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Volkswagen's decision to use illegal software on their diesel vehicles has been costing them dearly. Reuters reports that Volkswagen is setting aside an additional 2.5 billion Euros (about $2.95 billion) due to difficulties with fixing the affected diesel models, particularly with the hardware. "The reason is an increase in provisions relating to the buyback/retrofit program for 2.0l TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time consuming," the company said in a statement. This pushes the total bill to $30 billion. The news comes a day after German prosecutors arrested Wolfgang Hatz, former r&d head of Porsche and head of powertrain development for Audi and Volkswagen. Hatz is being questioned by prosecutors for his involvement in the diesel emission scandal. “Investors will understandably worry what else may be next,” said BNP Paribas analyst Stuart Pearson. This news brought the share price of Volkswagen down three percent. Source: Reuters -
Volkswagen's decision to use illegal software on their diesel vehicles has been costing them dearly. Reuters reports that Volkswagen is setting aside an additional 2.5 billion Euros (about $2.95 billion) due to difficulties with fixing the affected diesel models, particularly with the hardware. "The reason is an increase in provisions relating to the buyback/retrofit program for 2.0l TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time consuming," the company said in a statement. This pushes the total bill to $30 billion. The news comes a day after German prosecutors arrested Wolfgang Hatz, former r&d head of Porsche and head of powertrain development for Audi and Volkswagen. Hatz is being questioned by prosecutors for his involvement in the diesel emission scandal. “Investors will understandably worry what else may be next,” said BNP Paribas analyst Stuart Pearson. This news brought the share price of Volkswagen down three percent. Source: Reuters View full article
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There were concerns that Volkswagen would not be able to come up with a fix for their 1st-generation 2.0L TDI models that would meet the approval of various U.S. regulators. But never say never as the Environmental Protection Agency and California Air Resources Board have given their approval for Volkswagen's proposed fix for 326,000 vehicles with this engine. Reuters reports the fix will involve Volkswagen making numerous upgrades to the hardware and software, including a new emissions catalyst. This will make these vehicles legal, but drop average fuel economy figures by 2 mpg. “To obtain this approval, VW submitted test data and technical information that demonstrates that the modification will reduce emissions without negatively affecting vehicle reliability or durability. VW will thoroughly identify any differences in vehicle attributes (such as fuel economy) so owners may make an informed choice,” said the EPA in a statement. Volkswagen still needs to come up with a resale plan for 2009-2014 TDI models that were bought back as part of their settlement. Reuters says a plan is due in the coming weeks. Source: Reuters -
There were concerns that Volkswagen would not be able to come up with a fix for their 1st-generation 2.0L TDI models that would meet the approval of various U.S. regulators. But never say never as the Environmental Protection Agency and California Air Resources Board have given their approval for Volkswagen's proposed fix for 326,000 vehicles with this engine. Reuters reports the fix will involve Volkswagen making numerous upgrades to the hardware and software, including a new emissions catalyst. This will make these vehicles legal, but drop average fuel economy figures by 2 mpg. “To obtain this approval, VW submitted test data and technical information that demonstrates that the modification will reduce emissions without negatively affecting vehicle reliability or durability. VW will thoroughly identify any differences in vehicle attributes (such as fuel economy) so owners may make an informed choice,” said the EPA in a statement. Volkswagen still needs to come up with a resale plan for 2009-2014 TDI models that were bought back as part of their settlement. Reuters says a plan is due in the coming weeks. Source: Reuters View full article
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Weeks before the Volkswagen diesel emission scandal came to light, several executives were reportedly warned about the possible costs during a meeting. German tabloid Bild am Sonntag reports that Oliver Schmidt, a Volkswagen executive that was arrested earlier this year in U.S., said the costs of diesel emission cheating could cost the company up to $18.5 billion during a presentation held on August 25, 2015. Those that attended the presentation included former Volkswagen CEO Martin Winterkorn, VW's development chief at the time Heinz-Jakob Neusser, and Volkswagen brand chief Herbert Diess. This information comes from U.S. investigation documents obtained by the paper. The issue at hand is that German law requires a company publish any news dealing with the stock in a timely fashion. Volkswagen notified investors about the cheating on September 18, almost a month after this reported meeting. A number of Volkswagen investors have filed suit against the company due to the losses from the diesel emission scandal. German prosecutors are also investigating Volkswagen into possible market manipulation. Source: Bild am Sonntag via Reuters -
Weeks before the Volkswagen diesel emission scandal came to light, several executives were reportedly warned about the possible costs during a meeting. German tabloid Bild am Sonntag reports that Oliver Schmidt, a Volkswagen executive that was arrested earlier this year in U.S., said the costs of diesel emission cheating could cost the company up to $18.5 billion during a presentation held on August 25, 2015. Those that attended the presentation included former Volkswagen CEO Martin Winterkorn, VW's development chief at the time Heinz-Jakob Neusser, and Volkswagen brand chief Herbert Diess. This information comes from U.S. investigation documents obtained by the paper. The issue at hand is that German law requires a company publish any news dealing with the stock in a timely fashion. Volkswagen notified investors about the cheating on September 18, almost a month after this reported meeting. A number of Volkswagen investors have filed suit against the company due to the losses from the diesel emission scandal. German prosecutors are also investigating Volkswagen into possible market manipulation. Source: Bild am Sonntag via Reuters View full article
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As the Diesel Emits: Parking Lot Full of TDIs Become A Legal Problem
William Maley posted an article in Volkswagen
With Volkswagen buying back a large chunk of the 2.0L TDIs involved the diesel emission scandal, the question arises of where to store them. The answer according to the German automaker is they are storing them at "regional facilities." One of those regional facilities is the parking lot of the Pontiac Silverdome - former home to the Detroit Lions - in Pontiac, MI. However, the vehicles stored there find themselves in a bit of legal trouble. The Oakland Press reports that the City of Pontiac has filed a lawsuit against the owners of Silverdome, the Triple Investment Group for numerous violations in zoning, safety, and a municipal code dealing with the storage of vehicles; "a special exemption permit is needed for parking and exterior storage of vehicles." A hearing was planned last week, but was adjourned. “Our client is actively engaged and working with the city. We hope to resolve our differences with the city and we believe we are making good progress and working together. We are still waiting on a schedule for (the hearing) but we are hopeful that we will resolve the differences in the meantime and further hearings won’t be necessary,” said J. Patrick Lennon, a partner at Honigman Miller Schwartz and Cohn, the lawfirm representing Triple Investment Group. A Volkswagen spokeswoman told Automotive News the company is talking with their “service provider” to see if all of the permits that allow vehicles to be stored at the Silverdome are up to date. Source: The Oakland Press, Automotive News (Subscription Required) Pic Credit: WXYZ -
With Volkswagen buying back a large chunk of the 2.0L TDIs involved the diesel emission scandal, the question arises of where to store them. The answer according to the German automaker is they are storing them at "regional facilities." One of those regional facilities is the parking lot of the Pontiac Silverdome - former home to the Detroit Lions - in Pontiac, MI. However, the vehicles stored there find themselves in a bit of legal trouble. The Oakland Press reports that the City of Pontiac has filed a lawsuit against the owners of Silverdome, the Triple Investment Group for numerous violations in zoning, safety, and a municipal code dealing with the storage of vehicles; "a special exemption permit is needed for parking and exterior storage of vehicles." A hearing was planned last week, but was adjourned. “Our client is actively engaged and working with the city. We hope to resolve our differences with the city and we believe we are making good progress and working together. We are still waiting on a schedule for (the hearing) but we are hopeful that we will resolve the differences in the meantime and further hearings won’t be necessary,” said J. Patrick Lennon, a partner at Honigman Miller Schwartz and Cohn, the lawfirm representing Triple Investment Group. A Volkswagen spokeswoman told Automotive News the company is talking with their “service provider” to see if all of the permits that allow vehicles to be stored at the Silverdome are up to date. Source: The Oakland Press, Automotive News (Subscription Required) Pic Credit: WXYZ View full article
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The diesel emission scandal has once again flared up as Audi stands accused of using illegal software on certain A7 and A8 TDI models. Yesterday, German Transport Minister Alexander Dobrindt announced that Audi employed illegal software to cheat emission tests on certain A7 and A8 models built between 2009 to 2013. The affected models are said to emit twice the legal limit of nitrogen oxides when the steering wheel is turned more than 15 degrees - a condition that would happen in the real world and not in the lab. German tabloid Bild reported that Volkswagen Group CEO Matthias Mueller was summoned to the transport ministry. A ministry spokesman confirmed Muller's visit to Reuters. The ministry has requested the company to issue a recall on the two models - 24,000 in total with 14,000 of those registered in Germany - and set a deadline for June 12 for a plan to retrofit the vehicles with legal software. Audi did issue the recall last night and said it has a fix coming in July. According to a source, the issue deals with the interaction between transmission and engine control units and that a fix has been submitted to Germany's transportation watchdog, the KBA. Source: Deutsche Welle, Reuters View full article
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As the Diesel Emits: Audi Faces Accusations On A7 and A8 TDIs Cheating
William Maley posted an article in Audi
The diesel emission scandal has once again flared up as Audi stands accused of using illegal software on certain A7 and A8 TDI models. Yesterday, German Transport Minister Alexander Dobrindt announced that Audi employed illegal software to cheat emission tests on certain A7 and A8 models built between 2009 to 2013. The affected models are said to emit twice the legal limit of nitrogen oxides when the steering wheel is turned more than 15 degrees - a condition that would happen in the real world and not in the lab. German tabloid Bild reported that Volkswagen Group CEO Matthias Mueller was summoned to the transport ministry. A ministry spokesman confirmed Muller's visit to Reuters. The ministry has requested the company to issue a recall on the two models - 24,000 in total with 14,000 of those registered in Germany - and set a deadline for June 12 for a plan to retrofit the vehicles with legal software. Audi did issue the recall last night and said it has a fix coming in July. According to a source, the issue deals with the interaction between transmission and engine control units and that a fix has been submitted to Germany's transportation watchdog, the KBA. Source: Deutsche Welle, Reuters -
Volkswagen was planning to publish the final report on the external investigation done by U.S. law firm Jones Day. But in a move that surprised no one, Volkswagen has decided not to publish it. "I’m aware that some of you wish for greater transparency. Often the publishing of a full report is demanded. To be clear: there is no written final report from Jones Day, nor will there be. I ask for your understanding that for legal reasons Volkswagen is prevented from publishing any such report," said VW Chairman Hans Dieter Poetsch at the company's annual general meeting. Poetsch said Volkswagen would risk “massive fines" if the report was published. While Volkswagen has settled with the U.S. over the scandal, there are a number of civil cases against the company and other investigations ongoing. It should be noted Volkswagen used this same excuse last April when it announced that it would not publish the preliminary findings of its internal investigation. Unsurprisingly, this move has gotten a lot of heat from investors and government officials. Christian Strenger, a shareholder rights advocate, and German corporate governance expert said Volkswagen's management and directors need to "put all their cards on the table," as there is a legal back door that allows the company to publish new information. "Under the plea agreement, the U.S. has a right to see any findings and agree to them in advance," said Strenger. "Your reference to the statement of facts agreed in the U.S. is completely insufficient and almost insulting to all those who are interested in complete clarification of responsibilities." Louise Ellman, who led the UK Transport Select Committee in the investigation of the diesel emission scandal called Poetsch's comments "not credible". “We were told very clearly by VW that the report would be published in due course. Saying there is no report is not credible, it stretches the imagination too far and lets down consumers,” said Ellman to British paper, The Telegraph. But there might be more to Volkswagen's decision as to not wanting to publish this report. Yesterday, Bloomberg reported that Poetsch and Volkswagen CEO Matthias Müller are under investigation by Stuttgart prosecutors for market manipulation relating to the diesel emission mess. Then today, a source revealed to Bloomberg that Müller is under investigation for possibly withholding information about the scandal to Porsche SE shareholders. German weekly WirtschaftsWoche says the investigation stems from a complaint filed last July by BaFin, Germany’s Financial Supervisory Authority that linked several Porsche SE executives to possible market manipulation. Source: Automotive News (Subscription Required), The Telegraph, Bloomberg, WirtschaftsWoche View full article
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Volkswagen was planning to publish the final report on the external investigation done by U.S. law firm Jones Day. But in a move that surprised no one, Volkswagen has decided not to publish it. "I’m aware that some of you wish for greater transparency. Often the publishing of a full report is demanded. To be clear: there is no written final report from Jones Day, nor will there be. I ask for your understanding that for legal reasons Volkswagen is prevented from publishing any such report," said VW Chairman Hans Dieter Poetsch at the company's annual general meeting. Poetsch said Volkswagen would risk “massive fines" if the report was published. While Volkswagen has settled with the U.S. over the scandal, there are a number of civil cases against the company and other investigations ongoing. It should be noted Volkswagen used this same excuse last April when it announced that it would not publish the preliminary findings of its internal investigation. Unsurprisingly, this move has gotten a lot of heat from investors and government officials. Christian Strenger, a shareholder rights advocate, and German corporate governance expert said Volkswagen's management and directors need to "put all their cards on the table," as there is a legal back door that allows the company to publish new information. "Under the plea agreement, the U.S. has a right to see any findings and agree to them in advance," said Strenger. "Your reference to the statement of facts agreed in the U.S. is completely insufficient and almost insulting to all those who are interested in complete clarification of responsibilities." Louise Ellman, who led the UK Transport Select Committee in the investigation of the diesel emission scandal called Poetsch's comments "not credible". “We were told very clearly by VW that the report would be published in due course. Saying there is no report is not credible, it stretches the imagination too far and lets down consumers,” said Ellman to British paper, The Telegraph. But there might be more to Volkswagen's decision as to not wanting to publish this report. Yesterday, Bloomberg reported that Poetsch and Volkswagen CEO Matthias Müller are under investigation by Stuttgart prosecutors for market manipulation relating to the diesel emission mess. Then today, a source revealed to Bloomberg that Müller is under investigation for possibly withholding information about the scandal to Porsche SE shareholders. German weekly WirtschaftsWoche says the investigation stems from a complaint filed last July by BaFin, Germany’s Financial Supervisory Authority that linked several Porsche SE executives to possible market manipulation. Source: Automotive News (Subscription Required), The Telegraph, Bloomberg, WirtschaftsWoche -
You would think the stigma of the diesel emission scandal would keep people away from picking up a fixed Volkswagen TDI model, but you would be wrong. Reuters notes that in April, 12 percent of Volkswagen's sales were for TDI models (about 3,196 vehicles). This is quite impressive when you take into consideration that Volkswagen was only given the go-ahead to sell TDI models with the fix back in mid-April. But we have to wonder if this percentage would be the same if Volkswagen didn't put some enticing incentives on TDI vehicles. As we reported last month, Volkswagen is offering either 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy or an $8,500 cash bonus if you lease. Source: Reuters View full article
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As the Diesel Emits: Volkswagen's Fixed TDIs Are Hot Sellers
William Maley posted an article in Volkswagen
You would think the stigma of the diesel emission scandal would keep people away from picking up a fixed Volkswagen TDI model, but you would be wrong. Reuters notes that in April, 12 percent of Volkswagen's sales were for TDI models (about 3,196 vehicles). This is quite impressive when you take into consideration that Volkswagen was only given the go-ahead to sell TDI models with the fix back in mid-April. But we have to wonder if this percentage would be the same if Volkswagen didn't put some enticing incentives on TDI vehicles. As we reported last month, Volkswagen is offering either 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy or an $8,500 cash bonus if you lease. Source: Reuters -
One question that we have found ourselves wondering is who blew the whistle on the software cheat Volkswagen was using on their TDI models. A new book says it was someone at Volkswagen of America. Automotive News got their hands on Faster, Higher, Farther: The Volkswagen Scandal by New York Times reporter Jack Ewing. In the book, Ewing reveals that the head of VW’s Engineering and Environmental Office in the U.S., Stuart Johnson revealed the existence of the cheat to federal authorities. Johnson was the primary contact for the various regulation agencies in the U.S. and would be one of the people on the front lines when the scandal unfolded. In the book, CARB deputy executive director Alberto Ayala named Johnson as the person who revealed the existence of Volkswagen's illegal software. This revelation took place prior to a key meeting between CARB and Volkswagen on August 19, 2015. By revealing this information, Johnson was violating orders given by VW's higher ups. This meeting is mentioned in the federal indictment of Oliver Schmidt, a former VW executive who is facing 11 federal charges dealing with the scandal. Johnson is mentioned in the indictment as “Cooperating Witness 1.” The indictment also states the witness “has agreed to cooperate with the government’s investigation in exchange for an agreement that the government will not prosecute CW1 in the United States.” Source: Automotive News (Subscription Required) View full article
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As the Diesel Emits: Who Blew the Whistle on Volkswagen's Cheating?
William Maley posted an article in Volkswagen
One question that we have found ourselves wondering is who blew the whistle on the software cheat Volkswagen was using on their TDI models. A new book says it was someone at Volkswagen of America. Automotive News got their hands on Faster, Higher, Farther: The Volkswagen Scandal by New York Times reporter Jack Ewing. In the book, Ewing reveals that the head of VW’s Engineering and Environmental Office in the U.S., Stuart Johnson revealed the existence of the cheat to federal authorities. Johnson was the primary contact for the various regulation agencies in the U.S. and would be one of the people on the front lines when the scandal unfolded. In the book, CARB deputy executive director Alberto Ayala named Johnson as the person who revealed the existence of Volkswagen's illegal software. This revelation took place prior to a key meeting between CARB and Volkswagen on August 19, 2015. By revealing this information, Johnson was violating orders given by VW's higher ups. This meeting is mentioned in the federal indictment of Oliver Schmidt, a former VW executive who is facing 11 federal charges dealing with the scandal. Johnson is mentioned in the indictment as “Cooperating Witness 1.” The indictment also states the witness “has agreed to cooperate with the government’s investigation in exchange for an agreement that the government will not prosecute CW1 in the United States.” Source: Automotive News (Subscription Required) -
More good news for Volkswagen as the EPA has finally given the ok for the company to start selling repaired TDI vehicles. Bloomberg has learned from Volkswagen Group of America spokeswoman Jeannine Ginivan that dealers can sell TDI models from the 2015 model year once they have been updated with new software. The fix will also include new hardware for the diesel engine, but dealers don't have to wait for the parts to come in early next year. "We are still finalizing the details of this program and will provide more information on its implementation at the appropriate time,” said Ginivan. It should be noted this is only a symbolic step as only 67,000 vehicles are eligible for this - 12,000 of which are currently sitting on dealer lots. The big question is whether or not anyone is interested in buying a Volkswagen TDI vehicle considering all of the trouble it has brought. Source: Bloomberg -
More good news for Volkswagen as the EPA has finally given the ok for the company to start selling repaired TDI vehicles. Bloomberg has learned from Volkswagen Group of America spokeswoman Jeannine Ginivan that dealers can sell TDI models from the 2015 model year once they have been updated with new software. The fix will also include new hardware for the diesel engine, but dealers don't have to wait for the parts to come in early next year. "We are still finalizing the details of this program and will provide more information on its implementation at the appropriate time,” said Ginivan. It should be noted this is only a symbolic step as only 67,000 vehicles are eligible for this - 12,000 of which are currently sitting on dealer lots. The big question is whether or not anyone is interested in buying a Volkswagen TDI vehicle considering all of the trouble it has brought. Source: Bloomberg View full article
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Today at U.S. District Court in Detroit, Volkswagen pleaded guilty on three felony charges relating to the diesel emission scandal as part of a plea agreement. The three felonies are conspiracy, obstruction of justice, and introducing imported merchandise into the United States by means of false statements. "Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts," said Volkswagen general counsel Manfred Doess at the hearing. As part of the plea deal, Volkswagen will pay $4.3 billion in penalties and have an independent monitor to oversee U.S. operations over the next three years. The deal also requires Volkswagen to continue cooperating with federal and state investigators. A sentencing hearing has been scheduled for April 21st. Source: Automotive News (Subscription Required), Reuters View full article
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Today at U.S. District Court in Detroit, Volkswagen pleaded guilty on three felony charges relating to the diesel emission scandal as part of a plea agreement. The three felonies are conspiracy, obstruction of justice, and introducing imported merchandise into the United States by means of false statements. "Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts," said Volkswagen general counsel Manfred Doess at the hearing. As part of the plea deal, Volkswagen will pay $4.3 billion in penalties and have an independent monitor to oversee U.S. operations over the next three years. The deal also requires Volkswagen to continue cooperating with federal and state investigators. A sentencing hearing has been scheduled for April 21st. Source: Automotive News (Subscription Required), Reuters -
The blame game over the Volkswagen diesel emission scandal continues with the former chairman Ferdinand Piëch saying that Volkswagen's top brass knew about the cheating months before it came to light. German newspaper Bild reported yesterday that Piëch told prosecutors that he informed Martin Winterkorn and four other members of Volkswagen's supervisory board about the possible cheating with their diesel engines. The other members include, Stephan Weil, prime minister of the German state of Lower Saxony Bernd Osterloh, works council chief Berthold Huber, former IG Metall union head Wolfgang Porsche These members have "unequivocally and emphatically" reject the allegations laid forth by Piëch. Volkswagen is none to happy about these accusations either and is considering possible legal options. "The Board of Management will carefully weigh the possibility of measures and claims against Mr. Piëch," the company said in a statement. A spokeswoman for Braunschweig prosecutors declined to comment when asked by Reuters about this story. It should be noted there is a bit of bad blood between Piëch and Volkswagen. In April 2015, Piëch was ousted as chairman for Volkswagen after a power struggle between him and Winterkorn. This might be Piëch wanting to settle some old scores and cause more problems for the company he once led. Source: Bild via Bloomberg, Reuters -
The blame game over the Volkswagen diesel emission scandal continues with the former chairman Ferdinand Piëch saying that Volkswagen's top brass knew about the cheating months before it came to light. German newspaper Bild reported yesterday that Piëch told prosecutors that he informed Martin Winterkorn and four other members of Volkswagen's supervisory board about the possible cheating with their diesel engines. The other members include, Stephan Weil, prime minister of the German state of Lower Saxony Bernd Osterloh, works council chief Berthold Huber, former IG Metall union head Wolfgang Porsche These members have "unequivocally and emphatically" reject the allegations laid forth by Piëch. Volkswagen is none to happy about these accusations either and is considering possible legal options. "The Board of Management will carefully weigh the possibility of measures and claims against Mr. Piëch," the company said in a statement. A spokeswoman for Braunschweig prosecutors declined to comment when asked by Reuters about this story. It should be noted there is a bit of bad blood between Piëch and Volkswagen. In April 2015, Piëch was ousted as chairman for Volkswagen after a power struggle between him and Winterkorn. This might be Piëch wanting to settle some old scores and cause more problems for the company he once led. Source: Bild via Bloomberg, Reuters View full article
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As the Diesel Emits: Volkswagen Reaches A Settlement Over 3.0L TDI V6
William Maley posted an article in Volkswagen
Volkswagen is making progress with moving on from the diesel emission scandal as they have announced a proposed agreement for the 3.0L TDI V6. Filed in federal court last night, the agreement totals $1.2 billion and hopes to resolve civil claims for 78,000 vehicles. The settlement includes, Buy back or terminate the lease of approximately 20,000 eligible 2009-2012 Volkswagen Touareg and Audi Q7 TDI models (dubbed the Generation 1 models). There is also the possibility of Volkswagen offering owners of these models a fix if approved by the U.S. Government. Repair the approximately 58,000 Generation 2 models (2013-2016 Volkswagen Touareg, Porsche Cayenne, and Audi Q7; 2014-2016 Audi A6, A7, A8, Q5, and Q7). Offer compensation payments as much as $16,114 for all owners of 3.0L TDI V6 models The agreement needs the approval of a federal judge. A hearing on this will take place a couple weeks from now. “With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc in a statement. Source: Bloomberg, Volkswagen Press Release is on Page 2 VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH PRIVATE PLAINTIFFS AND U.S. FEDERAL TRADE COMMISSION ON 3.0L TDI V6 VEHICLES IN THE UNITED STATES Program, if approved, would include provisions to recall and repair most affected vehicles. Options for older affected vehicles include buybacks or trade-in credits, or lease termination. All eligible owners and lessees of affected vehicles will receive cash payments. Herndon, VA (February 1, 2017) – Volkswagen AG and Volkswagen Group of America, Inc. (together, Volkswagen) announced today that they have reached proposed agreements to resolve outstanding civil claims regarding approximately 78,000 affected 3.0L TDI V6 diesel engine vehicles in the United States. Two agreements have been submitted to the Court for approval: (1) a proposed class settlement with private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee (PSC) on behalf of a nationwide class of current and certain former owners and lessees of eligible 3.0L TDI V6 vehicles; and (2) a proposed Consent Order submitted by the U.S. Federal Trade Commission (FTC). “With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc. Proposed 3.0L TDI Settlement Program Under the 3.0L TDI settlement program, Volkswagen has agreed, among other terms, to provide cash payments to all eligible members of the class, and take the following specific actions: Recall and repair, free of charge to the customer, approximately 58,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles (so-called Generation 2 vehicles) to bring them into compliance with the emissions standards to which they were originally certified, if an appropriate Emissions Compliant Repair is approved by U.S. regulators. Buy back or offer trade-in credit of equal value for, or terminate the leases of, approximately 20,000 eligible 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles (so-called Generation 1 vehicles) or, if approved by U.S. regulators, modify the vehicles to substantially reduce their nitrogen oxide (NOx) emissions so as to allow eligible owners and lessees to keep them. Volkswagen has agreed to pay up to approximately $1.2 billion in benefits for the 3.0L TDI settlement program, assuming 100% participation in the program, a 100% buyback of all eligible Generation 1 vehicles and availability of an Emissions Compliant Repair for Generation 2 vehicles. Volkswagen expects to be able to bring affected Generation 2 vehicles to the same emissions standards to which the vehicles were originally certified. 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. Potential claimants under the class settlement do not need to take any action at this time. Individual class members will receive extensive notification of their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed class settlement at a hearing scheduled to take place on February 14, 2017. More information about the proposed 3.0L TDI settlement program can be found at www.VWCourtSettlement.com. Notes to Editors The proposed settlement applies to all 3.0L TDI V6 diesel engine vehicles that Volkswagen, Audi, or Porsche marketed or sold in the United States for Model Years 2009 through 2016. The vehicles are divided into two generations, as follows: Generation 1 Vehicles Volkswagen Touareg: 2009-2012 Audi Q7: 2009-2012 Generation 2 Vehicles Volkswagen Touareg: 2013-2016 Audi Q7: 2013-2015 Audi A6, A7, A8, A8L, Q5: 2014-2016 Porsche Cayenne Diesel: 2013-2016 -
Volkswagen is making progress with moving on from the diesel emission scandal as they have announced a proposed agreement for the 3.0L TDI V6. Filed in federal court last night, the agreement totals $1.2 billion and hopes to resolve civil claims for 78,000 vehicles. The settlement includes, Buy back or terminate the lease of approximately 20,000 eligible 2009-2012 Volkswagen Touareg and Audi Q7 TDI models (dubbed the Generation 1 models). There is also the possibility of Volkswagen offering owners of these models a fix if approved by the U.S. Government. Repair the approximately 58,000 Generation 2 models (2013-2016 Volkswagen Touareg, Porsche Cayenne, and Audi Q7; 2014-2016 Audi A6, A7, A8, Q5, and Q7). Offer compensation payments as much as $16,114 for all owners of 3.0L TDI V6 models The agreement needs the approval of a federal judge. A hearing on this will take place a couple weeks from now. “With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc in a statement. Source: Bloomberg, Volkswagen Press Release is on Page 2 VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH PRIVATE PLAINTIFFS AND U.S. FEDERAL TRADE COMMISSION ON 3.0L TDI V6 VEHICLES IN THE UNITED STATES Program, if approved, would include provisions to recall and repair most affected vehicles. Options for older affected vehicles include buybacks or trade-in credits, or lease termination. All eligible owners and lessees of affected vehicles will receive cash payments. Herndon, VA (February 1, 2017) – Volkswagen AG and Volkswagen Group of America, Inc. (together, Volkswagen) announced today that they have reached proposed agreements to resolve outstanding civil claims regarding approximately 78,000 affected 3.0L TDI V6 diesel engine vehicles in the United States. Two agreements have been submitted to the Court for approval: (1) a proposed class settlement with private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee (PSC) on behalf of a nationwide class of current and certain former owners and lessees of eligible 3.0L TDI V6 vehicles; and (2) a proposed Consent Order submitted by the U.S. Federal Trade Commission (FTC). “With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc. Proposed 3.0L TDI Settlement Program Under the 3.0L TDI settlement program, Volkswagen has agreed, among other terms, to provide cash payments to all eligible members of the class, and take the following specific actions: Recall and repair, free of charge to the customer, approximately 58,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles (so-called Generation 2 vehicles) to bring them into compliance with the emissions standards to which they were originally certified, if an appropriate Emissions Compliant Repair is approved by U.S. regulators. Buy back or offer trade-in credit of equal value for, or terminate the leases of, approximately 20,000 eligible 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles (so-called Generation 1 vehicles) or, if approved by U.S. regulators, modify the vehicles to substantially reduce their nitrogen oxide (NOx) emissions so as to allow eligible owners and lessees to keep them. Volkswagen has agreed to pay up to approximately $1.2 billion in benefits for the 3.0L TDI settlement program, assuming 100% participation in the program, a 100% buyback of all eligible Generation 1 vehicles and availability of an Emissions Compliant Repair for Generation 2 vehicles. Volkswagen expects to be able to bring affected Generation 2 vehicles to the same emissions standards to which the vehicles were originally certified. 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. Potential claimants under the class settlement do not need to take any action at this time. Individual class members will receive extensive notification of their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed class settlement at a hearing scheduled to take place on February 14, 2017. More information about the proposed 3.0L TDI settlement program can be found at www.VWCourtSettlement.com. Notes to Editors The proposed settlement applies to all 3.0L TDI V6 diesel engine vehicles that Volkswagen, Audi, or Porsche marketed or sold in the United States for Model Years 2009 through 2016. The vehicles are divided into two generations, as follows: Generation 1 Vehicles Volkswagen Touareg: 2009-2012 Audi Q7: 2009-2012 Generation 2 Vehicles Volkswagen Touareg: 2013-2016 Audi Q7: 2013-2015 Audi A6, A7, A8, A8L, Q5: 2014-2016 Porsche Cayenne Diesel: 2013-2016 View full article
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Former Volkswagen CEO Martin Winterkorn is already being investigated by German prosecutors over market manipulation because of the diesel emission scandal. But now, he finds himself under a new investigation by prosecutors on the suspicion of fraud. Reuters reports that prosecutors in Braunschweig believe Winterkorn knew about the cheat used on the 2.0L TDI well before the timeframe he has admittedly publicly. This suspicion comes as the result of numerous interviews with witnesses and suspects, along with raids on 28 houses and offices this week. "Sufficient indications have resulted from the investigation, particularly the questioning of witnesses and suspects as well as the analysis of seized data, that the accused (Winterkorn) may have known about the manipulating software and its effects sooner than he has said publicly," prosecutors said in a statement. At a hearing last week in Berlin, Winterkorn declined to say when he first learned about the cheat, citing the investigation being done by prosecutors. "For now, Dr. Winterkorn is sticking with the statement he made before a German parliamentary committee of inquiry (into the scandal) on Jan. 19," said Felix Doerr, a lawyer representing Winterkorn in an email to Reuters. Prosecutors also revealed that the number of people possibly involved in the scandal has risen from 21 to 37, including Winterkorn. Source: Reuters
