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VW close to decision on selling Bugatti to Rimac

FRANKFURT — Electric hypercar maker Rimac Automobili and Volkswagen's supercar brand Bugatti are a good technological fit, Porsche's CEO told German weekly Automobilwoche, fueling hopes that a deal between the two could happen soon. British automotive magazine Car last year reported that Volkswagen was on the verge of selling Bugatti to Rimac Automobili, citing sources. In exchange, Porsche, also owned by Volkswagen, would raise the 15.5% stake it owns in Rimac, founded by Croatian entrepreneur Mate Rimac, Car said. "At the moment there are intense deliberations on how Bugatti can be developed in the best possible way. Rimac could play a role here because the brands are a good technological fit," Porsche CEO Oliver Blume said. "There are various scenarios with different structures. I believe that the issue will be decided by the group in the first half of the year," said Blume, who also sits on the management board of parent Volkswagen. Rimac has developed an electric supercar platform, which he supplies to other carmakers, including Pininfarina. Blume also confirmed higher savings targets for Porsche, saying the carmaker plans to support results by 10 billion euros ($12.1 billion) of cost cuts by 2025, up from 6 billion previously. Related Video:

French probe alleges 2 million PSA cars had engine cheats

PARIS — A French investigation into alleged emissions cheating by PSA Group found that suspect software had been used on almost 2 million vehicles sold by the maker of Peugeot and Citroen cars, Le Monde reported on Friday. Paris-based PSA denies any use of fraudulent engine software, a spokesman said in response to the newspaper report, which sent PSA shares sharply lower. The stock was down 4.4 percent at 17.78 euros as of 1019 GMT. So-called "defeat devices" restrict exhaust output of toxic nitrogen oxides (NOx) under regulatory test conditions while letting emissions far exceed legal limits in real-world driving. In February, PSA became the fourth carmaker to be referred to French prosecutors by the country's DGCCRF watchdog over suspected emissions test-cheating, after Volkswagen, Renault and Fiat Chrysler. PSA's engineering chief acknowledged at the time that emissions treatment in the group's diesels was deliberately reduced at higher temperatures to improve fuel efficiency and carbon dioxide (CO2) emissions in out-of-town driving, where NOx output is considered less critical. According to Le Monde, an internal PSA document obtained by DGCCRF investigators includes discussion of the need to "make the 'defeat device' aspect less obvious and visible." However PSA insists there is nothing fraudulent or illegal about its engine calibrations. "PSA denies any fraud and firmly reaffirms the pertinence of its technology decisions," the company said on Friday. Reporting by Laurence FrostRelated Video: Image Credit: Getty Government/Legal Green Volkswagen Citroen Peugeot Emissions Diesel Vehicles dieselgate volkswagen diesel

Feds allege widespread Volkswagen cheating on clean-air rules

Volkswagen intentionally installed software in nearly a half-million diesel vehicles that helped the cars evade substandard results on emissions tests, the federal government charged Friday. The Environmental Protection Agency issued a notice of violation to the German automaker, saying the company's software broke the law by violating two provisions in the Clean Air Act. Circumventing the standards meant affected cars emitted as much as 40 times the allowable level of certain pollutants. Both the EPA and California Air Resources Board have launched investigations. In its notice of violations, the EPA said Volkswagen officials admitted to installing and concealing what they call a "defeat device," which was designed to detect when the cars were undergoing official emissions tests – and only turn on emissions controls during that time. "Our goal now is to ensure that the affected cars are brought into compliance, to dig more deeply into the extent and implications of Volkswagen's efforts to cheat on clean air rules, and to take appropriate further action," said Richard Corey, executive officer of CARB. The allegations cover approximately 482,000 vehicles sold in the United States over the past seven years. Cars involved include diesel versions of the Jetta, Beetle, Audi A3 and Golf manufactured between the 2009 and 2015 model years. Passats manufactured for the 2014 and 2015 model years are also included. Federal officials note there is no safety danger to motorists, but the cars will be recalled for repairs. If true, Volkswagen faces a fine that could run in the hundreds of millions of dollars -- likely higher than the $300 million charge the EPA levied last November at Hyundai and Kia for exaggerating the fuel-economy in several models. The charges also put a tremendous dent into the company's plans to increase sales of its "Clean Diesel" vehicles in North America. In a written statement, Volkswagen Group of America acknowledged it had received the notices from the EPA and CARB. "VW is cooperating with the investigation; we are unable to comment further at this time," it said. Federal officials said the defeat-device software was uncovered during an independent analysis by researchers at West Virginia University, who in working with the International Council on Clean Transportation, a non-governmental organization, raised questions about emissions levels.