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Posts Tagged ‘vw diesel cheating’

VW Set to Plead Guilty as Buyback Accelerates

Court move would lock down $4.3b criminal settlement.

by on Mar.10, 2017

A new VW Arteon prototype makes its debut at this week's Geneva Motor Show.

Volkswagen is expected to plead guilty in U.S. District Court in Detroit today, wrapping up a settlement with the federal government for cheating on diesel emissions tests.

The move follows a series of civil settlements, and will cost the automaker $4.3 billion, the figure announced in January at a news conference by government regulators just days before the end of the Obama Administration. Seven current and former Volkswagen employees have faced criminal charges for their role in the diesel rigging, though one has already pleads guilty. Only one of the others is currently in custody.

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All told, the German automaker has so far agreed to spend more than $20 billion in civil and criminal fines and other costs. It is currently ramping up the buyback of around 475,000 2.0-liter diesels equipped with so-called a “defeat device” meant to reduce emissions during emissions testing. A separate deal covers more than 40,000 vehicles with 3.0-liter turbodiesels, though VW believes it can repair some of those.

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Fiat Chrysler Subpoenaed By Feds Over Diesel Emissions Allegations

VW spends nearly $3b on diesel buyback.

by on Mar.01, 2017

A Ram 1500 EcoDiesel.

The investigation of allegations Fiat Chrysler Automobiles cheated on diesel emissions is moving into high gear, the maker revealing he has received subpoenas from a variety of federal authorities.

The smallest of the Detroit automakers in January announced it was coming under investigation for allegedly rigging its diesel engines to pass tough U.S. emissions standards. FCA Chief Executive Sergio Marchionne rejected those charges during a news conference at the North American International Auto Show.

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The FCA investigation ramps up just as Volkswagen begins to wrap up its own diesel emissions scandal. Court documents released this week revealed that the German maker has so far spend $2.9 billion to buy back vehicles sold in the U.S. using a rigged, 2.0-liter turbodiesel. VW set aside $10 billion for buybacks as part of a settlement with the government announced last July.

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EU Sues 4 Member States Over VW Diesel Scam

Union regulators want penalties for emissions cheating.

by on Dec.08, 2016

The European Union demands four member states - including Germany - impose fines on VW.

Volkswagen may be facing significantly new penalties for cheating on diesel emissions – at least if European Union regulators have their way.

The EU has launched legal proceedings against four member states – Britain, Germany, Luxembourg and Spain – demanding that they impose fines against VW for using illegal “defeat device” software to rig diesel emissions tests. The European Commission also claims those four countries “broke the law” by refusing to provide EU regulators “all the technical information” they have gathered on VW’s scam.

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If the Brussels-based EU is successful, it could lead to hefty new penalties against the German automaker which has already shelled out billions of dollars in fines and settlements linked to the diesel scandal. That includes a $14.7 billion deal it reached last spring with U.S. and California regulators, most of that going to buy back vehicles equipped with a flawed 2.0-liter turbodiesel.

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VW Facing $9 Bil in Investor Claims Over Diesel Scandal

Shareholders lost billions once scam was revealed.

by on Sep.21, 2016

VW's costs continue to grow as a result of its diesel emissions scandal.

After already agreeing to claims and penalties worth nearly $20 billion, Volkswagen now faces more than 1,400 investor lawsuits that could cost it another $9 billion.

A flood of lawsuits have landed on the doorstep of the regional court in Braunschweig, Germany as a one-year deadline for filing claims approaches. It was on September 18, 2015 that the U.S. Environmental Protection Agency accused the automaker of rigging 475,000 vehicles equipped with a 2.0-liter turbodiesel to pass American emissions tests.

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The automaker quickly acknowledged the subterfuge – which involved a total of 11 million vehicles sold worldwide – and also admitted using a so-called “defeat device” on a higher-end 3.0-liter diesel sold by the Audi and Porsche brands, as well as through VW.

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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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“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.

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“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.

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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.

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BMW Delaying Launch of 2017 U.S. Diesels

Latest maker hit by fallout from VW diesel emissions cheating scandal.

by on Jul.19, 2016

BMW will delay the launch of its variously diesel models in the U.S. due to added testing.

Even as Volkswagen continues to face new problems related to its cheating on diesel emissions testing, other automakers are facing collateral damage.

The latest to be hit is BMW, the automaker confirming that it will delay the launch of its 2017 diesel models because U.S. regulators want to be sure they comply with federal emissions standards.

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While the maker said there has been “no indication” that its oil burners don’t meet federal rules, the testing process has been delayed, according to various media sources, which will mean that models such as the 2017 BMW 328d sedan and xDrive35d won’t reach showrooms at the same time as the rest of the ’17 line-up.

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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.

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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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