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German automakers' stocks fall as EU investigates collusion

BERLIN/FRANKFURT - Volkswagen will hold a special supervisory board meeting on Wednesday to discuss allegations that German carmakers operated a wide-ranging cartel, a source familiar with the matter said on Monday. The European Commission said on Saturday antitrust regulators were investigating a possible German auto industry cartel following a tipoff. At stake is whether carmakers VW, Audi, Porsche, Mercedes and BMW used German auto industry committees to discuss pricing of components and technologies, and whether such talks constituted anti-competitive behavior. A VW spokesman confirmed an extraordinary supervisory board meeting would be held on Wednesday but declined to give details. German auto stocks took a hit in early trading on Monday, weighed down by uncertainty over possible antitrust fines after European regulators said they were probing cartel allegations. VW shares were down 2.8 percent, with Daimler and BMW down 3.4 percent and 2.5 percent respectively, lagging the blue-chip DAX index, which was 0.7 percent lower. Exane BNP Paribas automotive analyst Stuart Pearson said little was known about the allegations, but no signs had emerged about fixing prices charged to consumers. "More ugly details could yet emerge, leaving German manufacturers - and the EU auto sector - still firmly in the sin bin for now," he added. The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. The industry's record on exhaust emissions is also under close scrutiny after VW admitted in September 2015 to cheating U.S. diesel emissions tests and investigations have shown many vehicles exceeding pollution limits outside of testing labs. On Friday, German magazine Der Spiegel said VW, its Audi and Porsche brands, Mercedes-owner Daimler and BMW may have colluded to fix prices on components, including of diesel emissions treatment systems, using industry committees. Spiegel said the talks also led to the use of smaller tanks containing AdBlue, a urea-based liquid needed to help filter nitrogen oxides (NOx) from diesel emissions. Larger tanks would have been more expensive, the magazine said. Auto industry experts, however, have said the effectiveness of exhaust filtering systems does not depend on the size of an AdBlue Tank. BMW, for example, has equipped its cars with urea injection as well as a NOx-storage catalytic converter.

Recharge Wrap-up: Eigg's renewable energy grid, Wulin City Car EV looks like i3

Scotland's Isle of Eigg's electrical grid relies solely on wind, hydro and solar power. It's the first grid of its kind after switching to renewable energy from noisy, unreliable diesel generators. Scotland's renewable resources are fodder for supporters of independence form the UK, and Eigg is a perfect example of that potential. Besides being a responsible community, it also seems like a lovely place to visit. Read more at Reuters. London Mayor Boris Johnson is calling for incentives for diesel vehicle scrapping. The goal is to improve London's air quality, encourage the purchase of clean vehicles and offset the inconvenience of charging diesel cars to enter the city's proposed Ultra Low Emissions Zone. Read more at Green Car Congress or in the press release below. BMW, Nissan, Renault and Volkswagen are teaming up to create a better EV charging infrastructure in the UK and Ireland. As part of the Trans-European Transport Network (T-ENT) program, the group aims to create extended EV-friendly roadways with the UK Rapid Charge Network, connecting major cities on the islands. Plans for the network include 70 rapid chargers along 684 miles of road. The four manufacturers also want to extend the project to mainland Europe to encourage the adoption of EVs. Read more at Hybrid Cars. Wuling is working on an EV, called City Car, which liberally takes visual cues from the BMW i3. The City Car EV concept is slated to make its debut in November at the Guangzhou Auto Show, while a production version could make its way onto Chinese roads next year. We might have to wait until the debut to know what powers the City Car, as those details haven't been released yet. General Motors is a 43-percent stakeholder in Wuling. Read and see more at Car News China. Taxi customers in New York will enjoy greater payment flexibility with the new interoperability between RideLinQ and Way2ride apps. Now customers will be able to use either app to pay in any of the city's 20,000 green and yellow taxis. There's no need for separate apps for separate cabs, and no need for drivers to install any new equipment. The groups behind the apps hope to expand this functionality to other cities across the country. Read more in the press release below.

2017 BMW Alpina B7 xDrive is an M7 by any other name

Have you been waiting for BMW to release a more potent version of the new 7 Series? Try 600 horsepower on for size and forget all about the famous M badge. The new flagship performance sedan from Munich is the 2017 BMW Alpina B7 xDrive. Alpina is Bimmer's tuner of choice, and it designs customized features to integrate precisely with the factory build. The B7's 4.4-liter twin-turbocharged V8 is massaged to deliver a nice, round 600 horsepower, and a torque figure nearly as impressive at 590 pound-feet available from just 3,000 rpm. All that muscle is channeled through an eight-speed automatic to all four wheels (as you might have guessed from the new xDrive handle). The result is an Autobahn-blitzing 0-60 time quoted at just 3.6 seconds – 0.8 seconds quicker than its predecessor – and a top speed estimated at 193 miles per hour. Those would have been considered supercar figures not that long ago, but are delivered here in a luxury sedan as big as they come. They also stand up pretty well to the forced-induction eight-cylinder competition in the Audi S8 Plus, Jaguar XJR, Maserati Quattroporte GTS, and Mercedes-AMG S63. The Audi produces a bit more power but less torque, the Mercedes does the opposite, and the Jaguar and Maserati are left in the dust. Only the S8 Plus dares claim a quicker 0-60 time, and even then it's only said to be a tenth quicker. (The Mercedes-AMG S65 boasts much higher output from its V12, but without an all-wheel drive system capable of handling all its muscle, it's a fair bit slower off the line.) Keeping all that momentum under control is an air suspension with adaptive dampers, active roll bars, and four-wheel steering. It's all mounted to 20-inch wheels wearing Michelin Pilot Super Sport rubber and packing oversized brakes measuring 15.5 inches at the front (with four-piston fixed calipers) and 14.5 inches (with floating calipers) at the back. Of course it also benefits from all the advancements that the Bavarian automaker developed for the latest 7 Series, but takes things a step further with a specific aero kit and an interior decked out in even more upscale leather and trim. The finished product may not wear an M7 badge as so many have called for from BMW's flagship sedan series over the years. But the Alpina name carries a cachet all its own and has for the past 50 years now – which is a few years longer than BMW M GmbH has been around.