• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: A Sports Car from a Company You've Never Heard Of
  • Analysts Predict Declining Tesla Sales in Q3
  • Overlanding is the New Hotness
  • New Vehicle Sales Increase in September
  • Are EVs Affordable? Only if You’re a Luxury Buyer
  • Honda Takes Wraps Off New All-Electric Prologue
  • Mercedes to Offer True Self-Driving in Late 2023
  • Biden Meets UAW Picketers, Offers Support
  • Ford Halts $3.5B MI Battery Plant; Fain Slams Company
  • An Electric Acura NSX Could Be Coming
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2024 Buick Encore GX Sport Touring AWD
    • A Week With: 2023 Mercedes-Benz EQB 250+
    • A Week With: 2024 Mazda CX-90 Turbo S Premium Plus
    • A Week With: 2024 Mercedes-AMG EQE SUV
    • A Week With: The 2024 BMW i7 xDrive60
    • A Week With: 2024 Alfa Romeo Tonale Veloce AWD
    • A Week With: 2023 Toyota Camry XSE Hybrid
    • A Week With: 2024 Subaru Impreza RS
    • A Week With: 2023 Chevrolet Colorado ZR2 Desert Boss
    • First Drive: 2024 Polestar 2
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > Volkswagen to Spend $8.8 Bil on U.S. Diesel Buy Back and Fix

        Volkswagen to Spend $8.8 Bil on U.S. Diesel Buy Back and Fix

        Maker will shift focus to electric cars, says CEO Mueller.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        April 28, 2016
        Volkswagen's Matthias Mueller outlined the automaker's plan to spend $8.8 billion to buy back cars with faulty diesel engines.

        Volkswagen expects to spend about 7.8 billion euros, or $8.8 billion, to buy back or fix the diesel cars it had rigged as part of an emissions testing scam.

        The maker already has accounted for that charge, however, including it in the $18.2 billion deducted from 2015 earnings, CEO Matthias Mueller said Thursday. While the maker has yet to get formal approval for a U.S. fix, the executive said that dealing with the rigged diesels “will remain our most important task until the very last vehicle has been put in order.”

        News Now!

        Mueller also said that Volkswagen plans to increasingly shift focus away from the high-mileage diesels that have been a major plank in its product portfolio. It will now make battery-based vehicles – including hybrids, plug-ins and pure battery-electric models – “one of Volkswagen’s new hallmarks.”

        VW plans to have 20 new battery-based models in its portfolio by 2020. It already has several on sale around the world, including fully electric versions of both the Golf and the smaller Up! In recent months, it has been offering hints of what else might be coming with concept vehicles like the Volkswagen T-Prime GTE that debuted this week at the Beijing Auto Show.

        (Despite diesel dilemma, VW snatches global sales lead from Toyota. For more, Click Here.)

        Speaking at Volkswagen’s annual news conference in its headquarters town of Wolfsburg, Germany, the CEO repeated the refrain he has sounded frequently since last autumn. “We disappointed many people who trusted Volkswagen,” said Mueller, who served as head of Porsche until being tapped to replace ousted VW Chief Executive Martin Winterkorn last September.

        In all, about 11 million vehicles sold around the world were equipped with a so-called “defeat device,” software designed to detect when a VW diesel was undergoing emissions tests and, if so, to adjust engine settings to reduce levels of smog-causing oxides of nitrogen.

        VW sold almost 500,000 vehicles using a rigged 2.0-liter diesel engine in the U.S., as well as a smaller number of models with an illegally modified 3.0-liter turbodiesel. It last week offered a plan to a federal judge in San Francisco that would involve either buying back or fixing those vehicles and then offering compensation to owners.

        It remains to be seen if that proposal will win the court’s approval or be accepted by the U.S. Environmental Protection Agency which initially revealed the diesel scam last September. But the proposal could help resolve hundreds of lawsuits filed by owners, as well as VW dealers and shareholders.

        (Click Here for details about VW’s plans to appeal the latest NLRB ruling.)

        Ultimately, analysts have estimated the maker could spend anywhere from $23 billion to $46 billion to settle the matter. VW may, in turn, have to sell off some assets to cover those costs.

        The decision to take an $18.2 billion hit to 2015 earnings meant VW had a $4.65 billion operating loss last year, the biggest in its history. That is forcing the maker to enact cost reductions across an empire that includes 13 separate brands.

        Even so, Mueller said VW is committed to expanding its presence in the still emerging battery-car market, a strategy expected to incur significant development costs.

        Mueller wasn’t entirely downbeat, however, forecasting Volkswagen will be able to post solid growth in its operating business for all of 2016. The company’s car business remains “fundamentally sound,” he insisted.

        (To see the latest example of Volkswagen’s plans to move away from diesels and toward EVs, Click Here.)

        Separately, Mueller said VW will be forming an independent company to explore alternative business models, such as ride-sharing and car-sharing. That follows similar moves by key competitors, ranging from Germany’s Daimler AG to Ford Motor Co. and General Motors. GM earlier this year invested $500 million in ride-share service Lyft, while also launching its own car-sharing subsidiary Maven.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: A Sports Car from a Company You’ve Never Heard Of

        Sept. 30, 2023

        Analysts Predict Declining Tesla Sales in Q3

        Sept. 29, 2023

        Overlanding is the New Hotness

        Sept. 29, 2023

        One response to “Volkswagen to Spend $8.8 Bil on U.S. Diesel Buy Back and Fix”

        1. Bob says:
          May 2, 2016 at 8:12 pm

          Interesting so what will happen whe electric cars go bust ?

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: