German authorities said Wednesday that they would retest all Volkswagen cars — regardless of engine type or brand — for emissions compliance, Reuters reported.
German transportation minister Alexander Dobrindt expressed his “irritation” with the automaker that more cars were being added to the deepening scandal. On Monday, the Environmental Protection Agency notified the automaker that some of its 3-liter diesel models may contain an illegal “defeat device” to fool emissions tests. Read More >
Porsche announced Wednesday that it would stop selling its Cayenne Diesel model after regulators announced those cars were allegedly installed with an illegal “cheat device” to fool emissions tests.
Audi removed all diesels vehicles from their online configurator, even though the Q7 diesel was not mentioned by the Environmental Protection Agency has having a “defeat device” installed. The luxury brand has not yet announced any stop-sale of its cars. Volkswagen’s Touareg TDI, which is equipped with the same engine as Porsche and Audi, is still currently listed as on sale. Read More >
Volkswagen on Monday said that internal testing revealed 800,000 Volkswagen cars may emit more carbon dioxide than reported and could cost the company $2.1 billion more in penalties.
New CEO Matthias Müller apologized for the deception.
“The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency,” he said in a statement. Read More >
Responding to the Environmental Protection Agency’s notification that it had uncovered an illegal “defeat device” in some 3-liter, diesel Audi, Volkswagen and Porsche models, Volkswagen AG said in a statement Monday that it “wishes to emphasize that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner.”
The statement flies in the face of the EPA’s allegation that a “temperature conditioning” mode in the vehicles’ computers timed exactly to the length of the agency’s 75 initials emissions tests allowed the cars to reduce emissions of nitrogen oxides by up to 9 times.
On her weekly podcast, German Prime Minister Angela Merkel said Volkswagen’s scandal hasn’t harmed the German automobile industry’s image, but that the automaker would need to conduct its investigation with transparency to restore faith in the country’s industry.
“A lot will depend on how Volkswagen deals with the issue,” Merkel said, according to Reuters.
Separately, sources told German newspaper Sueddeutsche Zeitung (via Reuters) that the automaker, under pressure from investigators, is offering amnesty to employees who reveal what they knew about its cheating devices. Amnesty won’t apply to top-level managers, according to the report.
Volkswagen told dealers that it would buy back some of its unsellable, used diesel cars withering on their lots at fixed prices to help dealers cope during the automaker’s growing diesel scandal, Automotive News reported.
The cars that dealers are accepting on trade-in, but can’t sell due to their illegally polluting engines, have sat on lots while the automaker develops its plan to fix 482,000 cars sold in the U.S. with the illegal “defeat device.” Volkswagen has offered a $2,000 “loyalty discount” for any Volkswagen trade-in, including diesel cars. Read More >
I love you, unicorn.
A TTAC reader spotted this 2016 Volkswagen Passat Alltrack roaming the streets of Phoenix the other day and dutifully reported “What the hell is that?”
This Passat wagon, which is sold overseas, may be the only one in the States. It’s wearing manufacturer tags and likely just had its way with VW’s massive testing circuit in Phoenix.
Massachusetts Sen. Edward Markey on Thursday sent a letter to the National Highway Traffic Safety Administration asking the agency to re-evaluate millions of fuel economy credits awarded to the automaker by the agency for cheating diesel cars.
The letter, which was addressed to Administrator Mark Rosekind, outlined the automaker’s exceedingly fuel efficient fleet average from 2008, which now could be in jeopardy after the automaker admitted it cheated emissions tests and could impact those cars’ mileage. Read More >
Volkswagen will still invest $900 million in its Chattanooga, Tennessee plant despite company-wide cost cutting from its diesel disaster, the automaker announced Thursday.
The company had long planned on a mid-size, three-row SUV to compete in the U.S.. However, those plans were upended when the Environmental Protection Agency announced in September that Volkswagen’s diesels had been illegally polluting, and the company shed billions from its value in following days.
The three-row SUV, which may follow closely Volkswagen’s CrossBlue Concept, was announced last year for the Tennessee plant. Volkswagen said it would begin building the SUV at the end of 2016. Read More >
Porsche announced Tuesday its Macan GTS crossover; a harder, faster version of its Macan S, but without encroaching too far on the Macan Turbo.
The twin-turbocharged 3-liter V-6 boosts output from 340 horsepower in the Macan S to 360 horsepower in the Macan GTS, and 30 more foot-pounds of twist from 339 to 369 pounds-feet of torque. The difference is nominal; Porsche says the Macan GTS will run up to 60 mph in 5 seconds, 0.2 seconds quicker than a Macan S.
Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.
Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.
Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.
The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars. Read More >
Volkswagen will post Wednesday its first quarterly loss in 15 years after the automaker was rocked this summer with a scandal that affected 11 million vehicles and cost the company tens of billions of dollars in lost value already.
Bloomberg (via Automotive News) reported that 10 analysts estimated that the company would post a $3.6 billion loss for the quarter ending Sept. 30.
Although the company said it reserved more than $7 billion to help pay for the scandal, many agree that the loss will be far greater — from $16 billion to $86 billion.
Investigators at Volkswagen are not only looking for the culprits who installed illegal emissions cheating software into their cars, but they’re also looking for managers who didn’t immediately report the devices as well, the New York Times reported.
Up to 10 managers and engineers could be suspended by the automaker for the scandal so far, including top-level executives.
According to the New York Times, investigators have been keen to learn who knew what within the automaker, and how quickly those findings were reported.
The investigation by U.S. firm Jones Day could take months, according to the report. A person who was briefed on the inquiry told the newspaper what investigators were looking for.
Volkswagen of America CEO Michael Horn told congressional investigators he was made aware of a potential problem in the spring of 2014, but wasn’t aware of illegal software until Sept. 2015.
Volkswagen may discount new car purchases for diesel car owners trading in their illegally polluting cars, German news agency DPA (via Reuters) reported.
The discount would apply to older 1.6-liter models, according to the report, which would need more significant fixes than many other cars. According to Reuters, roughly 2.4 million cars in Germany are affected by the diesel scandal that has cost the automaker billions so far.
In America, more than 350,000 diesel cars would need significant fixes, according to Volkswagen of America chief Michael Horn. In the States and Canada, Volkswagen offers a “loyalty discount” to returning Volkswagen buyers. So far, the diesel discount only applies to cars in Germany.
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