William Maley

Toyota is recalling 482,000 Prius and Lexus CT 200h models for an issue with the side curtain airbags. According to Toyota, the hybrids use air bag inflators composed of two chambers welded together. Some vehicles may have a crack where the weld is. Over time, the crack can grow and cause the pieces to separate. "If an inflator separates, the CSA could partially inflate, and, in limited circumstances, one or both sections of the inflator could enter the interior of the vehicle," the company said in a statement. The models involved include, 2010 - 2012 Lexus CT 200h 2010 - 2012 Toyota Prius 2010 - 2012 Toyota Prius Plug-In The fix involves dealers installing retention brackets on the inflators to prevent it from entering the vehicle. Source: Toyota Press Release is on Page 2 Toyota Recalls Certain Prius and Lexus CT Vehicles PLANO, Texas, June 28, 2016 – Toyota Motor Sales, U.S.A., Inc. today announced that it is conducting a safety recall of approximately 482,000 Model Year 2010 - 2012 Prius; 2010 and 2012 Prius Plug-In Hybrids and 2011 and 2012 Lexus CT 200h vehicles. The involved vehicles are equipped with curtain shield air bags (CSA) in the driver and passenger side roof rails that have air bag inflators composed of two chambers welded together. Some inflators could have a small crack in the weld area joining the chambers, which could grow over time, and lead to the separation of the inflator chambers. This has been observed when the vehicle is parked and unoccupied for a period of time. If an inflator separates, the CSA could partially inflate, and, in limited circumstances, one or both sections of the inflator could enter the interior of the vehicle. If an occupant is present in the vehicle, there is an increased risk of injury. All known owners of the involved vehicles will be notified by first class mail. Toyota and Lexus dealers will install retention brackets on the curtain shield air bag inflators at no cost. These retention brackets are designed to prevent the inflator chambers from entering the vehicle interior if separation occurs. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-to-date Safety Recall information on Lexus, Toyota and Scion customers should check their vehicle’s status by visiting http://www.toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin. For any additional questions, customer support is also available by calling Lexus Customer Service at 1-800-255-3987. View full article

It came as a shock to many when Volkswagen admitted that it used illegal software to cheat emission tests with their diesel. But there was one group that wasn't surprised, automakers. Kent Falck, a future product specialist at Volvo said a recent event that many automakers were very suspicious of Volkswagen's emission results with their TDI engines. Falck explained that many were puzzled as to how Volkswagen was able to achieve lower emissions despite using the same suppliers as other automakers. “We have the same suppliers, we have Bosch, we have Denso, we are working with the same partners, so we know this technology doesn’t exist,” said Falck. “I have known that for seven years.” “We sat in a room and reviewed all the facts, figures, whatever we have, with the specialists. (But) we can’t manage it, how are the others doing it? We don’t know.” At first, Falck thought Volkswagen had some sort of proprietary technology to pull this off without resorting to such technologies such urea injection. “There is always intellectual properties in the world ... there might be something out there in the technology ... that we are not allowed to buy because it’s owned by a supplier. We were wondering how (VW met strict US emissions targets) that’s for sure.” But soon enough, Falck and other people at various automakers realized Volkswagen was going at it an illegal way. Source: News.com.au View full article

Last night at an event in Berlin, Porsche unveiled the second-generation Panamera. The good news is the next-generation model fixes one of the biggest problems of the current model, the ugliness. As we saw in spy photos a few weeks ago, designers cleaned up the look with better proportions, making the body much sleeker, and lowering the roofline. Overall dimensions are up by an inch. Wheels range from 19 to 21 inches. The interior retains the same design as the outgoing model, but with more tech. The driver faces an instrument cluster with two seven-inch screens flanking the tachometer. The center stack features a 12.3-inch touchscreen and capacitive touch buttons on the console. At the moment, Porsche has only revealed the powertrains at launch for the European marketplace. All of the engines listed here are new. Panamera 4S: 4.0L Biturbo V6 - 440 horsepower, 406 pound-feet of torque Panamera 4S Diesel: 4.0L Turbodiesel V8 - 416 horsepower, 627 pound-feet of torque Panamera Turbo: 4.0L Biturbo V8 - 542 horsepower, 568 pound-feet of torque Down the road, Porsche will likely add a smaller Turbo V6, turbodiesel V6, and a high-performance Turbo S model. For the time being, all of the engines will come paired with an eight-speed PDK transmission and all-wheel drive. Europe can start placing orders for the 2017 Panamera for delivery in November. We'll keep you posted for information on the U.S. spec models. Source: Porsche Press Release is on Page 2 The Porsche Panamera – a completely new development The sports car among luxury saloons Stuttgart. The new Porsche Panamera reconciles two contrasting characteristics more than ever before: the performance of a genuine sports car and the comfort of a luxury saloon. It is a Gran Turismo that has been rethought and realigned. The second generation of the Panamera is advancing to become a performance icon of the luxury class. In this transformation, Porsche has systematically improved the Panamera concept – with a four-door car that has been redeveloped and redesigned down to the last detail. Its engines and transmissions have been redesigned, its chassis perfected, and its display and control concept reinterpreted for the future. The new Panamera also extends the borders between the world of ambitious sports cars and the world of comfortable cruising cars with highlights such as rear axle steering, active roll compensation and three-chamber air suspension. 911 design language with a much more dynamic flyline Visually, the unique concept of this large Porsche is reflected in a new expressive design: unmistakably a Panamera, unmistakably a sports car – with long, dynamic proportions, pronounced shoulders, athletic flanks and an extremely fast roof line that is 20 mm lower at the rear. This typical Porsche flyline creates a stylistic link to Porsche’s design icon, the 911. Plenty of functionality and easy interaction in the Porsche Advanced Cockpit The typical Porsche interior has been reinterpreted for the future in the new Panamera. Black panel surfaces and interactive displays combine a clear and intuitive user interface like that of smartphones and tablets with the practical requirements for controlling the car. Classic hard keys and conventional instruments have been reduced significantly. They have been replaced by touch-sensitive panels and individually configurable displays which take centre stage in the new Porsche Advanced Cockpit – with great benefits for the driver as well as the front and rear passengers. Despite a significantly extended range of communication, convenience and assistance systems, different functions can now be used and operated more clearly and intuitively. The Porsche Advanced Cockpit transforms the analogue world into the digital present of mobility, while leaving room for passion. The tachometer, positioned centrally in the instrument cluster, is a tribute to the 1955 Porsche 356 A. New V6 and V8 biturbo engines with ample power and full-bodied sound A Porsche has always impressed with more than just power; its efficiency is equally important. To elevate this formula to a new level, all of the second generation Panamera’s engines have been redesigned. They have all been made more powerful, while significantly improving fuel economy and reducing emissions. Three new biturbo direct injection engines are being introduced at the market launch: in the Panamera Turbo, the Panamera 4S and the Panamera 4S Diesel. All of them – and for the first time including the diesel – may be equipped with a permanent all-wheel drive system and a new eight-speed Porsche dual-clutch transmission (PDK). A V8 petrol engine that delivers 404 kW / 550 hp powers the Panamera Turbo and a V6 petrol engine with 324 kW / 440 hp drives the Panamera 4S. In the Panamera 4S Diesel, a V8 with 310 kW/422 hp generates powerful thrust and a maximum torque of 850 Nm. A luxury saloon that can take to the race track In keeping with the overall concept of the new Panamera, the chassis also unites the cruising comfort of a luxury saloon with the performance of a true sports car. This is achieved by supplementing the impressive basic layout with optional innovative systems such as an adaptive air suspension with new three-chamber technology, including Porsche Active Suspension Management (PASM electronic damper control), the enhanced Porsche Dynamic Chassis Control Sport (PDCC Sport) system including Porsche Torque Vectoring Plus (PTV Plus) and active roll stabilisation, as well as a new electromechanical steering system. The integrated 4D Chassis Control system analyses and synchronises all chassis systems in real time and optimises the road performance of the new Panamera. Porsche is also taking the steering precision and handling of sports cars into the class of Gran Turismo cars with rear axle steering – which is also new and has been adapted from the 918 Spyder and 911 Turbo. Brake performance has also been improved. Next generation assistance systems The Panamera is equipped with many standard and optional assistance systems, which make life while driving more convenient and safer. The most important new systems include a night vision assistant, which uses a thermal imaging camera to detect people and large animals and displays a colour highlighted warning indicator in the cockpit. If the optional new LED matrix headlights with 84 image points are selected, people beyond the visual range of the dipped beam headlight are also illuminated briefly if they are in the computed driving corridor, allowing the driver to react even faster. The new night vision assistant is one of the assistance systems that helps to avoid critical situations in advance. Looking especially far ahead along the road is the new Porsche InnoDrive, which includes adaptive cruise control. Based on navigation data and signals from radar and video sensors, it computes and activates the optimal acceleration and deceleration rates as well as gear selections and coasting phases, for the next three kilometres. In doing so, this electronic co-pilot automatically takes bends, inclines and speed limits into account. New engines in detail: more power, better fuel efficiency New, powerful and fuel-efficient: the V6 and V8 turbo engines of the Panamera. And they all share a special conceptual design characteristic, which in the jargon of engine developers is known as "with the hot sides inward". Translated, this means that the turbochargers of the new Panamera engines are integrated centrally into the V of the cylinder banks. This central turbo layout yields numerous benefits: The engines are more compact, and this enables a lower mounting position. This, in turn, has a positive effect on the vehicle’s centre of gravity. The short paths between the two turbochargers and the combustion chambers produce spontaneous throttle response. Engine response can be further increased using the optional Mode Switch with the Sport Response Button. The Mode Switch, which was first introduced in the Porsche 918 Spyder, is an intuitively operated rotary ring on the steering wheel, which can be used to activate one of four driving modes (Normal, Sport, Sport Plus or Individual). Located at the centre of the switch is the Sport Response Button. It can be used to free up the maximum power potential of the Panamera at the press of a button. Initially, the Panamera Turbo has the most powerful petrol engine of the model series. Its 4.0-litre biturbo V8 develops 404 kW / 550 hp (at 5,750 rpm) and a maximum torque of 770 Nm (between 1,960 and 4,500 rpm). It has 30 hp more power than the previous model, and its maximum torque has been increased by 70 Nm. The eight-cylinder engine accelerates the Panamera Turbo to 100 km/h in 3.8 seconds; with the Sport Chrono Package the sprint time is just 3.6 seconds. The Porsche can reach a top speed of 306 km/h. These are impressive figures that illustrate just how easily the engine can propel the Panamera with its power-to-weight ratio of just 3.6 kg/hp. These extraordinary performance figures contrast with lower combined fuel consumption figures which, at 9.4 – 9.3 l/100 km, are up to 1.1 l/100 km less than that of the previous model (New European Driving Cycle or NEDC). These figures equate to CO2 emissions of 214 – 212 g/km. Porsche uses complex twin-scroll turbochargers to supply compressed air to the V8’s combustion chambers. The two counter-rotating chargers produce maximum torque figures at very low engine speeds. The Panamera Turbo is also the first Porsche to be equipped with the new adaptive cylinder control in its engine. In part-load operation, the system temporarily and imperceptibly turns the eight-cylinder into a four-cylinder engine. This reduces fuel consumption by up to 30 per cent, depending on power demand in the four-cylinder phases. The 2.9-litre V6 biturbo engine of the Panamera 4S develops a maximum power of 324 kW/440 hp (20 hp more than the previous model); it is already available at 5,650 rpm., Between 1,750 and 5,500 rpm, the new six-cylinder delivers 550 Nm (30 Nm more) to the drive axles. The Panamera 4S can reach 100 km/h in just 4.4 seconds (4.2 seconds with the Sport Chrono Package). With a top speed of 289 km/h, this Porsche also approaches the 300 km/h mark. The NEDC combined fuel consumption is 8.2 – 8.1 l/100 km (186 – 184 g/km CO2). Compared to the first generation Panamera 4S, this represents a fuel saving of up to 1.0 l/100 km or eleven per cent. Like the eight-cylinder engine of the Panamera Turbo, the six-cylinder engine of the Panamera 4S also has petrol direct-injection injectors that are positioned in the combustion chamber. This injector position offers optimal combustion, maximum efficiency and very good engine response. The 4S and Turbo are also characterised by exceptionally full-bodied and authentic sound. The new Panamera is launching with a new eight-cylinder diesel engine, for the first time in conjunction with permanent all-wheel drive. The most powerful diesel implemented in a Porsche production car to date develops a power of 310 kW/422 hp (at 3,500 rpm) and an immense maximum torque of 850 Nm – which is constant over an engine speed plateau extending from 1,000 to 3,250 rpm. With a top speed of 285 km/h, the Porsche Panamera 4S Diesel is currently the world’s fastest production vehicle with a diesel engine. The Gran Turismo reaches the 100 km/h speed mark in 4.5 seconds (4.3 seconds with the Sport Chrono Package). This contrasts with a combined fuel consumption of 6.8 – 6.7 l/100 km (178 – 176 g/km CO2). The diesel model also has biturbo charging with a central turbo layout. However, its common rail engine (2,500 bar maximum injection pressure) is equipped with sequential turbocharging. This allows the engine to work as a biturbo or monoturbo, depending on the operating state. At low to moderate engine speeds, the entire stream of exhaust gas is directed solely through one of the two turbochargers, which improves throttle response. The otherwise passive second turbocharger does not become active until the engine speed reaches 2,700 rpm or more. Both turbo-chargers have variable turbine geometry (VTG) – a principle that is already familiar from the 911 Turbo. Details of the new design: even more dynamic proportions The exterior character of the Panamera has also been sharpened with the dawn of the second generation. It is based on very dynamic proportions. The new Panamera is 5,049 mm (+34 mm) long, 1,937 mm (+6 mm) wide and 1,423 mm (+5 mm) tall. Despite the slight increase in height, the four-door car looks much lower and longer. This is primarily due to the reduced height above the rear of the passenger compartment – reduced by 20 mm – while maintaining consistently good headroom. This changes the car’s overall image completely. The wheelbase has been increased by 30 mm to 2,950 mm; this too lengthens the car’s proportions. The front wheels were shifted further forward, reducing the front overhang and making the prestige dimension – the distance between the A-pillar and the front axle – even larger. The rear overhang is longer, giving the car a more powerful appearance. The Panamera has only grown six millimetres in width, but it feels like several centimetres. This effect is created by such features as the A-shaped air intake, which extends out to the sides and creates a completely new front-end design. At the same time, a precisely designed crossbar in the radiator grille emphasises the car’s width. The arrow-shaped bonnet over the engine accelerates this visual effect further forward and lower than before – due to the prominently contoured powerdome, whose lines now reach into the bumper. The lower front end was enabled by the new compact construction of the engines in the vehicle concept. To the left and right of the powerdome, the bonnet blends precisely into the stronger flares of the front wings – a typical Porsche design trait. Also exuding confidence is the look of the LED headlights with their four-point LED daytime running lights, of which three versions are available. The new side body – like the bonnet, boot, roof and wings – is made entirely of aluminium, and it accentuates the silhouette of a sports car more than ever thanks to its dynamic roof line. At the rear, this roof line becomes the charismatic Porsche flyline – the distinctive lines that adorn all of the brand’s coupés. Two precisely executed edges on the lateral roof line visually lower the silhouette’s centre of gravity. The look of the side windows has also been redesigned: its visually continuous surface, together with its lines on the rear body, creates a stylistic affinity to the Porsche 911. Three-dimensionality characterises the doors and wings, where incident light shining on their convex and concave surfaces generates muscular tension. Integral design components there are the air exhaust ports behind the front wheels. The flared lips of the wheel arches are also powerful. The large arches provide space for the 19-inch (4S/4S Diesel), 20-inch (Turbo) and optional 21-inch alloy wheels. The fact that the Panamera is a four-door coupé and not a conventional saloon is clearer from the rear than from any other perspective. The ‘greenhouse’ – made up of the roof, roof pillars, window surfaces – is supported by a powerful and broad shoulder section. Clearly a Panamera, definitely a sports car. The most prominent components identifying the rear body are, without a doubt, the three-dimensional LED rear lights with integrated four-point brake lights. The rear lights are interconnected by a narrow LED strip. All of these elements together create an unmistakable night design. Integrated seamlessly and elegantly into the boot, which features electric opening and closing as standard, is the extendible rear spoiler that is now finished in body colour. On the Panamera Turbo, the wing also splits as it extends, thereby gaining additional surface area. Terminating the lower rear body is a diffuser into which the dual stainless steel tailpipes of the exhaust system are integrated on the left and right. The Panamera 4S and 4S Diesel can be recognised by their round tailpipes, while the Panamera Turbo has trapezoidal tailpipe trims. Porsche operating philosophy – future-based interpretation The new Panamera exhibits a completely new interior design. In many areas, touch-sensitive surfaces replace classic hard keys, and high-resolution displays merge into the interior. In the luxury saloon segment, the digitalisation of the Porsche interior, which began with the 918 Spyder, has reached the next development stage aboard the Panamera in the form of the new Porsche Advanced Cockpit. From the low seat position typical of sports cars, drivers not only see a fascinating front-end landscape of the car’s wings and powerdome, but also two 7-inch displays that are placed directly in the driver’s line of sight for ideal ergonomics. Located in the middle of these two displays is the tachometer, which is still an analogue instrument. Meanwhile, the gearshift console between the driver and the front passenger is dominated by the 12.3-inch touchscreen of the next generation Porsche Communication Management (PCM) system. The driver and front passenger can configure this display individually. Naturally, this is integrated into the PCM: Features such as online navigation, the online functions of Porsche Connect, smartphone integration via Apple Car Play and a new voice control system that responds to natural language input. The PCM area – with its high-end, high-resolution display – transitions harmoniously into the black panel concept of the centre console with a shift-by-wire gear selector for the PDK. A new control panel with touch-sensitive switches on the centre console enables intuitive control of various functions. Even the louvres of the central air vent are electrically adjusted by touch-sensitive sliders. Rear passengers can control air conditioning and infotainment functions using an optional four-zone automatic climate control system. In addition, the Porsche Panamera offers the best layout variability of any model in the luxury class, making it the most practical for everyday use with a 40:20:40 split of the folding rear bench backrests (495 to 1,304 litres of luggage capacity). Raising the comfort experience of the Panamera to an entirely new level are new equipment options such as the panoramic tilt roof, massage seats, ambient lighting and a 3D high-end sound system from Burmester. The new Porsche Panamera can already be ordered now, and it will make its appearance at dealers on November 5, 2016. Prices in Germany start at 113,027 euros including VAT for the Panamera 4S. Prices for the Panamera 4S Diesel start at 116,954 euros, and the Panamera Turbo starts at 153,011 euros. View full article

For a moment, I was scratching my head as to which Volkswagen model equipped with 2.0L TDI would get $44,000. Then I remembered the Audi A3 is also involved.

After ten months when news came to light that Volkswagen used illegal software to cheat emission tests in the U.S. the German automaker has agreed to a $14.7 billion settlement. This morning, the U.S. Justice Department filed details of the settlement in U.S. District Court in San Fransisco. As part of the settlement, Volkswagen will offer owners of affected models the choice of either having their vehicle bought back or repaired if and when a repair is approved by the EPA and CARB. If you decide to have your vehicle bought back by Volkswagen, will be determined based on the 'Clean Trade-In Value' by the National Automobile Dealers Association, along with adjustments on mileage and options. If you have a loan through a third-party, Volkswagen would pay it off. Those leasing can terminate it with no penalties. Whichever option you decide to go for, Volkswagen will also provide a compensation payment ranging from $5,000 to $10,000. Again, the amount will be determined by various factors such as the age of the vehicle. Owners will be notified this fall with buybacks expected to begin in October. Volkswagen will also pay $2.7 billion over the next three years to a fund to reduce the excess amount of NOx emissions that Volkswagen's diesel vehicles emitted, and an additional $2 billion to expand zero emission vehicle infrastructure, access and awareness initiatives. Now this settlement needs to be approved by Judge Charles Breyer. A hearing will be held today for this. While Volkswagen is still not out of the woods with this scandal (more penalties and deal still needed for the 3.0L TDI V6), it is good to see some movement is happening to help bring this mess to a close. Source: Volkswagen, EPA Press Release is on Page 2 VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH U.S. FEDERAL REGULATORS, PRIVATE PLAINTIFFS AND 44 U.S. STATES ON TDI DIESEL ENGINE VEHICLES Proposed settlement program includes vehicle buybacks and lease terminations, emissions modifications (if approved) and cash payments to affected customers for approximately 475,000 eligible 2.0L TDI vehicles Volkswagen agrees to $2.7 billion environmental remediation fund and to invest $2.0 billion in initiatives to promote the use of zero emissions vehicles in the U.S. Separate resolution with U.S. states settles consumer protection claims Herndon, Va. /Wolfsburg, Germany (June 28, 2016) – Volkswagen AG announced today that it has reached settlement agreements with the United States Department of Justice (DOJ) and the State of California; the U.S. Federal Trade Commission (FTC); and private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI diesel engine vehicles in the United States. Of approximately 499,000 2.0L TDL vehicles that were produced for sale in the United States, approximately 460,000 Volkswagen and 15,000 Audi vehicles are currently in use and eligible for buybacks and lease terminations or emissions modifications, if approved by regulators. Volkswagen will establish a maximum funding pool for the 2.0L TDI settlement program of $10.033 billion. That amount assumes 100% participation and that 100% of eligible customers choose a buyback or lease termination. The agreements covering the proposed 2.0L TDI settlement program are subject to the approval of Judge Charles R. Breyer of the United States District Court for the Northern District of California, who presides over the federal Multi-District Litigation (MDL) proceedings related to the diesel matter. Volkswagen also announced that it has agreed with the attorneys general of 44 U.S. states, the District of Columbia and Puerto Rico to resolve existing and potential state consumer protection claims related to the diesel matter for a total settlement amount of approximately $603 million. “We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” said Matthias Müller, Chief Executive Officer of Volkswagen AG. “We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead. We know that we still have a great deal of work to do to earn back the trust of the American people. We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.” Three agreements have been submitted to the Court for its approval with respect to the proposed 2.0L TDI settlement program: (1) a Consent Decree filed with the Court by the DOJ on behalf of the Environmental Protection Agency (EPA) and by the State of California by and through the California Air Resources Board (CARB) and the California Attorney General; (2) a Consent Order submitted by the FTC; and (3) a proposed class settlement agreement with the PSC on behalf of a nationwide settlement class of current and certain former owners and lessees of eligible 2.0L TDI Volkswagen and Audi vehicles. The parties believe that the class settlement as presented to the Court will provide a fair and reasonable resolution for affected Volkswagen and Audi customers. Volkswagen continues to work expeditiously to reach an agreed resolution for affected vehicles with 3.0L TDI V-6 diesel engines. On April 22, 2016, Volkswagen recognized total exceptional charges of €16.2 billion in its financial statements for 2015 for worldwide provisions related to technical modifications and repurchases, legal risks and other items as a result of the diesel matter. As noted at that time, due to the complexities and legal uncertainties associated with resolving the diesel matter, a future assessment of the risks may be different. "Today’s announcement is within the scope of our provisions and other financial liabilities that we have already disclosed, and we are in a position to manage the consequences. It provides further clarity for our U.S. customers and dealers as well as for our shareholders. Settlements of this magnitude are clearly a very significant burden for our business. We will now focus on implementing our TOGETHER-Strategy 2025 and improving operational excellence across the Volkswagen Group,” said Frank Witter, Chief Financial Officer of Volkswagen AG. The agreements announced today are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. Regulations governing nitrogen oxide (NOx) emissions limits for vehicles in the United States are much stricter than those in other parts of the world and the engine variants also differ significantly. This makes the development of technical solutions in the United States more challenging than in Europe and other parts of the world, where implementation of an approved program to modify TDI vehicles to comply fully with UN/ECE and European emissions standards has already begun by agreement with the relevant authorities. Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0 Liter Diesel Vehicles Settlements Require VW to Spend up to $10 Billion to Buyback, Terminate Leases, or Modify Affected 2.0 Liter Vehicles and Compensate Consumers, and Spend $4.7 Billion to Mitigate Pollution and Make Investments that Support Zero-Emission Vehicle Technology WASHINGTON – In two related settlements, one with the United States and the State of California, and one with the U.S. Federal Trade Commission (FTC), German automaker Volkswagen AG and related entities have agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology. The settlements partially resolve allegations by the Environmental Protection Agency (EPA), as well as the California Attorney General’s Office and the California Air Resources Board (CARB) under the Clean Air Act, California Health and Safety Code, and California’s Unfair Competition Laws, relating to the vehicles’ use of “defeat devices” to cheat emissions tests. The settlements also resolve claims by the FTC that Volkswagen violated the FTC Act through the deceptive and unfair advertising and sale of its “clean diesel” vehicles. The settlements do not resolve pending claims for civil penalties or any claims concerning 3.0 liter diesel vehicles. Nor do they address any potential criminal liability. The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3. “Today’s settlement restores clean air protections that Volkswagen so blatantly violated,” said EPA Administrator Gina McCarthy. “And it secures billions of dollars in investments to make our air and our auto industry even cleaner for generations of Americans to come. This agreement shows that EPA is committed to upholding standards to protect public health, enforce the law, and to find innovative ways to protect clean air.” “By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our atmosphere,” said Deputy Attorney General Sally Q. Yates. “This partial settlement marks a significant first step towards holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public’s trust. And while this announcement is an important step forward, let me be clear, it is by no means the last. We will continue to follow the facts wherever they go.” “Today’s announcement shows the high cost of violating our consumer protection and environmental laws,” said FTC Chairwoman Edith Ramirez. “Just as importantly, consumers who were cheated by Volkswagen’s deceptive advertising campaign will be able to get full and fair compensation, not only for the lost or diminished value of their car but also for the other harms that VW caused them.” According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on January 4, 2016, Volkswagen allegedly equipped its 2.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on full emissions controls only during that testing process. During normal driving conditions, the software renders certain emission control systems inoperative, greatly increasing emissions. This is known as a “defeat device.” Use of the defeat device results in cars that meet emissions standards in the laboratory, but emit harmful NOx at levels up to 40 times EPA-compliant levels during normal on-road driving conditions. The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emission standards. Vehicles with defeat devices cannot be certified. The FTC sued Volkswagen in March, charging that the company deceived consumers with the advertising campaign it used to promote its supposedly “clean diesel” VWs and Audis, which falsely claimed that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value. The settlements use the authorities of both the EPA and the FTC as part of a coordinated plan that gets the high-polluting VW diesels off the road, makes the environment whole, and compensates consumers. The settlements require Volkswagen to offer owners of any affected vehicle the option to have the company buy back the car and to offer lessees a lease cancellation at no cost. Volkswagen may also propose an emissions modification plan to EPA and CARB, and if approved, may also offer owners and lessees the option of having their vehicles modified to substantially reduce emissions in lieu of a buyback. Under the U.S./California settlement, Volkswagen must achieve an overall recall rate of at least 85% of affected 2.0 liter vehicles under these programs or pay additional sums into the mitigation trust fund. The FTC order requires Volkswagen to compensate consumers who elect either of these options. Volkswagen must set aside and could spend up to $10.03 billion to pay consumers in connection with the buy back, lease termination, and emissions modification compensation program. The program has different potential options and provisions for affected Volkswagen diesel owners depending on their circumstances: Buyback option: Volkswagen must offer to buy back any affected 2.0 liter vehicle at their retail value as of September 2015 -- just prior to the public disclosure of the emissions issue. Consumers who choose the buyback option will receive between $12,500 and $44,000, depending on their car’s model, year, mileage, and trim of the car, as well as the region of the country where it was purchased. In addition, because a straight buyback will not fully compensate consumers who owe more than their car is worth due to rapid depreciation, the FTC order provides these consumers with an option to have their loans forgiven by Volkswagen. Consumers who have third party loans have the option of having Volkswagen pay off those loans, up to 130 percent of the amount a consumer would be entitled to under the buyback (e.g., if the consumer is entitled to a $20,000 buyback, VW would pay off his/her loans up to a cap of $26,000). EPA-approved modification to vehicle emissions system: The settlements also allow Volkswagen to apply to EPA and CARB for approval of an emissions modification on the affected vehicles, and, if approved, to offer consumers the option of keeping their cars and having them modified to comply with emissions standards. Under this option in accordance with the FTC order, consumers would also receive money from Volkswagen to redress the harm caused by VW’s deceptive advertising. Consumers who leased the affected cars will have the option of terminating their leases (with no termination fee) or having their vehicles modified if a modification becomes available. In either case, under the FTC order, these consumers also will receive additional compensation from Volkswagen for the harm caused by VW’s deceptive advertising. Consumers who sold their TDI vehicles after the VW defeat device issue became public may be eligible for partial compensation, which will be split between them and the consumers who purchased the cars from them as set forth in the FTC order. Eligible consumers will receive notice from VW after the orders are entered by the court this fall. Consumers will be able to see if they are eligible for compensation and if so, what options are available to them, at VWCourtSettlement.com and AudiCourtSettlement.com. They will also be able to use these websites to make claims, sign up for appointments at their local Volkswagen or Audi dealers and receive updates. Consumer payments will not be available until the settlements take effect if and when approved by the court, which may be as early as October 2016. Emissions Reduction Program: The settlement of the company’s Clean Air Act violations also requires Volkswagen to pay $2.7 billion to fund projects across the country that will reduce emissions of NOx where the 2.0 liter vehicles were, are or will be operated. Volkswagen will place the funds into a mitigation trust over three years, which will be administered by an independent trustee. Beneficiaries, which may include states, Puerto Rico, the District of Columbia, and Indian tribes, may obtain funds for designated NOx reduction projects upon application to the Trustee. Funding for the designated projects is expected to fully mitigate the NOx these 2.0 liter vehicles have and will emit in excess of EPA and California standards. The emissions reduction program will help reduce NOx pollution that contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. NO2 formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children. Zero Emissions Technology Investments: The Clean Air Act settlement also requires VW to invest $2 billion toward improving infrastructure, access and education to support and advance zero emission vehicles. The investments will be made over 10 years, with $1.2 billion directed toward a national EPA-approved investment plan and $800 million directed toward a California-specific investment plan that will be approved by CARB. As part of developing the national plan, Volkswagen will solicit and consider input from interested states, cities, Indian tribes and federal agencies. This investment is intended to address the adverse environmental impacts from consumers’ purchases of the 2.0 liter vehicles, which the governments contend were purchased under the mistaken belief that they were lower emitting vehicles. FTC’s Injunctive Relief: The FTC settlement includes injunctive provisions to protect consumers from deceptive claims in the future. These provisions prohibit Volkswagen from making any misrepresentations that would deceive consumers about the environmental benefits or value of its vehicles or services, and the order specifically bans VW from employing any device that could be used to cheat on emissions tests. The provisions of the U.S./California settlement are contained in a proposed consent decree filed today in the U.S. District Court for the Northern District of California, as part of the ongoing multi-district litigation, and will be subject to public comment period of 30 days, which will be announced in the Federal Register in the coming days. The provisions of the FTC settlement are contained in a proposed Stipulated Final Federal Court Order filed today in the same court. View full article

We’ll admit we were not big fans of the last-generation Chevrolet Malibu. When we drove the Malibu Eco, it failed to deliver the fuel economy numbers that Chevrolet touted. Plus, it was the only Malibu you could get for a time. The decision was made to get the Eco out first while work was being finished up on the two four-cylinder models. Unfortunately, this move would prove to be a mistake. Then we spent some time in the Malibu 2.0T. While we like the performance on offer, it had a difficult time justifying the high price tag. Both models also suffered from having one of the smallest back seats in the class. The various issues caused sales of the Malibu to drop precipitously and made General Motors fast track a new Malibu. This brings us to the new Chevrolet Malibu which made its debut last year at the New York Auto Show. It seemed GM had learned from its mistakes from the previous model and put that experience into this new model. Let’s find if this makes the Malibu a better vehicle. The last-generation Malibu wasn’t a bad looking vehicle. But compared to the model it replaced, the Malibu’s design just fell flat. The 2016 model is a completely different story. Designers went back to the 2008 to 2012 Malibu and started improving on that design. The end result is one of the sharpest looking midsize sedans in the class. Up front is where you can see the influence from the 2008 to 2012 Malibu with a similar grille layout and headlight location. The grilles are slightly narrower and wider. The side profile reveals an A7-inspired rear roof pillar that blends in beautifully with the fender. The back features a rounded trunk lid and chrome exhaust tips. The same cannot be said for the interior. It isn’t to say Chevrolet hasn’t made some strides here. The design is just as sharp as the exterior with flowing curves and a touchscreen that looks like a tablet that has been docked. In the back, there an increase in overall space. Sitting back here, I had plenty of head and legroom. Getting yourself comfortable in the driver’s seat is easy thanks to an eight-way power seat and a tilt-telescoping steering wheel. But Chevrolet made a huge mistake in the material choices. The 2LT is just below the Premier and you would expect a fair amount of soft-touch materials on the dash and door panels, possibly some leather on the seats. Unfortunately, you don’t get any of that. There is an abundance of hard plastics throughout the interior. Depending on the location, the quality can range from ok to terrible. Not helping matters is the use of cloth fabric on the dashboard much like the last-generation Cruze. If this was the base L or LS, this would be ok considering the price of those models. But this being the 2LT, which starts at $28,620, it is a huge disappointment. Especially when you consider many of the Malibu’s competitors for around the same price feature better materials. Depending on which Malibu trim you pick, it will either come with no touchscreen (L), a seven-inch touchscreen (LS and 1LT), or an eight-inch touchscreen (2LT and Premier). Our tester featured the eight-inch and the latest version of Chevrolet’s MyLink infotainment system. MyLink still stumbles in some areas such as overall performance and recognizing devices plugged into the USB inputs, but overall the system is much better than when it was first launched. For 2016, Chevrolet has added Apple CarPlay (and Android Auto) integration to MyLink. You just need to plug a compatible iPhone into the USB and hit the CarPlay button on the touchscreen. You’ll be greeted with a screen that is very similar to the home screen on your iPhone. Applications such as Siri, Apple Maps, Spotify, and Pandora can be used through the system. Like the Volt I drove recently, I ran into some problems with CarPlay. From applications not responding to the vehicle not recognizing that my phone was plugged in. As is stands, CarPlay is a huge improvement over most infotainment systems used in vehicles. But some bugs need to be worked out still. Power for the Malibu comes from two turbo engines - a 1.5L or 2.0L. Our 2LT came with the 2.0L turbo producing 250 horsepower and 258 pound-feet of torque. This is paired with a new eight-speed automatic transmission. The best words I can use to describe the Malibu’s 2.0L is punchy and effortless. The turbo spools up quickly and provides a strong pull of power when leaving a stop. More impressive is how fast the engine is able to climb in speed when merging onto an expressway or making a pass. The eight-speed is one of GM’s best transmissions with smooth and smart shifts through the gears. In terms of fuel economy, the turbo 2.0L is rated at 22 City/33 Highway/26 Combined. We got an average of 27 MPG during our week of testing. Chevrolet struck a nice balance with the Malibu’s ride and handling. Like the previous-generation model, the 2016 Malibu features one of the smoothest rides in the class. Bumps and other imperfections are ironed out before getting inside the cabin. Wind noise is kept to a minimum, but we found there was a bit more road noise than the last Malibu we drove. We’re wondering if Chevrolet removed a fair amount of sound deadening to help make the new Malibu lighter. Around corners, the Malibu’s suspension keeps body motions in check. Steering has a direct feel, but a little bit more weight wouldn’t be a bad thing. No, it will not challenge a Mazda6 for the best driving midsize sedan. But having a nice balance between the two isn’t too bad. Pricing for the Chevrolet Malibu starts at $22,500 for the base L and climbs to $31,795 for the Premier. The 2LT starts at $28,620 and our tester came with an as-tested price of $29,495. But I’m not sure if the 2LT is a good value. Part of it comes from the interior appointments that are used in the 2LT trim. But the other part comes from the lack of options. Yes, the 2LT comes well equipped with 18-inch wheels, power seat for the driver, eight-inch touchscreen, blind spot monitoring, rear cross traffic alert, and front collision warning with automatic braking. But you cannot option such features as dual-zone climate control, leather, navigation, or a premium audio system. To get those, you need to drop down to the 1LT with the turbo 1.5L or go up to Premier if you want to keep the turbo 2.0L. However, the Premier doesn’t get most of the safety features as the 2LT. You’ll need to opt for a safety package to get these features. I can’t help but wonder if Chevrolet would be better off dropping the 2LT and figuring out a way to fill in the gap between the 1LT and Premier. Chevrolet has done a lot to make the new Malibu a real threat in the midsize class. With sharp exterior styling, a punchy 2.0L turbo engine, the right balance of comfort and sport, and a larger interior space, Chevrolet seems to have righted most of the wrongs of the previous model. But it is the little things that trip up the Malibu. From the questionable interior materials to the overall value proposition, General Motors made some crucial missteps. I have a theory about General Motors that sadly seems to get proven time and time again. They can build one of the best vehicles in the class, but there is one thing that spoils it. It could be the quality of the materials, interior space, powertrain, or something else. The 2016 Malibu 2LT is the latest one to prove it, which is a huge shame. Disclaimer: Chevrolet Provided the Malibu, Insurance, and One Tank of Gas Year: 2016 Make: Chevrolet Model: Malibu Trim: 2LT Engine: 2.0L Turbocharged DOHC Four-Cylinder Driveline: Eight-Speed Automatic, Front-Wheel Drive Horsepower @ RPM: 250 @ 5,300 Torque @ RPM: 258 @ 1,700 Fuel Economy: City/Highway/Combined - 22/33/26 Curb Weight: 3,126 lbs Location of Manufacture: Kansas City, Kansas Base Price: $28,620 As Tested Price: $29,495 (Includes $875.00 Destination Charge) Options: N/A View full article