Daimler Facing More Than One Billion Euro Fine For Diesel Cheating

Mercedes-Benz parent company Daimler is facing a fine of up to one billion euros for diesel emission-related violations according to German magazine Der Spiegel.

The German motor vehicle authority (KBA) had discovered software deemed to be illegal under existing European Union law fitted to Mercedes-Benz C-class and E-class vehicles and ordered the car company to recall 280,000 vehicles, according to the Der Spiegel article.

The software is claimed to allow diesel-powered C- and E-class models to achieve lower NOx and CO2 emissions in controlled climatic conditions at pre-set speeds on a rolling road during testing than in practice on public roads.

A spokesman for the prosecutor’s office said the investigation was ongoing and would not be concluded before year-end. Der Spiegel says a fine of up to 5000 Euros per vehicle is being considered by the Stuttgart public prosecutor.

Volvo To Reduce Emissions With New Torslanda Paint Shop

Volvo Cars announced it will replace the paint shop at its Torslanda car manufacturing plant, resulting in an expected reduction of paint shop energy consumption and emissions by at least one third.

The company said the move is in line with its ambition to have climate-neutral global manufacturing operations by 2025. It follows the 2018 solar panel installation at the company’s Ghent factory and, also in 2018, its Skövde engine plant in Sweden becoming the first climate-neutral facility in its global manufacturing network.

The Torslanda plant is Volvo Cars’ largest manufacturing facility in terms of volume and built 291,000 cars in 2018. It employs around 6500 manufacturing staff and produces cars on the company’s in-house-developed scalable product architecture (SPA) platform, which underpins the company’s 90 and 60 series cars.

Volvo Cars said the introduction of the new paint shop will allow for more efficient manufacturing processes, and supports the launch of the next generation of Volvo models, most of which will be based on an upgraded version of the SPA architecture, called SPA2. The new paint shop represents a multi-billion-dollar investment in the Torslanda plant and is one part of a broader investment plan for the plant. Construction will begin in 2020.

“We have identified our paint shop operation as one area in which we can achieve significant reductions in energy consumption and emissions,” said Javier Varela, Senior Vice President Manufacturing and Logistics at Volvo Cars. “Volvo Cars is committed to our vision for a more environmentally sustainable business. This investment also strengthens our plans for the Torslanda plant to remain globally competitive.”

In addition to addressing energy consumption and emissions throughout its global manufacturing network, Volvo Cars said it is also working to make greater use of sustainable material in its products. By 2025, it wants at least 25 per cent of the plastics used in every newly-launched Volvo car to be made from recycled material.

Volvo Cars had originally made a commitment to electrify all new Volvo cars launched after 2019, with the company since saying that it now aims for fully electric cars to make up 50 per cent of its global sales by 2025.

Volkswagen Group Fined $1.55 Billion For Diesel Emissions Scandal

The Braunschweig public prosecutor in Germany has issued a fine of €1 billion ($1.55) in total against Volkswagen AG – consisting of the maximum penalty as legally provided for of €5 million and the “disgorgement of economic benefits” in the amount of €995 million.

According to the findings of the investigation carried out by the Braunschweig public prosecutor, there were 10.7 million vehicles in total with the diesel engines of the types EA 288, in the United States and Canada, and EA 189, world-wide, being advertised, sold to customers, and placed on the market with an impermissible software function in the period from mid-2007 until 2015.

Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it.

Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome.

As a result of the administrative order imposing the fine, the active regulatory offence proceedings conducted against Volkswagen will be finally terminated.

Volkswagen assumes that such termination of the proceedings will also have significant positive effects on further active administrative proceedings in Europe against the Volkswagen AG and its subsidiaries.