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Are more diesel scandals about to erupt?

More automakers may soon be embroiled, like Volkswagen, in diesel emissions scandals. According to the Daily Kanban, either the International Council on Clean Transportation (ICCT) or the Deutsche Umwelthilfe (DUH) will soon announce from 10 to 15 more cases of automakers cheating national diesel emissions rules. The outlet says three of the incidents are attributed to Opel. Studies conducted by the DUH, the University of Applied Sciences in Bern, Switzerland, and the UK's Leeds University found that Opel's diesel Zafira, Corsa, and Vectra models emit more NOx than European regulations allow when tested in ways that go beyond the European testing protocol, such as when done on a four-wheel rolling road instead of a two-wheel rolling road. Opel said the accusations had no merit. Specifically on the Zafira, the DUH asked Opel about the emissions findings, and Opel said that no General Motors software contains any measures to enable cheating. Opel then tested a Zafira of its own "both on a two- and a four-wheel roller dynamometer," finding that "The emission behavior determined in each case does not differ from one another." That makes this a case of he-said-she-said for the moment. The Daily Kanban's sources say the cheating methods "range from the crude to the highly sophisticated," with those at the latter end complex enough to render Volkswagen's methods "pedestrian." As for any automakers who might be named, the matter of real-world emissions exceeding a legal limit doesn't mean a carmaker has designed systems that cheat, it might mean the company designed the car to pass a test. Related Video: News Source: Daily KanbanImage Credit: PATRICK PLEUL/AFP/Getty Images Government/Legal Green Volkswagen Opel Emissions Diesel Vehicles vw diesel scandal icct

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,