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    1.8T Engine Is The Big News For Volkswagen's 2014 Lineup



    William Maley

    Staff Writer - CheersandGears.com

    July 10, 2013

    Volkswagen has announced their 2014 lineup and the big news is that the 2.5L will be bidding farewell in the Beetle, Jetta, and Passat. In its place will be a new 1.8L turbocharged four-cylinder with 170 horsepower and 184 pound-feet of torque. While the 1.8T has about the same horsepower as the outgoing 2.5, it has about seven more pound-feet of torque. The 1.8T will be available in the Jetta and Passat SEL at the start. The rest of the Passat lineup and Beetle will follow.

    The 2014 Jetta also trades in its torsen-beam rear suspension for an independent rear suspension, which should improve the driving dynamics.

    Other items of note for the 2014 Volkswagen lineup

    • Volkswagen's R-Line lineup will now include the Tiguan, Touareg, and Beetle Convertible.
    • VW Car-Net which adds security and convenience features such as crash notification, roadside assistance, stolen vehicle location assistance, remote vehicle access, vehicle health report, and more. Car-Net will be available on Beetle, Beetle Convertible, CC, Eos, Jetta, Passat, and Tiguan
    • All 2014 Volkswagen models will be able to run E85 fuel.

    Source: Volkswagen

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    07.10.2013

    MODEL YEAR 2014: MORE EFFICIENT DOWNSIZED ENGINES AND AN EXTENDED R-LINE RANGE HEAD THE CHANGES

    New 1.8-liter turbocharged and direct-injection TSI® engine to feature in Jetta, Beetle, and Passat, replacing the 2.5-liter five cylinder. R-Line® range expands to five models.

    • Jetta SE and SEL models are fitted with new 170-horsepower 1.8-liter engine, offering a manufacturer predicted highway fuel economy improvement of 16 percent
    • All Jetta models now have independent rear suspension
    • VW Car-Net™ connected services introduced across a broad range of models
    • New 1.8-liter engine in the Beetle has manufacturer predicted highway fuel economy improvement of 17 percent
    • Sporty Beetle GSR® special edition offers dramatic appearance package
    • Beetle R-Line model replaces Turbo, adding new bumpers, badging, and optional 19-inch wheels and Bi-Xenon headlights
    • Passat trims are revised and new 1.8-liter engine replaces 2.5-liter unit, starting in the SEL model
    • R-Line added to the Tiguan range
    • Touareg R-Line joins the lineup
    • All VW models are now E15 capable

    Herndon, VA - After three years of incredible growth and a slew of new product introductions, 2013 is a year of consolidation for Volkswagen of America. Nevertheless, it’s also a year in which some very important product changes will occur. Chief among these for the 2014 model year is the introduction of the EA888 1.8-liter turbocharged and direct-injection four-cylinder TSI® engine, which will gradually replace the 2.5-liter five-cylinder naturally aspirated powerplant fitted to the Jetta, Beetle, and Passat models. This new engine produces 170 hp and 184 pound-feet of torque: this is the same power as the 2.5, but the torque is improved by seven lb-ft, delivered much lower in the rev range.

    Volkswagen pioneered the use of small-displacement turbocharged and DI engines in the U.S. market: the implementation of the new EA888 gasoline unit will help ensure that more than 90 percent of the cars sold by Volkswagen in the U.S. have these highly efficient powerplants. The engine is built in a new, state-of-the-art factory in Silao, Mexico that is part of Volkswagen’s ongoing $5 billion investment in the North American market.

    The new TSI engine will be fitted to the Jetta range and the Passat SEL initially, to be followed by the rest of the Passat lineup and the Beetle later in the model year. The new engine is expected to offer significant highway fuel mileage gains over the 2.5-liter unit.

    The popular Beetle range has a number of new additions for 2014. The most significant is the introduction of the retro-themed GSR (German for “Yellow Black Racer”) that will be sold as a limited-edition model. Because the base Beetle now has a turbocharged engine, the previous Turbo models have been re-branded with the R-Line® moniker.

    The R-Line range itself has been extended to five vehicles. The Beetle Convertible R-Line, Touareg R-Line, and Tiguan R-Line all go on sale this fall, joining the existing Beetle Coupe R-Line and the CC R-Line.

    Volkswagen will introduce its VW Car-Net™ connected services this fall as part of the 2014 model lineup. Available on Beetle, Beetle Convertible, CC, Eos, Jetta, Passat, and Tiguan models, VW Car-Net offers a wealth of security and convenience features, including crash notification, roadside assistance, and stolen vehicle location assistance. In addition, VW Car-Net adds: remote vehicle access; boundary and speed alerts; a vehicle health report; and an enhanced POI service on vehicles equipped with a navigation system. Most of the features can be administered through a handy smartphone app.

    Finally, all Volkswagen models are E15 capable, across all powertrains for 2014.

    CARS

    Beetle

    • Beetle GSR goes on sale as a limited-edition model
    • Base 2.5-liter engine is replaced by 170-hp 1.8-liter turbocharged four cylinder during the 2014 model year
    • Highway fuel economy predicted by manufacturer to improve by up to 17 percent with the 1.8-liter engine
    • Beetle Turbo lineup now becomes the Beetle R-Line
    • VW Car-Net connectivity becomes available
    • Rearview camera fitted to top-of-the-line models (late availability)

    Then as now, the GSR features a unique interior with a yellow/black theme, sport seats, and a leather-wrapped sport steering wheel. The black-trimmed leather seating surfaces and high-grip leather-wrapped steering wheel both have contrasting yellow stitching. Other interior changes include a GSR shift lever, a leather-wrapped handbrake, and black floormats with contrasting yellow embroidery. A badge on the steering wheel is marked with the special-edition number (1 through 3500) to emphasize the uniqueness of the car.

    The base Beetle’s 2.5-liter engine will be phased out later in the 2014 model year and replaced by a new, locally sourced, turbocharged 1.8-liter four-cylinder engine. This will produce 170 horsepower and 184 pound-feet of torque and is expected to offer highly competitive fuel economy. Electro-mechanical power steering replaces the 2.5’s hydraulic setup.

    The Beetle Turbo lineup is renamed as the R-Line for 2014, adding aggressively styled bumpers front and rear as well as R-Line exterior badging and R-Line sill kickplates. The top R-Line Sunroof and Sound with Navigation also features unique 19-inch aluminum-alloy wheels, Bi-Xenon headlights with LED DRLs, and leather seating surfaces; black interiors also get an R-Line badge on the steering wheel and a “metallic finish” dash pad. All Beetle R-Line models and the GSR are fitted with the latest version of the EA888 2.0-liter turbocharged four-cylinder engine, which makes 210hp.

    Among other changes to the Beetle, the TDI® with Sunroof model is removed from the lineup, while a rearview camera will be available on the Sunroof, Sound, and Navigation trim levels on the Beetle, Beetle TDI Clean Diesel, and Beetle R-Line models.

    Beetle Convertible

    • Beetle receives 170-horsepower turbocharged 1.8-liter engine in place of 2.5-liter unit partway through 2014 model year
    • Beetle Turbo Convertible is renamed the Beetle R-Line Convertible
    • Rearview camera on top-of-the-line Convertible models (late availability)
    • VW Car-Net connectivity becomes available

    Like the Beetle Coupe, the Turbo Convertible range is renamed the R-Line. The topline R-Line with Sound and Navigation has additional R-Line-specific features, such as unique 19-inch aluminum-alloy wheels, Bi-Xenon headlights with LED DRLs, and leather seating surfaces: black interiors add an R-Line badge on the steering wheel and a “metallic finish” dash pad.

    The base 2.5-liter engine will be phased out in favor of a 1.8-liter TSI unit that is expected to offer significantly better highway and overall fuel economy figures. Finally, the topline trim in each engine configuration—Beetle Convertible, Beetle TDI Convertible, and Beetle R-Line Convertible—will feature a rearview camera later in the model year.

    CC

    • VW Car-Net becomes available on all CC models
    • New 2.0T Executive trim joins lineup, while Sport model replaces Sport with Lighting Package
    • Rearview camera added to Sport and R-Line trim (late availability)
    • V6 Executive models get Keyless access with push-button start, “Easy Open” motion-activated trunk opener, and new 18-inch “Lakeville” alloy wheels

    For 2014, a new 2.0T Executive trim joins the lineup and gains: the RNS® 510 premium navigation system with four-year SiriusXM® Traffic and three-month trial to SiriusXM TravelLink™; Keyless access and push-button start; “Easy Open” motion-activated trunk opener; leather seating surfaces; sunroof; rearview camera; 18-inch “St.Louis” alloy wheels; ambient lighting; engineered ebony interior trim, and available Truffle Brown interior. At the same time, the Sport with Lighting Package is replaced by the Sport model. This package includes LED daytime running lights and the Adaptive Front-lighting System (AFS), the RNS 315 navigation system, and a rearview camera (late availability).

    Eos

    For 2014, the Eos incorporates minor changes over the 2013 models.

    • VW Car-Net becomes available on all trims
    • RNS 315 navigation system is added to the Komfort and Sport trims
    • Keyless access with push-button start added to the Sport model
    • Lux model is discontinued

    Golf/GTI

    There will be a limited number of 2014 Golfs and GTIs sold in the U.S. market, as four-door models only.

    Jetta

    • New 1.8-liter turbocharged and direct-injection four-cylinder engine replaces 2.5-liter five cylinder; electro-mechanical power steering replaces a hydraulic setup
    • Jetta 1.8T, 2.0, and TDI models receive rear multilink suspensions
    • Media Device Interface (MDI) cable moved from glovebox to center console on SE and higher trims
    • VW Car-Net becomes available on SE with Connectivity and higher trims
    • Rearview cameras added to SEL, TDI Premium, and TDI Premium and Navigation
    • 30th Anniversary edition GLI (late availability)
    • Jetta Hybrid SE, SEL and SEL Premium trims receive new high-resolution MFI display in the instrument cluster

    The best-selling model in Volkswagen’s lineup receives a number of key enhancements for 2014, including powertrain, chassis, and technology updates.

    The SE model will add a new 1.8-liter turbocharged and direct-injection four-cylinder engine, electro-mechanical power steering, a multilink independent rear suspension, SiriusXM® Satellite Radio, and power reclining front seats. The SE with Connectivity trim adds the option of VW Car-Net connected services, while the SE with Connectivity and Sunroof adds Keyless access with push-button start.

    The SEL trim is now available with an automatic transmission only. It also offers VW Car-Net, a rearview camera, the RNS 315 navigation system, and the Fender® Premium Audio System.

    Similar to the 1.8-liter gasoline trims, all TDI Clean Diesel models will offer VW Car-Net, a relocated MDI cable (now in the center console), and new independent rear suspension. TDI Premium and Premium and Navigation trims also get a rearview camera. The performance-driven Jetta GLI model now has the relocated MDI cable and the option of VW Car-Net, as well as the latest 210-hp version of the EA888 2.0-liter turbocharged engine.

    Volkswagen’s first hybrid compact, the Jetta Hybrid, was launched late last year. For 2014, updates are minimal and include the availability of VW Car-Net and the addition of a new high-resolution color MFI display in the instrument cluster.

    Jetta SportWagen

    For 2014, the Jetta SportWagen incorporates only minor changes over the 2013 models.

    • All models receive LED license-plate lights
    • TDI trims gain a rearview camera

    Passat

    For 2014, the 2.5-liter five-cylinder engine will be replaced by a 1.8-liter turbocharged and direct-injection four-cylinder engine that makes 170 hp and 184 lb-ft of torque. Along with the engine comes a change from hydraulic to electro-mechanical power steering. Other changes include:

    • Wolfsburg Edition carries over from 2013; now includes leather-wrapped steering wheel, shift knob, and parking brake
    • VW Car-Net connectivity system available on Wolfsburg and higher trims
    • Two-tone seats available on all SE trims
    • Rearview camera introduced on SE and higher trims
    • Keyless access with push-button start and new “Bristol” 18-inch wheels available on select SE trims.
    • A Sport trim will be introduced later this year. Details will be released closer to launch
    • MDI now standard on Wolfsburg Edition and higher trims

    MINIVAN, SUVs

    Routan

    For 2014, the Routan carries over unchanged as a fleet model only.

    Tiguan

    • Tiguan R-Line model added to the lineup
    • VW Car-Net connectivity option widely available across trim lines
    • Introduction of Fender Premium Audio System on R-Line and SEL trims
    • Content added across the Tiguan lineup; Keyless access with push-button start, Climatronic® automatic air conditioning, MDI with iPod® cable, and rearview camera

    The Tiguan R-Line joins the expanded lineup of R-Line models. This performance and appearance package adds aggressive styling and a sport suspension. The exterior is further enhanced with 19-inch aluminum-alloy Mallory wheels, an R-Line roof spoiler, body-color side skirts, and R-Line badging. The interior receives R-Line front door kickplates, a flat-bottomed leather-wrapped multifunction steering wheel with paddle shifters, black headliner, and stainless steel pedals. Additionally, the Tiguan R-Line offers Bi-Xenon headlights with LED DRLs and leather seating surfaces.

    Overall, there is added value across the Tiguan lineup with enhanced SE and SEL models, as well as a new SE with Appearance trim line. The SE adds heated seats, leatherette seating surfaces, and an MDI with iPod® adapter; the SE with Appearance’s added features include Keyless access with push-button start and a rearview camera; and the SEL adds the Fender Premium Audio System.

    Touareg

    • R-Line model features special interior and exterior styling, sport suspension
    • Rear hatch now has “Easy Open” feature on all models except Sport and R-Line
    • Area-view camera feature on Executive and Hybrid models
    • LED taillights on the Executive models
    • Keyless access with push-button start now fitted to more than 90 percent of Touareg models
    • Trailer hitch now standard on all Touareg models except V6 Sport and R-Line

    The most important addition to the Touareg lineup for the 2014 model year is the R-Line, which is based on the Lux trim for V6 and TDI Clean Diesel models. This model adds a sport suspension, 20-inch “Mallory” aluminum-alloy wheels, and a bevy of exterior and interior enhancements. On the outside, the R-Line model receives: R-Line badging; LED taillights; sportier front and rear bumpers; and side skirts. Inside, the R-Line gets brushed aluminum trim, stainless-steel pedals, a black headliner, an R-badged steering wheel, and unique sill kickplates.

    Sport with Navigation and Lux models receive Keyless access with push-button start, while all models except the R-Line and Sport have a new “Easy Open” motion-activated trunk opening feature, which is a real boon to owners who have their hands full and want to access the cargo area.

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    the 5 is junk, this offering puts VW on the map for me, at least the Passat.

    They should've done a 2.0 maybe too. 1.8 is a nice blend between mpg of a 1.6 and more displacement of a 2.0

    E85!

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    They should have kept the 2.0T displacement. Simply lower the boost (12 - > 8 psi) and up the compression (10.5:1 --> 11.5:1).

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    Woohoo, a Passat 1.8T. It's like it's 2002 again. Same horsepower, too.

    and probably the same amount of countless hours in the shop for repair work too!!!!!!!!!!!

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    1.8T and IRS for Jetta will be a huge hit. IRS will snag a lot of fence sitters eyeballing the Jetta TDI.

    I doubt most will notice. There isn't a tremendous amount of difference between a Jetta and a Jetta GLI in daily driving.

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    Interesting that they are expanding their R lineup to cover everyone now. I just hope they do not loose the performance by throwing the R badge on everything. Chevy lost their way when they started to throw the SS badge on every model line and yet so many of the so called Top of the Line SS models were not really SS qualified IMHHO.

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    1.8T and IRS for Jetta will be a huge hit. IRS will snag a lot of fence sitters eyeballing the Jetta TDI.

    I doubt most will notice. There isn't a tremendous amount of difference between a Jetta and a Jetta GLI in daily driving.

    Mainly depends on where a person lives. In some places (intentionally ignoring why), small changes don't matter. In other places, seemingly minor changes make a big difference in sales.

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    The only questionable SS that I can think of was the last Malibu SS, all the rest deserved their badge.

    The last Impala SS was a laugh-out-loud joke.

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    The only questionable SS that I can think of was the last Malibu SS, all the rest deserved their badge.

    The last Impala SS was a laugh-out-loud joke.

    I dunno. An FE3 suspension, most powerful FWD car you could buy, a top speed of 150mph, and a 5.7s 0-60 time seem pretty super to me for a Chevy.

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      Heinz-Jakob Neusser: from July 2013 until September 2015, Neusser worked for VW as head of Development for VW Brand and was also on the management board for VW Brand. From October 2011 until July 2013, Neusser served as the head of Engine Development for VW. Jens Hadler: from May 2007 until March 2011, Hadler worked for VW as head of Engine Development for VW. Richard Dorenkamp: from 2003 until December 2013, Dorenkamp worked for VW as the head of VW’s Engine Development After-Treatment Department in Wolfsburg, Germany. From 2006 until 2013, Dorenkamp led a team of engineers that developed the first diesel engine that was designed to meet the new, tougher emissions standards in the United States. Bernd Gottweis: from 2007 until October 2014, Gottweis worked for VW as a supervisor with responsibility for Quality Management and Product Safety. Oliver Schmidt: from 2012 through February 2015, Schmidt was the General Manager in charge of the Environment and Engineering Office, located in Auburn Hills, Michigan. From February 2015 through September 2015, Schmidt returned to VW headquarters to work directly for Neusser, including on emissions issues. Jürgen Peter: Peter worked in the VW Quality Management and Product Safety Group from 1990 until the present. From March 2015 until July 2015, Peter was one of the VW liaisons between the regulatory agencies and VW. According to the charging documents and statement of facts filed with the court, in 2006, VW engineers began to design a new diesel engine to meet stricter U.S. emissions standards that would take effect by model year 2007. This new engine would be the cornerstone of a new project to sell diesel vehicles in the United States that would be marketed to buyers as “clean diesel,” a project that was an important strategic goal for VW’s management. When the co-conspirators realized that they could not design a diesel engine that would both meet the stricter NOx emissions standards and attract sufficient customer demand in the U.S. market, they decided they would use a software function to cheat standard U.S. emissions tests.
      VW engineers working under Dorenkamp and Hadler designed and implemented a software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or it was being driven on the road under normal driving conditions. The software accomplished this by recognizing the standard published drive cycles. Based on these inputs, if the vehicle’s software detected that it was being tested, the vehicle performed in one mode, which satisfied U.S. NOx emissions standards. If the software detected that the vehicle was not being tested, it operated in a different mode, in which the vehicle’s emissions control systems were reduced substantially, causing the vehicle to emit NOx up to 40 times higher than U.S. standards.
      Disagreements over the direction of the project were articulated at a meeting over which Hadler presided, and which Dorenkamp attended. Hadler authorized Dorenkamp to proceed with the project knowing that only the use of the defeat device software would enable VW diesel vehicles to pass U.S. emissions tests. Starting with the first model year 2009 of VW’s new “clean diesel” engine through model year 2016, Dorenkamp, Neusser, Hadler and their co-conspirators installed, or caused to be installed, the defeat device software into the vehicles imported and sold in the United States. In order to sell their “clean diesel” vehicles in the United States, the co-conspirators lied to the EPA about the existence of their test-cheating software, hiding it from the EPA, CARB, VW customers and the U.S. public. Dorenkamp, Neusser, Hadler, Gottweis, Schmidt, Peter and their co-conspirators then marketed, and caused to be marketed, VW diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly.
      Around 2012, hardware failures developed in certain of the diesel vehicles. VW engineers believed the increased stress on the exhaust system from being driven in the “dyno mode” could be the cause of the hardware failures. In July 2012, VW engineers met with Neusser and Gottweis to explain what they believed to be the cause of the hardware failures and explained the defeat device. Gottweis and Neusser each encouraged further concealment of the software. In 2014, the co-conspirators perfected their cheating software by starting the vehicle in “street mode,” and, when the defeat device realized the vehicle was being tested, switching to the “dyno mode.” To increase the ability of the vehicle’s software to recognize that it was being tested on the dynamometer, the VW engineers activated a “steering wheel angle recognition feature.” With these alterations, it was believed the stress on the exhaust system would be reduced because the engine would not be operating for as long in “dyno mode.” The new function was installed in existing vehicles through software updates. The defendants and other co-conspirators falsely represented, and caused to be represented, to U.S. regulators, U.S. customers and others that the software update was intended to improve durability and emissions issues in the vehicles when, in fact, they knew it was used to more quickly deactivate emission control systems when the vehicle was not undergoing emissions tests.
      After years of VW selling their “clean diesel” vehicles in the United States that had the cheating software, in March 2014, West Virginia University’s Center for Alternative Fuels, Engines and Emissions published the results of a study commissioned by the International Council on Clean Transportation (ICCT). The ICCT study identified substantial discrepancies in the NOx emissions from certain VW vehicles when tested on the road compared to when these vehicles were undergoing EPA and CARB standard drive cycle tests on a dynamometer. Rather than tell the truth, VW employees, including Neusser, Gottweis, Schmidt and Peter, pursued a strategy to disclose as little as possible – to continue to hide the existence of the software from U.S. regulators, U.S. customers and the U.S. public.
      Following the ICCT study, CARB, in coordination with the EPA, attempted to work with VW to determine the cause for the higher NOx emissions in VW diesel vehicles when being driven on the road as opposed to on the dynamometer undergoing standard emissions test cycles. To do this, CARB, in coordination with the EPA, repeatedly asked VW questions that became increasingly more specific and detailed, and tested the vehicles themselves. In implementing their strategy of disclosing as little as possible, Neusser, Gottweis, Schmidt, Peter and their co-conspirators provided EPA and CARB with testing results, data, presentations and statements in an attempt to make it appear that there were innocent mechanical and technological problems to blame, while secretly knowing that the primary reason for the discrepancy was their cheating software that was installed in every VW diesel vehicle sold in the United States. The co-conspirators continued this back-and-forth with the EPA and CARB for over 18 months, obstructing the regulators’ attempts to uncover the truth.
      The charges in the indictment are merely accusations and each defendant is presumed innocent unless and until proven guilty.
      The case was investigated by the FBI and EPA-CID. The prosecution and corporate investigation are being handled by Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters of the Criminal Division’s Fraud Section; Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section; and from the U.S. Attorney’s Office for the Eastern District of Michigan, Criminal Division Chief Mark Chutkow and White Collar Crime Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
      The Civil Resolutions:
      The first civil settlement resolves EPA’s remaining claims against six VW-related entities (including Volkswagen AG, Audi AG and Porsche AG) currently pending in the multidistrict litigation before U.S. District Judge Charles R. Breyer of the Northern District of California. EPA’s complaint alleges that VW violated the Clean Air Act by selling approximately 590,000 cars that the United States alleges are equipped with defeat devices and, during normal operation and use, emit pollution significantly in excess of EPA-compliant levels. VW has agreed to pay $1.45 billion to resolve EPA’s civil penalty claims, as well as the civil penalty claim of CBP described below. The consent decree resolving the Clean Air Act claims also resolves EPA’s remaining claim in the complaint for injunctive relief to prevent future violations by requiring VW to undertake a number of corporate governance reforms and perform in-use testing of its vehicles using a portable emissions measurement system of the same type used to catch VW’s cheating in the first place. Today’s settlement is in addition the historic $14.7 billion settlement that addressed the 2.0 liter cars on the road and associated environmental harm announced in June 2016, and $1 billion settlement that addressed the 3.0 liter cars on the road and associated environmental harm announced in December 2016, which together included nearly $3 billion for environmental mitigation projects.
      A second civil settlement resolves civil fraud claims asserted by U.S. Customs and Border Protection (CBP) against VW entities. VW entities violated criminal and civil customs laws by knowingly submitting to CBP material false statements and omitting material information, over multiple years, with the intent of deceiving or misleading CBP concerning the admissibility of vehicles into the United States. CBP enforces U.S. customs laws as well as numerous laws on behalf of other governmental agencies related to health, safety, and border security. At the time of importation, VW falsely represented to CBP that each of the nearly 590,000 imported vehicles complied with all applicable environmental laws, knowing those representations to be untrue. CBP’s relationship with the importing community is one based on trust, and this resolution demonstrates that CBP will not tolerate abrogation of importer responsibilities and schemes to defraud the revenue of the United States. The $1.45 billion paid under the EPA settlement also resolves CBP’s claims.
      In a third settlement, VW has agreed to pay $50 million in civil penalties for alleged violations of FIRREA. The Justice Department alleged that a VW entity supported the sales and leasing of certain VW vehicles, including the defeat-device vehicles, by offering competitive financing terms by purchasing from dealers certain automobile retail installment contracts (i.e. loans) and leases entered into by customers that purchased or leased certain VW vehicles, as well as dealer floorplan loans. These financing arrangements were primarily collateralized by the vehicles underlying the loan and lease transactions. The department alleged that certain of these loans, leases and floorplan financings were pooled together to create asset-backed securities and that federally insured financial institutions purchased certain notes in these securities. Today’s FIRREA resolution is part of the department’s ongoing efforts to deter wrongdoers from using the financial markets to facilitate their fraud and to ensure the stability of the nation’s financial system.
      Except where based on admissions by VW, the claims resolved by the civil agreements are allegations only.
      The civil settlements were handled by the Environmental and Natural Resources Division’s Environmental Enforcement Section, with assistance from the EPA; the Civil Division’s Commercial Litigation Branch; and CBP.

      View full article
    • By William Maley
      Volkswagen will be cutting another big check. Today, the company announced that it had reached a settlement with Department of Justice over the criminal case on the diesel emission scandal. Volkswagen will plead guilty to three criminal felony charges and will pay $4.3 billion - $2.8 billion for the fine and $1.5 billion to settle civil cases. The settlement also requires an independent monitor to watch over the company for the next years. 
      Volkswagen's board still needs to approve this settlement, but the company says the approval could happen today or tomorrow. If they waited, the parties would have to do it all over again with new people coming as part of President-elect Trump's team.
      “Today’s actions reflect the Justice Department’s steadfast commitment to defending consumers, protecting our environment and our financial system and holding individuals and companies accountable for corporate wrongdoing. In the days ahead, we will continue to examine Volkswagen’s attempts to mislead consumers and deceive the government. And we will continue to pursue the individuals responsible for orchestrating this damaging conspiracy,” said Attorney General Loretta E. Lynch in a statement.
      In addition, six Volkswagen executives and employees have been charged with their involvement in the scandal. They include, 
      Richard Dorenkamp - In charge of Volkswagen’s Engine Development After-Treatment Department from 2003 to 2013. This department is where the cheat was developed. Bernd Gottweis - Volkswagen's supervisor responsible for Quality Management and Product Safety between 2007 to October 2014. Jens Hadler - Head of powertrain development from 2007 to 2011. Heinz-Jakob Neusser - Head of powertrain development from 2011 to 2013, suspended by Volkswagen back in 2015. Jürgen Peter - Worked in Volkswagen's Quality Management and Product Safety Group from 1990 to now. For a few months in 2015, he was a liaison for various regulatory agencies. Oliver Schmidt - Volkswagen's liaison with U.S. environmental regulators. He was arrested on Sunday in Miami as he was returning to Germany. Source: Department of Justice, Bloomberg, Reuters
      Press Release is on Page 2


      Volkswagen AG Agrees to Plead Guilty and Pay $4.3 Billion in Criminal and Civil Penalties; Six Volkswagen Executives and Employees are Indicted in Connection with Conspiracy to Cheat U.S. Emissions Tests
      VW to Pay $2.8 Billion Criminal Fine in Guilty Plea and $1.5 Billion Settlement of Civil Environmental, Customs and Financial Violations; Monitor to Be Appointed to Oversee the Parent Company Volkswagen AG (VW) has agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s long-running scheme to sell approximately 590,000 diesel vehicles in the U.S. by using a defeat device to cheat on emissions tests mandated by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), and lying and obstructing justice to further the scheme, the Justice Department announced today.
      In separate civil resolutions of environmental, customs and financial claims, VW has agreed to pay $1.5 billion. This includes EPA’s claim for civil penalties against VW in connection with VW’s importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
      The Criminal Case:
      VW is charged with and has agreed to plead guilty to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. VW is also charged with obstruction of justice for destroying documents related to the scheme, and with a separate crime of importing these cars into the U.S. by means of false statements about the vehicles’ compliance with emissions limits. Under the terms of the plea agreement, which must be accepted by the court, VW will plead guilty to all these crimes, will be on probation for three years, will be under an independent corporate compliance monitor who will oversee the company for at least three years, and agrees to fully cooperate in the Justice Department’s ongoing investigation and prosecution of individuals responsible for these crimes.
      In addition, a federal grand jury in the Eastern District of Michigan returned an indictment today charging six VW executives and employees for their roles in the nearly 10-year conspiracy. Heinz-Jakob Neusser, 56; Jens Hadler, 50; Richard Dorenkamp, 68; Bernd Gottweis, 69; Oliver Schmidt, 48; and Jürgen Peter, 59, all of Germany, are charged with one count of conspiracy to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The indictment also charges Dorenkamp, Neusser, Schmidt and Peter with Clean Air Act violations and charges Neusser, Gottweis, Schmidt and Peter with wire fraud counts. This case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.
      Schmidt was arrested on Jan. 7, 2017, in Miami during a visit to the United States and appeared in federal court there on Monday. The other defendants are believed to presently reside in Germany.
      Today’s announcement was made by Attorney General Loretta E. Lynch, EPA Administrator Gina McCarthy and Assistant Administrator Cynthia Giles, Deputy Attorney General Sally Q. Yates, FBI Deputy Director Andrew McCabe, Acting Deputy Secretary Russell C. Deyo for the Department of Homeland Security, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.
      “Volkswagen’s attempts to dodge emissions standards and import falsely certified vehicles into the country represent an egregious violation of our nation’s environmental, consumer protection and financial laws,” said Attorney General Lynch. “Today’s actions reflect the Justice Department’s steadfast commitment to defending consumers, protecting our environment and our financial system and holding individuals and companies accountable for corporate wrongdoing. In the days ahead, we will continue to examine Volkswagen’s attempts to mislead consumers and deceive the government. And we will continue to pursue the individuals responsible for orchestrating this damaging conspiracy.”
      “When Volkswagen broke the law, EPA stepped in to hold them accountable and address the pollution they caused,” said EPA Administrator McCarthy. “EPA’s fundamental and indispensable role becomes all too clear when companies evade laws that protect our health. The American public depends on a strong and active EPA to deliver clean air protections, and that is exactly what we have done.”
      “This wasn’t simply the action of some faceless, multinational corporation,” said Deputy Attorney General Yates. “This conspiracy involved flesh-and-blood individuals who used their positions within Volkswagen to deceive both regulators and consumers. From the start of this investigation, we’ve been committed to ensuring that those responsible for criminal activity are held accountable. We’ve followed the evidence—from the showroom to the boardroom—and it brought us to the people whose indictments we’re announcing today.”
      “Americans expect corporations to operate honestly and provide accurate information,” said Deputy Director McCabe. “Volkswagen’s data deception defrauded the U.S. government, violated the Clean Air Act and eroded consumer trust. This case sends a clear message to corporations, no matter how big or small, that if you lie and disregard rules that protect consumers and the environment, you will be caught and held accountable.”
      “Blatant violations of U.S. customs and environmental laws will not be tolerated, and this case reinforces that,” said Acting Deputy Secretary Deyo. “These actions put our economy, consumers and citizens at risk, and the Department of Homeland Security and U.S. Customs and Border Protection will continue to take every step necessary to protect the American people.”
      According to the indictment, the individuals occupied the following positions within the company:
      Heinz-Jakob Neusser: from July 2013 until September 2015, Neusser worked for VW as head of Development for VW Brand and was also on the management board for VW Brand. From October 2011 until July 2013, Neusser served as the head of Engine Development for VW. Jens Hadler: from May 2007 until March 2011, Hadler worked for VW as head of Engine Development for VW. Richard Dorenkamp: from 2003 until December 2013, Dorenkamp worked for VW as the head of VW’s Engine Development After-Treatment Department in Wolfsburg, Germany. From 2006 until 2013, Dorenkamp led a team of engineers that developed the first diesel engine that was designed to meet the new, tougher emissions standards in the United States. Bernd Gottweis: from 2007 until October 2014, Gottweis worked for VW as a supervisor with responsibility for Quality Management and Product Safety. Oliver Schmidt: from 2012 through February 2015, Schmidt was the General Manager in charge of the Environment and Engineering Office, located in Auburn Hills, Michigan. From February 2015 through September 2015, Schmidt returned to VW headquarters to work directly for Neusser, including on emissions issues. Jürgen Peter: Peter worked in the VW Quality Management and Product Safety Group from 1990 until the present. From March 2015 until July 2015, Peter was one of the VW liaisons between the regulatory agencies and VW. According to the charging documents and statement of facts filed with the court, in 2006, VW engineers began to design a new diesel engine to meet stricter U.S. emissions standards that would take effect by model year 2007. This new engine would be the cornerstone of a new project to sell diesel vehicles in the United States that would be marketed to buyers as “clean diesel,” a project that was an important strategic goal for VW’s management. When the co-conspirators realized that they could not design a diesel engine that would both meet the stricter NOx emissions standards and attract sufficient customer demand in the U.S. market, they decided they would use a software function to cheat standard U.S. emissions tests.
      VW engineers working under Dorenkamp and Hadler designed and implemented a software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or it was being driven on the road under normal driving conditions. The software accomplished this by recognizing the standard published drive cycles. Based on these inputs, if the vehicle’s software detected that it was being tested, the vehicle performed in one mode, which satisfied U.S. NOx emissions standards. If the software detected that the vehicle was not being tested, it operated in a different mode, in which the vehicle’s emissions control systems were reduced substantially, causing the vehicle to emit NOx up to 40 times higher than U.S. standards.
      Disagreements over the direction of the project were articulated at a meeting over which Hadler presided, and which Dorenkamp attended. Hadler authorized Dorenkamp to proceed with the project knowing that only the use of the defeat device software would enable VW diesel vehicles to pass U.S. emissions tests. Starting with the first model year 2009 of VW’s new “clean diesel” engine through model year 2016, Dorenkamp, Neusser, Hadler and their co-conspirators installed, or caused to be installed, the defeat device software into the vehicles imported and sold in the United States. In order to sell their “clean diesel” vehicles in the United States, the co-conspirators lied to the EPA about the existence of their test-cheating software, hiding it from the EPA, CARB, VW customers and the U.S. public. Dorenkamp, Neusser, Hadler, Gottweis, Schmidt, Peter and their co-conspirators then marketed, and caused to be marketed, VW diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly.
      Around 2012, hardware failures developed in certain of the diesel vehicles. VW engineers believed the increased stress on the exhaust system from being driven in the “dyno mode” could be the cause of the hardware failures. In July 2012, VW engineers met with Neusser and Gottweis to explain what they believed to be the cause of the hardware failures and explained the defeat device. Gottweis and Neusser each encouraged further concealment of the software. In 2014, the co-conspirators perfected their cheating software by starting the vehicle in “street mode,” and, when the defeat device realized the vehicle was being tested, switching to the “dyno mode.” To increase the ability of the vehicle’s software to recognize that it was being tested on the dynamometer, the VW engineers activated a “steering wheel angle recognition feature.” With these alterations, it was believed the stress on the exhaust system would be reduced because the engine would not be operating for as long in “dyno mode.” The new function was installed in existing vehicles through software updates. The defendants and other co-conspirators falsely represented, and caused to be represented, to U.S. regulators, U.S. customers and others that the software update was intended to improve durability and emissions issues in the vehicles when, in fact, they knew it was used to more quickly deactivate emission control systems when the vehicle was not undergoing emissions tests.
      After years of VW selling their “clean diesel” vehicles in the United States that had the cheating software, in March 2014, West Virginia University’s Center for Alternative Fuels, Engines and Emissions published the results of a study commissioned by the International Council on Clean Transportation (ICCT). The ICCT study identified substantial discrepancies in the NOx emissions from certain VW vehicles when tested on the road compared to when these vehicles were undergoing EPA and CARB standard drive cycle tests on a dynamometer. Rather than tell the truth, VW employees, including Neusser, Gottweis, Schmidt and Peter, pursued a strategy to disclose as little as possible – to continue to hide the existence of the software from U.S. regulators, U.S. customers and the U.S. public.
      Following the ICCT study, CARB, in coordination with the EPA, attempted to work with VW to determine the cause for the higher NOx emissions in VW diesel vehicles when being driven on the road as opposed to on the dynamometer undergoing standard emissions test cycles. To do this, CARB, in coordination with the EPA, repeatedly asked VW questions that became increasingly more specific and detailed, and tested the vehicles themselves. In implementing their strategy of disclosing as little as possible, Neusser, Gottweis, Schmidt, Peter and their co-conspirators provided EPA and CARB with testing results, data, presentations and statements in an attempt to make it appear that there were innocent mechanical and technological problems to blame, while secretly knowing that the primary reason for the discrepancy was their cheating software that was installed in every VW diesel vehicle sold in the United States. The co-conspirators continued this back-and-forth with the EPA and CARB for over 18 months, obstructing the regulators’ attempts to uncover the truth.
      The charges in the indictment are merely accusations and each defendant is presumed innocent unless and until proven guilty.
      The case was investigated by the FBI and EPA-CID. The prosecution and corporate investigation are being handled by Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters of the Criminal Division’s Fraud Section; Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section; and from the U.S. Attorney’s Office for the Eastern District of Michigan, Criminal Division Chief Mark Chutkow and White Collar Crime Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
      The Civil Resolutions:
      The first civil settlement resolves EPA’s remaining claims against six VW-related entities (including Volkswagen AG, Audi AG and Porsche AG) currently pending in the multidistrict litigation before U.S. District Judge Charles R. Breyer of the Northern District of California. EPA’s complaint alleges that VW violated the Clean Air Act by selling approximately 590,000 cars that the United States alleges are equipped with defeat devices and, during normal operation and use, emit pollution significantly in excess of EPA-compliant levels. VW has agreed to pay $1.45 billion to resolve EPA’s civil penalty claims, as well as the civil penalty claim of CBP described below. The consent decree resolving the Clean Air Act claims also resolves EPA’s remaining claim in the complaint for injunctive relief to prevent future violations by requiring VW to undertake a number of corporate governance reforms and perform in-use testing of its vehicles using a portable emissions measurement system of the same type used to catch VW’s cheating in the first place. Today’s settlement is in addition the historic $14.7 billion settlement that addressed the 2.0 liter cars on the road and associated environmental harm announced in June 2016, and $1 billion settlement that addressed the 3.0 liter cars on the road and associated environmental harm announced in December 2016, which together included nearly $3 billion for environmental mitigation projects.
      A second civil settlement resolves civil fraud claims asserted by U.S. Customs and Border Protection (CBP) against VW entities. VW entities violated criminal and civil customs laws by knowingly submitting to CBP material false statements and omitting material information, over multiple years, with the intent of deceiving or misleading CBP concerning the admissibility of vehicles into the United States. CBP enforces U.S. customs laws as well as numerous laws on behalf of other governmental agencies related to health, safety, and border security. At the time of importation, VW falsely represented to CBP that each of the nearly 590,000 imported vehicles complied with all applicable environmental laws, knowing those representations to be untrue. CBP’s relationship with the importing community is one based on trust, and this resolution demonstrates that CBP will not tolerate abrogation of importer responsibilities and schemes to defraud the revenue of the United States. The $1.45 billion paid under the EPA settlement also resolves CBP’s claims.
      In a third settlement, VW has agreed to pay $50 million in civil penalties for alleged violations of FIRREA. The Justice Department alleged that a VW entity supported the sales and leasing of certain VW vehicles, including the defeat-device vehicles, by offering competitive financing terms by purchasing from dealers certain automobile retail installment contracts (i.e. loans) and leases entered into by customers that purchased or leased certain VW vehicles, as well as dealer floorplan loans. These financing arrangements were primarily collateralized by the vehicles underlying the loan and lease transactions. The department alleged that certain of these loans, leases and floorplan financings were pooled together to create asset-backed securities and that federally insured financial institutions purchased certain notes in these securities. Today’s FIRREA resolution is part of the department’s ongoing efforts to deter wrongdoers from using the financial markets to facilitate their fraud and to ensure the stability of the nation’s financial system.
      Except where based on admissions by VW, the claims resolved by the civil agreements are allegations only.
      The civil settlements were handled by the Environmental and Natural Resources Division’s Environmental Enforcement Section, with assistance from the EPA; the Civil Division’s Commercial Litigation Branch; and CBP.
    • By William Maley
      While Europe has been enjoying the new Volkswagen Tiguan for a few months, North America has had to wait a bit longer for it. Tonight, Volkswagen has unveiled our version of Tiguan.
      Why has it taken so long? That's because our Tiguan is a bit different as we get the long-wheelbase variant. Compared to the European-spec model, the North American Tiguan is 10.7 inches longer and rides on a 4.4-inch longer wheelbase. The longer wheelbase allows Volkswagen to shoehorn in a third-row into the vehicle - a plus point for crossover buyers.
      If you have spent any time in a Golf, then you'll feel at home in the Tiguan as the layout is similar. Volkswagen's Digital Cockpit - a 12.3-inch screen with reconfigurable gauges - will be optional. Apple CarPlay, Android Auto, and a backup camera will come standard. It should be noted the third-row comes standard on front-wheel drive models, while 4Motion all-wheel drive models get it as an option.
      Power comes from a turbocharged 2.0L four-cylinder with 184 horsepower and 221 pound-feet of torque. This is paired with an eight-speed automatic.
      No mention of when the Tiguan would go on sale.
      Source: Volkswagen
      Press Release is on Page 2


      VOLKSWAGEN REVEALS THE ALL-NEW 2018 LONG-WHEELBASE TIGUAN AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW
      Jan 8, 2017
      Debut of the long-wheelbase Tiguan, based off the award-winning MQB architecture Longer by 10.7 inches than current model, with an increase in cargo space up to 57 percent Flexible seating for five with sliding second row Third-row seating standard on certain trims and optional across lineup Available driver assistance technology includes: ACC, Front Assist with Pedestrian Monitoring, Blind Spot Monitor with Rear Traffic Alert and Lane Assist Available Volkswagen Digital Cockpit allows drivers to reconfigure instrument panel Optional 4Motion® with Active Control all-wheel-drive system features four selectable modes Available panoramic sunroof and power tailgate lead long list of available features Detroit, Mich. – The all-new 2018 Volkswagen Tiguan unveiled today at the North American International Auto Show kicks off a big year for the Volkswagen brand in America. Engineered specifically to meet the needs of American customers, the all-new Tiguan builds on the current vehicle’s fun to drive character and adds a more sophisticated and spacious interior, flexible seating and high-tech infotainment and driver assistance features.
      “The new Tiguan demonstrates how we plan to give American customers the usability and versatility they demand without sacrificing style or Volkswagen’s trademark driving dynamics,“ said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen. “Every detail of the Tiguan has been thoughtfully engineered for our U.S. customers to maximize space and convenience, while retaining its performance, agility, and value. We plan to price Tiguan very competitively with other compact SUVs. With the brand-new Tiguan and the all-new Atlas, 2017 is the year of #SUVW.”
      As with the Atlas, the Tiguan is based on Volkswagen’s Modular Transverse Matrix (MQB) architecture. Compared with the current model, the new Tiguan has far more interior space; at 185.2 inches long, the 2018 model is a stunning 10.7 inches longer than the current version and has up to 57 percent more cargo capacity. The 109.9-inch wheelbase—4.4 inches longer than the new Tiguan sold in Europe—provides both sliding second-row seats and an optional third row.
      On the outside, the all-new Tiguan adopts Volkswagen’s clean and timeless design DNA. The MQB platform allows for a wider, lower stance, while the exterior design of sharper, stronger character lines, and LED lighting has already garnered several European design awards. The exterior design also enhances the Tiguan’s utility, from a 26-degree approach angle for off-roading to a lower lift-in height for the tailgate.
      The Tiguan’s interior has been rethought and refreshed; even the cloth seats of entry models now feature a rhombus pattern that offers a premium look. The Tiguan now features the optional Volkswagen Digital Cockpit display, offering drivers a reconfigurable display of key data and the ability to position navigation data front and center for easy viewing. The available Volkswagen Car-Net® system provides a suite of connected vehicle services, including standard App-Connect technology that offers compatible smartphone integration with the three major platforms—Apple CarPlay™, Android Auto™ and MirrorLink®.  The new Tiguan also offers an available Fender® Premium Audio System.
      To meet the demands of American SUV drivers, the Tiguan now offers a comprehensive suite of driver assistance technology. A rearview camera comes standard and available features include: Adaptive Cruise Control (ACC), upgraded for use in stop and go traffic; Forward Collision Warning and Autonomous Emergency Braking (Front Assist) with Pedestrian Monitoring; Blind Spot Monitor with Rear Traffic Alert; and Lane Departure Warning (Lane Assist), which actively helps the driver steer the car back into its lane should the vehicle start drifting into another lane without using the turn signal.
      In addition, the 2018 Tiguan offers a combination of both passive and active safety systems that are engineered to meet or exceed current crash regulations. These systems include the class exclusive Automatic Post-Collision Braking System.
      A new palate of exterior and interior colors combine with key available comfort options such as eight-way power driver’s seat, heated front seats, and a heated steering wheel. The second-row bench can slide seven inches fore and aft and be split 40:20:40. The third-row seats will come standard on front-wheel-drive models and be optional on all-wheel-drive versions. An available panoramic sunroof lightens the entire interior space, while the foot-activated power liftgate makes the cargo space more accessible than ever.
      The new Tiguan will be powered by an updated version of Volkswagen’s 2.0-liter turbocharged and direct injection TSI® engine, making 184 horsepower and 221 pound-feet of torque, driving the front wheels via an eight-speed automatic transmission. Optional 4Motion with Active Control all-wheel-drive offers four driver selectable modes to maximize driving enjoyment and grip, on pavement or off.  

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