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French probe alleges 2 million PSA cars had engine cheats

PARIS — A French investigation into alleged emissions cheating by PSA Group found that suspect software had been used on almost 2 million vehicles sold by the maker of Peugeot and Citroen cars, Le Monde reported on Friday. Paris-based PSA denies any use of fraudulent engine software, a spokesman said in response to the newspaper report, which sent PSA shares sharply lower. The stock was down 4.4 percent at 17.78 euros as of 1019 GMT. So-called "defeat devices" restrict exhaust output of toxic nitrogen oxides (NOx) under regulatory test conditions while letting emissions far exceed legal limits in real-world driving. In February, PSA became the fourth carmaker to be referred to French prosecutors by the country's DGCCRF watchdog over suspected emissions test-cheating, after Volkswagen, Renault and Fiat Chrysler. PSA's engineering chief acknowledged at the time that emissions treatment in the group's diesels was deliberately reduced at higher temperatures to improve fuel efficiency and carbon dioxide (CO2) emissions in out-of-town driving, where NOx output is considered less critical. According to Le Monde, an internal PSA document obtained by DGCCRF investigators includes discussion of the need to "make the 'defeat device' aspect less obvious and visible." However PSA insists there is nothing fraudulent or illegal about its engine calibrations. "PSA denies any fraud and firmly reaffirms the pertinence of its technology decisions," the company said on Friday. Reporting by Laurence FrostRelated Video: Image Credit: Getty Government/Legal Green Volkswagen Citroen Peugeot Emissions Diesel Vehicles dieselgate volkswagen diesel

Recharge Wrap-up: New Mitsubishi Evo PHEV, Amsterdam buses go all electric by 2025

Mitsubishi hopes to launch a new vehicle badged as the Evo based on the Concept XR-PHEV II. Mitsubishi President and COO Tetsuro Aikawa tells Autocar the new vehicle will share characteristics with the outgoing Lancer Evolution loved by enthusiasts, but will feature a plug-in hybrid powertrain in the body of a compact crossover. "In Japanese, when you pronounce 'Oh,' it means 'king,'" says Aikawa. "So we would like to launch this type of car, featuring EV and PHEV technology, which is the ultimate of its kind. 'EV' for electric vehicle, 'O' for king - Evo." The Mitsu boss also envisions the four-wheel-drive Evo to be "light and fast - something performance-oriented." Read more at Autocar, or at Hybrid Cars. Amsterdam aims to have all its buses running on electric power by 2025. Within two years, the city will have 40 electric buses in operation, and will phase out the rest of the diesel fleet in the following years. "This project means we are saying goodbye to symbolic behavior and pilot projects," says transport alderman Abdeluheb Choho. "We have decided to just do it, not to experiment with five buses." Read more at Clean Technica. BMW and General Motors are both listed in the top five US organizations generating and using green energy onsite. In an EPA list, BMW's Spartanburg, South Carolina manufacturing facility is number four, with credit going to its use of landfill gas. In 2013, 69,383,477 kWh - or 37 percent of its total usage - came from green energy. GM's Fort Wayne Assembly was number five, with 43 percent of its power coming from methane from a nearby landfill. Volkwsagen also made the Top 30 list, at number 15, for its Chattanooga assembly plant's use of solar power. See the EPA's full list, and read more at Green Car Congress. Volkswagen will release its 2014 sustainability report on Twitter on Monday, May 4. It will be the first step in using the social medium to distribute information on economic, environmental and social sustainability to a larger audience. The report will include a section called "Electrifying China with a tailor-made efficiency strategy," which focuses on reducing CO2 emissions through the use of electric vehicles. Volkswagen has already begun releasing highlights from its report on its Twitter account with the hashtag #VWCSR. Read more in the press release below and, of course, on Twitter next week.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico