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…)
Improve. Increase. Rise. Grow.
These are all words that can be applied to the status of Volkswagen’s sales in the United States in October 2015.
Yes, that Volkswagen. The brand which, it was revealed in late September, was intentionally cheating on emissions tests with four-cylinder diesel engines, powerplants found under the hood of approximately one-fifth of the vehicles sold by the company in America. The brand which has seen its share price tumble as more negative information is uncovered each day. The brand which was forced to set aside billions of euros to cover some of the costs of a massive, yet-to-take-place recall.
Yes, that brand, Volkswagen, sold 74 more new vehicles in October 2015 than they did one year earlier, a 0.2-percent year-over-year increase during a period in which the auto industry produced a 13.6-percent gain. (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.
The Environmental Protection Agency notified Volkswagen on Monday that cars equipped with 3-liter diesel engines included an illegal “defeat device” designed to cheat emissions tests, broadening the already damning scandal for the automaker.
The cars included on the notification were the 2014 Touareg, 2015 Porsche Cayenne Diesel and 2016 models of the Audi A6 Quattro, A7 Quattro, A8, A8L and Q5.
“Volkswagen has once again failed its obligation to comply with the law that protects clean air for all Americans,” Cynthia Giles, assistant administrator for the EPA said.
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…)
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.
According to Kelley Blue Book, auction prices for Volkswagen’s diesels cars are dropping faster than similar models that are powered by gasoline.
According to auction data gathered before and after news broke that Volkswagen had admitted to federal investigators that their cars illegally polluted, prices for Volkswagen diesel cars dropped 16 percent. Prices for Volkswagen gasoline cars only dipped 2.9 percent over the same period.
According to the car industry site, interest on the Volkswagen diesel models has only declined 2.4 percent.
Complaints filed against Volkswagen of America are using the Racketeer Influenced and Corrupt Organizations Act to allege that the automaker knowingly committed fraud across state lines, court documents show.
The law, which was created in the 1970s to take down the U.S. mafia, could have serious ramifications for Volkswagen, who admitted that its cars illegally polluted.
Accusing the automaker of violating RICO Act would mean that lawsuits against the automaker could be more lucrative and amplify damage to the automaker.
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