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EPA discovers defeat device in more VW TDI engines

In a sternly worded letter, the United States Environmental Protection Agency has issued a new set of allegations against Volkswagen claiming that so-called emissions defeat software has been found in the company's 3.0-liter TDI V6 diesel engines. This is a completely different engine than the 2.0 TDI that has already been identified as an emissions cheater. In addition to VW, the EPA has included Audi and Porsche in this notification, as the non-compliant engine has been used in vehicles from all three manufacturers from model years 2014 through 2016. The EPA claims that cars equipped with the 3.0 TDI engine know when they are being tested for emissions, and their on-board computers switch into a mode designed to pass the stringent requirements in the United States for diesel exhaust. Vehicles sold in the United States with this engine include the 2014 VW Touareg, 2015 Porsche Cayenne, and 2016 Audi A6, A7, A8L and Q5. The EPA says there are 10,000 vehicles currently on the road with this second defeat device, along with an unknown number of 2016 models either on dealer lots or in the driveways of consumers. According to the EPA, VW's 3.0-liter TDI, like the 2.0 TDI that was found to circumvent US regulations, has code in its computer specifically written to intentionally put the vehicle's engine into a mode that allows it to meet exhaust requirements. When the vehicle is unhooked from testing equipment, it will go back into a mode that emits nine-times higher nitrogen oxide emissions than is allowable under US law. "VW has once again failed its obligation to comply with the law that protects clean air for all Americans," said Cynthia Giles, Assistant Administrator for the Office for EPA's Enforcement and Compliance Assurance. "All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect." Richard Corey, Executive Officer of the California Air Resources Board, said in a statement, "Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open." This story will be updated as new information becomes available.

2015 VW Golf SportWagen priced from $21,395*

Now known as the Volkswagen Golf SportWagen in the US, the long-roof version of the platform gets larger for its new generation in 2015, but it also sheds up to 137 pounds and cuts some money off the price of some models. The base now begins at $21,395, plus $820 destination on all versions, when they arrive at dealers in April. Volkswagen claims that with all of the extra standard content, buyers actually save $700 compared to the previous-gen Jetta SportWagen, despite its lower $20,995 starting price. The S trim is the least expensive model and comes with a five-speed manual and 1.8-liter turbocharged four-cylinder making 170 horsepower. Paying an extra $1,100 adds a six-speed automatic. The SE for $26,995 gets the auto as standard and also includes a panoramic sunroof, front foglights, push-button start and a rearview camera. The top SEL for $29,345 further features chrome roof rails, navigation, a 12-way power driver's seat and more. In addition to the gas engine, buyers can choose the 2.0-liter TDI with 150 hp and 236 pound-feet of torque, and VW quotes EPA estimates of up to 43 miles per gallon highway fuel economy for it. All of the trims with the oil burner come with a six-speed manual, but a six-speed DSG is a $1,100 extra. The base TDI S trim starts at $24,595, which is nearly $2,000 less than the last-gen Jetta SportWagen with a diesel, and buyers also get standard push-button start and a rearview camera. The SE and SEL trims offer similar upgrades as their gasoline counterparts and ring up for $27,995 and $30,345, respectively. Of course, many buyers want extra tech for their cars, and VW is offering two packages of options for the SE and SEL trims with either engine. One adds collision warning, automatic post-collision braking and front and rear parking sensors for $695. The Lighting Package includes adaptive Bi-Xenon headlights, LED running lights and LED interior lighting for $995. VOLKSWAGEN ANNOUNCES PRICING OF 2015 GOLF SPORTWAGEN ? New TDI® S model reduces base Clean Diesel pricing by almost $2,000 ? Newly available driver assistance technology includes Forward Collision Warning and Automatic Post-Collision Braking System ? Larger interior than outgoing Jetta SportWagen rivals compact SUVs for size ? Car will be offered with 1.8-liter turbocharged TSI® gasoline and 2.0-liter TDI Clean Diesel engines ?

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.