• VW CEO dismissed diesel scandal as misunderstanding of U.S. laws

    January 13, 2016

    Volkswagen has landed back in the center of controversy after the automaker’s chief executive officer dismissed the company’s latest diesel emissions scandal as a “technical problem” rather than a flat-out lie.

    VW admitted late last year that it installed cheating software in about 600,000 diesel-powered vehicle in the United States that allowed the vehicles to pass EPA laboratory testing but then spew up to 40 times the legal limit of greenhouse gases during normal driving. But despite that corporate admission, company CEO Matthias Mueller revealed in an interview with NPR that VW sees the discrepancy simply as a misunderstanding of U.S. rules.

    NPR: You said this was a technical problem, but the American people feel this is not a technical problem, this is an ethical problem that’s deep inside the company. How do you change that perception in the U.S.?

    Mueller: Frankly spoken, it was a technical problem. We made a default, we had a … not the right interpretation of the American law. And we had some targets for our technical engineers, and they solved this problem and reached targets with some software solutions which haven’t been compatible to the American law. That is the thing. And the other question you mentioned — it was an ethical problem? I cannot understand why you say that.

    NPR: Because Volkswagen, in the U.S., intentionally lied to EPA regulators when they asked them about the problem before it came to light.

    Mueller: We didn’t lie. We didn’t understand the question first. And then we worked since 2014 to solve the problem. And we did it together and it was a default of VW that it needed such a long time.

    That proclamation could land Mueller in hot water with regulators. The California Air Resources Board recently rejected the automaker’s planned fix for its diesel-powered cars and Mueller is scheduled to meet with federal regulators on Wednesday to discuss VW’s plan for a fix. If a solution isn’t agreed upon soon, Mueller’s words could come back to haunt VW.

  • GM launching online shopping tool for used vehicles

    January 13, 2016

    General Motors is launching a new online service intended to make the used-car buying experience a little easier.

    Called the Factory Pre-Owned Collection, the new service is essentially an online nationwide catalog of low-mileage vehicles from GM’s Chevrolet, Buick, GMC and Cadillac brands. Consisting of former lease, daily rental and company-owned vehicles, all vehicles must have fewer than 37,000 miles to qualify for the program.

    “We know that many of our customers who are shopping for a used car want to complete more of the process online, and that number is growing,” GM CEO Mary Barra said. “GM is already a leader in online new car shopping with our Shop-Click-Drive service, and we are expanding it with the Factory Pre-Owned Collection, making GM the first automaker to offer this choice to consumers.”

    All cars sold through the Factory Pre-Owned Collection will come with a factory-backed bumper-to-bumper warranty. Buyers will also get a three-day/150 mile exchange program, a three-month trial of OnStar and SiriusXM satellite radio.

    Buyers will also be able to use Kelley Blue Book’s fair market pricing tool, which shows how much other people in their area have paid for similar vehicles. “Kelley Blue Book’s mission is to provide this type of trusted valuation and car shopping information to help consumers make the best possible purchase decision,” said Jared Rowe, president of Cox Automotive Media Division, which includes Kelley Blue Book.

    GM hasn’t released full details on the program, but a potential buyer must reserve their vehicle using a participating GM dealer. It remains to be seen if there will be a transfer fee to have a particular vehicle shipped to your local dealer.

    The Factory Pre-Owned Collection will officially launch next month.

    Photo by Mark Elias.

  • BMW recalls i8 hybrid to fix stability control system

    January 13, 2016

    BMW has issued its second recall for the BMW i8 hybrid, citing a potential problem with the dynamic stability control (DSC) system.

    The company in November received notification from its DSC hydraulic unit supplier of a possible manufacturing error. The problem is said to restrict movement of the hydraulic pistons, negatively affecting DSC performance.

    “Impaired DSC functionality may negatively impact vehicle handling and braking and increase the risk of a crash,” the recall documents warn.

    BMW initially believed any hydraulic problems would be identified during routine pump-circuit checks at the assembly plant, however an investigation and driving tests apparently confirmed that the defect could be present in production vehicles without prior detection.

    “BMW has not received any reports, nor is BMW otherwise aware, of any accidents or injuries related to this issue,” the company says.

    Service technicians have been instructed to inspect the DSC hydraulic unit and replace the component if necessary. The campaign is limited to just 16 units in the US market.

  • GM increases profit forecast for 2016

    January 13, 2016

    General Motors has revised its profit forecast for 2016, expecting an increase in earnings despite signs of trouble in China.

    The company expects its adjusted earnings per share to hit $5.25 to $5.75, up from an early October estimate of $5.00 to $5.50. EBIT-adjusted margin is also predicted to increase, along with free cash flow.

    Reflecting the optimistic expectations for 2016, the automaker has promised to nearly double its stock repurchase program to $9 billion. The initiative has also been extended through 2017, while dividends have been increased by six percent to $0.38 per share beginning in the first quarter of this year.

    “We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings,” said CEO Mary Barra at the Deutsche Bank Global Auto Industry Conference in Detroit this week.

    Profits are expected to be bolstered by global growth of the Chevrolet and Cadillac brands, increased sales in China, improved operating efficiencies and leadership in products and technology.

    “We are making the right investments and taking the actions necessary to lead in the transformation of personal mobility, and positioning the company to continue to drive shareholder value,” Barra added.

  • FCA CEO: Dodge Viper could live on

    January 13, 2016

    Jeep wasn’t the only FCA brand with some potential bombshell news at this year’s Detroit Auto Show. America’s supercar, the Dodge Viper, may not be entirely dead.

    During his news conference Monday, FCA CEO Sergio Marchionne told reporters that there is “[...] a possibility that a new version of the Viper may surface.”

    The FCA CEO felt that, given the company’s dedication to rear-wheel-drive platforms, the right ingredients exists to bring back the Viper. He called the timing of the potential revival “unclear,” and stressed that the V10 sports car’s current, exclusive architecture is not a viable approach to a future car, Automobile reports.

    What could that mean for a potential return of America’s reptilian record-setter? For starters, the V10 is likely out. The Alfa Romeo platforms that are expected to underpin FCA’s future rear-wheel-drive products were likely not engineered with the 8.4L engine in mind.

    Despite the V10′s modern tech and lightweight, all-aluminum construction (it’s the only performance engine in a Dodge product that can claim such), its roots go all the way back to Chrysler’s “LA” lineup of cam-in-block engines. Its closest relative, the 8.0L Magnum V10 truck engine, was discontinued in 2003.

    While the supercharged, iron-block Hemi V8 found in FCA’s current (and forthcoming) Hellcat products may not survive FCA’s transition to smaller, modernized platforms, the company’s performance brand engineers certainly aren’t opposed to building high-output engines. Could the future Viper be powered by a blown or boosted V8?

    More importantly, will Viper fans accept downsizing in a car that has been centered around excess since its inception?