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Honda, Mazda, Mitsubishi, Mercedes also under diesel emissions scrutiny

The controversy over Volkswagen's diesel emissions scandal isn't limited to the US. In Europe, where diesel engines are far more popular, the issue is shining a harsh light on the NEDC emissions test. As already known, the evaluation does a poor job of reflecting real-world production of NOx, and it appears a significant number of automakers are affected. The Guardian in the UK has been reporting on real-world test results from a company called Emissions Analytics. After the latest round of checks, vehicles from Mercedes-Benz, Honda, Mazda and Mitsubishi were found to generate far more NOx than they should. The newspaper also published similar results for Renault, Nissan, Hyundai, Fiat, Volvo, Jeep, Citroen, VW, and Audi. On average, the figures are about four times over the limit of producing the pollutant. Unlike VW and its defeat device, these automakers aren't actually breaking the rules. The vehicles perform up to the NEDC lab test for emissions, but those results simply aren't translated to the street. "The VW issue in the US was purely the trigger which threw light on a slightly different problem in the EU - widespread legal over-emissions," Nick Molden from Emissions Analytics said to The Guardian. A big fight to decide the future of this issue appears to be on the horizon. Automakers claim that they can't meet the next round of tightening emissions regulations and are asking for compromises. Although, spokespeople for Mercedes and Honda told The Guardian that the brands would be in favor of the stricter rules. Meanwhile, some European governments began backtracking their support of diesels well before this scandal came to light. The added scrutiny certain hasn't helped the future of the oil-burner. Related Video:

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.