Detroit Bureau on Twitter

Posts Tagged ‘vw diesel scandal’

Mercedes-Benz Parent Daimler Recalling 3m Diesels to Fix Emissions Systems

Porsche CEO says maker may abandon diesel technology.

by on Jul.18, 2017

Mercedes decided not to offer diesel models, like this ML320 BlueTec, in the U.S. for 2017.

Daimler AG plans to spend about $255 million to recall and repair 3 million diesel vehicles that are at the center of a probe looking at whether the automaker rigged them to illegally pass emissions tests.

The automaker has been accused of using a so-called “defeat device,” an approach similar to that used by Volkswagen AG to rig 11 million diesel vehicles sold around the world. The Daimler recall, for now, is limited to models sold in Europe. But an investigation is underway in the U.S., as well, the Environmental Protection Agency stating it is “continuing to evaluate light-duty vehicles from a number of manufacturers.”

Clearing the Air!

Separately, the CEO of Porsche AG said the automaker is considering whether to halt the sale of diesels all together. Porsche shared one of the two rigged diesels produced by its parent Volkswagen in a number of different models.

(more…)

Daimler Accused of Selling More Than 1M Cars With Illegal Defeat Devices

Company's stock takes heavy hit as a result.

by on Jul.13, 2017

Daimler AG, Mercedes-Benz parent, stands accused of selling more than 1 million diesel-powered cars equipped with a cheating device.

Mercedes-Benz parent Daimler AG appears to be the latest automaker to face accusations of rigging vehicles with “defeat device” technology in order to illegally pass emissions tests, according to a major German newspaper.

The report, by the Sueddeutsche Zeitung, sent shares of the automakers skidding in European trading on Thursday, though several industry analysts now say they don’t expect the report – if accurate to trigger the sort of massive blow to Daimler that was felt by Volkswagen AG. VW has so far spent about $30 billion as a result of its own diesel emissions scandal, while also having to repair or buy back as many as 11 million vehicles.

Product News!

According to the report, vehicles with excess emissions were sold in Europe and the United States between 2008 and 2016. Notably, Mercedes chose to withdraw its diesel models from the U.S. market this year rather than trying to get their emissions certified. (more…)

U.S., German Prosecutors File Charges in Audi Diesel Emissions Probe

Official charged in the U.S., arrest made in Germany.

by on Jul.07, 2017

A line-up of Audi TDI models. The automaker currently has pulled all off the U.S. market.

The investigation into diesel emissions cheating by Volkswagen’s luxury arm Audi has taken a new turn with charges filed on both sides of the Atlantic, and an arrest made in Germany.

Sixty-year-old Giovanni Pamio becomes the eight person charged by the U.S. Justice Department for participating in an extensive scheme to rig diesel engines used by various diesel brands. That scam is expected to cot Volkswagen at least $30 billion in fines, fees and a broad buyback of vehicles that cannot be brought up to legal standards in the U.S. and a number of other markets.

Breaking News!

While prosecutors in Germany and the States initially focused their efforts on the Volkswagen brand, they have begun expanding the investigation to look at the role other VW marques played in the scandal, notably Audi. Prosecutors in Munich, for one thing, conducted a number of raids on Audi and VW offices in March, as well as targeting the offices of a law firm representing the luxury brand. And they have now arrested an as yet-unnamed Audi employee.

(more…)

Settle or Sue: U.S. Ready to Take on FCA Over Diesel Rigging Allegations

Automaker accused of using “defeat device” to meet emissions mandates.

by on May.18, 2017

The Ram 1500 turbodiesel has won a number of awards - but the EPA claims it was rigged to pass emissions tests.

The U.S. Justice Department has reportedly given Fiat Chrysler Automobiles an ultimatum: either settle allegations it rigged its diesel models to illegally pass U.S. emissions tests or be hit with a lawsuit.

With the Euro-American automaker so far fiercely challenging those claims by the government, a civil suit could be filed as early as this week, according to a report by the Reuters news service.

http://www.thedetroitbureau.com/about/subscribe

Breaking News!

The automaker says it sees the threat of litigation as “counterproductive,” adding that it “will defend itself vigorously” in court, if necessary. But whether it will now back down is uncertain considering FCA management will need to weigh the potential damages – both in terms of legal costs and possible fines and penalties, as well as the hit to its image the automaker could face.

(more…)

VW CEO Mueller Target of Criminal Probe

Despite concerns about role in diesel scandal, Audi CEO Stadler gets new contract.

by on May.17, 2017

VW CEO Matthias Mueller his now at the center of an investigation by German prosecutors over the ongoing diesel emissions scandal.

Already focused on a number of former Volkswagen employees, German prosecutors today said they are also investigating the possible role CEO Matthias Mueller may have played in the attempt to cover up VW’s diesel emissions scandal.

Specifically, Mueller and at least two others may have failed to properly informed regulators and investors soon enough once they learned that Volkswagen engineers had developed a so-called defeat device in an attempt to fool diesel vehicle emissions tests.

Global Auto News!

Even while the probe expands, however, news reports from Germany indicate Rupert Stadler, the CEO of VW’s Audi luxury brand, will have his contract extended five years. Though well-rated for his handling of Audi overall, Stadler has come under fire for his own, alleged role in the diesel scandal. (more…)

VW’s Mueller Under Investigation Over Diesel Scandal

Move comes from his time as head of Porsche.

by on May.10, 2017

VW CEO Matthias Mueller is under investigation over his role in VW's diesel scandal while he led Porsche.

Volkswagen’s woes related to its diesel scandal continue as Volkswagen Group CEO Matthias Mueller is now under investigation in Germany.

Prosecutors are investigating the possibility that he did not fully disclose details of the company’s emissions scandal to investors, according to multiple reports.

Global Auto News!

Until now, Mueller managed to remain above the diesel investigatory fray. Other VW executives, most notably former CEO Martin Winterkorn, who denied any involvement, but resigned anyway, have been caught up in the churn of queries over the 2015 emissions scandal. (more…)

VW Declares “The Future is Electric”

German maker reveals e-mobility plans to investors – but declines to release diesel probe.

by on May.10, 2017

VW CEO Matthias Mueller plans to triple spending on alternative powertrain technologies.

Volkswagen executives had a lot to say about their plans to bring electric and high-efficiency gas vehicles to market over the next decade, during the German automaker’s annual shareholders meeting – but they were largely mum when it came to the specifics of an extensive internal probe into the company’s cheating on diesel emissions standards.

“The future is electric,” declared Volkswagen Group CEO Matthias Mueller, during the annual meeting in Hanover, not far from the automaker’s headquarters in Wolfsburg. And VW, he added, “intend(s) to be the number one in e-mobility by 2025.

Subscribe Now!

The German automaker plans to bring out 10 electrified models by 2018, and have 30 more battery-electric models in its product portfolio by 2025, said Mueller, expanding on VW’s earlier commitment to the technology. All 12 of the company’s brands are expected to add some electrified models.

(more…)

VW Sweetens Deals to Move Leftover Diesels

Low-interest loans, cash bonuses of up to $8,500 aimed to clear out inventory.

by on May.08, 2017

VW recently got permission from the EPA to update rigged 2015 diesels and sell them off.

While VW no longer plans to import diesels in the wake of its costly and embarrassing emissions scandal, the company has thousands of leftover models that it now has permission from the EPA to sell in the U.S. after making extensive powertrain modifications.

Getting wary buyers to snap them up is proving a challenge, no surprise for 2015 model-year leftovers. So, VW is offering some hefty incentives – including extended, zero-interest loans and up to $8,500 in cash – to get those products off showroom lots.

The Rest of the Story!

The diesels now meet tough U.S. emissions mandates. Originally, they carried a hidden “defeat device,” software code that was designed to detect when one of the vehicles was undergoing testing and revise the way the cars performed. In real-world conditions, however, they would produce up to about 40 times more pollutants – notably smog-causing oxides of nitrogen – than the law allows.

(more…)

Daimler Cautions it Could Be Target for Diesel Penalties and Recalls

Warning comes days after court approves $2.8b VW diesel fine.

by on Apr.26, 2017

The 2017 Mercedes-Benz ML320 BlueTec is one a number of different Daimler diesels.

Daimler AG is finding itself in the crosshairs and wondering whether it could be the next target in a crackdown on diesel emissions scams.

The automaker today issued an advisory that it could face penalties, which could mean fines and recalls, as regulators in the U.S. and abroad look to see if the German luxury maker violated rules covering its various diesel models. Authorities have been taking a close look at claims made by a number of manufacturers in the wake of revelations that Volkswagen used a so-called “defeat device” to illegally pass U.S. diesel emissions tests.

We're Your Automotive News Source!

“In light of the ongoing governmental information requests, inquiries and investigations, and our own internal investigation, it cannot be ruled out that the authorities might reach the conclusion that Mercedes-Benz diesel vehicles have similar functionalities,” Daimler said in its newly released quarterly report.

(more…)

Judge Approves $2.8 bil VW Criminal Penalty

Largest criminal fine in U.S. history.

by on Apr.21, 2017

"A very serious and troubling case involving an iconic automobile company," said Judge Sean Cox.

A federal judge in Detroit Friday signed off on what could be one of the last big developments in the Volkswagen diesel emissions scandal, ordering the German maker to pay a $2.8 billion criminal penalty negotiated as part of a settlement with the U.S. Justice Department last January.

The ruling now brings to around $30 billion the costs VW will incur after being caught rigging two of its diesel engines to illegal pass U.S. emissions tests – a figure that includes the price of buying back almost 500,000 vehicles sold in the country. Meanwhile, seven current and former Volkswagen employees have been charged with crimes connected to the scandal, while an investigation continues in Germany.

Subscribe Now!

“I just can’t believe that VW is in this situation that it finds itself in today,” said Judge Sean Cox, calling it a “very serious and troubling case involving an iconic automobile company.”

(more…)