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Germany Orders 1st Recall of Volkswagen Diesels

US EPA yet to officially order repairs; agency probing possible new VW software scam.

by on Oct.15, 2015

VW will recall 2.4 million of its diesels in Germany. A U.S. recall is expected to follow.

About 2.4 million Volkswagen diesels sold in Germany over the last seven years will be recalled under an order issued by the Berlin government Thursday.

The move marks the first official recall of vehicles that VW surreptitiously outfitted with software designed to meet emissions tests, even though those diesels would go on to produce far higher pollution levels in real world operation. VW has said it produced about 11 million such vehicles using its EA 189 engine.

Breaking News!

The scam was revealed last month by the U.S. Environmental Protection Agency. The EPA has yet to order a formal recall – though one is expected – in part because it has been working with VW to come up with an appropriate fix. The U.S. has some of the world’s most stringent diesel emissions standards. Complicating matters, it now appears the maker’s 2016 diesels may be using a different type of software code to evade emissions mandates.

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VW Diesel Emissions Cheating Scandal Heading to Congress

EPA prepares for “likely” recall.

by on Oct.02, 2015

The EPA has yet to order a formal recall of VW diesels, like this one, but that could happen soon.

Two weeks after revealing that Volkswagen had cheated on diesel emissions tests, officials from the Environmental Protection Agency still have not formally ordered a recall of 482,000 VW products, but that step is “likely” to take place, according to an EPA spokesperson.

Sources inside Volkswagen, meanwhile, told TheDetroitBureau.com that the automaker is now working with the federal agency to come up with an acceptable fix for diesel models that can produce as much as 40 times the allow level of pollutants such as smog-causing NOx. VW has already said it is developing a retrofit for a total of 11 million diesel vehicles sold worldwide that contained a secret “defeat device” designed to reduce emissions levels during testing.

The Full Story!

VW’s problems have continued to escalate in recent days, and even as prosecutors in both the U.S. and Germany look into the scandal, the automaker’s top U.S. executive has been summoned to Capitol Hill where he will testify before a congressional oversight panel on October 8th.

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VW Setting Aside $7.3 Bil to Cover Cost of Diesel Scandal

Regulators in other markets question whether VW also rigged their emissions tests.

by on Sep.22, 2015

Whether VW has set aside enough money to cover the scandal's mounting costs is unclear.

Volkswagen is setting aside 6.5 billion Euros, or $7.3 billion, to cover the anticipated cost of resolving its diesel emissions cheating scandal, a figure that could nonetheless be eclipsed by potential penalties and lawsuits facing the German maker in the U.S.

The issue, meanwhile, now is spreading to other markets, VW confirming it used the same illicit software – dubbed a “defeat device” by U.S. regulators – on 11 million diesel vehicles sold worldwide. That has triggered calls for new investigations in markets from South Korea to the European Union.

Breaking News!

The money VW has aside is part of the company’s efforts to “win back the trust of our customers,” the maker said in a statement Tuesday. Meanwhile, it noted that it is “working intensely” to find a technical solution to removing the software without reducing the performance of affected VW products.

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Diesel Recall Likely Only the Start of VW’s Problems

Caught cheating, German maker facing lawsuits, stock price plunge, possible criminal investigation and billions in fines.

by on Sep.21, 2015

The diesel scandal could cost billions - and set back VW's plans to become world's best-seller.

Accused of cheating on emissions standards, Volkswagen and its upscale Audi brand have been ordered to recall nearly 500,000 diesel cars sold in the U.S. – but that is likely to be only the start of the problems facing the German maker.

Within hours of the announcement from the Environmental Protection Agency, several high-profile law firms had already weighed in, threatening potentially costly class action lawsuits. That’s on top of multi-billion dollar fines Volkswagen could be subject to. The maker may also be targeted by the U.S. Justice Department for creating a so-called “defeat device” to get around strict diesel emissions standards. The mounting list of challenges has already caused a massive sell-off of Volkswagen stock.

Know the Real Story!

“I personally am deeply sorry that we have broken the trust of our customers and the public,” Volkswagen CEO Martin Winterkorn said in a statement issued over the weekend. “We at Volkswagen will do everything that must be done in order to re-establish the trust,” he said, adding that the maker will work openly with authorities investigating the alleged scam.

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VW Halts Diesel Sales, Recalls 170,000 TDIs

Problem with potential fuel line leak.

by on Oct.06, 2011

The Audi A3 - named 2010 Green Car of the Year - faces recall due to the fuel line defect. Audi CEO Johan de Nysschen is shown accepting the award.

Volkswagen Group of America has taken the unusual step of ordering a stop sale on its imported diesel car line-up due to a problem with a high-pressure fuel line that can come loose and potential cause a fire.

The move impacts a variety of models including the Jetta TDI and Audi A3 TDI produced from May 2009 until a month ago when the defect was discovered.  The maker will need make repairs on vehicles now on dealer lots.  Meanwhile, it plans to issue a recall for those cars already in owner hands, a move that will affect about 160,000 Volkswagen vehicles and another 7,000 Audis.

Stay in the Loop!

The recall is a potential black eye for a company that has put significant emphasis on its diesel technology as a way to differentiate itself from the competition.  Demand for the high-mileage powertrains has been strong and growing – reaching 30% with some Volkswagen models, according to company data.

VW has also been struggling to shed an image of poor quality.  It has lagged in many consumer studies over the past decade but has more recently begun to bring its quality problems under control.  Jonathan Browning, CEO of Volkswagen Group of America, has listed quality as perhaps the single biggest issue VW must deal with if it hopes to meet a goal of doubling sales by 2018.

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