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Becoming Genesis—the 2018 G80 Sport

Hyundai's upmarket brand is starting to find its feet.

Toyota is testing heavy-duty hydrogen trucks at the Port of Long...

For use in short-haul routes, full testing begins this summer.

Volkswagen boss won’t rule out sale to Fiat-Chrysler

CEO Matthias Mueller has changed his tune from just a week ago.

Mazda’s move upmarket with the 2017 CX-5

Mazda aims at the likes of BMW and Audi with its new crossover.

Toyota and Shell could build 7 hydrogen refueling stations in California

Oil giant and automaker hedge their bets on fossil fuel dependence.

Who bought the single Prius that was sold in China in...

An end to domestic production and big import fees partly to blame for low sales.

EPA: Fiat Chrysler diesels have software to thwart emissions controls

Enlarge / STERLING HEIGHTS, MI - AUGUST 26: Fiat Chrysler Automobiles CEO Sergio Marchionne speaks at an event celebrating the start of production of three all-new stamping presses at the FCA Sterling Stamping Plant August 26, 2016 in Sterling Heights, Michigan. (Photo by Bill Pugliano/Getty Images)Bill Pugliano reader comments 89 Share this story On Thursday the US Environmental Protection Agency (EPA) announced that Fiat Chrysler (FCA) diesel vehicles were found to have "at least eight" instances of undisclosed software that modified the emissions control systems of the cars.

The vehicles implicated in the EPA's Notice of Violation (NOV) include 2014, 2015, and 2016 diesel Jeep Grand Cherokees, as well as Dodge Ram 1500 trucks with 3.0-liter diesel engines.

The allegations involve 104,000 vehicles, the EPA said. The EPA says it's still in talks with FCA and hasn't ordered the company to stop selling affected cars yet, nor is it officially calling the software a "defeat device" just yet until FCA provides a more detailed explanation. In a press conference, agency officials said that the undisclosed software was discovered after September 2015, when the EPA and the California Air Resources Board (CARB) began doing additional testing on vehicles in the wake of the Volkswagen Group scandal. VW Group was discovered to have almost 600,000 diesel vehicles on US roads with some kind of illegal software on them.

The software allowed VW Group's cars to pass emissions testing under lab conditions but would reduce the effectiveness of emissions controls under real-world driving conditions, causing the cars to emit nitrogen oxide (NOx) far in excess of federal limits. According to the EPA, FCA's undisclosed software works similarly, too.

EPA Assistant Administrator Cynthia Giles told press Thursday morning that the "software is designed such that, during the emissions test, Fiat Chrysler’s cars meet the standards," for NOx emissions. However, the "software reduces the effectiveness of emissions controls when driving at high speed or for long durations," she added. These kinds of workarounds are not uncommon for car makers to use and are not illegal if they're properly disclosed and approved by the EPA.

But efforts to meet emissions standards have driven automakers to install undisclosed devices illegally for decades.
In fact in the 1970s, Chrysler—along with GM, Ford, American Motors, Nissan, and Toyota—was reprimanded by the EPA for installing defeat devices in its cars to "defeat the effectiveness of emission control systems under conditions not experienced during EPA’s certification testing." In some instances the defeat devices helped the cars start more easily in cold weather, in others, time-delay switches cut the emissions control systems while the cars shifted from low to high gears. In Europe, too, rules allow diesel vehicles to cut the emissions control system under certain conditions like cold weather.

Automakers have toed a line, though, using emissions control software where "cold" weather means as high as 64 degrees Fahrenheit. Giles noted during the EPA's press conference that the agency has tested other diesel vehicles since the Volkswagen scandal was made public and found no violations. "It is by no means impossible to make a clean diesel vehicle that meets our standards," she said. In a statement (PDF), FCA said it would continue to work with the EPA to resolve the issue. "FCA US diesel engines are equipped with state-of-the-art emission control systems hardware, including selective catalytic reduction (SCR).

Every auto manufacturer must employ various strategies to control tailpipe emissions in order to balance EPA’s regulatory requirements for low nitrogen oxide (NOx) emissions and requirements for engine durability and performance, safety and fuel efficiency.

FCA US believes that its emission control systems meet the applicable requirements." FCA added that it had spent "months providing voluminous information" to the EPA and other regulators.

The company said it had also made proposals to fix the issues, including "developing extensive software changes to our emissions control strategies that could be implemented in these vehicles immediately to further improve emissions performance." FCA has not yet been sued, but the EPA says it could be "liable for civil penalties and injunctive relief for the violations alleged in the NOV [Notice of Violation]." Correction: This story originally said the EPA found the software on the FCA diesels was illegal.
In fact, the EPA is still determining whether the software itself was illegal. However, Fiat Chrysler violated EPA rules by not disclosing the software.

DOJ indicts 6 Volkswagen executives, automaker will pay $4.3 billion in...

photo reader comments 23 Share this story The US Justice Department announced on Wednesday that Volkswagen would pay $4.3 billion in civil and criminal fines and plead guilty to three criminal charges pertaining to the automaker’s diesel emissions scandal.

The DOJ also announced an indictment of six high-level VW Group executives, who are charged with lying to regulators and destroying documents. Working with US Customs and Border Patrol, the DOJ brought against VW Group charges of defrauding the US government, committing wire fraud, and violating the Clean Air Act.

As part of the settlement, VW Group has agreed to submit to three years of criminal probation, which will require the German automaker to "retain an independent monitor to oversee its ethics and compliance program." It has also agreed to cooperate with the DOJ's ongoing investigations into individual executives that may have been involved with the scandal. For the past 17 months, the automaker has maintained that none of its executives were involved with the diesel scandal, in which illegal software was discovered on Volkswagens, Audis, and Porsches to alter the cars' emissions controls depending on whether the cars sensed they were under real-world driving conditions or lab conditions.
Instead, VW Group claimed, "rogue engineers" were responsible for the placement of the emissions cheating software on the cars. After the software was discovered, VW Group admitted that its cars did have mechanisms to reduce the effectiveness of the emissions controls on its so-called "Clean Diesel" cars.

Earlier this year, the Justice Department and a class-action group of consumers pursued civil penalties from VW Group, leading to historic settlements of many billions of dollars earlier this year. This new agreement repudiates VW Group's assertion that its executives were wholly innocent of tampering with the cars' emissions control systems.

The indicted VW Group executives include Richard Dorenkamp, Bernd Gottweis, Jens Hadler, Heinz-Jakob Neusser, Jürgen Peter, and Oliver Schmidt.
Schmidt, a former emissions compliance executive for VW Group, is the only executive currently in the US—he was arrested over the weekend by the FBI on charges that he knew about the cheating software and lied to federal regulators about it. Among the other five men indicted, Richard Dorenkamp, head of VW’s technical development for lowest emission engines, was suspended from VW Group in 2015; Bernd Gottweis, a retired VW Group executive, apparently warned CEO Martin Winterkorn that the company's cars could be found with defeat devices; Jens Hadler worked as executive director of powertrain development at Volkswagen in 2008; Heinz-Jakob Neusser oversaw Volkswagen research and development; and Jürgen Peter was a Volkswagen engineering executive who implored his colleagues via internal e-mail to "Come up with the story please!" when the California Air Resources Board started pressing Volkswagen on discrepancies in emissions tests that persisted after VW Group issued a "fix." So far, Volkswagen has agreed to pay $15 billion to compensate victims of the 2.0L diesel engine scandal, $1 billion to settle charges related to 3.0L diesel vehicles (although owner compensation hasn’t been decided on yet), and $1.2 billion to compensate US Volkswagen dealers, who were unaware that the cars they were selling were not in compliance with US emissions regulations. One engineer, James Liang, has pleaded guilty. According to the Associated Press, this fresh $4.3 billion settlement "is the largest ever levied by the government against an automaker, eclipsing the $1.2 billion fine against Toyota in 2014 over safety issues related to unintended acceleration." Assistant Attorney General Leslie Caldwell, speaking at the DOJ's press conference, said that VW Group executives were largely responsible for the scandal, describing a company culture where "lower-level people" expressed concerns and "higher-level people" decided to move forward with planting the illegal software.

Apple’s FaceTime blamed for girl’s highway crash death in new lawsuit

Barry Davisreader comments 61 Share this story According to the latest figures available, US highway deaths increased by more than 10 percent year-over-year during the first half of 2016. One big reason? Distracted driving with mobile phones.
It's a reality that now has one phone-maker in some unusual legal crosshairs. Apple, maker of the ever-popular iPhone, is being sued on allegations that its FaceTime app contributed to the highway death of a 5-year-old girl named Moriah Modisette.
In Denton County, Texas, on Christmas Eve 2014, a man smashed into the Modisette family's Toyota Camry as it stopped in traffic on southbound Interstate 35W. Police say that the driver was using the FaceTime application and never saw the brake lights ahead of him.
In addition to the tragedy, father James, mother Bethany, and daughter Isabella all suffered non-fatal injuries during the crash two years ago. The Modisette family now wants Apple to pay damages for the mishap.

The family alleges the Cupertino, California-based technology company had a duty to warn motorists against using the app and that it could have used patented technology to prohibit drivers from utilizing the app.

According to the suit (PDF) filed in Santa Clara County Superior Court: Plaintiffs allege APPLE, INC.'s failure to design, manufacture, and sell the Apple iPhone 6 Plus with the patented, safer alternative design technology already available to it that would automatically lock-out or block users from utilizing APPLE, INC.'s 'FaceTime' application while driving a motor vehicle at highway speed, and failure to warn users that the product was likely to be dangerous when used or misused in a reasonably foreseeable manner and/or instruct on the safe usage of this and similar applications, rendered the Apple iPhone 6 defective when it left defendant APPLE, INC's possession, and were a substantial factor in causing plaintiffs' injuries and decedent's death. The patent referenced, issued by the US patent office in April 2014, is designed to provide a "lock-out mechanism" to prevent iPhone use by drivers.

The patent claims a "motion analyzer" and a "scenery analyzer" help prevent phone use. The reliability of such lock-out services, however, has come into question. "The motion analyzer can detect whether the handheld computing device is in motion beyond a predetermined threshold level.

The scenery analyzer can determine whether a holder of handheld computing device is located within a safe operating area of a vehicle.

And the lock-out mechanism can disable one or more functions of the handheld computing device based on output of the motion analyzer, and enable the one or more functions based on output of the scenery analyzer," according to the patent. Apple has not commented on the lawsuit, but it has said that drivers are responsible for their behavior. "For those customers who do not wish to turn off their iPhones or switch into Airplane Mode while driving to avoid distractions, we recommend the easy-to-use Do Not Disturb and Silent Mode features," Apple said in a statement. The suit comes amid mounting reports of motorists crashing while being distracted with their phones.
Such accidents take place as drivers engage in everything from playing Pokémon Go to texting.
In the US, proposed solutions have popped up from the mundane (more officers watching for phone usage) to the unorthodox (Textalyzers that prevent cars from functioning; alarms that go off if a driver's hands leave the wheel for three seconds).

Elsewhere, British officials are to meet with phone makers in a push for a "drive safe" phone mode in the UK. Garrett Wilhelm, the accused driver of the car that smashed into the Modisette vehicle, has been charged with manslaughter.

Standards body warned SMS 2FA is insecure and nobody listened

Duo Security says NIST's advice to deprecate out-of-band passwords has been ignored The US National Institute of Standards and Technology's (NIST) advice that SMS is a poor way to deliver two factor authentication is having little impact, according to Duo Security. Last July NIST declared that sending one-time passwords to mobile phones was an insecure. The organisation wrote in its advisory that the likelihood of interception makes TXT unreliable. "Due to the risk that SMS messages or voice calls may be intercepted or redirected, implementers of new systems should carefully consider alternative authenticators," NIST wrote at the time. "Out-of-band authentication using [SMS or voice] is deprecated, and is being considered for removal in future editions of this guideline." NIST stated organisations using SMS for two factor authentication must verify that the supplied number is not associated with a voice-over-IP service. But scores of organisations use SMS for verification.

Google offers it as a fall-back service in place of secure mechanism like its Authenticator app and hardware dongles, as do Twitter, Facebook, and scores more. Duo Security's Mayank Saha says the statement has had virtually no impact some six months after its announcement according statistics about the use of SMS among its clients. The firm's customers include NASA, Facebook, Toyota, and Etsy, plus organisations in the government, health, and education sectors. "Prior to the declaration, we were seeing roughly six to eight percent of two factor traffic in use with our service via the SMS method … after the announcement was made we’ve seen a similar percentage," Saha says. "There is a notable lack of significant change to the rate of decline after the release of the revised NIST guidelines." Saha says SMS has this year slowly fallen out of favour with clients but that the NIST advice did nothing to accelerate that rate. He says push-based authentication which NIST recommends and Google deployed in June is more user friendly and secure than SMS, as are U2F dongles which require users to insert USB sticks into logging in devices.

Google also uses the latter login mechanism and plugged it in a recent study Security Keys: Practical Cryptographic Second Factors for the Modern Web [PDF]. SMS authentication is the most universal and arguably useable method of two factor login, primarily because it requires only a phone bearing the right SIM card. It is easy to subvert, however; attackers with basic target information can easily trick phone companies into porting numbers after passing identity checks.

This has been used by fraudsters to ensure banks' transfer warning SMS never reach victims. The NIST guidance comes some four years after Australia's private sector Communications Alliance lobby group ruled SMS as unsafe for two factor authentication. ® Sponsored: Customer Identity and Access Management

‘Toyota dealer stole my wife’s saucy snaps from phone, emailed them...

Texas pastor and spouse sue automaker, sales boss cuffed A Texas couple is suing Toyota and one of its car dealerships after one of its staff allegedly stole saucy snaps off their cellphone and emailed them to a swingers website. Last year, pastor Tim Gautreaux and his wife Claire were shopping for a Toyota Prius at a nearby car dealership in Grapevine, Texas.

To expedite the sale, Gautreaux had documents already approving him for a loan for the vehicle stored on his smartphone, and claims the salesman asked to show the device to his manager. The phone was out of the couple's sight for about five minutes, they say, but when the pastor got it back he saw that an image was on the top screen – one of a couple of sexy snaps he'd taken of his wife as she was getting into and out of the bath. Subsequent investigation showed that the pictures had been emailed to an account at a website for swingers, the couple claims, and they called the police. Matthew Luke Thomas, the dealership's sales director, was arrested last month and charged with allegedly breaching a computer's security, a class B misdemeanor. Thomas is out on bail. Meanwhile, the Gautreauxs have now hired high-powered human rights lawyer Gloria Allred and are suing Thomas, Texas Toyota of Grapevine and Toyota Motor North America, claiming [PDF] breach of contract, intrusion, negligence and public disclosure of private facts.

The couple took their case to the Dallas County court on December 1, claiming the photos were swiped in January 2015, and have asked for more than a million bucks in relief. "Undoubtable this is not the first time that this has happened," Allred claimed during a news conference on Thursday, the Dallas Morning News reports. "But we hope the public awareness will help to put a stop to it." ® Sponsored: Customer Identity and Access Management

US VW probe finds criminal wrongdoing, regulators work to settle

Erik BVolkswagen defeat device scandal Massachusetts, New York, Maryland accuse Volkswagen execs in fresh lawsuits Air regulator rejects Volkswagen’s latest plan to fix 3.0L diesels GM says it misstated fuel economy, Opel denies emissions cheating allegations Norway’s gigantic wealth fund will sue Volkswagen over dieselgate After losing $6.2B in 2015, Volkswagen pledges $18B to address emissions issue View more storiesreader comments 13 Share this story On Monday, the Wall Street Journal wrote that investigators from the US Department of Justice have evidence to support criminal charges against Volkswagen Group for installing illegal software on 600,000 diesel vehicles sold in the US between 2009 and 2015. The illegal software circumvented emissions regulations. Those same sources for the WSJ say that prosecutors are torn between seeking a guilty plea from the company or negotiating a deferred prosecution agreement. The deferred prosecution agreement would dismiss charges against VW as long as the automaker signs an agreement to stick to certain settlement terms. Reuters confirmed the situation with two sources. Reuters reported earlier this summer that a consent decree between the US and VW Group could involve “an independent monitor overseeing the German automaker's conduct and significant yet-to-be determined fines for emissions violations.” WSJ sources say that Volkswagen is expected to receive some leniency for coming to a $15 billion civil settlement with prosecutors in June. In the settlement, VW offers to buy back affected diesel vehicles from owners at their worth before the emissions cheating scandal was made public. Still, those sources say additional fines for criminal charges could exceed the record $1.2 billion that Toyota was fined in 2014. Toyota was fined for failing to disclose acceleration issues with their cars to US authorities. If charges are brought against Volkswagen, those charges could involve misleading regulators and consumers. According to the WSJ’s sources, prosecutors have not decided which specific charges to bring against the company. The WSJ says that the DOJ could still bring charges against individual employees of VW Group as well, although many of them live in Germany and would need to be extradited. In July, attorneys general in Maryland, New York, and Massachusetts filed civil lawsuits naming two dozen VW Group employees as participants in the scheme to install illegal software on Volkswagen, Audi, and Porsche brand cars. The WSJ reports that a separate federal criminal probe involves “multiple individuals” from VW Group. According to Reuters’ sources, Volkswagen is completing its own internal investigation. That investigation, as well as the various civil suits launched against the company, has “slowed progress on reaching a settlement of the criminal investigation.” VW is also facing potential fines and legal costs pertaining to 85,000 3.0L diesel vehicles which were not covered in the $15 billion June civil settlement.