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Audi, Porsche ensnared in new Volkswagen cheating allegations

The scope of the Volkswagen emissions cheating scandal that has enveloped the global automaker for the past six weeks widened Monday. Now, some of the automaker's premium brands are further ensnared in the mess. Officials with the Environmental Protection Agency issued a second notice of violations Monday, accusing Volkswagen of violating the Clean Air Act by using defeat devices that circumvent emissions testing on diesel versions of certain vehicles equipped with 3.0-liter engines. Roughly 10,000 vehicles in the United States contain the illegal software, the EPA alleges. That's a far smaller number than the 482,000 vehicles affected by the first instances of cheating, which Volkswagen confessed to in September. But this latest violation alleges the cheating occurred broadly through the Volkswagen empire and includes vehicles from the Porsche and Audi brands. Audi had one model, the A3, involved in the first round of announced violations. But the brand, which has enjoyed skyrocketing sales in the US in recent years, is more extensively involved in violations announced Monday. The 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 are among the cars which contain the illegal software, which permits the cars to emit nitrogen oxide at up to nine times the allowable thresholds set in the Clean Air Act, according to the EPA. The 2015 Porsche Cayenne and '14 Volkswagen Toureg SUV are also affected. "There is clear evidence of additional violations and it's important to put Volkswagen on notice and to inform the public." - Janet McCabe. "Audi, which has been on a roll in terms of sales, reputation and image of late, now is being drawn deeper into the quagmire," said Michelle Krebs, senior analyst for Autotrader. "Previously, only the low-volume A3 was under scrutiny, but now Audi's core models are under fire." Audi officials did not respond to a request for comment Monday. In a written statement issued late Monday afternoon, a Porsche spokesperson said, "We are surprised to learn this information. Until this notice, all our information was that the Porsche Cayenne Diesel is fully compliant." Porsche said it would cooperate with authorities.

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

2015 Volkswagen Passat Alltrack ready for any road, except in the US

If Volkswagen built a Subaru Outback-fighter for US buyers, the Passat Alltrack would be it, and the new generation of VW's off-roading wagon debuted this week at the Geneva Motor Show. The Passat Alltrack – which is not sold in the United States – takes the car-like demeanor of the Passat and punches it up into a go-anywhere crossover. It has permanent 4Motion all-wheel drive, raised ride height and an electronic differential lock. The body is fitted with modified bumpers with underbody guards, reinforced wheelarches and side moldings with extended sills. There are roof rails on top, and it rolls on standard 17-inch wheels with 18s and 19s optional. The Passat Alltrack offers five direct-injected engines, with the lineup comprised of two turbocharged gasoline mills and three turbo diesels. Volkswagen loaded the vehicle with a wide range of infotainment and safety features, including choices of five radio and navigation units. It also has fully digital instruments, heads-up display and a rear-seat entertainment system setup for laptops. There is also lane-changing assist, rear-traffic alert and trailer-assist features. As spokesman confirmed to Autoblog there are no plans to bring the Passat Alltrack to the US market. The new Passat Alltrack • World premiere at the Geneva International Motor Show • All-wheel drive all-rounder* combines exceptional off-road properties with excellent travel comfort The latest generation of the Passat Alltrack* is celebrating its debut at this year's Geneva International Motor Show. Based on the new Passat Estate, the new Passat Alltrack impresses with an independent off-road look, 4MOTION permanent all-wheel drive and highly advanced technologies. The updated version confidently handles rough terrain, on the one hand, while simultaneously providing excellent cruising comfort – thanks to the driving profile selector and DCC adaptive chassis control. The Passat Alltrack is an independent model within the model series. This can be seen in exterior features such as the modified bumpers (with underbody guard in stainless-steel look), rugged wheel arch and side sill moulding covers in "Anthracite" and sill extensions. Its 27.5 mm higher ground clearance also makes it ready for any driving situation. Anodised silver roof rails, "Alltrack" badges on the radiator grille and tailgate, and custom 17-inch alloy wheels (18- and 19-inch wheel options available) upgrade this Estate even more.