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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.

VW recognizes second union at Chattanooga plant

The ongoing story of organizing workers at Volkswagen's factory in Chattanooga, TN, continues to get more complicated. Following an independent audit, the automaker has now recognized a second union at the plant called the American Council of Employees. The group was founded there last year to offer an alternative to the United Auto Workers. "I'm not anti-union. I understand that a properly run union can benefit people. We will be that union," Sean Moss, president of the ACE, said to Reuters, according to Automotive News. The group claims to represent at least 15 percent of the workers at the plant. Acceptance of the ACE has led to an interesting situation in Chattanooga because VW also recognized the UAW at the factory in December 2014, and the group has claimed to represent at least 45 percent of workers there. According to Automotive News, each union has access to management, but the UAW has more because of its larger contingent of supporters. However, neither organization has a collective bargaining agreement with the automaker. Moss may have a rough time increasing support among employees at the factory. According to Automotive News, many anti-UAW workers there are completely against unions in general. Getting these folks to join his group isn't an easy task. The UAW has been working to fully represent the VW factory for years. However, the group lost a vote to do so in 2014. It eventually created a union local there to try to build support. All of the effort comes ahead of a $900 million plant expansion to add about 2,000 jobs and build a new crossover in Tennessee. News Source: Automotive News - sub. req.Image Credit: Erik Schelzig / AP Photo Plants/Manufacturing UAW/Unions Volkswagen chattanooga vw chattanooga chattanooga tennessee ace

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.