Embattled automaker Volkswagen reached a long-awaited settlement deal in principle with regulators this morning in a California courtroom.

Before presiding judge Charles Breyer, Volkswagen agreed to buy back afflicted diesel models from U.S. buyers, while compensating their owners from a newly created fund. The automaker would accept early termination on leased models, and fix some vehicles if requested by owners. (Read More…)

Dirty Volkswagen diesels equipped with illicit “defeat devices” could soon be flying off driveways and into oblivion.

Sources briefed on the matter told Reuters (via Automotive News) that the automaker will offer to buy back up to half a million 2.0-liter TDI models in the U.S. that emit illegal levels of smog-causing emissions.

They expect that Volkswagen will make the offer tomorrow before a federal judge. The company’s deadline for a U.S. fix is tomorrow, and a failure to act will result in a trial the automaker desperately wants to avoid. (Read More…)

On the eve of a key U.S. deadline for a diesel emissions fix, Volkswagen has reportedly agreed to pay all American owners of afflicted TDI models $5,000 each.

The deal, reported by Germany’s Die Welt newspaper, would allow the automaker to avoid going to trial this summer, according to Automotive News.

Volkswagen was facing an April 21 deadline to outline a comprehensive fix for the 580,000 U.S. diesel models equipped with “defeat devices” designed to sidestep emissions regulations. The deadline was set in March by a U.S. District Court judge. (Read More…)

The Environmental Protection Agency (EPA) is dropping proposed policy language that would have done, well, nothing.

That’s right, and it would have made a great Seinfeld story line: faceless bumbling government agency seeks to reframe public debate with a redundant, unenforceable, and unnecessary policy revision only to meet unanticipated wrath from industry and enthusiasts, forcing it to ultimately retract its proposal.

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After its excessively dirty diesels polluted the nation’s air for years, Volkswagen is on the verge of making environmental reparations in the U.S. and state of California, Bloomberg reports.

The automaker is reportedly in talks with U.S authorities to create two remediation funds aimed at offsetting some of the environmental (and possibly legal) damage resulting from the diesel emissions scandal. (Read More…)

Is it curtains for modified street cars on the racetrack, or will a compromise save the day?

The first meeting of a congressional committee tasked with deciding the fate of drivers who race modified street vehicles took place on March 15, and a glimmer of hope emerged, according to Jalopnik.

Earlier this month, a bipartisan bill — Recognizing the Protection of Motorsports Act of 2016 — was introduced in the House of Representatives and Senate in a bid to make converted race vehicles exempt from proposed Environmental Protection Agency regulations.

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The numbers are big — 278 investors seeking $3.61 billion — but the latest lawsuit leveled at Volkswagen is merely another drop in the penalty bucket for the embattled automaker.

As has been expected for some time, a group of institutional investors from numerous countries is seeking compensation for financial damage caused by Volkswagen’s diesel emissions scandal, Reuters is reporting.

The lawsuit was filed Monday in a Lower Saxony court — the same jurisdiction as Volkswagen’s headquarters — and alleges the automaker breached its duty under capital markets law between the time the “defeat device” was first installed in diesel models and when the scandal went public last September. (Read More…)

There’s never a dull moment at Volkswagen, and today the automaker finds itself fighting battles on so many fronts they’ll soon be wishing for General Eisenhower’s plotting table.

As the company steels itself for further bad terrible financial news, German prosecutors have widened their probe into the diesel emissions scandal and targeted 17 Volkswagen employees.

The new headcount is a big jump from the earlier six suspects, and authorities have said they’re not done looking. So far, none hail from Volkswagen’s management board, but Klaus Ziehe, a spokesman for the state’s attorney’s office, has said that management involvement has not been ruled out. (Read More…)

Attention, racecar enthusiasts: Your Congressional representatives are looking out for you!

Normally, this phrase would be met with suspicion and outright fear, but for those fighting the Environmental Protection Agency’s proposed regulation on racecar conversions, it’s the best news they’ve had in weeks.

A bipartisan bill introduced in Congress would protect the track-only use of modified street vehicles for use in competition, a practice the EPA is seeking to prohibit. (Read More…)

New U.S. sanctions might spell the end of the glorious, glorious era of North Korean vehicle production.

That, Suzuki asks for its winnings and staggers home, automakers are being slowed down by the EPA (and it’s all Volkswagen’s fault), Audi still loves diesels (and so do you, America!), and Volvo tries to spice up its life … after the break!

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The first rumblings of an approaching crisis reached the highest levels of Volkswagen management in May 2014, but how much knowledge then-CEO Martin Winterkorn had of the looming diesel emissions scandal is still debatable.

It’s debatable because Winterkorn should have known about the initial study that raised red flags with environmental regulators — he was presented with a memo detailing the situation — but to this day Volkswagen can’t say if he even read it.

Later, the matter was discussed in the vicinity of Winterkorn … but Volkswagen doesn’t know if his ears picked up the dialogue.

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An anticipated multi-billion dollar lawsuit from disgruntled Volkswagen shareholders is without merit, the embattled German automaker said on March 2.

A document made public by Volkswagen states that the suit, which alleges a violation of disclosure obligations under capital markets law, is doomed to fail following an examination by legal experts from both inside and outside of the company.

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After staying relatively clean in the ongoing diesel emissions scandal that’s keeping European automakers up at night, Mercedes-Benz now finds itself the potential target of an Environmental Protection Agency investigation, Automotive News Europe reports.

The EPA’s request for information targets the nitrous oxide emissions of the company’s Bluetec diesel engines, and comes less than two weeks after a class-action lawsuit was filed by law firm Hagens Berman (of General Motors ignition switch fame).

Yes, that sound you’re hearing is executives loosening their collars in Stuttgart.

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The temperature was already well above average on Friday, September 18 when the Environmental Protection Agency issued Volkswagen a steaming-hot Notice of Violation of the Clean Air Act. The seriousness and accuracy of the allegations are now well known. Emitting up to 40 times the allowable limit of nitrogen oxides is no small infraction, particularly when done with intent. And as a result, heads quickly rolled and resigned at the Volkswagen Group. The company continues to reel from the impact of its malfeasance as new penalties are imposed.

What has been going on at EPA Headquarters? Gina McCarthy was the agency’s Chief Administrator when the scandal broke. She is still in charge. Christopher Grundler has been at the EPA since 1980 and was the Director of the Office of Transportation and Air Quality (OTAQ) on that warm fall day. He too, remains at his post. Despite calls for resignations from lawmakers, such as Michael Burgess House R-TX, no senior EPA staffers are known to have been dismissed with cause related to the VW scandal.

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It seems Jalopnik got to this before us.

It appears Motor Trend‘s Scott Evans had a long, awkward meeting with his editors and those who control Specialty Equipment Manufacturers Association (SEMA) member pursestrings about what constitutes fair coverage regarding the Environmental Protection Agency’s rule clarifications.

From Motor Trend:

The EPA is not coming for your racecar. The EPA is coming for the aftermarket companies that make parts to turn your street car into a racecar.

Which is, you know, kind of the same thing, at least in the eyes of SEMA.

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