2006 Volkswagen Passat 2.0t Komfort on 2040-cars

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How should Volkswagen deal with its diesel problems?

The hounds of hell are bearing down on Volkswagen in the wake of allegations of cheating on diesel emissions testing. In just a single day, Volkswagen's stock has dropped 23 percent and the German government has announced that it is going to investigate a far larger number of vehicles over emissions violations. The American storm is quickly becoming a global one. Volkswagen sells over a million diesel vehicles a year and also has more than 13 percent of the automotive market overall – it was the number one automaker in the world up until the scandal. Yet in a matter of hours, Volkswagen has also become a pariah with potential fines and recalls that may be dwarfed by how the alleged lies and deceit change how governments and consumers view the company. Consumers are really going to be the key to the company's survival. It's those consumers who are really going to be the key to the company's survival. Every single one of them now finds themselves with a product that was sold illegally and may not be registered until recall work is done. What's worse is that Volkswagen doesn't yet have a solution for the emissions issue to offer these customers. It should also be noted that this is not the first time Volkswagen has found itself in violation of EPA emission regulations. Volkswagen is in a world of trouble, so what now? As a car dealer and former financial analyst who took several companies public, I believe Volkswagen can and should consider three points of action that would make an enduring difference in the times to come. 1. Offer affected TDI owners a compelling reason to stay with the brand. Recall work and a cup of coffee at the dealership are not going to be enough to placate current owners. Volkswagen should provide compensation for customers at the earliest opportunity and offer some type of inducement that keeps them within the fold. This shouldn't be the industry's version of a Chuck E. Cheese coupon - a small discount on a new vehicle. Volkswagen needs to offer something along the lines of a strong warranty extension of the entire powertrain (not just the emissions system) or some type of valuable feature upgrade for these vehicles so that owners feel that they have been treated fairly. Perhaps a combination of a brand new navigation system, software upgrades for the infotainment components, or some type of basic free WiFi service would be a healthy act of generosity.

Recharge Wrap-up: Smart Ready for Rent, MOIA comes to US in 2018

Daimler is launching its "Smart Ready to Rent" service in Europe. Beginning this month in German and French cities, the rental scheme bridges the gap between short-term Car2go rentals and longer leases. Customers book the Smart model of their choice – including the emissions-free Electric Drive and the hotter Brabus versions – for a period of one day up to three months. As such, Smart Ready to Rent is useful to those who live outside of an urban center. Users can book a car online or through a dealer, and vehicles are collected and returned at the dealership. Read more at Green Car Congress. Volkswagen will launch its MOIA mobility arm in the US in 2018. The recently announced brand will take on public transportation as a competitor with services such as ride hailing and car sharing. VW is looking into forging partnerships with the likes of technology and ride sharing companies. The automaker also expects to show an electric shuttle-type concept in 2017 for pooling services, but will use the three-row VW Atlas crossover in the meantime until that concept reaches production. Look to see MOIA emerging in major cities along the US coasts. Read more at Automotive News. A new report from Lux Research suggests that most EV batteries are better off being recycled than reused. Once lithium-ion batteries have outlived their usefulness for automotive duty, some automakers (BMW, Nissan, and Toyota included) are looking at ways to use their remaining capacity, such as for stationary energy storage. The new report, though, says that reusing batteries offers "questionable returns on account of reduced performance." Better to be like Tesla, and just recycle them. Read more at Hybrid Cars. Related Gallery Smart ForTwo ED: Paris 2016 View 12 Photos Related Gallery 2018 Volkswagen Atlas Unveiling View 43 Photos News Source: Green Car Congress, Automotive News, Hybrid CarsImage Credit: Copyright 2016 Drew Phillips / AOL Green smart Volkswagen Green Automakers Transportation Alternatives Electric recharge wrapup

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs