• 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: Triumph of the Bean Counters
  • VW Teases U.S. Version of ID.Buzz — and Here’s What We Know About the Electric Microbus
  • Make Sure You're Good to Go for the Holiday Weekend
  • Hyundai, LGES Building $4.3B EV Battery Plant in U.S.
  • New Vehicle Sales Set to Rise, Used Vehicle Sales Expected to Drop in May
  • Ford Teaming with Tesla to Make Charging Even Easier
  • Q&A: VinFast CEO Van Anh Nguyen Talks Tough Reviews, Tough Learning Curve, Bright Future
  • Stellantis Invests in new Lithium-Sulfur EV Battery Tech
  • The Safest Cars For Your Teenage Driver
  • Honda Teams with Aston Martin in Formula One Return
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: 2023 Electrified GV70 AWD Prestige
    • A Week With: 2023 BMW XM
    • A Week With: 2023 Mercedes-Benz GLS 580 4Matic
    • First Drive: 2024 Audi Q8 e-Tron Prestige
    • First Drive: 2024 Volvo C40 Recharge Single Motor
    • A Week With: 2023 Ford Bronco Everglades Edition
    • First Drive: 2024 Kia Seltos
    • A Week With: 2023 Volvo V60 Cross Country B5 AWD
    • 2023 Kia Sportage PHEV X-Line Prestige AWD
    • First Drive: 2023 VinFast VF 8 City Edition
    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 > Latest VW Diesel Deal Could Be Even More Costly

        Latest VW Diesel Deal Could Be Even More Costly

        German maker could pay $4b, triple initial pricetag, if it can’t fix 3-liter engine.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        Feb. 01, 2017
        A line-up of Audi TDI models. The automaker may have to boost its reserve to cover the diesel scandal.

        The settlement covering a rigged, 3.0-liter turbodiesel could cost Volkswagen as much as $4 billion if it cannot come up with the necessary fix for nearly 60,000 vehicles whose engines were rigged to illegally pass U.S. emissions tests – at least three times more than the initial settlement calls for.

        The impact of the scandal – which previously saw VW agree to pay out $14.7 billion to cover nearly 500,000 vehicles using a smaller diesel engine – continues to grow, and to spread. German mega-supplier Robert Bosch GmbH now has negotiated its own settlement, which will require it to pay $327.5 million to American owners of VW diesels.

        Subscribe Now!

        Meanwhile, VW’s Audi division is now examining whether it has set aside enough money to cover its share of the burden. It has already set the figure at 980 million euros, or $1.06 billion at the current exchange rate. Audi sold a number of different models in the U.S. using both the 2.0- and 3.0-liter turbodiesels.

        (Toyota cedes global sales crown for 2016 to VW. Click Here for the story.)

        Finalizing the 3.0-liter settlement in a U.S. federal court marks one of the last hurdles for VW to move beyond the diesel scandal that erupted in September 2015 when the U.S. Environmental Protection Agency charged it with using a “defeat device” to illegally pass emissions rules. The system was able to detect when a vehicle was being tested and sharply reduce pollution levels. The EPA subsequently said the bigger engine had also been rigged, VW acknowledging the subterfuge soon afterwards.

        A VW Touareg with the 3.0-liter TDI.

        The maker agreed to a $14.7 billion plan in July that will force it to buy back most of the vehicles equipped with the 2.0-liter diesel. But the latest deal is based on expectations that it will only have to repurchase about a quarter of the cars using the larger engine. Those were produced during the 2009 to 2012 model-years, the maker confirmed today, acknowledging no readily available fix would bring it into compliance with emissions mandates.

        But it expects to be able to deliver a fix acceptable to regulators for the remaining 58,000 vehicles sold from 2013 through the 2016 model-years, according to Hinrich Woebcken. The CEO of Volkswagen Group of American said owners “will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders.”

        According to a statement issued Wednesday by the carmaker, “Volkswagen will begin the 3.0L TDI settlement program as soon as the Court grants final approval to the settlement agreements. At the earliest, approval will occur in May 2017.”

        The potential wrinkle is that VW will have to buy back all those vehicles if it cannot come up with an acceptable repair, and that could boost the price tag to more than $4 billion.

        Getting a fix in place would not only cut the cost of the latest settlement but also put VW in the position of being able to start selling diesel vehicles in the U.S. again. They have been off the market since the scandal broke.

        The maker has actually indicated it won’t relaunch diesels under the VW brand, but Scott Keogh, the CEO of Audi of America, recently said the luxury brand may bring back the 3.0-liter diesel in one or two of its models.

        While VW’s image has been badly damaged by the diesel scandal, it has begun to see a turnaround, U.S. sales rising 17% last year over January 2016. Audi has largely escaped the image hit and announced record volume last month.

        (For more on January car sales, Click Here.)

        But the luxury brand, which operates as a semi-autonomous subsidiary, has taken a financial hit. And that could grow.

        “We are using the court documents to review what we still need to set aside for the annual accounts,” an Audi spokesman said in Germany.

        Separately, Robert Bosch, a key supplier on the VW diesel program, was accused of participating in the scam. It now will pay $327.5 million to U.S. diesel owners, as well.

        Former VW CEO Martin Winterkorn.

        Along with the two major U.S. civil settlements, Volkswagen has agreed to pay $1 billion to its American dealers. And it last month agreed to a $4.3 billion criminal fine. Six of its managers also face criminal charges, though only one is currently in U.S. custody. Additional indictments could follow, said Loretta Lynch, the U.S. Attorney General who retired at the end of the Obama Administration.

        Separately, German prosecutors last month said they were increasing scrutiny of senior VW executives, notably including former CEO Martin Winterkorn, who resigned shortly after the diesel emissions scandal broke in late 2015.

        (For more on Winterkorn’s legal troubles, Click Here.)

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: Triumph of the Bean Counters

        May 27, 2023
        VW tease for ID Buzz three row

        VW Teases U.S. Version of ID.Buzz — and Here’s What We Know About the Electric Microbus

        May 26, 2023
        Hyundai and LGES handshake for GA battery plant REL

        Hyundai, LGES Building $4.3B EV Battery Plant in U.S.

        May 26, 2023

        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: