Like walking in on your parents on a Saturday night, let’s take a minute to get this situation up to comfortable.

Volkswagen is in dire straits; there are no other words for it. For abusing consumer confidence and lying to the federal government, the German automaker will have to pay billions — and lose tens of billions more in repairs, buybacks, lawsuit payouts and expensive public mea culpas — before they can sniff legitimacy.

For lying and cheating their way through emissions standards with their diesel cars, anyone who has gone for a run in a metro area north of the Mason Dixon line in December for the last 10 years has a legitimate gripe against Volkswagen.

I won’t bury the lede here either: The 2015 Golf R isn’t the type of car that could forgive and forget all indiscretions, either. It’s too hard, too narrow and too expensive to be fit for mass-market consumption. It’s not the car that VW can ride through the rough stuff, mostly because it feels on the inside like it’s riding in a paint shaker.

But every atomic cloud has a silver lining.

For all that we’ve heard and read about Volkswagen over the last week, the larger picture remains: 4 out of 5 Volkswagen cars sold aren’t diesels, and as the world’s second-largest automaker (for now) there are a lot of cars that Volkswagen could talk about.

And we’re talking about the Golf R, and talk we shall. Read More >

The average transaction price for a new car edged up slightly August to September from $33,563 to $33,730, researchers at Kelley Blue Book said Thursday.

Fiat Chrysler Automobiles posted the largest gain over the same month last year, as the automaker increased its average transaction price 4.1 percent to $34,809. Unsurprisingly, Volkswagen was the only major automaker to post a loss in the report, losing 1.6 percent from August to September this year, and 0.1 percent from September 2014.

Ford, General Motors and Kia/Hyundai all posted gains over 3 percent, year-over-year. Overall, the industry average for new car transaction prices rose 2 percent from September 2014 to September 2015. Toyota was the other automaker to fall below the industry average for gains. Its average transaction price increased by only 0.6 percent.

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Volkswagen suspended hiring at its finance arm and cut a shift at its Salzgitter engine factory to prepare its business for fallout from the largest business crisis that company has faced.

According to Reuters (via Automotive News), senior officials at Volkswagen will review Thursday findings from an internal investigation into the scandal that the automaker installed illegal emissions “defeat devices” on 11 million cars. The finance division said it would implement a hiring freeze through the end of this year.

“We are reacting to the current situation. It is a purely precautionary measure,” a spokesman told Reuters. Read More >

German prosecutors on Thursday said they focused too quickly on former Volkswagen CEO Martin Winterkorn and removed a statement from earlier this week that they were investigating the former executive for the scandal that has engulfed the German carmaker.

In a statement by the Lower Saxony prosecutor’s office obtained by Automotive News Europe on Thursday, the office said there must be “concrete facts” before officially investigating Winterkorn. So far, no specific individuals have been named in the office’s investigation.

The stakes are high for whomever may be responsible for the 11 million cars that illegally cheated emissions tests. Volkswagen supervisory board member Olaf Lies told The Local in Germany that “those people who allowed this to happen, or who made the decision to install this software — they acted criminally. They must take personal responsibility.”

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Green Car Journal announced Wednesday that they would take back two awards given to vehicles that are now part of Volkswagen’s diesel emissions debacle. The 2009 Volkswagen Jetta TDI and 2010 Audi A3 TDI were bestowed Green Car of the Year awards by the publication.

“Rescinding the Green Car of the Year awards for the VW Jetta TDI and Audi A3 TDI is unfortunate but appropriate,” said Ron Cogan, editor and publisher of the Green Car Journal.

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It is no surprise that environmental activists are staging protests in reaction to the Volkswagen emission scandal. Members of Greenpeace marched last week outside the VW plant in Wolfsburg, Germany. Somewhere in America, we are sure someone will print off one of those red and white pro-union banners saying “Shame on XYZ Volkswagen” and plant themselves in front of a VW dealership.

But to shame a TDI owner who is possibly already miffed knowing his car may be dropping in value — and possibly gas mileage and torque after the emission fix? Read More >

A report by the New York Times estimates that Volkswagen cars that illegally polluted up to 40 times more nitrogen oxides may have contributed to more than 100 premature deaths in the U.S., nearly equal to the faulty GM ignition switch that has been linked to 124 deaths.

The researchers calculated the effects of the increased nitrogen oxides by using numbers derived from U.S. counties where power plant emissions had been reduced. Those counties removed 350 tons of nitrogen dioxides per year and had 5 fewer deaths per 100,000 people. Calculating the number of VW diesels and their average emissions at 39 times the legal limit, the writers concluded that the cars could be responsible for 106 premature deaths nationwide.

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New Volkswagen CEO Matthias Müller told about 1,000 high-level managers Monday that the company had a “comprehensive” fix for its cars, and that the solution would be forthcoming.

“We are facing a long trudge and a lot of hard work,” Müller said, according to Reuters.”We will only be able to make progress in steps and there will be setbacks.”

Müller said the company would ask consumers “in the next few days” to bring their cars in to be refitted. It’s unclear if the recall program would be a software or ECU fix, or if it would include a selective catalytic reduction system (urea or AdBlue) to bring the diesel Volkswagens down to a legal emissions level. Read More >

According to German newspaper Bild am Sonntag, Bosch engineers told Volkswagen in 2007 that software the supplier had offered for the cars in testing, which made it into road cars, was illegal and should not be used.

The newspaper, which did not cite any sources in the story, said a spokesperson for Bosch did not comment on the report.

If true, the report shows a quick push from the supplier — who admitted it supplied Volkswagen with the parts used to circumvent emissions standards — to isolate the automaker’s responsibility for the scandal. Bosch issued a statement last week saying as much (emphasis mine):

As is usual in the automotive supply industry, Bosch supplies these components to the automaker’s specifications. How these components are calibrated and integrated into complete vehicle systems is the responsibility of each automaker.

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A criminal complaint in Germany (that could have been filed by anyone) has prompted an investigation into whether former Volkswagen CEO Martin Winterkorn knew the automaker was selling cars with an illegal “defeat device” to fool emissions test, Reuters reported.

Several complaints have been filed with German prosecutors, including one from within Volkswagen, according to the Chicago Tribune.

Winterkorn’s investigation may take months — or even years — as German authorities look into how widespread cheating and lying was at the automaker.

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Justin Hyde at Yahoo Autos has fine, fine reporting that U.S. taxpayers paid more than $20 million in incentives for Volkswagen diesel models under the “Cash for Clunkers” program.

According to the report, 4,599 VW Jetta and Jetta Sportwagen diesel cars qualified for the maximum $4,500 incentive under the program. Those cars were equipped with a 2-liter turbocharged diesel engine that the Environmental Protection Agency said used an illegal defeat device to cheat emissions.

The Yahoo report follows a report by the L.A. Times that shows that more than $51 million was paid to Volkswagen by the U.S. for now-bogus “green” claims. Read More >

Making official Friday what we’ve heard for a while (Der Tagesspiegel reported on Monday), Porsche CEO Matthias Müller will take the reigns at Volkswagen.

Müller replaces Martin Winterkorn, who resigned after the Environmental Protection Agency notified Volkswagen that 482,000 cars in the U.S. used an illegal “defeat device” to cheat emissions.

In a statement Müller said that restoring trust in the automaker would be his first priority:

My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation.

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It’s entirely possible that the Environmental Protection Agency could levy the largest ever civil penalty for Clean Air Act violations against Volkswagen after the automaker lied about emissions from their diesel engines.

In 2014, the government agency fined Hyundai and Kia $100 million for spewing 4.75 million metric tons of greenhouse gases above what they reported for 1.1 million cars.

For Volkswagen, using the EPA’s own penalty worksheet (which is apparently a thing), the fine may be substantially more than that levied against the Korean automakers — about $3.15 billion more.

Here’s how we got that number.

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Used car dealerships have filed a proposed class action lawsuit against Volkswagen over cars they say they can’t sell and are seeking the same compensation the German automaker is offering its new car dealers, Reuters reported (via Automotive News).

According to the attorney representing the dealers, selling the cars could put the businesses at risk of lawsuits from their customers. If the used dealers can’t sell their in-stock Volkswagen diesels, the businesses would shoulder the losses, the lawsuit alleges. Read More >

A recent press release on the completion and success of a three-year program to test biofuels in Volkswagen Jetta and Passat TDI models may hint that two external companies had knowledge of the high levels of NOx produced by the “Clean Diesel” vehicles.

The two California-based companies — Solazyme and Amyris — were given the Volkswagen vehicles to test their fuels. VW announced that the program was a success a few months ago, stating CO2 emissions were reduced when using the biofuels. However, the companies only would have known their fuels produced less emissions if the biofuel companies tested the emissions output using diesel fuel and compared it with their own products.

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