Volkswagen announced Thursday that the automaker’s investigation had identified institutional breakdowns and individual misconduct that led to the installation of more than 11 million “defeat devices” aimed at cheating emissions tests in its diesel cars.
Volkswagen Chairman Hans Dieter Pötsch told journalists and investors that some parts of the company “tolerated breaches of rules” while it developed the illegal devices, according to Automotive News.
Thursday’s announcement was an interim report on the internal investigation by Volkswagen that has already resulted in nine suspended employees, including a high-ranking engineer who was with the automaker for 30 years. Pötsch said the external investigation, which will be conducted by U.S. firm Jones Day, will continue well into 2016.
There’s a whole lotta shaking going on at Volkswagen’s boardroom, with two new members coming in and one set to oversee the ongoing diesel scandal.
Via press release, the parent company announced Wednesday the arrivals of VW veteran Ralf Brandstätter and Skoda’s Dr. Frank Welch to the namesake brand’s Board of Management. Welch will succeed Heinz-Jakob Neusser — suspended from his post since September 2015 — as the Board Member for Development, while Brandstätter replaces Francisco Javier Garcia Sanz as the brand’s Board Member for Procurement.
A month after questions arose regarding how Volkswagen measured CO2 and fuel consumption in their cars, the troubled automaker says all is well.
Per VW’s PR machine, the automaker found “no unlawful change to the stated fuel consumption and CO2 figures” in the majority of its European lineup, with only nine vehicles for the 2016 model year having slight variations in conflict with their originally stated fuel consumption and CO2 stats.
Industry-wide auto sales continued to expand in November 2015 despite a calendar quirk which shortened the selling month and a sharp 9-percent decline in passenger car volume.
At Volkswagen, however, after the scandal-ridden brand posted somewhat surprising year-over-year increases in September and October, November volume plunged 25 percent.
The loss of 7,843 sales compared with November 2014 was incurred largely by the loss of all TDI sales. In November 2014, 17 percent — or approximately 5,460 sales — were generated by vehicles with diesel engines. But Volkswagen couldn’t sell vehicles with diesel engines in November 2015.
My German begins and ends with “nein” but I don’t need to know much to see what’s going on in this video.
According to the New York Times, sentiment in Germany is starting to build that American regulators are being unfairly harsh with Volkswagen in an effort to bolster domestic manufacturers such as Ford, General Motors and Ram.
The Environmental Protection Agency notified Volkswagen in September that its cars used an illegal “defeat device” to skirt emissions laws. Since then, the automaker has been caught up in an international scandal that has cost the automaker billions and damaged the reputation for Germany’s largest exporter.
QIA, which owns 17 percent of Volkswagen, is said to use a meeting scheduled today with automaker CEO Matthias Müller to “demand a scaling back of the role of the works council,” reported Reuters.
Volkswagen representatives denied the report, stating, “Co-determination (joint decision-making by corporate and labor representatives) and the (role of the) works council were not on the agenda of the talks.”
Skilled trades workers at Volkswagen’s Chattanooga Assembly Plant in Tennessee voted Friday overwhelmingly to join the United Auto Workers union, the first UAW victory at an automotive plant in the South, Reuters reported.
Audi’s new chairman of its supervisory board, Matthias Müller, said Hackenberg was responsible for implementing designs such as the automaker’s current MQB global architecture and cars such as the A3, A4, A6, A8 and TT.
“Above all, the modular toolkit system is inseparably connected with the name of Ulrich Hackenberg. He had that idea already in the early nineties at Audi. Today, the entire Group profits from it,” Müller said in a statement.
Analysts are estimating that more than 400 lawsuits (for now) pending against Volkswagen for fraudulent “clean diesel” claims could cost the automaker billions in court — if they even go that far.
Bloomberg reported (via Automotive News) that as lawyers for owners and Volkswagen wrangle over where to eventually hold a consolidated trial against the automaker, many analysts believe Volkswagen — who has already admitted to committing fraud — may end up paying at least $1.5 billion to customers, before damages or a potential buy back. That figure could rise to $8.9 billion if Volkswagen has to buy back their cars, according to Bloomberg Intelligence analyst Brandon Barnes.
(Presumably, those billions would be spent outside of a single wrench being turned on one of its illegally polluting cars.)
Apparently, there are still plenty of 2015 Passats and Jettas available to loyal would-be owners along with a variety of other weird birds, such as the 2015 Volkswagen Beetle R-Line Convertible and whatever dark backlot corner is still molderizing the aptly named Final Edition Volkswagen Eos.
All this corporate bloodletting brings on an interesting distinction for the Passat. You can now buy the very last, brand-new mid-sized sedan in America that is less than $15,000: a 2015 Volkswagen Passat 1.8T S with a 5-speed manual.
Volkswagen will have to recall hundreds of thousands of cars in India for cheating emissions standards, adding to Volkswagen’s worldwide woes that the automaker illegally sold with “defeat devices” designed to cheat emissions tests, Reuters reported.
More than 323,000 Audi-, Volkswagen- and Skoda-branded cars with the automaker’s EA 189 diesel engine will need to be fixed after authorities discovered in November that those cars were illegally polluting. The revelations follow similar charges made by U.S. authorities two months ago that Volkswagen and Audi cars were polluting up to 25 times more nitrogen oxide than allowed by law.
Volkswagen officials in India said cars would be recalled immediately.
Volkswagen announced a fix for some of its diesel engines in Europe last week that included fitting a “flow straightener” device to their 1.6-liter engines. The device provides something tangible for Volkswagen to trot out, but has been criticized for being a low-tech distraction from the actual fix.
The “flow transformer” serves a purpose to provide a more accurate reading by the mass air flow sensor, but its initial exclusion may point to how far the cheating reached. To understand the implications of installing such a device, we need to take a look at the role of the mass air flow sensor on fuel and emissions mapping. (Read More…)
Deciding that the company’s annual pre-Christmas party wasn’t a great time to be Wetblanket Wildes, the Porsche-Piech clan affirmed that it would be committed to Volkswagen amid its emissions crises (pl.) and said the company that the family-owned company would “master the situation,” according to Reuters.
The Porsche-Piech family, who owns a majority stake in Volkswagen’s parent company, told the automaker’s board and the town of Wolfsburg that the family has no intention of pulling the plug.
“I am firmly convinced that the city of Wolfsburg together with Volkswagen will master the situation and gain further strength,” Wolfgang Porsche said in a statement, according to Reuters. “The Porsche and Piech families stand behind Volkswagen and Wolfsburg as its headquarters.”
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.
German newspaper Bild Am Sonntag (via Reuters) reported Sunday that engineers within Volkswagen knew more than one year ago that its cars didn’t meet reported fuel consumption and even pulled a model from sale because of the deception.
Volkswagen admitted in October that 800,000 cars sold in Europe didn’t meet advertised fuel economy and that the company would pay more than $2.1 billion for the scandal.
According to Reuters, Volkswagen didn’t comment on the claim that executives knew about the cheating crisis before October, and said that the slow-selling Polo BlueMotion was pulled due to poor sales.
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