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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

To solve diesel problem, VW might need two fixes

Volkswagen says that a fix is on the way for its 11 million vehicles around the globe that are equipped with diesel engine software that can evade emissions tests. The problem might be far more complicated than simply creating a single solution for all of them, though. According to Automotive News citing Reuters, two remedies to cover different NOx-reducing systems could be necessary, and both potentially affect performance. Earlier examples of the EA 189 diesel engine used a lean NOx trap to reduce the harmful material coming from the tailpipe. According to experts in the Automotive News report, a software update might allow the engines to achieve compliance, but that could affect fuel economy. VW already tried this route once before the scandal came to light, but tests by the California Air Resources Board still showed the figures were too high. Later, some of the 2.0 TDI engines began using Selective Catalytic Reduction that reduced NOx by injecting a urea solution into the exhaust stream. According to Automotive News, a software update for this equipment might increase the amount of the substance used. Not only would that mean topping up the fluid more often, but there still could be some reduction in fuel economy. But, since the 2-liter, 4-cylinder TDI engine that sits inside the diesel vehicles first mentioned as being affected by the issue in the US don't have a urea treatment system, VW would need to install them into these cars. VW still hasn't officially outlined its solution (or solutions) to the emissions issue but is expected to soon. The automaker's long-term evasion of regulations with these diesel engines pumped vast quantities of additional NOx into the air. The substance is known to be linked with smog and acid rain. The US Department of Justice is already beginning an investigation into the company, and politicians are pushing for harsh punishments.

Translogic 164: Driving the fuel cell vehicles of the 2014 LA Auto Show

The LA Auto Show is known for its environmentally friendly vehicle debuts. At last year's show, hydrogen fuel cell concepts from Honda and Toyota joined a lease-ready Hyundai Tucson FCEV to cast a green hue over the convention center. This year, automakers took us a step closer to a fuel cell future by offering drives of their hydrogen-electric hybrids. Translogic host Jonathon Buckley takes a ride in the Toyota Mirai, which is headed for production in 2016. He follows that with a spin in the Volkswagen Passat HyMotion and the Audi A7 Sportback h-tron quattro concept. Which of these fuel cell vehicles holds the most promise? Tune in to find out. Follow Translogic on Twitter and Facebook. Click here to subscribe to Translogic in iTunes. Click here to learn more about our host, Jonathon Buckley. LA Auto Show Audi Toyota Volkswagen Electric Translogic Videos la 2014 toyota mirai