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VW will need to recall 323,700 diesel vehicles in India

Volkswagen Group's diesel emissions scandal continues to spread, and now the automaker must recall 323,700 diesel vehicles in India because of too much pollution, according to Bloomberg. The campaign covers models from several of the group's brands including VW, Audi, and Skoda. The Automotive Research Association of India first discovered the emissions irregularities after conducting its own real world and lab tests, and the Indian government then commanded VW to explain what was happening. The country's regulators will allow the automaker to set the recall schedule for the repairs, according to a government official who spoke to Bloomberg, and the campaign will likely happen in phases. Among the affected vehicles, there will be about 100,000 from the VW brand including the Jetta, Passat, and some variants of the Polo. VW already has repairs for some of the affected diesel engines in Europe, and the company can allegedly fix the emissions problem with new software and small hardware changes. The situation is harder in the US where regulators still need to approve any proposed solutions, and VW also must now recall its 3.0-liter V6 TDI in California to eliminate other problematic code. The German automaker faces investigations from regulators all over the world into its emissions evasions, and they could be quite costly. One estimate already suggests the minimum price of the potential repairs, fines, and other expenses at about $24.5 billion. Officials in Brazil have already fined the company $13 million for pollution issues with the diesel Amarok pickup and requested a recall to fix them.

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

VW will expand goodwill package to larger diesels

Volkswagen Group of America will expand its goodwill package to affected owners of the VW Touareg and other models with the 3.0 TDI. The company may also replace the catalytic converter on some cars equipped with the 2.0-liter four-cylinder TDI engine to bring it into compliance with US emissions. VW Group of America boss Michael Horn told Reuters he plans announce the goodwill program's expansion to the 2009-2016 Touareg during the Detroit Auto Show, and company spokesperson Jeannine Ginivan also confirmed this to Autoblog. Audi intends to extend the offer to its affected owners, too. As with the previous goodwill package, participating customers would receive a $500 prepaid Visa card and $500 to use at dealers. The EPA issued a violation notice against the 3.0 TDI in November and later extended it to additional model years. Audi later admitted that the engine, which was also in the Touareg and Porsche Cayenne, had undisclosed emissions management software. However, the automaker limited the goodwill package only to the 2.0-liter powerplant while it investigated the allegations against the larger mill. VW has not announced a recall plan in the US for the 2.0 TDI so far, but VW Group CEO Matthias Muller recently outlined a possible solution that could fix about 430,000 of the 482,000 affected vehicles. "We have one [catalytic converter] in the works and we believe that will be a part of the technical solutions," he told Reuters. Muller plans to discuss the repair while in Washington D.C. on Wednesday to meet with the EPA. "I think we can now offer a package that will come very close to what the EPA is expecting from us," Muller said to Reuters. He also suggested the company might buy back some affected models but didn't confirm the recent rumor claiming that the buy-back may cover as many as 115,000 cars.