Volkswagen will officially recall all of its illegally polluting diesel engines in Germany, German newspaper Die Welt reported Monday (via Reuters), the first step in a wave of recalls to fix 11 million cars worldwide.

Roughly 2.5 million cars in Germany will be recalled — 1.5 million Volkswagens, 500,000 Audi and 500,000 Skoda- and Seat-branded cars — with work beginning in January. Last week, the German transportation authority approved Volkswagen’s fix for 1.6-liter cars, which included an “air calming” pipe ahead of the intake’s air sensor. The company’s 1.2- and 2-liter cars may only need software fixes.

Officials from the U.S. Environmental Protection Agency and the California Air Resources Board will review Volkswagen’s proposal submitted earlier this month for fixing 482,000 cars in the U.S. It’s unclear what those fixes may be. During congressional testimony in October, Volkswagen of America chief Michael Horn said it would be a combination of hardware and software fixes.

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Audi has suspended two engineers for their involvement in helping Volkswagen’s larger 3-liter diesel engine pass emissions, according to Audi’s CEO. (Or you know, Volkswagen’s other, other emissions scandal.) The engine is used in the Porsche Cayenne and Audi’s range of sedans and crossovers.

Audi CEO Rupert Stadler told German newspaper Donaukurier that two engineers were suspended Wednesday and that the company was learning about its engines along with the rest of us.
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Volkswagen in Germany announced Wednesday its fix for millions of its 1.6- and 2-liter diesel engines in Europe that are illegally spewing nitrogen oxides and have cost the company billions in a massive worldwide scandal.

According to the automaker, a small “flow transformer” would be fitted in front of the air mass sensor in 1.6-liter, EA189 engines. The small transformer will calm air leaving the air filter before reaching the sensor. Volkswagen says the calmer air will allow the sensor to more accurately measure airflow for combustion. The fix would take less than an hour. For 2-liter engines, the proposed fix would be a software update and would take 30 minutes. Both plans have been approved by the German transportation authority.

Both fixes may be headed to cars in the U.S. However, the announced plan was in Germany for engines only on sale in most of Europe. Volkswagen submitted its U.S. plan last week to the Environmental Protection Agency and California Air Resources Board, but details of that plan haven’t been released.

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Audi announced last week that owners of its A3 TDI model would be offered the same goodwill program available to Volkswagen TDI owners.

The program, which started Nov. 20, offers owners the same $500 prepaid Visa card that can be used anywhere and a $500 dealership gift card that can be used at Audi dealerships. Three years of roadside assistance also will be included in the goodwill program.

According to Audi’s diesel information site, accepting the goodwill package doesn’t preclude owners from suing Audi in the future. Read More >

Audi, a brand within Volkswagen Group that markets the majority of 3-liter diesel engines sold by the group in the United States, released a statement Monday detailing how it plans to fix vehicles that use a defeat device. The automaker also stated that three separate Auxiliary Emissions Control Devices — not just one — are used in 2009 and later 3-liter diesels used by Audi, Volkswagen (Touareg) and Porsche (Cayenne).

AECDs for those engines will “be revised, documented and submitted for approval,” Audi said in the statement.

Of the three AECDs, the EPA questioned the legality of a temperature conditioning procedure of the exhaust-gas cleaning system.

“One of (the AECDs) is regarded as a defeat device according to applicable US law. Specifically, this is the software for the temperature conditioning of the exhaust-gas cleaning system,” Audi said in a statement.

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On Friday, Volkswagen of America detailed its plan to fix nearly 500,000 illegally polluting diesels in the United States to officials with the Environmental Protection Agency, the government body announced in a statement late Friday. The automaker was required to detail the fix no later than Friday.

The EPA, along with the California Air Resources Board, will review the proposal, said the statement. However, the EPA did not detail the proposal to the media or public and did not give a timeframe on when to expect the proposal to be detailed publicly.

The proposal only addresses issues detailed by the EPA in its September 18 Notice of Violation that applies to Volkswagen’s 2-liter diesel engines and not the 3-liter diesels which may also be cheating emissions tests.

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During a meeting Thursday between the Environmental Protection Agency, Volkswagen and Audi, officials from the automakers told the regulator an emissions program for 3-liter turbodiesel engines is also used on 2009 through 2016 model year vehicles, the EPA said in a statement today.

An earlier statement from the EPA on November 2 pointed the finger at a limited number of models and model years equipped with the 3-liter diesels, even though other model years of those same vehicles are virtually identical with regards to their emissions systems.

In the latest statement, the EPA is still calling the emissions program a defeat device, though Volkswagen, Audi and Porsche have yet to recant their claim that the emissions program is legal and doesn’t violate emissions laws.

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Volkswagen will have to submit Friday its plans to the California Air Resources Board and Environmental Protection Agency to fix hundreds of thousands of illegally polluting cars in the U.S., Reuters reported (via Automotive News). Although a fix is due today, testing that fix could take months before it would be installed in cars.

The deadline for the automaker comes after it announced it would ask Michael Steiner, head of Porsche development and quality, to oversee Volkswagen’s compliance with officials worldwide to fix up to 11 million cars. In Europe, Volkswagen demonstrated a fix for its 1.6-liter diesel engine that included an air sensor and software update that cost around $10.68, according to German outlet Wirtschaftswoche.

Volkswagen has said that its newer cars would likely only need a software update to be compliant. Older cars that are equipped with EA189 2-liter diesel engines may need more costly fixes.

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Officials from Volkswagen will meet with U.S. environmental regulators this week to discuss how it plans to fix nearly 500,000 illegally polluting cars, according to Reuters. Officials from Audi will meet with regulators separately.

According to the report, Friedrich Eichler, VW’s powertrain development chief, will meet with officials from the Environmental Protection Agency and California Air Resources Board to discuss proposed fixes for its cars ahead of its Nov. 20 deadline.

This month, a source indicated to TTAC that Volkswagen would start fixing its cars in February, pending approval from the EPA and CARB.

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Update: A spokesman for Volkswagen of America said U.S. cars aren’t affected. 

Volkswagen announced Friday that more than 400,000 of its cars with “irregularities” in reported carbon dioxide emissions were new cars, which could shed new light on how many more cars the beleaguered automaker would have to pay for.

This month, Volkswagen announced 800,000 cars emitted more carbon dioxide than reported to regulators. Of those cars, Volkswagen announced Friday that 430,000 were 2016 models across many of the automaker’s brands including Volkswagen, Audi, Skoda and Seat. It’s unclear how many older models may be added to the list of cars that emit more carbon dioxide. Read More >

Former Volkswagen CEO Martin Winterkorn announced Wednesday that he would resign his position as chairman of Audi’s supervisory board following revelations two months ago that those cars may have been illegally polluting, which threw the automaker into a tailspin.

Winterkorn stepped down from his role as chairman from Volkswagen in September after the scandal broke and resigned his position at Porsche Automobil Holding SE, VW’s largest shareholder, in October. Winterkorn may have stepped down from his position at Audi because what took him so long? Read More >

Volkswagen’s Goodwill Program in the U.S., which may cost the company nearly half a billion dollars all told, may be a form of corporate apology that could insulate the automaker from further lawsuits.

Michael Siebecker, a professor of law at the University of Denver, says the company’s gift cards could be a form of “corporate apology” that studies have shown help shield some doctors from medical malpractice lawsuits.

“I believe that this is a type of watered-down apology. They may be saying ‘You must be hurting, here’s a little something to get by.’ I don’t know what exactly they think consumers need right now,” Siebecker said.

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As Volkswagen works to make amends with customers and the public, TDI owners ready to give up their illegally polluting cars are hearing conflicting messages from some Volkswagen dealers who are either unwilling to or begrudgingly taking in those cars on trade.

A TDI owner said when he took his car into Flow Motors Volkswagen in North Carolina last month the dealership told him it wouldn’t initially accept his vehicle for trade. The dealer originally had asked if the owner had found a willing dealership to take his car.

“ … Let me know as I have a couple of other diesel owners I will send if things worked out for you,” the dealer wrote in an email after they turned down the man’s diesel car.

“To say I’m irritated is an understatement,” the TDI owner wrote.
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Increased scrutiny on diesel-powered cars’ emissions hasn’t revealed any other cheating cars beyond Volkswagen’s models, German magazine Wirtschaftswoche reported (via Reuters).

In an interview with California Air Resources Board Chairwoman Mary Nichols, the German outlet reported that Nichols said Volkswagen appeared to be alone in cheating so far.

“Up until now we have found no fraudulent defeat device in vehicles of other brands,” she told the magazine. “There is nothing that comes close to the magnitude of the excess in VW vehicles. “ Read More >

Analysts have questioned whether newly hired Volkswagen CEO Matthias Müller will effectively navigate the automaker through a deepening scandal as more vehicles and more cheating is uncovered, Automotive News reported.

Müller, who took over as Volkswagen AG CEO from the top spot at Porsche, has yet to instill confidence in investors, according to analysts.

“It’s a like a virus that’s spreading,” Dave Sullivan, an analyst with AutoPacific, told Automotive News. “With every new bit of information that’s uncovered, it digs the knife in a little deeper and produces more doubt and skepticism that they have an understanding of how deep this crisis is.”

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