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Suzuki and VW finalize their divorce

The rocky divorce between Suzuki and Volkswagen is finally over after working its way through the International Court of Arbitration since 2011, according to the Japan Times. In the final settlement to end the companies' disputes, Suzuki agreed to pay VW an undisclosed amount for not living up to the agreement to use the German automaker's diesel engines. While they won't disclose the exact sum, Suzuki said in a statement that the money "will not have any significant impact" on its 2015 fiscal year results, which will end in March. The arbitration court took the biggest step to end this transcontinental partnership in August 2015 when the body ruled VW needed sell its 19.9-percent stake in Suzuki. However, the Japanese company wasn't entirely off the hook because VW was still allowed to sue for damages over the diesel engine issue. This latest decision finally clears up that dispute. Like most marriages, the union between VW and Suzuki began with stars in both parties' eyes. The Germans paid $2.8 billion to buy 19.9 percent of the Japanese company in December 2009. VW was supposed to get greater access to the auto market in India, and Suzuki hoped to capitalize on access to its partner's advanced technology. By 2011, rumors started percolating that things were contentious behind closed doors. VW allegedly tried to assert control over Suzuki's operations, and the Japanese company reportedly wasn't happy with its access to the German tech. Suzuki even bought diesel engines from Fiat, rather than VW. Later that year, company CEO Osamu Suzuki announced he would end the alliance, and they started working through arbitration. Notification Concerning Resolution of Arbitration by Settlement As Suzuki has reached a settlement regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you of the following: 1. History from the Request for Arbitration to the Settlement As announced in the "Notification Concerning Arbitration Award" dated 30 August 2015, the Tribunal indicated that it would address the issue of alleged damages arising from Suzuki's breach of the agreement claimed by Volkswagen AG ("VW") in a further stage of the arbitration proceedings. Suzuki reached a settlement with VW in regard to such arbitration proceedings on 10 February 2016. Accordingly, the arbitration proceedings have been concluded. 2.

Ex-Fiat exec: VW diesel scandal will hurt plug-in hybrids

It doesn't sound right at first blush, but former Fiat executive and noted diesel-powertrain expert Rinaldo Rinolfi thinks that plug-in hybrid sales may be more impacted by the VW diesel-emissions scandal than diesel sales. Rinolfi, who worked for Fiat for 40 years, told Automotive News Europe, said that the Euro 6 emissions rules that went into effect in 2015 have already increased diesel-engine production costs enough to raise prices and ultimately flatten demand. By the end of the decade, diesel-vehicle sales will settle in at a 40-percent market share of new European vehicles, and that was going to happen with or without the scandal. "Every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions." - Rinaldo Rinolfi Makers of plug-in hybrids have more to lose, though, because every PHEV maker has figured out a way to keep emissions figures artificially low, Rinolfi said. Under New European Driving Cycle (NEDC) standards, PHEVs can be tested part of the time with the electric motor in action, meaning emissions get driven down to 30 percent to 40 percent less than real-world figures. With the VW scandal pushing regulators to use real-world figures, those PHEV emissions numbers are expected to rise substantially. To a lesser extent, hybrid emissions figures are also tested as artificially low. "Over the years, even without defeat devices, every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions the customer experiences," Rinolfi said in the Automotive News Europe interview. Rinolfi is a little sunnier about compressed natural gas (CNG) vehicles, estimating that CNG emissions are as much as 25 percent lower compared to conventional vehicles. As for battery-electrics, he's not so optimistic, estimating that there needs to be at least a tenfold improvement in energy efficiency for EVs to be truly competitive with conventional vehicles. "I've been waiting for a true breakthrough for the past 25 years, but I've not seen it yet," Rinolfi said about EVs in the Automotive News Europe interview. Related Video: News Source: Automotive News Europe-sub.req.Image Credit: Arnd Wiegmann / Reuters Green Fiat Volkswagen Diesel Vehicles Electric Hybrid diesel emissions scandal nedc

Volkswagen throws a Polo-palooza with four new or upgraded models

Volkswagen unveiled a parade of new and upgraded Polo models at the 2014 Geneva Motor Show, including the Polo TSI BlueMotion, Polo TDI BlueMotion, Polo BlueGT and CrossPolo (pictured above). While they will likely never make an appearance this side of the pond, it is fun to see what European subcompact drivers will be driving later this year.
The new BlueMotion models represent the most efficient petrol and diesel options in their class, according to VW. The BlueMotion TDI offers just 73 horsepower from its diesel engine but gives the equivalent of 76 miles per gallon (US) in the EU test. The BlueMotion TSI brings a little more power with its 88-hp petrol engine and has a combined rating of 57 mpg (US) in the EU cycle.
The Polo BlueGT provides a balance of performance and economy, and for the 2014 model, it gains a 9-horsepower boost to its 1.4-liter turbocharged to give drivers 147 hp at the press of the accelerator. This year's car also has an optional Sport Select suspension with electronically controlled dampers to improve handling a bit. It's still fitted with active cylinder management to use as little gas as possible when cruising.