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Posts Tagged ‘vw diesel fix’

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.

Beyond the Headlines!

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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VW Diesel Scandal Takes Down Audi Exec, Spreads to Supplier Bosch

Audi’s top engineer suspended.

by on Sep.19, 2016

Stefan Knirsch is the latest executive to the step down as a result of the ongoing scandal.

The head of R&D for German luxury car brand Audi is the latest to fall as the investigation into parent Volkswagen AG’s diesel emissions scandal moves forward.

An outside investigation commissioned by VW found that Stefan Knirsch, who also served as an Audi board member, knew about efforts to rig diesel engines with a so-called “defeat device,” and then lied about the subterfuge under oath. His suspension, first reported by German newspaper Bild am Sonntag, comes about a week after a U.S.-based Volkswagen engineer became the first company official to plead guilty as part of an expanding investigation by the Justice Department.

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Separately, Justice investigators have begun probing the role of some Volkswagen suppliers, notably including German partsmaker Bosch, to see if they also participated in – or were at least aware of – the emissions test-rigging efforts. Bosch, is high on that list, according to a report by the Bloomberg News Service, as one of the suppliers of emissions technology, including software.

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New Legal Problems for VW, as NY, Other States File Suit

Three states bring new civil lawsuits over diesel emissions cheating.

by on Jul.19, 2016

The NY lawsuit claims that former VW CEO Martin Winterkorn helped cover-up the diesel cheating.

Less than a month after federal and California regulators announced a $14.7 billion settlement with Volkswagen A, New York and two other states have filed their own civil lawsuits charging the maker with covering up the fact that it had cheated on diesel emissions tests.

The new lawsuits could add hundreds of millions of dollars in additional costs to the various settlements VW has been trying to work out. And it could make it all the more difficult for the automaker to put the embarrassing issue behind itself.

Clearing the Air!

The three states contend that VW managers, including former CEO Martin Winterkorn, knowingly covered up evidence of the subterfuge. The maker last September acknowledged it had installed a so-called “defeat device” designed to illegally pass emissions tests with its 2.0-liter diesel engine. It subsequently admitted rigging a 3.0-liter turbodiesel, as well.

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VW Planning to Compensate Dealers

Maker tells franchisees it will compensate them for lost business.

by on Jul.18, 2016

VW plans to compensate dealers like Hatfield Volkswagen, of Columbus, OH, for their losses.

Volkswagen appears ready to take another critical step towards resolving its diesel emissions scandal, this time by compensating dealers who have suffered a sharp drop in sales since the scandal was revealed last September.

While the maker hasn’t publicly commented on the plan, news reports indicate the basic details were outlined during a meeting with more than 150 franchised dealers in New Jersey in recent days. The maker intends to hold similar meetings with other dealers around the country.

Breaking News!

A restitution plan would come in the wake of the $14.7 billion settlement VW late last month accepted as part of a deal with U.S. regulators. That package covers only the maker’s rigged 2.0-liter turbodiesel, however. The maker and the government are still working on an agreement covering the bigger, 3.0-liter diesel used in various VW, Audi and Porsche brand products.

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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.

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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.

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Dirty VW Diesels May Remain on the Road

California regulators fear no easy fix available.

by on Mar.10, 2016

Some older VW diesel models may not be completely fixed, says a California regulator.

Volkswagen has just two weeks to deliver an acceptable solution to its dirty diesel problem, according to the orders of a federal judge. But regulators in California are starting to worry that the maker might not be able to come up with a satisfactory fix short of scrapping tens of thousands of those vehicles.

As a result, a senior official with the California Air Resources Board says the organization is considering whether to let those vehicles continue to operate while falling short of both state and federal clean air mandates.

Breaking News!

“Our goal has been to fix the vehicles and return them to their certified configuration as expeditiously as possible,” CARB enforcement chief Todd Sax said during a legislative hearing in Sacramento. “Unfortunately, this may not be possible.”

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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.

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Federal Judge Demands Fix for VW Diesel Problem

Deadline set for March 24.

by on Feb.26, 2016

Judge Charles Breyer want VW to speed up diesel repairs, settlements with owners.

A federal judge in San Francisco is giving Volkswagen a month to come up with an acceptable fix that would bring 600,000 polluting diesel vehicles into compliance with U.S. emissions laws.

The announcement by U.S. District Judge Charles Breyer comes as the maker begins repairs of more than 10 million other diesel vehicles it sold outside of the United States. But so far, the German maker hasn’t been able to come up with a solution that will satisfy the Environmental Protection Agency, which first revealed last September that VW had cheated on diesel emissions tests.

The Last Word!

“Six months is long enough” to come up with a solution, said Judge Breyer, who will oversee hundreds of lawsuits filed against the German maker that were recently consolidated before his court. “This is an ongoing problem.”

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Diesel Cheating An Open Secret at VW – or Was It?

CEO Mueller disputes reports, denies managers involved.

by on Jan.29, 2016

Volkswagen CEO Matthias Mueller.

It was an open secret within Volkswagen’s engineering department that the maker was cheating on diesel emissions testing, according to a report in an influential German newspaper.

The Sueddeutsche Zeitung report contends that a number of managers, as well as their staff either knew about, or were directly involved in, the efforts to create a so-called “defeat device” intended to fool emissions testers into believing VW’s 2.0-liter turbodiesel complied with tough U.S. emissions mandates. But a culture of collective secrecy kept engineers from advising corporate executives of the problems they faced.

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“Within the company there was a culture of ‘we can do everything’, so to say something cannot be done, was not acceptable,” Sueddeutsche Zeitung said, claiming to quote comments from a whistleblower who came clean as part of an ongoing, internal investigation within Volkswagen.

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