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SAN FRANCISCO – General Motors Co. (NYSE:GM) announced it is acquiring Cruise Automation to add Cruise’s deep software talent and rapid development capability to further accelerate GM’s development of autonomous vehicle technology.

“Fully autonomous vehicles can bring our customers enormous benefits in terms of greater convenience, lower cost and improved safety for their daily mobility needs,” said GM President Dan Ammann.

Cruise will operate as an independent unit within GM’s recently formed Autonomous Vehicle Development Team led by Doug Parks, GM vice president of autonomous technology and vehicle execution, and will continue to be based in San Francisco. Founded in 2013, Cruise has moved quickly to develop and test autonomous vehicle technology in San Francisco’s challenging city environment.

“GM’s commitment to autonomous vehicles is inspiring, deliberate, and completely in line with our vision to make transportation safer and more accessible,” said Kyle Vogt, founder of Cruise Automation. “We are excited to be partnering with GM and believe this is a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology.”

According to Mark Reuss, GM executive vice president, Global Product Development, Purchasing and Supply Chain, “Cruise provides our company with a unique technology advantage that is unmatched in our industry. We intend to invest significantly to further grow the talent base and capabilities already established by the Cruise team.”

The acquisition of Cruise is GM’s latest step toward its goal of redefining the future of personal mobility. Since the beginning of the year, GM has entered into a strategic alliance with ride-sharing company Lyft; formed Maven, its personal mobility brand for car-sharing fleets in many U.S. cities, and established a separate unit for autonomous vehicle development.

The transaction is subject to customary closing conditions and is expected to close in the second quarter.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

SPRING HILL, Tenn. — General Motors will invest $148 million to repurpose flexible machining and assembly equipment at its Spring Hill Manufacturing plant to build V8 engines to meet market demand, retaining approximately 200 jobs.

The investment will enable Spring Hill to quickly add capacity to build the Small Block 6.2L V8 engine in the popular truck and SUV segment. This will be the first time Spring Hill will build V8 engines.

The 6.2L truck engine is currently available in the Chevrolet Silverado Crew Cab, GMC Sierra Crew Cab, Yukon Denali, Yukon XL Denali and the Cadillac Escalade and Escalade ESV. The aluminum Small Block engine features a suite of technology for efficiency and performance, including Active Fuel Management (cylinder deactivation), direct injection and continuously variable valve timing. Other GM sites building the 6.2L V8 for trucks are Tonawanda, N.Y. and St. Catharines, Ontario.

The investments in Spring Hill are part of $709.4 million in investments GM has announced since ratification of the UAW-GM national agreement in 2015. Since 2010, GM has announced investments of more than $1.35 billion for the Spring Hill operations.

“This investment will position GM and its workforce to promptly respond to consumer demand for this engine in the popular truck and SUV segment,” said Arvin Jones, GM North America Manufacturing Manager. “The flexibility of Spring Hill’s engine machining and assembly equipment is allowing GM to respond deftly when additional engine variant capacity is needed.”

Equipment repurposing will begin immediately with Small Block 6.2L V8 production scheduled to begin during the fourth quarter of 2016. Having flexible equipment and machining is allowing GM to add capacity in a timeframe faster than the typical two to three years required to add a new engine line.

“Spring Hill and its employees have a reputation for producing award-winning 4-cylinder engines,” said UAW Local 1853 Chairman Mike Herron. “We appreciate GM recognizing these outstanding skills with the opportunity to build V8 engines for some of GM’s most popular full-size trucks and SUVs.”

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com

DETROIT – General Motors’ recently announced service for online shoppers who are looking for a used Chevrolet, Buick, GMC or Cadillac vehicle, the Factory Pre-Owned Collection (http://www.factorypreownedcollection.com), is now live.

GM is the first automaker to provide U.S. consumers with online access to an exclusive national inventory of low-mileage former GM company-owned, off-lease and daily rental vehicles in one easy-to-navigate place.

This new service features a nationwide inventory of more than 40,000 vehicles, all with fewer than 37,000 miles, and including an extended factory bumper-to-bumper limited warranty.

“Our goal is to earn customers for life and we know many of them want to use the internet to save time and make the process of buying a used vehicle simpler and easier,” said Steve Hill, vice president, GM U.S. Sales and Service. “The Factory Pre-Owned Collection extends our Shop-Click-Drive service and gives our dealers another way to attract new customers to their dealerships.”

More than 1,000 GM dealers from across the U.S. have already agreed to participate in the Factory Pre-Owned Collection since GM Chairman and CEO Mary Barra announced the program on Jan. 13.

“Many of our customers who are shopping for a used car have told us they want to complete more of the process online,” said Jerry Morgan, executive manager of Jack Wilson Chevrolet and Jack Wilson Buick GMC in Saint Augustine, Florida. “We are excited to be among the first dealerships to participate in the Factory Pre-Owned Collection.”

Online shoppers who use the Factory Pre-Owned Collection will follow three simple steps:

Browse the inventory to find the vehicle of their choice.
Choose a participating GM dealer and reserve their vehicle using the Shop-Click-Drive experience.
Finalize their purchase and take delivery of their vehicle from their selected dealer.
Consumers can easily compare suggested prices on the Factory Pre-Owned Collection site to what others in their area have paid using the Kelley Blue Book® Fair Market Range, and can get a Carfax Vehicle History Report on the vehicles displayed on the site.

The service also features a three-day/150-mile exchange program, a three-month trial of the OnStar Guidance Plan and the Sirius/XM Satellite Radio All-Access Package and more. Vehicles also come with roadside assistance and courtesy transportation during the warranty period.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

The Volkswagen Group’s realignment is well underway. The Group is making progress on all five of the priorities it set at the end of October: The technical solutions for customers in Europe have been devised, presented to the authorities, and positively evaluated by them. These solutions will begin to be implemented in January 2016. The emissions investigation is producing results, and initial consequences have already been drawn based on the findings to date. The implementation of the new structure is proceeding according to plan, and the process of developing a new strategy has commenced. The Chairman of the Supervisory Board of Volkswagen AG, Hans Dieter Pötsch, told the press in Wolfsburg today: “The Volkswagen Group is fully functional in every respect, even during these eventful days. How, and when we meet the current challenges is primarily – although not solely – up to us. In order to pass this test, we must make an enormous, common effort – and we are all ready to do so.” The Chairman of the Board of Management, Matthias Müller, said: “We are doing everything to overcome the current situation, but we will not allow the crisis to paralyze us. On the contrary, we will use it as a catalyst to make the changes Volkswagen needs.”

For the first time, the Company provided detailed commentary on the status of its investigation, which is being coordinated by a special committee of the Supervisory Board. Approximately 450 internal and external experts are involved in the investigations, which are being conducted in two phases. An internal review, being conducted by a task force of experts from various Group companies with a clearly defined mandate and a deadline, is focused on the mandate to Group Audit by the Supervisory Board and the Management Board to investigate relevant processes, reporting and monitoring systems, and the associated infrastructure. Group Audit will provide its findings to the external experts of Jones Day. The Supervisory Board has given this internationally respected law firm a parallel mandate to completely clarify the facts and responsibilities – i.e., among other things, it has been asked to conduct a forensic investigation. In connection with its work, Jones Day is being provided with operational support by the audit firm Deloitte.
Group Audit has identified process weak points

As reported on Wednesday, extensive internal investigations, which were subject to external independent review, did not confirm the suspicion of irregularities during the CO2 certification process. Now, the first significant findings in the investigation of the nitrogen oxide (NOx) issue are available. Group Audit’s examination of the relevant processes indicates that the software-influenced NOx emissions behavior was due to the interaction of three factors:

• The misconduct and shortcomings of individual employees
• Weaknesses in some processes
• A mindset in some areas of the Company that tolerated breaches of rules.

It is clear that, in the past, deficiencies in processes have favored misconduct on the part of individuals. This is true, for example, for test and certification processes affecting our engine control devices, which were not suited to preventing use of the software in question. Group Audit has suggested specific remedies to correct this. We are concentrating on structuring these processes more transparently and systematically. For example, in the future, software for engine control devices will be developed more strictly in accordance with the 4-eyes principle. In addition, the bodies responsible for the release of such software are being reorganized. They will be given more sharply defined and binding powers and responsibilities. Deficiencies were also found in reporting and monitoring systems. The main problem there was that responsibilities were not sufficiently clear. Volkswagen will now further sharpen them. Group Audit also found deficiencies in some areas of Volkswagen’s IT infrastructure. These deficiencies will also be remedied. Volkswagen will introduce IT systems that allow individual processes to be monitored with greater efficiency and transparency. This will simultaneously reduce our dependence on individuals when problematic processes have to be identified and, if necessary, escalated. As Pötsch stated: “Group Audit’s investigation is producing valuable findings, which will help us create a structure that, rather than favoring breaches of regulations, will prevent them, or at least allow them to be detected early on.”

The Company has already drawn a key conclusion based on Group Audit’s findings, namely that its testing practice must undergo comprehensive changes.
Volkswagen has decided that in the future emissions test will be evaluated externally and independently. In addition, randomly selected real-life tests to assess emissions behavior on the road will be introduced. Chairman of the Supervisory Board Pötsch stated: “We hope that this will help Volkswagen regain lost trust.”

More time is required for the external investigation

Although Group Audit’s analysis of the processes will be concluded shortly, Jones Day will need well into next year in order to finish its work. The external investigators will need more time for their investigation, for two reasons. The first is that they have a massive volume of data to screen. At present, 102 terabytes of information have been secured, which is the equivalent of the information contained in approximately 50 million books. More than 1,500 electronic data storage units have been collected from approximately 380 employees. The second reason is that their investigation of the facts takes legal responsibility into account. Therefore, their findings must not only be plausible and consistent, but must also hold up in court. Volkswagen plans to provide a status update on the external investigation at its Annual General Meeting on April 21, 2016.

The information that has been screened to date has largely explained the origin and development of the nitrogen oxide issue. It proves not to have been a one-time error, but rather a chain of errors that were allowed to happen. The starting point was a strategic decision to launch a large-scale promotion of diesel vehicles in the United States in 2005. Initially, it proved impossible to have the EA 189 engine meet by legal means the stricter nitrogen oxide requirements in the United States within the required timeframe and budget. This led to the incorporation of software that adjusted nitrogen oxide emission levels according to whether vehicles were on the road or being tested. Later, when an effective technical process was available to reduce NOx emissions, it was not employed to the full extent possible. On the contrary, the software in question allowed the exhaust gas treatment additive “AdBlue” to be injected in variable amounts such that the NOx values were particularly low when vehicles were in the test bay, but significantly higher when vehicles were on the road.

Hans Dieter Pötsch stressed that, “No business transaction justifies overstepping legal and ethical bounds.” As a first step, nine managers who may have been involved in the manipulations were suspended. Pötsch emphasized: “I here and now guarantee that we will pursue our thorough investigation to its conclusion. I vouch for this personally, as does the entire Supervisory Board of Volkswagen AG.”

Technical solutions, which have been positively evaluated by the German Federal Motor Transport Authority (“Kraftfahrtbundesamt”), are now available for the European variants of the EA 189 engine type affected. Volkswagen is thus ensuring that the models affected in Europe will meet all legal requirements in the future. The costs of implementing these solutions will be manageable in technical, manufacturing, and financial terms. The software of the 2.0 and 1.2 liter TDI will be updated. For the 1.6 liter TDI, a so-called flow transformer will be used that increases the measurement precision and, in combination with redesigned software, will optimize injection quantity.

Now that the technical solutions have been approved, Volkswagen is working intensely on plans to implement them. The recall of the highest-volume variant, the 2.0 liter TDI, will begin in January 2016. The recall of the 1.2 liter TDI is currently scheduled to begin in the second quarter. The implementation phase for the 1.6 liter models is planned to begin in the third quarter to allow time to prepare for the hardware modification. Under the current plan, the entire initiative will take at least all of calendar year 2016. Matthias Müller, Chairman of the Board of Management, promised: “Volkswagen will not rest until this matter has been resolved once and for all to our customers’ satisfaction.” Volkswagen will inform the owners of the affected vehicles individually as to when their vehicles will be updated. Volkswagen guarantees that the solutions will be implemented free of charge. The company waives any statute of limitations for the technical solutions, and will provide an appropriate replacement vehicle if required.

Due to far stricter nitrogen oxide limits in the United States, it is a greater technical challenge to retrofit the vehicles such that all applicable emissions limits can be met with one and the same emissions strategy. To this end, Volkswagen is cooperating closely with the United States Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). The solution designed for North America will be presented as soon as it has been approved by the responsible authorities.

Implementation of the new Group structure commenced

Parallel to overcoming the crisis, Volkswagen is also instituting a comprehensive new alignment that affects the structure of the Group, as well as its way of thinking and its strategic goals.

Volkswagen will be managed in a more decentralized fashion in the future, and its brands and regions will be granted more independence. The Group’s Board of Management is fully focused on its core task: advancing the major, global issues for the future, as well as synergies, controls, and strategy. Volkswagen will have significant input to the technical changes that have a major impact on its own business model, becoming more agile, and streamlining its decision-making processes. In addition, Volkswagen will become leaner and improve cost efficiency. All these structural changes ultimately aim to reduce managerial complexity and ensure that the Group can be effectively led over the long term.

At an organizational level, with the appointment of Dr. Christine Hohmann-Dennhardt, the Integrity & Law area will be represented as its own department on the Group’s Board of Management in the future – a clear indication that these issues are extremely important to Volkswagen. Significantly more importance will be attached to digitalization, which will report directly to the Chairman of the Board of Management. Overall, direct reports will be reduced from more than 30 to 19.

The renewal of personnel in the Group has recently again been given new impetus. Since the beginning of 2015, the Group’s Board of Management has seen six new members join, seven of the brands have had their top personnel changed, and eight departments falling within the CEO’s area of responsibility now have new heads. Müller stated: “The team with which we wish to address the challenges of the coming months and years is in place.” The details of the new structure are to be worked out in the first quarter of 2016. The new structure will be in place Group-wide by the start of 2017.

New mindset initiated

Müller noted: “We can have the best people, and a great organization, but we can do nothing without the right attitude and mentality.” During the upcoming process of change toward a new way of thinking, Volkswagen can build on its traditional strengths: quality consciousness, strong identification with its vehicles, and a high degree of social responsibility. According to Müller, the future will be about more open discussions, closer cooperation, and a willingness to allow mistakes if they are understood as an opportunity to learn. The Chairman of the Board of Management stated, “We don’t need yes-men, but managers and engineers who make good arguments in support of their convictions and projects, who think and act like entrepreneurs. I am calling for people who are curious, independent, and pioneering. People who follow their instincts and are not merely guided by the possible consequences of impending failure. In short: the future at Volkswagen belongs to the bold. We need a little more Silicon Valley, coupled with the competence from Wolfsburg, Ingolstadt, Stuttgart, and the other Group locations.”
New strategic destination under development

In addition, Volkswagen has initiated development of a new strategic target: “Strategy 2025”, with which Volkswagen will address the main issues for the future, is scheduled to be presented in mid 2016.
Müller explained, “We are realigning Volkswagen strategically and technologically. Our goal is to courageously and decisively participate in shaping the future of mobility.” Among other things, the Group aims to achieve a significant expansion of its sales outside of its current core business. Furthermore, a digitalization and an electrification offensive are being prepared.

In parallel, Volkswagen is currently doing everything it can to limit the effect the current situation has on its business performance. The operating business is meeting expectations, and the 2015 annual forecast, which was updated at the end of October, remains unchanged. The sales figures are very mixed as regards the various markets and brands. Müller explained, “Overall, the situation is not dramatic, but, as was to be expected, it’s tense.”

In summary, the Chairman of the Board of Management stated: “Although the current situation is serious, this company will not be broken by it. We have a clear mission: we will create a new, better, and stronger Volkswagen. A company that uses its strengths to make the transition to the new world of automobiles. A company that now releases new forces, and takes better advantage of its huge potential. And, last but not least, a company that will be successful over the long term on the basis of strong values.”

LAS VEGAS – U.S. Transportation Secretary Anthony Foxx today announced the latest partnership in the Smart City Challenge; the winning city’s public bus system will receive the installation of Mobileye’s Shield +TM technology on every bus. This is in addition to U.S. DOT’s award of up to $40 million and an award of up to $10 million from the Challenge’s launch partner, Vulcan Philanthropy.

Mobileye’s Shield +TM driver assistance safety technology is designed to enable bus drivers in the selected city to avoid and mitigate imminent collisions and protect road users including cyclists, pedestrians, and motorcyclists. The winning city will need to work with Mobileye to secure this technology contribution. Once installed, the technology is designed to generate continuous, real-time data delivery, which will empower the winning city to make improvements to the safety and efficiency of its public bus system.

The announcement of this collaboration follows last month’s launch of U.S. DOT’s Smart City Challenge, a competition that will support the creation of a fully integrated, first-of-its-kind city that uses data, technology and creativity to shape how people and goods move in the future. The Challenge is a collaborative partnership that aims to implement bold, data-driven ideas to make transportation safer, easier, and more reliable.

“Our Department’s partnership with Mobileye significantly strengthens this Challenge, devoting additional resources to the winning city so it can further develop its own unique vision of what a fully integrated, forward-looking transportation network looks like,” said U.S. Transportation Secretary Anthony Foxx. “The funding and technology contributed by our private sector partners will assist the selected city in using data-driven information to make their transportation systems safer and more efficient and prepare for the future of transportation.”

During this Smart City Challenge, applicants are invited to submit ideas – designed to address or enhance community needs – across a range of innovation and data-driven platforms. Critical system improvements that increase safety, reduce carbon emissions, and enhance mobility are especially encouraged for review. Specifically, these innovations will connect people, vehicles, public transportation, and infrastructure through ITS, the sharing economy, and other technologies that improve the way Americans move, whether it be to drop off kids at school, pick up groceries, get to work, or receive critical services.

The Smart City Challenge builds on the U.S. DOT’s Beyond Traffic draft report issued in February of 2015. Beyond Traffic reveals that our nation’s aging infrastructure is not equipped to deal with a dramatically growing population in new regions throughout the country and highlights the need for increased mobility options in developing megaregions. This public-private collaboration represents the U.S. DOT belief that creativity and innovation will be absolutely essential for meeting the significant transportation challenges of the future. Lessons learned from this competition will be used in other cities to improve networks nationwide and demonstrate a practical path to replacing carbon-based fuel consumption. U.S. DOT welcomes the participation of other entities who share the vision and goals in the Notice of Funding Opportunity found at www.transportation.gov/smartcity/nofo.

“Affecting transformative change in America’s transportation infrastructure is going to require innovative thinking and strong support from both the government and the private sector,” said Mobileye Co-Founder, CTO and Chairman Professor Amnon Shashua. “Secretary Foxx is leading the way in transforming government by embracing innovation and technology. We are excited to be working alongside the U.S. Department of Transportation on this Challenge, which motivates American cities and communities to embrace forward-looking solutions to transportation challenges they will be grappling with in the coming decades.”

The first round of applications is due February 4, 2016. U.S. DOT will then announce five finalists in March 2016, who will then compete for up to $40 million to be awarded to one city in June 2016.

To learn more about the Smart City Challenge or to explore joining as a partner organization, visit www.transportation.gov/smartcity.

– See more at: https://www.transportation.gov/briefing-room/us-department-transportation-and-mobileye-partner-equip-smart-city-challenge-winner#sthash.DJDryxLh.dpuf

DETROIT – The General Motors Board of Directors today announced it has unanimously elected Mary Barra as its next Chairman, effective immediately. She succeeds Theodore (Tim) Solso, who will continue serving as the Board’s Lead Independent Director.

Barra has served as GM CEO since Jan. 15, 2014.

“At a time of unprecedented industry change, the Board concluded it is in the best interests of the company to combine the roles of Chair and CEO in order to drive the most efficient execution of our plan and vision for the future,” said Solso. “With GM consistently delivering on its targets and on track to generate significant value for its shareholders, this is the right time for Mary to assume this role.”

Solso indicated Barra has set a clear vision for the organization over the past two years, formed a strong leadership team from inside and outside the company, delivered strong operating results and led the introduction of breakthrough vehicles and technologies.

“The Board has improved the overall governance of the company over the past two years and as Lead Independent Director, I expect to continue to build on this solid foundation,” Solso said. “The Board also plans to broaden its active engagement with shareholders as we go forward.”

Said Barra: “I am honored to serve as Chair of the Board of Directors. With the support of our Board, we will continue to drive shareholder value by improving our core business and leading in the transformation of personal mobility.”

Prior to being named CEO in 2014, Barra served as executive vice president, Global Product Development, Purchasing & Supply Chain since August 2013, and as senior vice president, Global Product Development since February 2011. In these roles, she was responsible for the design, engineering, program management and quality of GM vehicles around the world.

Previously, Barra served as GM vice president, Global Human Resources; vice president, Global Manufacturing Engineering; plant manager, Detroit Hamtramck Assembly; executive director of Competitive Operations Engineering; and in several engineering and staff positions.

In 1990, Barra graduated with an MBA from the Stanford Graduate School of Business after receiving a GM fellowship in 1988.

Barra began her career with GM in 1980 as a General Motors Institute (Kettering University) co-op student at the Pontiac Motor Division. She graduated with a bachelor’s degree in electrical engineering in 1985.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

The Department of Justice, on behalf of the Environmental Protection Agency (EPA), today filed a civil complaint in federal court in Detroit, Michigan, against Volkswagen AG, Audi AG, Volkswagen Group of America Inc., Volkswagen Group of America Chattanooga Operations LLC, Porsche AG and Porsche Cars North America Inc. (collectively referred to as Volkswagen). The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution. The complaint further alleges that Volkswagen violated the Clean Air Act by selling, introducing into commerce, or importing into the United States motor vehicles that are designed differently from what Volkswagen had stated in applications for certification to EPA and the California Air Resources Board (CARB).

“Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint.”

“With today’s filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action.”

“Today’s complaint is the first stage in bringing Volkswagen to justice for failing to disclose the defeat device while seeking certification for its diesel vehicles from EPA’s Office of Transportation and Air Quality in Ann Arbor, Michigan,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan. “The alleged misrepresentations allowed almost 600,000 diesel engines to emit excessive air pollution across the country, harming our health and cheating consumers.”

Consistent with EPA’s Notices of Violation, issued on Sept. 18, 2015, for 2.0 liter engines and Nov. 2, 2015 for certain 3.0 liter engines, the complaint alleges that the defeat devices cause emissions to exceed EPA’s standards during normal driving conditions. The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution. Motor vehicles equipped with illegal defeat devices cannot be certified.

The complaint alleges that Volkswagen equipped certain 2.0 liter vehicles with software that detects when the car is being tested for compliance with EPA emissions standards and turns on full emissions controls only during that testing process. During normal driving situations the effectiveness of the emissions control devices is greatly reduced. This results in cars that meet emissions standards in the laboratory and at the test site, but during normal on-road driving emit oxides of nitrogen (NOx) at levels up to 40 times the EPA compliance level. In total, the complaint covers approximately 499,000 2.0 liter diesel vehicles sold in the United States since the 2009 model year.

The complaint further alleges that Volkswagen also equipped certain 3.0 liter vehicles with software that senses when the vehicle is undergoing federal emissions testing. When the vehicle senses the test procedure, it operates in a “temperature conditioning” mode and meets emissions standards. At all other times, including during normal vehicle operation, the vehicles operate in a “normal mode” that permits NOx emissions of up to nine times the federal standard. In total, the complaint covers approximately 85,000 3.0 liter diesel vehicles sold in the United States since the 2009 model year.

NOx pollution contributes to harmful ground-level ozone and fine particulate matter. These pollutants are linked with asthma and other serious respiratory illnesses. Exposure to ozone and particulate matter is also associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants. Recent studies indicate that the direct health effects of NOx are worse than previously understood, including respiratory problems, damage to lung tissue and premature death.

Today’s filing of a civil complaint under Sections 204 and 205 of the Clean Air Act seeks injunctive relief and the assessment of civil penalties. A civil complaint does not preclude the government from seeking other legal remedies. The United States will seek to transfer its case and fully participate in the pretrial proceedings now initiated in the related multi-district litigation in the Northern District of California. The United States’ investigation is ongoing, in close coordination with CARB. EPA and CARB have been in active discussion with Volkswagen about potential remedies and recalls to address the noncompliance, and those discussions are ongoing.

Affected 2.0 liter diesel models and model years include:

Jetta (2009-2015)
Jetta Sportwagen (2009-2014)
Beetle (2013-2015)
Beetle Convertible (2013-2015)
Audi A3 (2010-2015)
Golf (2010-2015)
Golf Sportwagen (2015)
Passat (2012-2015)
Affected 3.0 liter diesel models and model years include:

Volkswagen Touareg (2009-2016)
Porsche Cayenne (2013-2016)
Audi A6 Quattro (2014-2016)
Audi A7 Quattro (2014-2016)
Audi A8 (2014 – 2016)
Audi A8L (2014-2016)
Audi Q5 (2014-2016)
Audi Q7 (2009-2015)

PHILADELPHIA, PA – December 9, 2015 – The Pep Boys – Manny, Moe & Jack (NYSE: PBY), the nation’s leading automotive aftermarket service and retail chain, today announced that, on December 8, 2015, its Board of Directors, after consultation with its independent legal and financial advisors, determined that the proposal from Icahn Enterprises L.P. to acquire Pep Boys for $15.50 per share in cash constitutes a “Superior Proposal” as defined in the Company’s agreement and plan of merger with Bridgestone Retail Operations, LLC.

As part of its proposal, Icahn delivered to the Company a merger agreement signed by Icahn that is not subject to due diligence or financing conditions and contains a “hell or high water” anti-trust covenant.

Also on December 8, 2015, the Company delivered notice to Bridgestone of the Pep Boys Board’s determination and intention to effect a change of recommendation and to terminate the Bridgestone agreement. Such notice commenced a three business day period that will expire at 5:00pm New York City time, on Friday December 11, 2015, during which the Company may not change the recommendation nor terminate the Bridgestone agreement, and Bridgestone has the right to make proposals to the Company.

As previously announced on October 26, 2015, the Company entered into the Bridgestone agreement pursuant to which Bridgestone commenced, on November 16, 2015, a tender offer for all outstanding shares of Pep Boys at $15.00 per share in cash.

There can be no assurance that a transaction with Icahn will result or that Bridgestone will propose any adjustments to the Bridgestone agreement. The Pep Boys Board has not changed its recommendation with respect to the Bridgestone transaction, nor has it made any recommendation with respect to the Icahn proposal.

Rothschild is acting as the exclusive financial advisor to Pep Boys and Morgan, Lewis & Bockius LLP is acting as legal advisor.

About Pep Boys
Since 1921, Pep Boys has been the nation’s leading automotive aftermarket chain. With over 7,500 service bays in over 800 locations in 35 states and Puerto Rico, Pep Boys offers name-brand tires; automotive maintenance and repair; parts and expert advice for the Do-It-Yourselfer; commercial auto parts delivery; and fleet maintenance and repair. Customers can find the nearest location by calling 1- 800-PEP BOYS (1-800-737-2697) or by visiting www.pepboys.com

DETROIT – Making shoe soles and washing solvent-drenched rags instead of discarding disposables are two ways General Motors is approaching its aspirational goal of becoming a zero waste manufacturer.

With the addition of six landfill-free sites in Mexico and England, the company’s industry-leading landfill-free count totals 131 facilities.

Luton Assembly and Ellesmere Port Assembly achieved landfill-free status, making all 18 Opel/Vauxhall manufacturing plants in Europe landfill-free, which means daily waste is recycled, reused or converted to energy.

The addition of two engine plants, a warehouse, and technical center at GM’s Toluca, Mexico complex mean all of GM de Mexico assembly, engine and transmission plants plus various non-manufacturing operations – a total of 16 facilities – send no waste to landfills.

“Our global progress in waste reduction is possible because of employee participation, creative ideas, and a strong supplier network,” said Jim DeLuca, GM executive vice president of Global Manufacturing. “Our teams understand the positive impact of this initiative and they drive it in their facilities every day.”

The Toluca facilities work closely with resource management suppliers to find higher uses for their byproducts, such as turning polystyrene foam packaging into footwear. GM takes the material to a warehouse where it is baled and sent to be crushed and densified into pellets. Those pellets are combined with other polymers to create shoe soles.

Getting all employees in a plant to sort their waste in the appropriate bins can be a challenge. These new landfill-free sites used a variety of tools to educate and inspire, from recycling courses to training videos that help employees understand the environmental benefits and business case. The teams conduct audits to identify improvement opportunities, and recognize employees who drive progress. Some plants designate a green champion in each part of the plant to drive participation.

Since the first GM plant achieved landfill-free status 10 years ago, the company has been using evolving and cost-effective technology to chip away at tough waste streams. Hiring a waste management company specializing in challenging byproducts versus general waste was key to Ellesmere Port Assembly’s success. The partnership gave the team a better understanding of options for material such as paint residue and sealants used in the car assembly process.

Ellesmere Port is also in a trial project to wash rags used to wipe up solvent instead of using disposable rags, potentially cutting rag waste to zero.

Other new landfill-free facilities include the Uzbekistan Engine plant; a Chevrolet sales office in India; an IT Innovation center building (Georgia); a Howell spare parts operation (Michigan); and customer care and aftersales facilities in Cincinnati, Willow Run (Michigan), Rancho Cucamonga (California), Woodstock (Ontario, Canada) and Langley (Vancouver, Canada).

GM teams around the world are working toward achieving 150 landfill-free sites globally by 2020. The company received a Top Project of the Year Award from Environmental Leader for driving a global movement for zero waste and outlines its best practices in its blueprint in “The Business Case for Zero Waste.”

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.

Volkswagen AG has issued the following information: CO2 issue largely concluded
• No unlawful change to the stated fuel consumption and CO2 figures found to date
• Only a small number of the model variants of new cars will have the catalogue figure slightly adjusted

Just a month after questions relating to the CO2 figures measured on some of the Group’s models arose, Volkswagen has largely concluded the clarification of the matter. Following extensive internal investigations and measurement checks, it is now clear that almost all of these model variants do correspond to the CO2 figures originally determined. This means that these vehicles can be marketed and sold without any limitations.

The suspicion that the fuel consumption figures of current production vehicles had been unlawfully changed was not confirmed. During internal remeasurements slight deviations were found on just nine model variants of the Volkswagen brand.

These model variants will be remeasured by a neutral technical service under the supervision of the appropriate authority by Christmas. In cases where the correctness of original figures is confirmed, there will be no consequences. These cars can be offered for sale by dealers without any reservations. In the case of any deviations, the figures will be adjusted in the future in the course of the normal processes as required.

Volkswagen presented these results to the investigation commission of the Federal Government and the Federal Motor Transport Authority (KBA). The figure of approximately 800,000 vehicles under suspicion originally published by the Volkswagen Group has not been confirmed. The deviations found in the figures for only nine model variants amount to a few grams of CO2 on average, corresponding to increased cycle consumption in the NEDC of approximately 0.1 to 0.2 litres per 100 kilometres. With an annual production of approximately 36,000 vehicles, these model variants correspond to around only 0.5 per cent of the volume of the Volkswagen brand. The list of the nine model variants can be found at www.volkswagen-media-services.com

The Group’s subsidiaries Audi, SKODA and SEAT have also agreed a similar procedure with the approval authorities responsible for the vehicles initially considered.

Customers’ real-world consumption figures do not change and neither are any technical vehicle modifications necessary. Against this background, the negative impact on earnings of €2 billion that was originally expected has not been confirmed.
Whether we will have a minor economic impact, depends on the results of the remeasurement exercise.

BLOOMFIELD HILLS, Mich., Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today that it has acquired Audi Eatontown, Porsche Monmouth, Jaguar Monmouth and Land Rover Monmouth located in Monmouth County, New Jersey, one of the wealthiest counties in the United States. These franchises were acquired from the Schneider Nelson Auto Group and are expected to sell approximately 2,400 new and used vehicles annually, while generating revenue of approximately $175 million on an annualized basis.

Commenting on the acquisition, Penske Automotive Group Chairman Roger S. Penske said, “We are pleased to welcome these four new dealerships to the Penske family. The strong reputation and commitment to serving the customers of the New Jersey/Greater New York area for decades complement the company’s existing footprint in the northeastern United States, while enhancing our premium/luxury brand mix.”

About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG employs more than 23,000 people worldwide and is a member of the Fortune 500 and Russell 2000. For additional information, visit the company’s website at www.penskeautomotive.com.

Detroit, Mich. — Today the UAW-GM Council and the International Union, UAW’s International Executive Board (IEB) met to discuss the ratification results for the tentative National Agreement recently negotiated with General Motors LLC. As previously noted, while the majority of the entire UAW-GM membership voted in favor of the tentative agreement – 55.4 percent in favor versus 44.6 percent against – the skilled trades membership voted against ratification. Following receipt of these ratification results, meetings were held with the UAW skilled trades membership at each GM worksite in order to determine the issues for their rejection of the tentative agreement.

These issues were then presented to the UAW-GM and UAW National Skilled Trades Departments for review. After reviewing these issues and discussions with the IEB with the recommendation of Vice President Cindy Estrada, the IEB determined that further discussion with the Company was needed. Following discussions with GM, the parties agreed to changes that protect core trades classifications and seniority rights. The UAW-GM Council met to discuss these changes and concluded that the common Skilled Trades issues were addressed and recommended that the changes be presented to the IEB with the Council’s full and unanimous support.

Based on the fact that the majority of the UAW-GM membership ratified the National Agreement and that the Skilled Trades membership concerns about protecting the core trades classifications and seniority rights have now been met, the IEB took action to formally ratify the UAW-GM National Agreement. General Motors has been notified of the UAW’s formal ratification of the National Agreement.

The UAW Constitution provides for separate ratification votes when granted by the UAW International Executive Board. Since its inception, the UAW has put in place a process to ensure that minority groups have a voice while at the same time protecting the rights of the majority. The UAW’s highest body, its Constitutional Convention, has affirmed this process and stated that this process of separate ratification votes should not be abused, but used as a tool to protect all of our members’ rights.

Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, has announced the five key steps to realign the Group. “We have to look beyond the current situation and create the conditions for Volkswagen’s successful further development”, said Müller in Wolfsburg on Wednesday. He presented a five point plan that he intends to use so that Volkswagen remains one of the world’s leading automobile manufacturers in the future. Müller is confident that “Volkswagen will emerge from the current situation stronger than before”. He announced that the cornerstones of the Group’s Strategy 2025 will be presented next year.

The Volkswagen CEO explained that his top priority is to support the customers affected by the diesel issue. “Our customers are at the core of everything that our 600,000 employees worldwide do”, he said. According to Müller, Volkswagen is working intensively to develop effective technical solutions. In contact with the Kraftfahrtbundesamt (KBA – German Federal Motor Transport Authority) the implementation is set to begin in January 2016.

Müller’s second priority is to systematically drive forward and complete the investigation into what happened. “We must uncover the truth and learn from it”, he said, adding that Volkswagen is being extremely thorough in its analysis. For this purpose, audit firm Deloitte has been engaged in addition to the steps already announced. According to Müller, those responsible for what has happened must face severe consequences.

Müller’s third priority is to introduce new structures in the Volkswagen Group. “The key point is that Group management will be decentralized to a greater extent in the future”, he said, with more independence for the brands and regions. Müller stated that the Board of Management will focus on addressing cross-brand strategies, leveraging synergies and ensuring that Group resources are used effectively. “We will review in detail our current portfolio of more than 300 models and examine the contribution that each one makes to our earnings.”

As his fourth priority, Müller is driving forward a realignment of the Group’s culture and management behavior. He noted that the pursuit of perfection, the employees’ commitment and social responsibility in the Volkswagen Group must be retained. However, he believes that changes are necessary in how Volkswagen communicates and how it handles its mistakes. “We need a culture of openness and cooperation.” Müller also called on everybody at Volkswagen to display more courage, greater creativity and a more entrepreneurial spirit in their dealings with one another.

The Volkswagen CEO announced that the fifth priority will be to transform the Group’s Strategy 2018 into a Strategy 2025. “Many people outside of Volkswagen, but also some of us, did not understand that our Strategy 2018 is about much more than production numbers. A lot of things were subordinated to the desire to be “Faster, Higher, Larger”, especially return on sales.” According to Müller, the point is not to sell 100,000 more or fewer vehicles than a major competitor. Instead, the real issue is qualitative growth. Müller announced that the cornerstones of the Group’s Strategy 2025 will be developed over the coming months, and that it would be unveiled mid-way through next year.

WASHINGTON – Today, EPA is issuing a second notice of violation (NOV) of the Clean Air Act (CAA) to Volkswagen AG, Audi AG and Volkswagen Group of America, Inc. This NOV is also being issued to Porsche AG and Porsche Cars North America. These five companies are collectively referred to as Volkswagen (VW). The NOV alleges that VW developed and installed a defeat device in certain VW, Audi and Porsche light duty diesel vehicles equipped with 3.0 liter engines for model years (MY) 2014 through 2016 that increases emissions of nitrogen oxide (NOx) up to nine times EPA’s standard. The vehicles covered by today’s NOV are the diesel versions of: the 2014 VW Touareg, the 2015 Porsche Cayenne, and the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5.

EPA and the California Air Resources Board (CARB) have both initiated investigations based on Volkswagen’s alleged actions. The NOV covers approximately 10,000 diesel passenger cars already sold in the United States since MY 2014. In addition, the NOV covers an unknown volume of 2016 vehicles.

These alleged violations are in addition to the NOV issued on September 18th and the ongoing investigation by EPA alleging a defeat device on certain 2.0 liter engines for MY 2009-2015 vehicles.

“VW has once again failed its obligation to comply with the law that protects clean air for all Americans,” said Cynthia Giles, Assistant Administrator for the Office for EPA’s Enforcement and Compliance Assurance. “All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect.”

“On September 25, the California Air Resources Board sent letters to all manufacturers letting them know we would be screening vehicles for potential defeat devices,” said Richard Corey, Executive Officer of the California Air Resources Board. “Since then ARB, EPA and Environment Canada have continued test programs on additional diesel-powered passenger cars and SUVs. These tests have raised serious concerns about the presence of defeat devices on additional VW, Audi and Porsche vehicles. Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open.”

Following the September 18th NOV issued for 2.0 liter engines, on September 25th EPA initiated testing of all 2015 and 2016 light duty diesel models available in the U.S using updated testing procedures specifically designed to detect potential defeat devices. That testing led directly to the alleged violations covered under today’s NOV. The NOV is based on vehicle emission testing performed by the EPA’s National Vehicle and Fuel Emissions Laboratory, CARB’s Haagen-Smit Laboratory, and Environment Canada’s River Road Laboratory.

Affected diesel models include:

— 2014 VW Touareg
— 2015 Porsche Cayenne
— 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5

November 2 Notice of Violation Details:

As alleged in the NOV, VW manufactured and installed software in the electronic control module of these vehicles that senses when the vehicle is being tested for compliance with EPA emissions standards. When the vehicle senses that it is undergoing a federal emissions test procedure, it operates in a low NOx “temperature conditioning” mode. Under that mode, the vehicle meets emission standards. At exactly one second after the completion of the initial phases of the standard test procedure, the vehicle immediately changes a number of operating parameters that increase NOx emissions and indicates in the software that it is transitioning to “normal mode,” where emissions of NOx increase up to nine times the EPA standard, depending on the vehicle and type of driving conditions. In other tests where the vehicle does not experience driving conditions similar to the start of the federal test procedure, the emissions are higher from the start, consistent with “normal mode.”

VW’s software on these vehicles includes one or more Auxiliary Emission Control Devices (AECD) that the company failed to disclose, describe and justify in their applications for certificate of conformity for each model. Every manufacturer must apply to EPA for and be approved for a certificate of conformity for each model, each year otherwise it is illegal to introduce the cars into commerce. An AECD designed to circumvent emissions test is a defeat device.

The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution, and every vehicle sold in the U.S. must be covered by an EPA-issued certificate of conformity. The Clean Air Act also prohibits manufacturers’ making and selling vehicles equipped with defeat devices that reduce the effectiveness of the emission control system during normal driving conditions. By making and selling vehicles with defeat devices and by selling vehicles with higher levels of air emissions than were certified to EPA, Volkswagen allegedly violated two important provisions of the Clean Air Act.

NOx pollution contributes to harmful ground-level ozone and fine particulate matter. Exposure to these pollutants has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses. Exposure to ozone and particulate matter has also been associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants.

VW may be liable for civil penalties and injunctive relief for the violations alleged in the NOV. VW will have an opportunity to respond to the allegations contained in the NOV.

It is Volkswagen’s responsibility to fix the vehicles’ emissions systems. Although these vehicles have emissions exceeding standards, these violations do not present a safety hazard for car owners and drivers and the vehicles remain legal to drive and resell. Owners of vehicles of these models and years do not need to take any action at this time. Owners looking for additional information can visit: http://www3.epa.gov/otaq/cert/violations.htm and scroll down to Frequently Asked Questions.

WASHINGTON – The Department of Transportation’s National Highway Traffic Safety Administration today issued two orders designed to protect the traveling public from defective Takata air bag inflators. The orders impose the largest civil penalty in NHTSA’s history for Takata’s violations of the Motor Vehicle Safety Act, and for the first time use NHTSA’s authority to accelerate recall repairs to millions of affected vehicles. The actions also prioritize recalls so the greatest safety risks are addressed first, and set deadlines for future recalls of other Takata inflators that use a suspect propellant unless they are proved to be safe.

“For years, Takata has built and sold defective products, refused to acknowledge the defect, and failed to provide full information to NHTSA, its customers, or the public,” said Transportation Secretary Anthony Foxx. “The result of that delay and denial has harmed scores of consumers and caused the largest, most complex safety recall in history. Today’s actions represent aggressive use of NHTSA’s authority to clean up these problems and protect public safety.”

The Consent Order issued to Takata imposes a record civil penalty of $200 million and requires the company to phase out the manufacture and sale of inflators that use phase-stabilized ammonium nitrate propellant, which is believed to be a factor in explosive ruptures that have caused 7 deaths and nearly 100 injuries in the United States. The Consent Order also lays out a schedule for recalling all Takata ammonium nitrate inflators now on the roads unless the company can prove they are safe or can show it has determined why its inflators are prone to rupture.

As part of NHTSA’s Consent Order to Takata, the company has admitted that it was aware of a defect but failed to issue a timely recall, a violation of the Motor Vehicle Safety Act. In connection with the Consent Order, NHTSA also issued findings that Takata provided NHTSA with selective, incomplete or inaccurate data dating back to at least 2009, and continuing through the agency’s current investigation, and that Takata also provided its customers with selective, incomplete or inaccurate data.

Of that $200 million fine, $70 million is payable in cash. An additional $130 million would become due if Takata fails to meet its commitments or if additional violations of the Safety Act are discovered.

The order also imposes unprecedented oversight on Takata for the next five years, including an independent monitor selected by NHTSA to assess, track and report the company’s compliance with the phase-out schedule and other requirements of the Consent Order, and to oversee the Coordinated Remedy Program.

“Today, we are holding Takata responsible for its failures, and we are taking strong action to protect the traveling public,” said NHTSA Administrator Mark Rosekind. “We are accelerating Takata recalls to get safe air bags into American vehicles more quickly, ensuring that consumers at the greatest risk are protected, and addressing the long-term risk of Takata’s use of a suspect propellant.”

Separately, the Coordinated Remedy Order issued to Takata and the 12 vehicle manufacturers involved in the existing Takata recalls directs them to prioritize their remedy programs based on risk, and establishes a schedule by which they must have sufficient parts on hand to remedy the defect for all affected vehicles. The order also establishes a Coordinated Remedy Program under which the agency will oversee the supply of remedy parts and manage future recalls with the assistance of an independent third-party monitor.

In the Coordinated Remedy Order NHTSA is using for the first time legal authority which was established in the 2000 TREAD Act to allow the agency to accelerate safety defect repairs if manufacturers’ remedy plans are likely to put Americans at risk. NHTSA announced in June that it was considering use of that authority, and has since gathered information and comment from vehicle manufacturers, parts suppliers and the public as part of a proceeding to determine whether and how to best address recalls involving more than 23 million inflators, 19 million vehicles and 12 automakers.

Under the Coordinated Remedy Order, vehicle manufacturers must ensure they have sufficient replacements on hand to meet consumer demand for the highest-risk inflators by March 2016, and to provide final remedies for all vehicles – including those that will receive interim remedies because of supply and design issues – by the end of 2019.

RUCKERSVILLE, Va. – Ten major vehicle manufacturers have committed to making automatic emergency braking (AEB) a standard feature on all new vehicles built, the U.S. Department of Transportation, its National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) announced today.

“We are entering a new era of vehicle safety, focused on preventing crashes from ever occurring, rather than just protecting occupants when crashes happen,” said U.S. Transportation Secretary Anthony Foxx. “But if technologies such as automatic emergency braking are only available as options or on the most expensive models, too few Americans will see the benefits of this new era. These 10 companies are committing to making AEB available to all new-car buyers.”

The announcement, made at the dedication of IIHS’s newly expanded Vehicle Research Center, represents a major step toward making crash-prevention technologies more widely available to consumers. The 10 companies – Audi, BMW, Ford, General Motors, Mazda, Mercedes Benz, Tesla, Toyota, Volkswagen and Volvo – will work with IIHS and NHTSA in the coming months on the details of implementing their historic commitment, including the timeline for making AEB a standard feature. The Department and IIHS encourage all other light-vehicle and trucking manufacturers to bring automated vehicle technology to all vehicles on U.S. roadways as soon as possible.

Automatic emergency braking includes a range of systems designed to address the large number of crashes, especially rear-end crashes, in which drivers do not apply the brakes or fail to apply sufficient braking power to avoid or mitigate a crash. AEB systems use on-vehicle sensors such as radar, cameras or lasers to detect an imminent crash, warn the driver and, if the driver does not take sufficient action, engage the brakes.

“The evidence is mounting that AEB is making a difference,” said IIHS President Adrian Lund. “Most crashes involve driver error. This technology can compensate for the mistakes every driver makes because the systems are always on alert, monitoring the road ahead and never getting tired or distracted.”

AEB technology is already showing benefits in the real world. Several studies, including a recent report from IIHS, show that AEB technology can reduce insurance injury claims by as much as 35 percent. The 10 manufacturers committing to across-the-board AEB represented 57 percent of U.S. light-duty vehicle sales in 2014.

The expanded IIHS facility opened today, made possible by special funding provided by IIHS’s insurance company sponsors, provides IIHS with the capabilities needed to test evolving crash-avoidance technology.

In January, NHTSA announced its proposal to add automatic emergency braking to the list of recommended advanced safety features included in its New Car Assessment Program. In May, Secretary Foxx announced a series of steps DOT and NHTSA will take to accelerate the development of advanced safety technologies such as vehicle-to-vehicle communications and autonomous driving.

“Secretary Foxx’s direction to NHTSA is clear: We must work to expedite the implementation of advanced technologies to save lives at every opportunity,” said NHTSA Administrator Mark Rosekind. “These 10 manufacturers have committed to an important principle: AEB is a life-saving technology that should be available to every vehicle owner. In the months ahead, NHTSA will work closely with IIHS and the auto industry to carry out that commitment, and we encourage every other manufacturer to join this effort.”

The DOT and IIHS have long-standing commitments to promoting life-saving technology innovations. Moving forward, IIHS and NHTSA will set specific performance criteria for manufacturers to meet their commitment, and will determine how soon consumers can expect to see AEB technology as standard equipment. In order for a vehicle to earn IIHS’s highest safety award, ‘Top Safety Pick’, IIHS requires the vehicle to have an automatic braking system.

Today, the Commission has adopted two decisions concerning tax rulings granted by Luxembourg to Fiat and by the Netherlands to Starbucks. The tax rulings have artificially reduced the tax burden of both companies. This is illegal under EU state aid rules.

The decisions send a clear message: National tax authorities cannot give any company, however large or powerful, an unfair competitive advantage compared to others. For most companies, especially the small and medium-sized, I hope this is a reassuring message – for those who have paid their fair share in tax.

The tax rulings we investigated endorsed submissions by both companies which contained complex arrangements. We found a large variety of methods, one more complex than the other. They put an artificial price tag on transactions between group companies that could have been priced on the market.

These arrangements shifted profits from one company to another in the same group, with no valid economic justification.
But the result is that the company pays almostno tax on profits made.
Our decisions today show that artificial and complex methods endorsed by tax rulings cannot mask the actual profits of a company, which must be properly and fully taxed.

To be clear, tax rulings as such are legal, if used by tax authorities to give clarity to a company on how its corporate tax will be calculated. But they cannot endorse the setting of prices for goods and services sold within entities of the same group – so-called ‘transfer prices’ – that do not correspond to market conditions. Doing so would disadvantage all the stand-alone companies that are not part of a group. They are taxed on their actual profits because they pay market prices for the goods and services they use.
I would now like to explain to you in more detail the two decisions that we took today.

Tax advantages for Fiat in Luxembourg
One decision concerns a tax ruling that the Luxembourg tax authorities have granted to Fiat Finance and Trade in 2012. Fiat Finance and Trade provides financing through loans and bonds to other European companies within the Fiat group.
The Commission’s investigation showed that the tax ruling since 2012 unduly reduced the company’s tax burden by a total of between €20 and €30 million.

This is because the tax ruling accepts an extremely complex and artificial methodology to calculate Fiat Finance and Trade’s taxable profits, which cannot be justified by economic reality. As a result Fiat Finance and Trade only paid taxes on its underestimated profits. The Commission’s analysis showed that its taxable profits in Luxembourg would have been 20 times higher if the calculations had been done at market conditions.

Tax advantages for Starbucks in the Netherlands
In a separate investigation, we also found that since 2008 Starbucks Manufacturing EN BV has benefitted from undue tax advantages. Starbucks Manufacturing is the Starbucks group’s only coffee roasting company in Europe.

It sells and distributes roasted coffee and other products to Starbucks outlets in Europe, the Middle East and Africa.
Our investigation showed that the tax ruling has unduly reduced Starbucks Manufacturing’s tax burden since 2008 by a total of between €20 and €30 million. This was done mainly in two ways:

First, Starbucks Manufacturing paid a very substantial royalty to another Starbucks company in the UK for using coffee-roasting know-how. This royalty cannot be justified because it does not reflect market value. Other Starbucks group companies and independent roasters are not required to pay a royalty for using the know-how in essentially the same situation.

Second, Starbucks Manufacturing also pays a highly inflated price for green coffee beans to Switzerland-based Starbucks Coffee Trading SARL.
As a result of both, Starbucks Manufacturing’s taxable profits in the Netherlands are substantially reduced. The royalty shifts the large majority of its profits – which cover coffee but in reality are largely generated from tea, pastries and cups etc. – to the group company in the UK. This company is not liable to pay corporate tax in the UK, nor in the Netherlands.

Where do we go from here?
Luxembourg and the Netherlands must now recover the unpaid tax from Fiat and Starbucks, respectively. This will remove the unfair competitive advantage they have enjoyed and restore equal treatment with other companies in similar situations. This amounts to between €20 and €30 million for each company. For comparison, last year, Fiat Finance and Trade paid not even €0.4 million in corporate tax and Starbucks Manufacturing paid not even €0.6 million.

We do not stop here. We continue the inquiries into tax rulings practices in all EU Member States, as well as the ongoing investigations into tax rulings in Ireland, Luxembourg and Belgium. Since 2014, we have a new market investigation tool that require companies suspected of receiving state support, and their competitors, to hand over information relevant to our inquiries – this tool has already been helpful in today’s cases.
More cases may come, if we have indications that EU state aid rules are not being complied with.
In terms of timing, I stand by what I have said before – Fast is always better than slow, but best of all is to be just. When a case is ready, we will take a decision.

Of course, each case is assessed on its merits, so today’s decisions do not prejudge the outcome of these ongoing probes.
At the same time it is important to recognise that we will not be able to achieve fair tax competition in Europe with enforcement of state aid rules alone. The fight against tax evasion and tax avoidance can only be won with a smart combination of legislative action and competition enforcement.

That is why it is so important to implement the Commission’s Action Plan for fair and efficient corporate taxation, presented in June this year by my colleagues Valdis Dombrovskis and Pierre Moscovici. The re-launch of the Common Consolidated Corporate Tax Base is important because it can eliminate loopholes and the mismatches between national systems, which companies can currently exploit to avoid tax. It would also close off opportunities for profit shifting. Additionally, more transparency is also crucial. For all this, we of course need Member States to be on board.
There are encouraging signs that national governments are coming round to new realities. The G20 Finance Ministers reached an agreement just two weeks ago to endorse the OECD’s Base Erosion Profit Shifting project.

It contains revised transfer pricing guidelines that put clear emphasis on the need for taxation to take place where value is created.
I also look forward to seeing the final report of the European Parliament’s Special Committee on Tax Rulings and would like to thank them for their strong support for our state aid work to tackle aggressive tax planning.

Last but not least, I believe that we need a more fundamental shift in corporate philosophies – if it isn’t part of it already, paying one’s fair share of tax should be firmly integrated in a company’s corporate social responsibility.
So as you can see, EU state aid enforcement is just one part of a wider package that needs to come together to effectively address corporate tax avoidance and tax evasion. But it also means that there is a big team that can get to work – here in the Commission, and together with the European Parliament, EU Member States, the OECD and other international partners as well as businesses.

Cartel decision
I would also like to briefly mention another important decision we took. Today, the Commission has imposed fines of more than €116 million on companies who operated a cartel for optical disk drives, such as those used by millions of European consumers in their desktops and laptops. The companies are Philips, Lite-On, their joint venture, Toshiba Samsung Storage Technology, Hitachi LG Data Storage, Sony, Optiarc and Quanta.
These companies colluded on bids for tenders organised by Dell and Hewlett Packard to buy CD and DVD drives, for different durations between 2004 and 2008. For example, they shared information about their bidding strategies and the results of procurement tenders.
Philips, Lite-On and their joint venture don’t have to pay their fine because they were the first to reveal the cartel to us. Our leniency programme exists precisely to encourage companies in a cartel to reveal it to us.
The companies in this case were well aware that their behaviour was illegal and took measures to avoid being detected.
Apart from using generic names or abbreviations, they also met in car parks or cinemas. But whatever strategies companies may put in place, they will not escape our attention.
An interesting aspect of this cartel is that the contacts between the companies took place outside the EU – in Asia and the US. But the effects were very much felt in Europe because the disk drives were sold into the EU. The message to cartelists is clear – we will investigate and fine anticompetitive practices anywhere in the world, that harm consumers on EU markets.

At its meeting today, the Supervisory Board of Volkswagen Aktiengesellschaft elected Hans Dieter Pötsch (64) as its Chairman with immediate effect. The Supervisory Board appointed Frank Witter (56), previously Chairman of the Board of Management of Volkswagen Financial Services AG, to succeed Pötsch as Member of the Board of Management with responsibility for Finance and Controlling.

In a statement on behalf of the Supervisory Board, Dr. Wolfgang Porsche, Member of the Executive Committee, said: “Our sincere thanks go to Mr. Pötsch for agreeing to take on this important task at this difficult time. Mr. Pötsch has profound knowledge of the entire Volkswagen Group and the automobile industry in general as well as great expertise in financial markets. We would like to thank Berthold Huber who assumed responsibility as interim Chairman of the Supervisory Board and who has also rendered great service to the Company in this function.”

Speaking after the meeting, Pötsch said: “I am grateful to the Supervisory Board for the trust expressed by my election as Chairman. I will do my utmost to uncover the full truth of what happened. I am firmly resolved to make my contribution so that Volkswagen can win back the trust of customers, the public, investors and business partners. And I believe my central task is to play my part in guiding Volkswagen towards a successful future.”

The new Supervisory Board Chairman continued: “Today’s meeting showed once again that the investigations are being pursued systematically and intensively. The law firm Jones Day commissioned by the Supervisory Board to conduct the external investigation is literally leaving no stone unturned.”

He added that conjecture or vague, nebulous information did not serve anyone: “The Supervisory Board attaches great importance to the fact that clarification is being conducted by Jones Day. We will closely follow and support this process. And we will do what is required of us to make sure that the necessary consequences are drawn from the investigation.”

In a meeting on Wednesday, September 23, the Executive Committee of the Supervisory Board of Volkswagen AG discussed in detail the manipulation of emissions data of Volkswagen Group diesel engines and came to the following conclusions:

1. The Executive Committee takes this matter extremely seriously. The Executive Committee recognizes not only the economic damage caused, but also the loss of trust among many customers worldwide.

2. The Executive Committee agrees that these incidents need to be clarified with great conviction and that mistakes are corrected. At the same time, the Executive Committee is adamant that it will take the necessary decisive steps to ensure a credible new beginning.

3. The Executive Committee has great respect for Chairman Professor Dr. Winterkorn’s offer to resign his position and to ask that his employment agreement be terminated. The Executive Committee notes that Professor Dr. Winterkorn had no knowledge of the manipulation of emissions data. The Executive Committee has tremendous respect for his willingness to nevertheless assume responsibility and, in so doing, to send a strong signal both internally and externally. Dr. Winterkorn has made invaluable contributions to Volkswagen. The company’s rise to global company is inextricably linked to his name. The Executive Committee thanks Dr. Winterkorn for towering contributions in the past decades and for his willingness to take responsibility in this criticall phase for the company. This attitude is illustrious.

4. Recommendations for new personnel will be presented at the upcoming meeting of the Supervisory Board this Friday.

5. The Executive Committee is expecting further personnel consequences in the next days. The internal Group investigations are continuing at a high tempo. All participants in these proceedings that has resulted in unmeasurable harm for Volkswagen, will be subject to the full consequences.

6. The Executive Committee have decided that the company will voluntarily submit a complaint to the State Prosecutors’ office in Brunswick. In the view of the Executive Committee criminal proceedings may be relevant due to the irregularities. The investigations of the State Prosecutor will be supported in all form from the side of Volkswagen.

7. The Executive Committee proposes that the Supervisory Board of Volkswagen AG create a special committee, under whose leadership further clarifying steps will follow, including the preparation of the necessary consequences. In this regard, the Special Committee would make use of external advice. Further details about this will be decided at the Supervisory Board meeting on Friday.

8. The Executive Committee is aware that coming to terms with the crisis of trust will be a long term task that requires a high degree of consistency and thoroughness.

9. The Executive Committee will work on these tasks together with the employees and the Management Board. Volkswagen is a magnificent company that depends on the efforts of hundreds of thousands of people. We consider it our task that this company regains the trust of our customers in every respect.

Washington – Today, EPA is issuing a notice of violation (NOV) of the Clean Air Act (CAA) to Volkswagen AG, Audi AG, and Volkswagen Group of America, Inc. (collectively referred to as Volkswagen). The NOV alleges that four-cylinder Volkswagen and Audi diesel cars from model years 2009-2015 include software that circumvents EPA emissions standards for certain air pollutants. California is separately issuing an In-Use Compliance letter to Volkswagen, and EPA and the California Air Resources Board (CARB) have both initiated investigations based on Volkswagen’s alleged actions.

“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” said Cynthia Giles, Assistant Administrator for the Office of Enforcement and Compliance Assurance. “Working closely with the California Air Resources Board, EPA is committed to making sure that all automakers play by the same rules. EPA will continue to investigate these very serious matters.”

“Working with US EPA we are taking this important step to protect public health thanks to the dogged investigations by our laboratory scientists and staff,” said Air Resources Board Executive Officer Richard Corey. “Our goal now is to ensure that the affected cars are brought into compliance, to dig more deeply into the extent and implications of Volkswagen’s efforts to cheat on clean air rules, and to take appropriate further action.”

As described in the NOV, a sophisticated software algorithm on certain Volkswagen vehicles detects when the car is undergoing official emissions testing, and turns full emissions controls on only during the test. The effectiveness of these vehicles’ pollution emissions control devices is greatly reduced during all normal driving situations. This results in cars that meet emissions standards in the laboratory or testing station, but during normal operation, emit nitrogen oxides, or NOx, at up to 40 times the standard. The software produced by Volkswagen is a “defeat device,” as defined by the Clean Air Act.

The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution, and every vehicle sold in the U.S. must be covered by an EPA-issued certificate of conformity. Motor vehicles equipped with defeat devices, which reduce the effectiveness of the emission control system during normal driving conditions, cannot be certified. By making and selling vehicles with defeat devices that allowed for higher levels of air emissions than were certified to EPA, Volkswagen violated two important provisions of the Clean Air Act.

EPA and CARB uncovered the defeat device software after independent analysis by researchers at West Virginia University, working with the International Council on Clean Transportation, a non-governmental organization, raised questions about emissions levels, and the agencies began further investigations into the issue. In September, after EPA and CARB demanded an explanation for the identified emission problems, Volkswagen admitted that the cars contained defeat devices.

NOx pollution contributes to nitrogen dioxide, ground-level ozone, and fine particulate matter. Exposure to these pollutants has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses that can be serious enough to send people to the hospital. Exposure to ozone and particulate matter have also been associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at risk for health effects of these pollutants.

VW may be liable for civil penalties and injunctive relief for the violations alleged in the NOV.

The allegations cover roughly 482,000 diesel passenger cars sold in the United States since 2008.

Affected diesel models include:
• Jetta (Model Years 2009 – 2015)
• Beetle (Model Years 2009 – 2015)
• Audi A3 (Model Years 2009 – 2015)
• Golf (Model Years 2009 – 2015)
• Passat (Model Years 2014-2015)

It is incumbent upon Volkswagen to initiate the process that will fix the cars’ emissions systems. Car owners should know that although these vehicles have emissions exceeding standards, these violations do not present a safety hazard and the cars remain legal to drive and resell. Owners of cars of these models and years do not need to take any action at this time.