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Volkswagen could build plug-in hybrids in China

When you're Europe's largest automaker and your largest global market happens to be the one most notorious for its pollution (China), some solutions just present themselves. Volkswagen may be heeding that call. During the upcoming Beijing Motor Show, the company is expected to announce plans to produce plug-in hybrid electric vehicles in China, Reuters says, citing sources within the company. Few details have emerged, though the plug-ins will likely be produced at VW's Foshan factory in South China, which currently makes the Golf and Audi A3 and has plans to eventually make 600,000 vehicles annually. News has been percolating for a while, as Oliver Schmidt, general manager engineering and environmental office for Volkswagen Group of America, said last March that the company was planning at least two plug-in hybrid lines under the VW badge (and another three with its Audi and Porsche affiliates), including possibly a Touareg and Jetta PHEV. VW said late last month that it was looking to speed up development of "particularly eco-friendly models" made by Shanghai Volkswagen as well as developing a "new, very eco-friendly vehicle" with First Automotive Works (FAW). Earlier this year, VW unveiled its Golf GTE plug-in hybrid at the Geneva Motor Show. That model has a 1.4-liter turbocharged four-cylinder engine and an electric motor to provide 201 horsepower and 258 pound-feet of torque. The car can travel as many as 81 miles on electric power alone.

Winterkorn remains CEO of Volkswagen's majority shareholder

Martin Winterkorn may have stepped down as the chief executive of Volkswagen in the wake of the diesel emissions scandal, but he's not out from under the company's large umbrella just yet. In fact, according to a report from Reuters, he still holds four top-level positions not only within the industrial giant's bureaucracy, but at the top of it. And one of those is as CEO of the company's largest shareholder. That holding company is Porsche SE, the investment arm of the Piech and Porsche families (Ferdinand Porsche's descendants) which holds over 50 percent of VW's shares. In 2008, Porsche SE acquired majority interest in the Volkswagen Group which in turn acquired Porsche the automaker – and placed VW's Winterkorn at the head of the executive board of the holding company. Though Winterkorn has resigned from his position as chairman of VW's management board, he has apparently yet to step down from running Porsche SE. That's not the only job that Winterkorn still retains in VW's senior management. He also continues to serve as chairman of Audi, as well as truck manufacturer Scania, and the new Truck & Bus GmbH into which Scania has been grouped together with Man. It remains unclear if or when Winterkorn might resign from those positions as well, or how his tenure in those posts might affect the company's effort to start over in the aftermath of the scandal in which it is currently embroiled. Also unclear, Reuters reports, is how much, exactly, Winterkorn will receive in compensation after having stepped down from his chair at the head of the VW executive board. His pension is reported at over $30 million, but he could be awarded a large severance package as well amounting to as much as two years' worth of his annual compensation, which amounted to around $18 million last year. Whether he receives the severance pay or not is expected to depend on whether his resignation is considered by the supervisory board to have been the result of his own missteps or independent of the situation that resulted in his resignation. One way or another, he's not likely to go poor anytime soon.

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.