing to say and what he wouldn’t say intrigued me.

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Report: Volkswagen Investigation May Take Months

A meeting of Volkswagen executives revealed Thursday that the internal investigation into how the company produced 11 million cars with illegal “defeat devices” to cheat emissions tests will take several months, Reuters (via Automotive News) reported.

The supervisory board said in light of the ongoing investigation, the automaker would push back its scheduled meeting in November, where it was expected to name Hans Dieter Pötsch as chairman.

“In view of the time available and the matters to be considered, it would not be realistic to provide well-founded answers which would fulfill the shareholder’s justified expectations,” it said according to Reuters, adding a court would appoint Poetsch to the board, after which he would be elected chairman.

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Jaguar Land Rover in U.S. Sticking With Diesel Despite Total Hatred

The head of Jaguar Land Rover’s operations in the U.S. said the automaker will stick with its plans to rollout diesel engines for its cars, including the Jaguar F-Pace next year.

Automotive News reported that CEO Joe Eberhardt said at a Detroit luncheon the automaker was “very confident” in the technology for its diesel cars.

“We are convinced of the benefits of diesels from a fuel economy and from an all-wheel drivability perspective, and that hasn’t changed,” Eberhardt said, according to Automotive News.

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Volkswagen Planning Capital Push to Raise Money For Scandal

Volkswagen may issue preferred shares to help raise money to deal with its growing diesel scandal, Reuters reported.

The German automaker may cut costs and boost cash flow before resorting to offering parts of the company to outside investors. According to the report, VW may find some willing investors to help bail the company out of its dire straights thanks to its healthy balance sheet and assets. However, if no one is willing to take the bait, the company may resort to more extreme cash-raising strategies that include selling ordinary stock, or even perhaps selling off some of its brands.

Reuters reported that sources said Volkswagen wasn’t considering selling any of its brands now. Fiat Chrysler Automobiles spun off luxury carmaker Ferrari this year, in part, to raise capital for other investments at the global automaker.

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Volkswagen Finds Hatches, Battens Them, and Braces for Massive Business Storm

Volkswagen suspended hiring at its finance arm and cut a shift at its Salzgitter engine factory to prepare its business for fallout from the largest business crisis that company has faced.

According to Reuters (via Automotive News), senior officials at Volkswagen will review Thursday findings from an internal investigation into the scandal that the automaker installed illegal emissions “defeat devices” on 11 million cars. The finance division said it would implement a hiring freeze through the end of this year.

“We are reacting to the current situation. It is a purely precautionary measure,” a spokesman told Reuters.

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German Prosecutors Backtrack on Winterkorn Focus for Investigation

German prosecutors on Thursday said they focused too quickly on former Volkswagen CEO Martin Winterkorn and removed a statement from earlier this week that they were investigating the former executive for the scandal that has engulfed the German carmaker.

In a statement by the Lower Saxony prosecutor’s office obtained by Automotive News Europe on Thursday, the office said there must be “concrete facts” before officially investigating Winterkorn. So far, no specific individuals have been named in the office’s investigation.

The stakes are high for whomever may be responsible for the 11 million cars that illegally cheated emissions tests. Volkswagen supervisory board member Olaf Lies told The Local in Germany that “those people who allowed this to happen, or who made the decision to install this software — they acted criminally. They must take personal responsibility.”

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Green Car Journal Strips Volkswagen, Audi of Awards

Green Car Journal announced Wednesday that they would take back two awards given to vehicles that are now part of Volkswagen’s diesel emissions debacle. The 2009 Volkswagen Jetta TDI and 2010 Audi A3 TDI were bestowed Green Car of the Year awards by the publication.

“Rescinding the Green Car of the Year awards for the VW Jetta TDI and Audi A3 TDI is unfortunate but appropriate,” said Ron Cogan, editor and publisher of the Green Car Journal.

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Diesel GM Canyon/Colorado Twins First to Feel EPA's Wrath

The diesel versions of the Chevrolet Colorado/GMC Canyon will be the first to undergo increased scrutiny from the Environmental Protection Agency after the recent Volkswagen scandal turned emissions reporting on its head.

According to Automotive News, a spokesman for GM said the testing could slightly delay the truck’s fourth-quarter release.

“The EPA and CARB told us they are going to do on-road testing,” Chevrolet Trucks assistant chief engineer Scott Yackley told Automotive News.

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Volkswagen Will Recall, 'Refit' 11 Million Cars in Coming Days

New Volkswagen CEO Matthias Müller told about 1,000 high-level managers Monday that the company had a “comprehensive” fix for its cars, and that the solution would be forthcoming.

“We are facing a long trudge and a lot of hard work,” Müller said, according to Reuters.”We will only be able to make progress in steps and there will be setbacks.”

Müller said the company would ask consumers “in the next few days” to bring their cars in to be refitted. It’s unclear if the recall program would be a software or ECU fix, or if it would include a selective catalytic reduction system (urea or AdBlue) to bring the diesel Volkswagens down to a legal emissions level.

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German Prosecutors Investigating VW's Former Chief Winterkorn

A criminal complaint in Germany (that could have been filed by anyone) has prompted an investigation into whether former Volkswagen CEO Martin Winterkorn knew the automaker was selling cars with an illegal “defeat device” to fool emissions test, Reuters reported.

Several complaints have been filed with German prosecutors, including one from within Volkswagen, according to the Chicago Tribune.

Winterkorn’s investigation may take months — or even years — as German authorities look into how widespread cheating and lying was at the automaker.

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Audi: More Than 2 Million Cars Worldwide Have Illegal Software

Audi said that 2.1 million of its cars worldwide have been fitted with illegal software to help it cheat emissions tests, Reuters reported.

The automaker announced that multiple models including the A1, A3, A4, A5, A6, TT, Q3 and Q5 were affected by the “defeat device” uncovered by researchers, which is grinding Volkswagen to an unimaginable halt.

Roughly three-quarters of the affected Audis were sold in Western Europe, including 577,000 in Germany alone, according to the report.

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Tesla To Open Up Supercharger Network To Other EVs

Tesla owners always enjoyed rapid recharging thanks to the automaker’s Supercharger network. Soon, this privilege will be extended to other EVs.

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Discount Hunters Find Silver Lining In Volkswagen's Diesel Clouds

While some declare Volkswagen dead in their betrayed hearts over the recent emissions scandal, others see an opportunity for a discount on a diesel.

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Volkswagen of America Temporarily Reins In Adverts Amid Diesel Scandal

If, while watching your team crush it this weekend, you see few Volkswagen ads, you’re not alone; VW of America is reining in advertising for two weeks.

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Volkswagen Warned About Cheating As Early As 2007

While the EPA recently revealed Volkswagen’s diesels were cheating emissions tests, two newspapers learned VW was warned about cheating as early as 2007.

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Swiss Officials Issue Temporary Volkswagen Diesel Sales Ban

Volkswagen’s pain parade marches on, this time to Switzerland, which has temporarily banned sales of the automaker’s diesels.

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Report: Taxpayers Paid $20.7 Million For 'Clunker' Volkswagen Diesels

Justin Hyde at Yahoo Autos has fine, fine reporting that U.S. taxpayers paid more than $20 million in incentives for Volkswagen diesel models under the “Cash for Clunkers” program.

According to the report, 4,599 VW Jetta and Jetta Sportwagen diesel cars qualified for the maximum $4,500 incentive under the program. Those cars were equipped with a 2-liter turbocharged diesel engine that the Environmental Protection Agency said used an illegal defeat device to cheat emissions.

The Yahoo report follows a report by the L.A. Times that shows that more than $51 million was paid to Volkswagen by the U.S. for now-bogus “green” claims.

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Automakers' Denials of Cheating Actually Faster Than Many of Their Cars

This week, Daimler, BMW, Jaguar Land Rover and Fiat Chrysler Automobiles issued statements on how their diesel cars don’t cheat like someone else you may’ve heard of.

“The BMW Group does not manipulate or rig any emissions tests,” BMW said in a statement Thursday. “We observe the legal requirements in each country and fulfill all local testing requirements.”

BMW’s admission is notable because the automakers’ X3 diesel model was targeted by the independent commission that discovered that Volkswagen’s cars illegally polluted.

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This is Why Volkswagen Won't Pay $18 Billion

It’s entirely possible that the Environmental Protection Agency could levy the largest ever civil penalty for Clean Air Act violations against Volkswagen after the automaker lied about emissions from their diesel engines.

In 2014, the government agency fined Hyundai and Kia $100 million for spewing 4.75 million metric tons of greenhouse gases above what they reported for 1.1 million cars.

For Volkswagen, using the EPA’s own penalty worksheet (which is apparently a thing), the fine may be substantially more than that levied against the Korean automakers — about $3.15 billion more.

Here’s how we got that number.

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Used Car Dealers Line Up Against Volkswagen

Used car dealerships have filed a proposed class action lawsuit against Volkswagen over cars they say they can’t sell and are seeking the same compensation the German automaker is offering its new car dealers, Reuters reported (via Automotive News).

According to the attorney representing the dealers, selling the cars could put the businesses at risk of lawsuits from their customers. If the used dealers can’t sell their in-stock Volkswagen diesels, the businesses would shoulder the losses, the lawsuit alleges.

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Biofuel Makers May Have Known About Volkswagen Emissions Rigging for Years

A recent press release on the completion and success of a three-year program to test biofuels in Volkswagen Jetta and Passat TDI models may hint that two external companies had knowledge of the high levels of NOx produced by the “Clean Diesel” vehicles.

The two California-based companies — Solazyme and Amyris — were given the Volkswagen vehicles to test their fuels. VW announced that the program was a success a few months ago, stating CO2 emissions were reduced when using the biofuels. However, the companies only would have known their fuels produced less emissions if the biofuel companies tested the emissions output using diesel fuel and compared it with their own products.

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Ford Unveils New Aluminum 2017 Super Duty Pickup

Ford on Thursday rolled out its newest Super Duty truck — 350 pounds lighter than the outgoing model — complete with aluminum-alloy body, high-strength steel frame and new 6-speed transmission for its V-8 engine.

According to Ford, the truck’s frame is up to 24 times stiffer than the outgoing frame, and the company reportedly used high-strength, military-grade aluminum alloys — which are separate from civilian grade because they use more of it before 9 a.m. than we’ll use all day. Or something.

The Super Duty truck can be fitted with either a 6.7-liter V-8 turbocharged diesel, a 6.8-liter V-10 gasoline or 6.2-liter V-8 gasoline engine, with the latter being mated to a new TorqShift-G six-speed transmission.

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Don't Cry For Winterkorn Just Yet; Former CEO Could Get $67M Handshake

Ousted Volkswagen CEO Martin Winterkorn could receive up to $67 million after leaving the automaker on Wednesday, depending on how his exit pay is calculated.

According to the Wall Street Journal, Winterkorn had amassed at least $34 million in his pension by 2014 ( was stock included?) and his exit pay would be roughly two years of his current former $17 million annual compensation.

He’d also be entitled to a company car. There are plenty he could choose from right now.

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Dirty Diesel Report Sinking BMW As Volkswagen Fallout Grows

German magazine Auto Bild reported Thursday that the diesel BMW X3 exceeded by 11 times allowable limits of nitrogen oxide in a growing scandal started by Volkswagen’s admission it had cheated on emissions tests. BMW shares tumbled 5 percent Thursday morning after the news.

“All measured data suggest that this is not a VW-specific issue,” International Council on Clean Transportation Europe Managing Director Peter Mock told the German magazine.

BMW denied any deception, telling USA Today in an email that it “does not manipulate or rig any emissions tests.

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Koda CEO Tipped to Take Over Volkswagen US, Horn Out

The Chairman of the Board of Management for Škoda, Prof. Dr. h.c. Winfried Vahland, is expected to replace Michael Horn as CEO of Volkswagen of America, reports Automotive News.

The news is just the latest in a number of rumors regarding a massive executive shuffle following the departure of Volkswagen AG CEO Martin Winterkorn on Wednesday.

During the U.S. launch of a refreshed 2016 Passat in New York on Monday, Horn said: “Our company was dishonest with the EPA, and the California Air Resources Board and with all of you. And in my German words: We have totally screwed up.”

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Feds Say They'll Tighten Emissions Tests to Catch Cheaters

Officials from the Environmental Protection Agency said this week that they’ll change regulations to hopefully catch carmakers who cheat on emissions tests in the future.

EPA Administrator Gina McCarthy told reporters at a Wall Street Journal forum Tuesday that the agency would be “upping its game” to stop automakers like Volkswagen from creating two dramatically different emissions cycles for its cars — a cleaner “testing mode” and a dirtier real-world mode. The agency said it would also crack down on automakers who lie about real-world fuel economy.

“Writing regulations takes time,” EPA’s director of the Office of Transportation and Air Quality Chris Grundler told the Detroit News. “When you are working in the rapidly changing environment that we’re in right now, we want to make sure that we are agile enough and flexible enough to change with those times.”

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Volkswagen Powertrain, Technical Development Personnel Next To Get The Axe?

According to Germany’s Bild tabloid, the next Volkswagen personnel to be shown the door could be three people integral to powertrain development during the time when vehicles were fitted with “defeat devices”.

Prof. Dr.-Ing. Ulrich Hackenberg, Audi Board Member for Technical Development; Wolfgang Hatz, Porsche Board of Management; and Dr. Heinz-Jakob Neußer, Head of Powertrain Development at the Volkswagen Group are rumored to be the next executives and managers to be fired, though a final decision won’t be made until Friday.

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Volkswagen Will Offer More Cash to Dealers as It Skids Completely Out of Control

Amid slumping sales and a snowballing diesel-emissions crisis, Volkswagen announced Monday a plan to offer more money to dealers for cars that they can sell.

Over the weekend, Volkswagen issued a stop-sale for cars equipped with their 2-liter diesel engine after admitting the those cars cheated to pass emissions test. According to Automotive News, a Sept. 21 letter from Volkswagen to its dealers offered $300 bonus cash for every new car sold and $600 for every Passat sold. (The Passat is the already second-best deal in America right now, according to Kelley Blue Book.)

In addition to the bonus cash, dealers will also receive a bonus totaling 1 percent of sticker from each new vehicle sold in the third and fourth quarters.

“In light of recent events, we are committed to taking actions which will stabilize your profitability in the near-term,” Volkswagen U.S. chief Michael Horn said in the memo, according to Automotive News. “We understand the pressure these recent events have put your business under and we are committed to providing you support.”

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Volkswagen Pulled Cheap $51.35 Million Bar Trick in 2009 Based on False Emissions Data

According to the LA Times, Volkswagen’s falsified emissions data made certain 2009 model year vehicles eligible for a $1,300 green car subsidy. That subsidy, applicable to 39,500 Jetta and Jetta Sportwagen units sold, equated to a total of $51.35 million available to buyers from the government.

The LA Times used Internal Revenue Service data and Motor Intelligence, an automotive industry research body, to calculate the numbers.

The $51 million in total tax credits is just another case of automakers leveraging dumb government money to incentivize consumers to buy their vehicles.

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Volkswagen Emissions Fix May Not Last Long Thanks to Aftermarket Tuners

Many in the Volkswagen diesel community are fanatical about their fuel economy and are understandably angry that a fix for the current emissions scanda l may see them lose fuel economy in order to lower NOx output. The aftermarket community has provided modifications for the DPF and Adblue systems in the past, meaning there’s good chance they’ll provide parts and tuning to revert any changes Volkswagen may implement on the affected models.

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Here's What It Might Cost To Fix Each 2.0 TDI Volkswagen

In all reality, Volkswagen probably won’t pay $37,500 for each car that cheated its way through U.S. emissions standards, but the German automaker will probably pay thousands for each car to fit a device that would clean up their acts.

The presumed fix would come by retrofitting a Selective Catalytic Reduction (Adblue or urea) system although that wouldn’t be the only fix necessary. Researchers discovered that the Passat TDI that they tested, fitted with the SCR system, was 5 to 20 times over the NO limit — less than the 10 to 40 times by the lean NO filter cars, but still illegal.

The long list of items needed to fit models of the Volkswagen Golf, Jetta, Beetle and Audi A3 doesn’t include the engineering needed to retrofit the cars and the costs to crash test the models after the significant modifications. That’ll add hundreds of millions to the bottom line.

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Volkswagen Updates Passat With New Front, Rear Ends and Tech

Volkswagen rolled out its 2016 Passat on Tuesday in the thick of a growing scandal around the company’s admission that it cheated on emissions tests worldwide.

The new mid-size sedan sports a new front and rear end, updated instrument panel and infotainment with Apple CarPlay and Android Auto (and USB connectivity!), and for the first time will boast an R-line model with 19-inch wheels.

Last year’s engines carry over: A base 1.8-liter turbocharged four and a 3.6-liter VR6 will power the Passat. According to VW, a 2-liter turbocharged diesel ( yes, that diesel engine) will be available in the Passat, but it’s unclear when Volkswagen may begin selling that engine option.

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VW US Chief: "We Have Totally Screwed Up"
"Our company was dishonest with the EPA, and the California Air Resources Board and with all of you. And in my German words: We have totally screwed up."
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BREAKING: Winterkorn To Be Replaced By Porsche CEO Matthias Mller on Friday (UPDATE 1)

After Volkswagen admitted to gaming emissions tests with software containing a “defeat device”, German publication Der Tagesspiegel (via Jalopnik) is reporting that Volkswagen CEO Martin Winterkorn will be replaced at the end of the week by Porsche CEO Matthias Müller.

The German outlet — the name of which translates to “The Daily Mirror” — reportedly gained the information from “supervisory circles”.

Volkswagen has not yet confirmed the rumor.

Update 1: Reuters is reporting that a Volkswagen spokesman described the report as “ridiculous.” A spokesman for Porsche said Müller is at a Volkswagen board meeting today in Wolfsburg.

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BREAKING: EPA Expands Emissions Investigation to Volkswagen 3.0-Liter V6 Diesels
The larger diesel mill is used in the Touareg, Audi A6/A7/A8/Q7, and Porsche Cayenne.
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Volkswagen Sets Aside 6.5 Billion to Cover 11 Million Vehicles With Cheating Emissions Software

Volkswagen announced Tuesday that it “plans to set aside a provision of some 6.5 billion EUR ($7.3 billion) recognized in the profit and loss statement in the third quarter of the current fiscal year,” but that the final number is subject to change as the emissions scandal unravels.

The automaker has also admitted that the software, which includes a “defeat device” to hide on-road NOx emissions, has been used on 11 million vehicles sold worldwide.

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Volkswagen Facing Criminal Charges in Emissions Probe

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.

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VW, Audi in Canada Halting Sales of TDI Cars Following US Inquiry

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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Billions Erased From Volkswagen's Value In Stock Slide

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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Volkswagen's Diesel Cars Have Been Sitting At U.S. Ports For Months

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.

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Consumer Reports Strips 'Recommended' Rating From VW TDIs

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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EPA Recalling Volkswagens, Audis for Bogus Emissions Tests

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.

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Hyundai Reveals Sixth-Generation Elantra in South Korea With Atkinson, Diesel Engines

Hyundai’s compact model, the Elantra, will arrive with the brand’s newly adopted trapezoidal grille, new engines and a number of enhancements to improve perceived quality.

The automaker, who looked at the Dodge Dart and said, “Yeah, that looks good but needs more grille,” revealed the sixth-generation Elantra on Wednesday in South Korea.

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Honda Won't Sell Tiny S660 in America, Because of Course Not

Honda won’t import its tiny S660 convertible to the United States because we are a nation of giant people who drive giant cars, Automotive News is reporting.

John Mendel, executive vice president for Honda, said three weeks ago that the S660 could bring some “spice” to the American Honda lineup, but apparently he looked at a nearby parking lot and changed his mind.

“When the practicalities of the market come in, and the car only so big, that might not be the best car for the U.S. market,” Mendel told Automotive News. “It might be better for India or China or somewhere else.”

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Cadillac Will Have Diesel Engines in US

Cadillac CEO Johan de Nysschen said future Cadillac cars in the U.S. will have diesel powertrains, Automotive News is reporting (via Autoblog).

De Nysschen told journalists that oil burners would make their way to the States after they’re launched in Europe, presumably around 2019. He said engineers at Cadillac were working on 4- and 6-cylinder models, but wouldn’t specify what cars those engines would power.

Audi, BMW and Mercedes offer diesel power plants in their compact or mid-size sedans that would compete with the theoretical Cadillac.

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Colorado, Canyon Diesels Pricy Propositions With $3,730 Premiums

When the 2016 Chevrolet Colorado and GMC Canyon start arriving at dealer lots this fall, they’ll be sporting more than an additional diesel option under the hood. Monroney stickers will be afflicted with much higher prices to the tune of $3,730 more than an equally equipped V-6 model.

However, you will get increased towing capability thanks to a standard towing package, improved fuel efficiency, and a diesel engine brake to minimize wear on brake components.

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Audi Confirms 2017 A4 Diesel for US

The ninth-generation 2017 Audi A4 will sport a diesel engine for the first time in the U.S., Motor Authority is reporting.

When the sedan launches next March, the 2.0-liter turbocharged oil burner will make 190 horsepower and 236 pound-feet of twist. That’s on top of the 2.0-liter turbocharged gasoline engine that’ll make 252 hp and 273 lb-ft.

But that may not be the best part.

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Golf TDI Makes Lap of US on $300 of Diesel

Volkswagen’s Golf TDI traveled more than 8,200 miles around the lower 48 states on less than $300 of diesel in 16 days, the automaker said today.

The 16-day trip around the U.S. set a narrowly-defined world record for “lowest fuel consumption — 48 U.S. contiguous States non-hybrid car” by averaging 81.17 mpg in the Golf TDI. The car was driven by automotive journalist Wayne Gerdes and electronics engineer Bob Winger.

Quick math: If the duo averaged 15 hours of driving per day, the pair managed an average speed of 34.306 mph throughout the entire journey.

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