Following the diesel emissions scandal, Volkswagen has announced that it will stop selling diesel vehicles in the US. Last week, the EPA issued a Notice of Violation to FCA regarding the 3.0 litre diesel used in Ram and Jeep vehicles. In addition to this, there are ongoing discussions regarding new emissions legislations that could limit diesel vehicles. Can you comment on these developments.
Volkswagen acknowledged that it installed so-called “defeat devices” to intentionally alter the performance of the emissions control systems in its diesel vehicles. As a result of this, the EPA announced in 2015 that it would conduct more detailed evaluations of diesel vehicles. The EPA’s detailed evaluation of the FCA 3.0 litre diesel has identified operating conditions where the NOx emissions levels are higher than expected. The EPA therefore issued a Notice of Violation to FCA on 12 January. The Notice of Violation did not claim that that any defeat devices had been implemented. FCA has provided an initial comment to state that it has complied with the emissions legislation and that it has not implemented any defeat devices. At this point, we believe that FCA should be given the time to study the allegations and provide a formal reply before any conclusions are drawn.
The recent discussions about diesel engines and emissions legislation has not affected the announcement and introduction of new diesel models in the United States. General Motors has introduced diesel engine options in the Chevy Cruze, the Chevy Colorado and the GMC Canyon and Ford announced the introduction of a diesel engine option for the F-150 on 9 January 2017. Volkswagen’s affiliate brands, Audi and Porsche, have also indicated that they will re-introduce diesel engine options after the current settlements and technical fixes are resolved. Together, these actions shows a strong commitment toward diesel as a part of the future product mix.
At this stage, it is not possible to determine how future emissions legislation will be formulated and how these legislations will influence diesel take rates. SinterCast will follow this development as it continues to support the development and production of all types of engines, for passenger vehicles, commercial vehicles, and industrial power applications.