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France may still ban diesel vehicle sales

Legislators in France are not afraid to bring out the ban hammer when it comes to dirty vehicles. The city of Paris has implemented bans on old clunkers, and the French Prime Minister, Manuel Valls, said in 2014 that diesel cars were a "mistake" and that the government would "progressively undo" the error. Now the national government has said it will not rule out banning sales of new diesel vehicles by Renault and Volkswagen if those companies don't answer more questions about their vehicles' emissions. Environment Minister Segolene Royal said last week that France wants more information about the VW diesel defeat device and Renault's engine software. "We will be asking the consumer fraud investigators and prosecutors to communicate any findings that will enable us to establish whether it's necessary to withdraw sales authorizations," Royal said. Royal has been making waves recently at the COP22 meeting in Marrakesh, Morocco and said that Donald Trump's environmental policies will be " absolutely catastrophic" and weaken the US' standing in the world. If the US doesn't want to lead on climate change efforts, she said, "China can take the place of the United States." She has also been involved in a controversy at home over votes that her staff made to allow higher emissions level from vehicles. Related Video: News Source: SpeedluxImage Credit: Fred Tanneau/AFP/Getty Images Government/Legal Green Volkswagen Renault Emissions Diesel Vehicles vw diesel scandal segolene royal

TN politicians may push to end VW incentives if plant goes union

Volkswagen's Chattanooga Assembly Plant is scheduled to vote on whether to unionize in the coming days, but Tennessee state lawmakers are threatening to deny future tax subsidies to the factory, if the vote is successful. The factory is currently the only Volkswagen plant worldwide that is not unionized.
The states's Republican lawmakers have been particularly vocal against the union vote. Tennessee state senator Bo Watson said during a press conference that VW would have a "very tough time" with future incentives if the vote were successful, according to Automotive News. Tennessee House Majority Leader Gerald McCormick said the "heavy hand" of the UAW is not welcome there. VW has drawn criticism from both sides because it has allowed both pro- and anti-union groups to speak to workers and hand out leaflets.
Roughly 1,500 factory employees will vote on whether to unionize from February 12-14. If successful, the Chattanooga factory would be the first in the US organized under a German-style works council system where white- and blue-collar workers directly negotiate factory issues with the company's management.

Volkswagen forced to sell stake in Suzuki

The six-year-long failed marriage between Volkswagen and Suzuki has finally come to an end. Almost. An arbitration panel in London issued its final verdict which, according to a VW press release, cleared Suzuki in terminating the agreement, so VW now needs to get rid of its 19.9-percent share. However, the tribunal's decision said VW performed all of its obligations and Suzuki didn't – the Japanese carmaker should have given VW last-call rights for a delivery of diesel engines, but failed to. The breach opens Suzuki up to damage claim, but so far VW only says it reserves the right to sue. Now that Suzuki has an outside investor to provide funds it meant to get from VW, perhaps both can get back to their reasons for being. The press release is below. Ruling in arbitration proceedings: Cooperation between Volkswagen and Suzuki deemed terminated - Arbitral tribunal confirms Volkswagen met contractual obligations and finds that Suzuki has ordinary right to terminate agreement based on reasonable notice - Volkswagen to dispose of its 19.9 percent stake in Suzuki and expects positive effect on Company's earnings and liquidity from transaction - Arbitrators also find that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has right to claim damages Wolfsburg, 30 August 2015 - An arbitral tribunal in London has announced its ruling in the dispute between Suzuki Motor Corporation and Volkswagen Aktiengesellschaft. As a result, cooperation between the two parties is deemed terminated. The arbitrators confirmed that Volkswagen met its contractual obligations under the cooperation agreement and found that Suzuki has terminated the agreement upon reasonable notice. Volkswagen will therefore now dispose of its 19.9 percent stake in Suzuki and expects a positive effect on the Company's earnings and liquidity from the transaction. The arbitral tribunal also confirmed that Suzuki breached its contractual obligations to Volkswagen under the agreement and that Volkswagen has the right to claim damages. "We welcome the clarity created by this ruling. The tribunal rejected Suzuki's claims of breach and found that Volkswagen met its contractual obligations under the cooperation agreement. Nevertheless, the arbitrators found that termination of the cooperation agreement by Suzuki on reasonable notice was valid, and that Volkswagen must dispose of the shares purchased.