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Posts Tagged ‘volkswagen news’

UAW Triumphs Over VW with NLRB Ruling

Board says maker must negotiate with union.

by on Sep.01, 2016

The National Labor Relations Board ruled that VW must negotiated with maintenance workers represented by the UAW.

The National Labor Relations Board has ruled that Volkswagen of America must bargain with a group of maintenance workers represented by the UAW at the company’s assembly plant in Chattanooga, Tennessee.

The maintenance workers voted last December to join the UAW. It was the first time workers at a plant operated by a European or Asian automaker in the Southeastern U.S. voted to join the UAW. The union lost a plant-wide vote in Chattanooga in February 2014.

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VOA, however, maintained the vote by the maintenance workers should be set aside because the bargaining unit would not represent all of the workers at Chattanooga plant and declined to bargain with the UAW on wages and benefits for the employees in the new unit. (more…)

Judge to Decide on $15 Bil VW Settlement

Deal likely to get okay, but other challenges remain in diesel scandal.

by on Jul.26, 2016

Judge Charles Breyer will address the proposed 2.0-liter settlement during today's hearing.

The $15 billion deal covering Volkswagen’s diesel emissions cheating faces a critical test in federal court today before U.S. District Judge Charles Breyer.

The jurist is widely expected to approve the settlement between the German maker and various federal and state agencies. It includes $10 billion to buy back or repair about 475,000 VW vehicles equipped with diesel engines that were rigged to illegally pass emissions tests. The rest of the settlement will go to various programs meant to compensate for the excess pollution those vehicles produced.

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The deal only covers a 2.0-liter diesel engine, however. VW is still trying to negotiate a settlement for charges it rigged a 3.0-liter turbodiesel, as well. Meanwhile, the automaker faces a variety of other legal issues that could add billions to the final cost of the scandal – including lawsuits filed this month by three individual states.


VW Delivers Profitable Surprise

Earnings “significantly higher” despite diesel scandal.

by on Jul.20, 2016

Regaining momentum: VW delivers a strong, first-half profit despite the costs of its diesel scandal.

Volkswagen AG beat its earnings forecast for the first half of 2016, delivering “significantly higher” profits even while setting aside another 2.2 billion euros, or $2.4 billion, to cover the growing cost of its diesel emissions scandal.

The news comes a day after New York and two other states filed suit against the embattled German maker, claiming senior executives had helped cover up the diesel emissions subterfuge. Last month, VW agreed to a $14.7 billion settlement covering its 2.0-liter diesel, a deal that includes $10 billion to buy back nearly 500,000 vehicles.  Most of the funds VW has so far committed to settle what it calls the “diesel issue” came out of 2015 earnings, however.

By the Numbers!

For the first half of 2016, VW said it had an operating profit of 7.5 billion euros, or $8.25 billion. That would drop to 5.3 billion euros after factoring in the latest charges for the emissions scandal, money largely related to legal costs in North America.


Automakers Continue to Install Defective Takata Airbags on New Vehicles

And 2.1 mil defective inflators have been installed as replacements in older vehicles.

by on Jun.01, 2016

A Takata airbag after a crash.

(This story has been revised to include comments by FCA and Toyota.)

Even as federal safety regulators expand the ongoing recall of defective Takata airbags, four major automakers continue to install some of the potentially deadly devices on their newest vehicles, according to a new Senate report.

A number of manufacturers also are using defective Takata inflators as replacements for older airbags in about 2.1 million recalled vehicles. Federal regulators have approved that move as a temporary measure due to a shortage of replacements parts using newer, safer designs.

In the Know!

The four manufacturers that acknowledge they are continuing to use defective Takata bags in new products are Fiat Chrysler, Mitsubishi, Toyota and Volkswagen, according to the report released today by U.S. Senator Bill Nelson, the ranking Democrat on the Senate Commerce Committee.


VW Back in the Black but Diesel Scandal Takes a Stiff Toll

Profits down 20% year-over-year.

by on May.31, 2016

VW gets back into the black for Q1, but the maker see lower sales and smaller margins for all of 2016.

Volkswagen AG clawed its way back into the black during the first quarter of this year following the spectacular plunge it took last year as it dealt with a global diesel emissions scandal.

Even so, the maker’s $2.6 billion profit for the January-March quarter was down 20.1% from year earlier numbers. Excluding one-time items, VW’s operating profit was down 5.9%, to $3.5 billion. Sales and other revenues, meanwhile, slipped 3.4%, to $56.8 billion.

By the Books!

“In light of the wide range of challenges we are currently facing, we are satisfied overall with the start we have made to what will undoubtedly be a demanding fiscal year 2016,” VW CEO Matthias Mueller said in a statement.


VW Offering $1 Bil to US Diesel Owners

Reported plan would give $5,000 to each owner of rigged diesel cars.

by on Apr.20, 2016

VW could announce the compensation plan as early as this week.

Volkswagen will offer U.S. owners of vehicles with rigged diesel engines $5,000 apiece, according to a plan the embattled German automaker is reportedly preparing.

The deal, which is expected to cost VW just over $1 billion, could be disclosed as early as tomorrow when the carmaker is expected to appear before a federal judge in San Francisco. But VW is not believed to yet have a plant to fix those diesels, as it was supposed to put together by April 21st, according to reports in both the German newspaper Die Welt and on the Associated Press wire service.

Breaking News!

VW is facing more than 500 lawsuits filed on behalf of diesel owners in the wake of revelations it had equipped its vehicles with a so-called “defeat device,” software designed to detect when those cars were undergoing emissions tests and then modify engine operations to reduce levels of smog-causing oxides of nitrogen. Almost 550,000 of those vehicles were sold in the U.S., with 11 million sold worldwide.


VW Teases “Advanced Luxury” Battery SUV Ahead of Beijing Debut

Show car would get 31 miles per charge.

by on Apr.18, 2016

VW hints the Beijing SUV Concept will be sportier, more performance-oriented than its other SUVs.

Volkswagen will take another step in its apparent shift from diesel to battery-electric propulsion when it pulls the wraps off a new “advanced luxury SUV” at the Beijing Auto Show this coming week.

While the German maker is holding many of the details for the official unveiling, its offering some teaser images and a few intriguing details. Among other things, it notes the Beijing Concept will deliver more than 30 miles of range in pure battery mode. It also will feature a high-tech, “lounge-style” interior reminiscent of the BUDD-e minivan concept introduced at the Consumer Electronics Show last January.

Stay Plugged In!

While Volkswagen officials insist the company is not about to abandon diesel technology – with oil burners still accounting for about half of VW’s European sales – the ongoing emissions scandal seems to be encouraging a more rapid adoption of alternative propulsion, with an emphasis on electrification.


VW Slashing Manager Bonuses in Wake of Diesel Scandal

“Significant” cuts part of a “reasonable and fair solution,” says VW.

by on Apr.13, 2016

Volkswagen CEO Matthias Mueller will be among those taking "substantial" cuts in 2015 bonuses.

Even though Volkswagen managers have so far stayed clear of blame for the maker’s diesel emissions scandal, they’ll be taking a serious financial hit, the automaker confirmed.

Under pressure from both inside and out, VW said it will cut top managers’ bonuses significantly, hoping to send a “signal” that it will let no one escape responsibility for the crisis. Last September, the U.S. Environmental Protection Agency charged the German maker with cheating on emissions tests for its 2.0-liter turbodiesel. Industry analysts expect the scandal will eventually cost the company tens of billions of dollars to settle.

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While the exact size of the cuts has not been determined, the corporate statement said, “different models (are under study) which would constitute a reasonable and fair solution for all parties involved.” For senior managers, “as a consequence, this would lead to a significant reduction” in bonuses that traditional can account for a major portion of annual pay.


VW Hit With New Lawsuits by Investors, Former Employee

Embattled maker accused of destroying diesel data.

by on Mar.15, 2016

VW officials initially thought the scandal would have a minimal financial impact.

Already facing more than 500 lawsuits in the U.S., Volkswagen has been hit with two new legal actions that could seriously compound the problems it is facing in the wake of revelations it cheated on diesel emissions tests.

One suit, filed in Germany by major institutional investors, seeks nearly $3.6 billion due to the lost value in Volkswagen shares which have plunged by a third since the scandal broke last September. The other new legal action was initiated by a former VW employee who claims he was fired after trying to prevent the deletion of data connected to emissions test cheating.

Breaking News!

The latter suit could prove particularly problematic as Volkswagen is under criminal investigation in several countries, including both the U.S. and Germany, and was ordered to preserve potential evidence related to its admitted rigging of diesel tests.


German Prosecutors Target 17 in VW Diesel Scandal

CEO foresees “substantial and painful” financial damage.

by on Mar.08, 2016

Volkswagen CEO Matthias Mueller has been trying to contain the diesel scandal.

German prosecutors have now put 17 people under investigation as they widen their probe of Volkswagen’s diesel emissions cheating scandal.

The number has grown in recent weeks from the initial six employees prosecutors say they were targeting – and now goes well beyond the “handful of engineers” VW’s senior executives have long said were behind the cheating.

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Separately, VW CEO Matthias Mueller on Tuesday said he expects the scandal to result in “substantial and painful” financial damage before it is fully resolved. The maker has already set aside more than $7 billion to cover those costs while also setting up a credit line for as much as $20 billion more.