VW, Mercedes-Benz agree to fix diesels in Germany

Mercedes-Benz GLS350d spotted testing near Denver
Volkswagen and Mercedes-Benz have each agreed to spend up to $3,430 to update each of the older diesel cars they sold in Germany with new emissions systems that comply with regulations, Reuters reported Thursday.

The German agreement mirrors one in the U.S. in which Volkswagen paid owners between $5,000 and $10,000 in addition to the cost of repairing or buying back their cars. (The company is still in the process of returning the repaired older diesels back to the market in the U.S.)

A similar U.S. claim against Mercedes has been filed, dismissed, and refiled, but has not yet been adjudicated.

DON'T MISS: Mercedes-Benz gets its own diesel emission cheating questions now

Like the American Volkswagen settlement, the awards are designed to compensate diesel owners for added depreciation of their cars and give them money toward a down payment on a cleaner replacement car.

In Europe, the emissions issue has taken on more urgency because some cities have banned driving older diesel cars in city limits. Those include Frankfurt, Cologne, and Bonn, the latter two of which were required to institute such bans by next April according to a court order that came on Thursday.

READ THIS: Why Did Volkswagen Cheat On Diesel Emissions In Its TDI Cars? (2015)

“Volkswagen, Daimler and BMW will make sure their customers can remain mobile,” German Transport Minister Andreas Scheuer told reporters at a conference in Germany on Thursday.

Scheuer has been pushing German automakers to spend more to retrofit older diesels to keep them on the road. Mercedes-Benz and VW will pay for the cost of retrofitting the cars, although BMW has still refused to do so, Scheuer said.

Last month, German prosecutors fined Volkswagen's luxury brand Audi $927 million after finding documents and emails exchanged between the automaker, its Mercedes-Benz rivals, and Germany auto parts supplier Bosch that the prosecutors allege showed collusion among the automakers to cheat emissions regulations.

Base price of VW’s electric cars could be as low as $21,000

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VW MEB platform
Volkswagen plans to price its new generation of upcoming fully electric vehicles lower than it had previously hinted—as low as 18,000 euros for Europe, or about $21,000 for an entry-level fully electric model that will launch there in late 2019.

The news, via Reuters, comes as Volkswagen aims to make rapid changes to its manufacturing facilities. One of those plants is its Zwickau factory, targeted for a $1.4 billion transformation from building about 300,000 combustion-engine models to the same number of fully electric vehicles in 2021.

DON’T MISS: Here's the battery pack behind VW's global electric-vehicle push

The first couple of VW's new, small electric cars—the small ID hatchback in 2019 and the ID Crozz crossover in 2020—may come from Zwickau in 2019 at a slower rate, but Bloomberg reports that VW is also now targeting a plant in Emden, Germany, to build the entry-level electric model at an eventual rate of up to 200,000 per year.

The entry model will be built on the automaker’s new MEB modular electric-car underpinnings, planned for as many as 10 million cars.

Volkswagen ID electric car concept, 2016 Paris auto show

That $21,000 base price, in Germany, would land in the vicinity of a base gasoline-powered Volkswagen Golf, but it would remain thousands more than a Polo, the vehicle that’s a size smaller sold in many overseas markets.

CHECK OUT: Will Volkswagen's electric Microbus be made in the USA?

Volkswagen plans to have its more affordable MEB-based model replace the e-Golf in the lineup. We’re especially curious to see how it’s presented, priced, and sold in the U.S. next to the greenest version of the next-generation Golf, a plug-in hybrid with a longer range than the current 16 miles of all-electric range offered by the Audi A3 e-tron, which is very closely related to the overseas-only Volkswagen GTE plug-in hybrid.

VW is aiming to localize its electric-car production. It has said that at least some, if not all, of its electric vehicles sold in the U.S. will be built in the U.S., and it’s giving Chattanooga, Tennessee, where it already assembled Passat sedans and Atlas SUVs, some consideration as one of 16 key global “e-locations” for electric-car assembly.

The battery pack in this smallest MEB model is expected to be 48 kilowatt-hours—possibly equating to an EPA driving range of 175 miles or more. According to the Bloomberg report, Volkswagen may be able to offset the high price of the battery pack with a total production time that’s potentially half of a Volkswagen Golf, due to reduced complexity.

READ MORE: VW may share electric-car platform with Ford

Volkswagen hasn’t yet made an official model name known for the entry I.D., or any other model in the I.D. family for that matter. One name that’s been mentioned for the lowest-priced model is Neo, although that name hasn’t been confirmed and could remain an internal designation.

A total of 50 battery-electric models are expected from all of the VW Group’s brands by 2030. But two other models are due sooner, in 2022. One of them is the electric revival of the Microbus, called the ID Buzz in concept form, and the other is a flagship all-electric sedan, as previewed by the ID Vizzion concept, that would be more of a direct rival to Tesla, showcasing a higher level of connectivity and cabin technology.

Volkswagen ID Vizzion Concept

Either of these two later vehicles could be the vehicle that showcases the augmented-reality technology that the automaker has allowed for in the MEB platform.

The pricing news closely aligns with what executives have previously said about pricing. In September, Thomas Ulbrich, the VW Group Board of Management member in charge of e-mobility, said that the electric vehicles will be priced at the level of a comparable diesel car.

The latest pricing announcement ups the ante for other automakers, targeting a price even below that, and closer to that of a gasoline car. It’s a business model that other automakers—including Tesla—may have to eventually match.

Battery entrepreneur releases new invention to reduce cobalt

Tour of Tesla battery gigafactory for invited owners, Reno, Nevada, July 2016
As other battery scientists are working to develop the solid-state lithium batteries of tomorrow, technology entrepreneur Kenan Sahin is working to make the batteries of today more affordable.

Sahin announced at a conference in Berlin this week that his company TIAX has invented a new battery compound that he calls GEMX that reduced the need for cobalt in the battery cathodes, according to a Bloomberg report.

Cobalt prices are one of the main concerns of electric car makers who are counting on mass production of batteries and their lithium ingredients to bring prices of electric cars down to the point that they can compete against conventional cars without subsidies.

CHECK OUT: Battery legend Goodenough not done yet: new solid-state chemistry introduced

While batteries require more lithium than cobalt, lithium supplies are stable and new sources are coming online.

Cobalt is mined only in the Democratic Republic of Congo and has been tied to child labor in the country. Cobalt prices have tripled since 2015.

READ THIS: Panasonic works to develop cobalt-free electric-car batteries

Sahin says his new material can reduce the amount of cobalt in battery cathodes from about 20 percent to as little as 4 percent, which could result in dramatic cost savings for electric cars.

The invention plays into the hands of major battery manufacturers as well as automakers. Panasonic, which supplies batteries for Teslas, has said it is committed to eliminating cobalt from its batteries “in the near future.”

DON'T MISS: Supplies may be less of a problem for lithium than financing, report

In 2016, Sahin provided a key cathode compound based on lithium nickel-oxide to German electronics giant BASF. It's unclear whether BASF is one of Sahin's new customers.

Sahin says his company already has one major automaker signed up to use the technology. “We’re hoping we will get this into the hands of the major producers,” Sahin told Bloomberg in a phone interview.

GoFundMe campaign aims to keep Faraday Future employees afloat

Faraday Future FF 91
When some companies fall on hard financial times, they turn to Wall St. to sell stock or to banks to get loans.

Faraday Future has tried all of that and is trying to raise another $500 million in cash or debt to continue developing its $300,000 electric luxury car.

In the meantime, its employees have turned to Go Fund Me to raise $50,000 to keep their families afloat until the company can find more financing or the workers can find new jobs.

READ MORE: GM EV1 exec leaves Faraday Future (Updated)

After a funding dispute with its latest investor from Hong Kong, Faraday furloughed all the manufacturing employees at its factory in Hanford, California, who had been with the company for less than six months. Since the funding to produce the car was just procured in June, that includes most manufacturing employees.

Other employees, including managers, are on a reduced salary while the company seeks new funding.

DON'T MISS: Does Faraday have a Future? Latest financing disrupted—again

An arbitrator in Hong Kong ruled last month that Faraday Future may seek new funding from sources other than Evergrande Health, its Hong Kong benefactor. Evergrande agreed in June to invest $2 billion in Faraday Future, including an initial $800 million investment to get the company through its first six months and get manufacturing up and running. The company ran through the first $800 million in four months with only a few prototypes produced.

The arbitrator did not require Evergrande to release any more money to Faraday Future.

CHECK OUT: Faraday Future factory completes its first full car (Updated)

In the meantime, two key executives have left the company, Peter Savagian, former chief engineer for the GM EV1 and Faraday Future's key senior vice president, and the company's American co-founder, Nick Sampson. In his public letter of resignation, Sampson called the company “insolvent in both its financial and personnel assets.”

The Go Fund Me campaignwas launched by Hector Padilla, the manager of tooling and equipment for Faraday Future's Body-in-White production.

According to the Go Fund Me page, employees on furlough who have children, house and car payments, and no other backup plan will get priority for the funding, administered by Padilla and a co-worker. So far it has raised $16,000 toward its $50,000 goal.

BMW readies battery factory for wave of coming electric vehicles

Mini Electric concept, 2017 Frankfurt auto show
BMW announced last month it will significantly expand and overhaul a facility to produce batteries for electric cars at its factory in Dingolfing, Germany.

The factory currently builds several BMW sedans and coupes, including plug-in versions of the 5- and 7-Series.

The new battery assembly line in the factory will cover 65,000 square feet in the factory, according to a report in Autoevolution.

CHECK OUT: Supplier tests compact 100-kwh battery pack in BMW i3

With the expansion and new assembly line, the company will invest “mid-double-digit-million-euro amount” to overhaul the factory, BMW's electric powertrain head Roland Maurer told Autoevolution.

“With the launch of new models and growing demand for electrified vehicles, we will be stepping up production of electric components significantly over the next few months and years,” he said.

The new line is expected to supply batteries for the upcoming 2020 Mini Electric as well as the 2019 BMW iX3 SUV that will be built in China, the 2021 i4 based on the i Vision Dynamics concept, and the iNext luxury sedan.

The factory may assemble BMW's next generation of batteries with more compact packs and more efficient cooling, as a supplier to the company recently revealed. It will also build complete drive units for the cars, with motors and electronics.

READ MORE: BMW sets up end-to-end battery recycling in Europe

Further in the future, BMW has announced plans to build a supply chain to recycle used battery cells into new packs through a partnership with a new battery supplier in Sweden and a Belgian recycling firm.

Those batteries won't come online until supplier Northvolt completes its battery factory in Sweden and until a sufficient supply of used batteries from old BMW electric models becomes available.

Following the iX3 due out next year, the new Mini electric is expected to be the company's next electric model. It is expected to have 200 miles of range. Our sister site, MotorAuthority, published the most recent spy photos of the new Mini Electric hardtop in June.

Recall alert: Hyundai Ioniq in the hot seat

2019 Hyundai Ioniq Electric
Hyundai is recalling 10,575 Ioniq Hybrid and Plug-in Hybrid models from 2017 and 2018 to replace a wiring relay in the drive system.

The recall mirrors a similar problem announced last month with the Ioniq's platform-mate, the Kia Niro, which was also recalled.

Bad connections in a drive-system relay can cause the relay to overheat and lead to a fire, the automaker said in the recall notice. Drivers may see some early warning signs if the HEV warning light appears while driving, or the car won't start.

The recall affects Ioniqs built between November 16, 2016 and August 16, 2017

READ THIS: 2017-2018 Kia Niro hybrid recall concerns extra heat in the back seat

Like in the Niro, the relay is located under the back seat and can result in the rear seat getting warm or even catching fire. Parents placing children back there should be especially vigilant.

Hyundai says it will replace the relay free, and if technicians find any damage, the whole power relay assembly will be replaced.

Owners should expect to be notified by November 30th.

In the meantime, if backseat passengers say their seats are getting warm, it may not be just the optional bun warmers.

Austria to let drivers of electric cars go faster

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2019 Jaguar I-Pace S
Austria is offering would-be electric-car owners (and current ones) a tempting incentive to go tailpipe-emissions-free: permission to drive faster than those with gasoline, diesel, or hybrid vehicles.

Under a recently approved amendment to the country’s speed limits, aimed at rewarding those who choose electric vehicles, they will be given a legal exemption. Owners of EVs will be allowed to go 81 mph (130 km/h), versus 62 mph (100 km/h), in a particular speed region that includes 273 miles (440 km) of roadways.

DON’T MISS: Here's how California's carpool (HOV-lane) stickers work now: updated

Electric vehicles currently comprise 2.5 percent of new-vehicle registrations in Austria; that’s more than Germany, according to Austria’s Federal Ministry of Transport. The Jaguar I-Pace, the first long-range electric vehicle from an established luxury brand, is built in Graz, Austria.

Although the idea would likely result in more shoppers making the leap to fully electric vehicles, it’s not without some concerns—and tradeoffs.

CHECK OUT: Germany, Austria electric-car charging networks improve, fast

Higher speeds and wider speed differentials generally correspond to higher highway fatality rates; and the vehicles themselves won’t be as efficient and will, as a result, contribute to more upstream emissions.

Highway Lights from Drive Change consumer survey

In 1996, an EPA memo cited data finding that just increasing urban interstates from 55 to 65 would produce a net increase in vehicle emissions of 20.7 percent more carbon monoxide and 1.3 percent more nitrogen oxides.

Anecdotally, the efficiency and range of most of the electric vehicles Green Car Reports has driven has been significantly lower at 80 mph than at 60 mph. So electric-car drivers who take advantage of the higher speed limits won't be able to do it for as long.

READ MORE: Teslas will start paying to drive in L.A.'s “Lexus lanes”

Allowing electric vehicles to drive faster on the highway might also put more pressure on DC fast-charging network infrastructure, because they'll need to charge more often.

The new policy, which so far lacks an enforcement strategy, also encourages cities and municipalities to provide free parking to electric vehicles.

The move is in accord with the EU’s 2030 climate targets and the Paris Climate Agreement, with aims to cut Austria’s transport-sector carbon-dioxide emissions by 7.9 million U.S. tons.

GM EV1 exec leaves Faraday Future

Faraday Future completes first pre-production FF91 on August 28, 2018
In the midst of the latest round of financial turmoil at the company, Faraday Future has lost a key executive, according to a report in the Verge.

Peter Savagian was senior vice president at Faraday Future. And he was the chief engineer of General Motors' EV1, arguably the first mass-produced modern electric car.

One anonymous source inside Faraday Future told the Verge, “He was the guy” (emphasis original) at Faraday Future. Another called him “the backbone of the company.”

READ MORE: Does Faraday have a Future? Latest financing disrupted—again

Savagian appeared in a video last month leading company employees in showing off Faraday's first product, the FF91 electric luxury sedan when the first prototype rolled off its new assembly line in California.

Shortly after that event, the company started laying off workers earlier this month and cut the pay of remaining workers by 20 percent after its latest financing deal fell on hard times.

Artist’s impression of Faraday Future’s proposed plant in Hanford, California

The company has a history of financial troubles, as one investor after another has backed out.

Most recently, the company received a commitment of $2 billion in June from Hong Kong conglomerate Evergrande Health, with an $800 million bundle of cash up front. Faraday ran through the first $800 quickly by setting up a production line and building its first prototypes, and Evergrande balked at providing promised followup funding.

DON'T MISS: Faraday Future factory completes its first full car (Updated)

Faraday filed an arbitration case against Evergrande in early October when it announced the layoffs. Last Friday, a Hong Kong arbitrator found in favor of Faraday Future, ruling that the company can seek funding from other investors, a move which Evergrande had worked to prevent.

The company isn't out of the woods, but the arbitration ruling gives a glimmer of light in the tunnel.

CHECK OUT: Faraday Future gets a $2 billion lifeline to build expensive crossover

Three other former members of GM's EV1 team reportedly still work at the company.

If it makes it to production, the FF91 is expected to be a $300,000 electric competitor to ultra-luxury sedans such as the Rolls Royce Phantom. A less expensive followup model, the FF81 is also on the drawing boards.

BMW recalling 44,000 diesel vehicles for fire risk

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2014 BMW 328d
BMW has announced an expanded recall effort over the possibility of fire in recent-model-year vehicles equipped with a diesel engine.

The issue, which now potentially affects 1.6 million vehicles worldwide, concerns an issue in which coolant (glycol) leakage from the exhaust gas recirculation (EGR) system cooler could combine with “typical soot deposits” for the diesel engines and with the EGR system’s high temperatures “might result in smoldering particles.”

DON’T MISS: For 2018, only a dozen diesel vehicles on sale in U.S.

In very rare cases, according to BMW, the situation could lead to the melting of the exhaust manifold and result in a vehicle fire—an issue first broadly reported in South Korea, of all places.

Under the technical campaign, BMW will check the EGR module and replace any faulty components.

2014 BMW 328d xDrive Sports Wagon

The effort, announced in August, originally involved 480,000 diesel vehicles in Europe and Asia, but it’s since been expanded with other country-specific campaigns. In the U.S., that effort includes approximately 44,368 diesel-engine vehicles from the 2013-2018 model years—the following models produced between September 2012 and June 2017:

2013-2018 BMW 328d Sedan
2014-2018 BMW 328d Sports Wagon
2014-2016 BMW 535d Sedan
2015 BMW 740Ld Sedan
2015-2017 BMW X3 xDrive28d SUV
2014-2017 BMW X5 xdRIVE35d SUV
CHECK OUT: BMW drops diesels in favor of plug-in hybrids

Although diesels were once seen as a ‘green’ option, if not a clean one, the view of them is quite different in 2018, in the aftermath of Volkswagen’s diesel scandal.

BMW aimed to offer four different diesel models for 2018—the X5 xDrive35d, the 328d sedan, and the 328d xDrive Sports Wagon—but found demand very low and the need to focus on plug-in hybrids and electric vehicles like the much-anticipated iX3, an all-electric version of the X3 SUV. For 2019 it’s withdrawn all of its diesel possibilities except for an upcoming version of the BMW X5 SUV.