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Posts Tagged ‘vw buyback’

Dealers Latest to Settle With VW Over Diesel Scandal

Funds to be paid out over 18 months.

by on Aug.25, 2016

Livingston VW, of Woodland Hills, CA, is one of the maker's 650 American franchisees.

(This story has been updated to reflect the cost of the new settlement.)

Two months after agreeing to a $14.7 billion deal with federal regulators over its cheating on diesel emissions tests, Volkswagen has reached another settlement covering its 650 U.S. dealers.

The maker will pay about $1.2 billion over the next 18 months to cover the losses dealers claim to have run up as a result of the scandal, in large part due to a sharp drop in the maker’s sales. Along with cash payments, VW will provide “additional benefits” to those dealers. The announcement moves Volkswagen closer to resolving its ongoing legal problems, though it still faces a number of additional challenges, including lawsuits by shareholders.

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Breaking News!

“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen. “This agreement, when finalized, will strengthen the foundation for our future together and further emphasize our commitment both to our partners and the U.S. market.”

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Justice Dept. Readying Criminal Charges Against VW

Fine, government monitor among possible options.

by on Aug.16, 2016

VW could be asked to pay a criminal fine of as much as $1.2 bil, according to reports.

The U.S. Justice Department is reportedly in talks with Volkswagen AG as it prepares to lay out criminal charges against the automaker following an ongoing investigation of VW’s rigging of diesel emissions tests.

While charges against individuals could yet be revealed, several reports out of Washington suggest that federal prosecutors will focus on levying as much as $1.2 billion in fines against the embattled German automaker, and possibly appointing a monitor to oversee VW’s future behavior.

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Any settlement would come on top of the $14.7 billion Volkswagen agreed to pay as part of a civil settlement with the Justice Dept., the Environmental Protection Agency and the Federal Trade Commission. That deal, announced in June, included about $10 billion to buy back as many as 475,000 vehicles sold in the U.S. equipped with 2.0-liter diesel engines.

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Judge Approves $15 Bil VW Diesel Deal

But more legal problems await.

by on Jul.26, 2016

Judge Charles Breyer gives the deal a tentative go.

The $15 billion settlement last month in the Volkswagen diesel cheating scandal has won the tentative approval of U.S. District Judge Charles Breyer — but despite the record price tag, it doesn’t end the automakers legal problems.

The deal 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.

Breaking News!

“Volkswagen appreciates the constructive engagement of all the parties,” the maker said in a statement that followed Breyer’s ruling, “as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers.”

The ruling brought an equally positive response from those on the other side of the courtroom.

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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.

News Now!

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.

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VW Believes it Can Repair 85k 3-liter Diesels

Move could help maker avoid second diesel vehicle buyback.

by on Jul.01, 2016

The Audi Q7 TDI is one of the numerous Audi, Porsche and VW models affected by the stop-sale.

Volkswagen believes it can fix the problem with about 85,000 vehicles using a faulty 3.0-liter diesel engine, the maker told a federal judge in San Francisco.

The revelation came shortly after VW and several federal agencies reached a $14.7 settlement on charges the maker had rigged a smaller diesel engine to pass U.S. emissions tests even though it grossly exceeded emissions rules in real world operations. That deal includes about $10 billion to buy back the 475,000 vehicles sold between the 2009 and 2015 model-years using a 2.0-liter turbodiesel.

Environmental News!

If it can convince the Environmental Protection Agency and the California Air Resources Board, or CARB, that the proposed fix works, VW would be able to avoid a second costly buyback.

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Q&A: When Will VW Start Writing Checks?

Don't expect money to start flowing until Autumn.

by on Jun.29, 2016

VW will offer buybacks on 475,000 diesel cars.

Volkswagen is settling charges that it rigged 475,000 diesel vehicles to cover up the fact that they don’t meet U.S. emissions standards. The $14.7 billion settlement includes about $10 billion that, according to federal regulators, will be used to compensate owners and get the faulty vehicles off the road.

Your Auto Insider!

When will payments begin and who qualifies for compensation and the planned buyback? Can owners keep their vehicles if they prefer? Here’s what you’ll need to know:

What did VW agree to and why?

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Feds Outline Diesel Emissions Settlement with VW

But “criminal investigation is (still) active and ongoing.”

by on Jun.28, 2016

EPA Administrator Gina McCarthy calls the settlement "unprecedented" under the Clean Air Act.

Describing the settlement as “groundbreaking” and “unprecedented,” federal officials outlined a $14.7 billion, three-part deal with Volkswagen that will, among other things, remove as many as 475,000 diesel vehicles from U.S. roads.

But the agreement, which could yield significant compensation for those who own those vehicles, does not end the German automaker’s legal and financial problems. VW still has to reach a settlement covering about 50,000 additional vehicles. And it could yet face criminal charges and civil fines stemming from its efforts to cheat on government emissions tests.

Clearing the Air!

The settlement “marks the largest clean air mitigation step in the history of the Clean Air Act,” declared Deputy U.S. Attorney General Sally G. Yates during a news conference in Washington, D.C. But, she added, “It is by no means the final step.” Among other things, she added, “I can assure you our criminal investigation is active and ongoing.”

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VW May Have to Buy Back Over 100,000 U.S. Diesel Cars

Emissions fix for others could be complex, costly, slow.

by on Jan.07, 2016

VW brand boss Herbert Diess again apologized for the diesel scandal on Tuesday in Las Vegas.

Increasingly desperate to find an acceptable fix for the diesel emissions scandal impacting about 500,000 vehicles sold in the United States, Volkswagen may be forced to buy back more than 100,000 of those cars, according to a news report from Germany.

Many of the others might face extensive mechanical updates that would be complex, costly and slow to complete, according to a report in the Sueddeustsche Zeitung. But Herbert Diess, the CEO of the Volkswagen brand told TheDetroitBureau.com this week that some of the most recent models might require only a “fix with the software.”

Insight!

One way or the other, “Our most important task in 2016 is to solve the diesel issue in the U.S.,” said the executive, following a keynote presentation at the Consumer Electronics Show in Las Vegas.

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Reality Setting in for VW – and it Doesn’t Look Good

Costs keep mounting - but company hopes to avert job cuts.

by on Dec.02, 2015

It wasn't all bad news last month; sales of the VW Tiguan jumped nearly 88% in November.

Nearly three months after it was revealed that the German automaker had cheated on diesel emissions testing, Volkswagen is beginning to truly feel the impact of the scandal – and the situation is only likely to get worse for some time to come.

U.S. sales by the Volkswagen brand tumbled by a 24.7% last month, in large part due to a stop-sale of all its diesel models. A federal judicial panel will this week decide how to handle the more than 300 lawsuits already filed against the automaker in the wake of the scandal. And VW has lined up a $21 billion bridge loan it may need to cover the costs it’s expected to incur.

Beyond the Headlines!

But at least VW workers have gotten some good news, the families controlling the automaker telling employees at Wolfsburg headquarters they want to protect jobs despite planned cuts in capital spending.

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Volkswagen Engineers Admit Cheating, Feared Failure

Senior VW execs may avoid U.S. travel.

by on Nov.09, 2015

Former VW CEO Martin Winterkorn created a climate of fear encouraging cheating, says paper.

As an internal investigation gets underway, several Volkswagen engineers have acknowledged rigging emissions tests, among other things by adjusting tire settings and using non-standard oil.

A culture of fear may have driven Volkswagen’s emissions test cheating, according to a new report in the German paper, Bild am Sonntag, Volkswagen engineers afraid of what would happen if they couldn’t meet former CEO Martin Winterkorn’s aggressive CO2 targets.

In the Know!

Meanwhile, a separate report out of Germany indicates some VW managers are now reluctant to come to the U.S. fearing they could get caught up in an ongoing criminal probe by the Justice Department. At least one employee reportedly had his passport taken during a visit to the States.

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