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    2017 Volkswagen Golf Alltrack To Begin At $26,670*


    • How much will a Volkswagen Golf Alltrack set you back?


    Volkswagen has announced pricing and various details on the upcoming 2017 Golf Alltrack this week.

    The Golf Alltrack differs from the Golf SportWagen with 0.6-inch higher ride height, underbody guard for the front bumper, a larger gas tank (14.5-gallon for Alltrack vs. 13.2-gallon for Golf SportWagen), and 4Motion AWD as standard. Power comes from a turbocharged 1.8L four-cylinder with 170 horsepower and 199 pound-feet of torque. Fuel economy is rated at 22 City/30 Highway. 

    Pricing begins at $26,670 for the Golf Alltrack S with the manual and $27,770 for the DSG (prices include an $820 destination charge). The S gets leatherette seats, heated front seats, cruise control, an eight-speaker audio system, and a 6.5-inch touchscreen with a backup camera.

    The Golf Alltrack SE starts at $30,250 with the manual or $31,350 with the DSG. SE models feature a panoramic sunroof, keyless entry with push-button start, and a Fender audio system. Wrapping up the Golf Alltrack lineup is the SEL which kicks off at $33,710 for the DSG. SEL models come with a 12-way power driver seat, dual-zone climate control, and navigation.

    S and SE models can be equipped with an optional Driver Assistance package that adds adaptive cruise control, forward collision warning, automatic emergency braking, parking steering assist, and rear park distance control for $845. SEL models get all of these features along with high beam control and bi-xenon headlights with adaptive front lighting for $1,995.

    The 2017 Golf Alltrack arrives at dealers in a few weeks.

    Source: Volkswagen

    Press Release is on Page 2


    2017 GOLF ALLTRACK: VOLKSWAGEN’S STYLISH AND SOPHISTICATED WAGON IS READY FOR ADVENTURE
    Sep 11, 2016

    • MSRP ranges from $26,950 for the S model to $32,890 for the top-tier SEL trim
    • 4Motion® all-wheel drive, Hill Descent Control, Alltrack-exclusive “Off Road Mode,” and increased ground clearance provide exceptional performance on a variety of road conditions
    • Available advanced driver assistance systems include: Adaptive Cruise Control (ACC) and Forward Collision Warning and Autonomous Emergency Braking (Front Assist), front and rear Park Distance Control (ParkPilot), Parking Steering Assistant (Park Assist), Lane Departure Warning system (Lane Assist), and High Beam Control (Light Assist)
    • Golf platform offers the utility of a compact SUV—cargo volume, roof rack—without compromise in road manners
    • High-tech features include a standard 6.5-inch touchscreen with rearview camera, Volkswagen Car-Net® App-Connect and an available Off-Road HMI section for the MIB infotainment platform

    Herndon, VA – The Golf Alltrack, the eagerly awaited derivative of the Golf SportWagen, marries that vehicle’s practicality and fun-to-drive nature with the capabilities of 4Motion® all-wheel drive and rugged exterior styling. The Alltrack offers an affordable yet upscale alternative to existing all-wheel-drive wagons that are on the market.

    The Alltrack uses Volkswagen’s powerful yet fuel-efficient 1.8-liter TSI® turbocharged and direct-injected four-cylinder engine, which makes 170 horsepower and 199 pound-feet of torque. The TSI engine will initially be offered with a six-speed DSG® dual-clutch automatic transmission, with a six-speed manual transmission available later in the model year. The latest generation 4Motion all-wheel-drive system features a fast-acting center differential. Golf Alltrack will be available in three trims—S, SE and SEL—and will be in dealer showrooms in October.

    Exterior

    The Golf SportWagen body shape is immediately evident in the Alltrack, but there is absolutely no mistaking the two. Despite the overall length and width remaining roughly the same at 180.2 inches and 70.8 inches, the overall height has been increased because ride height is elevated by 0.6 inches. This change in proportions helps to make for a bolder, more capable appearance without compromising the pillars of Volkswagen design DNA—tight, crisp lines and understated-yet-modern surfaces.

    From the front, the Alltrack’s rugged character becomes even more apparent, with a redesigned bumper and added underbody guard, a matte-aluminum low-profile radiator grille crossbar extending into the headlights, a lower silver crossbar that incorporates standard foglights and unique black honeycomb grilles.

    The Alltrack’s profile also provides differentiation from the SportWagen, with body cladding on the side sills and around the wheelarches that carries over to the lower areas of the redesigned bumpers. Unique accenting can also be seen in the silver roof rails, Reflex Silver side mirrors and lower window chrome molding. A panoramic sunroof is standard equipment on SE and SEL grades. Also obvious from the side are the standard 17-inch aluminum-alloy “Valley” wheels (18-inch “Canyon” on the SEL) and the impressive ground clearance of 6.9 inches.

    At the back, the Alltrack sports dark-red taillights and a new bumper that is highlighted by dominant silver underbody protection, matching the style of the side sills and incorporating chrome exhaust outlets on either side. “Alltrack” and “4Motion” badging also make it clear this is a distinctly different vehicle than its Golf brethren.

    In addition to the standard foglights and LED Daytime Running Lights (all trims) with automatic headlight activation (SE and SEL only), a Driver Assist & Lighting Package is available for the Alltrack SEL that adds automatic headlight adjustment and replaces the halogen headlights with Bi-Xenon units.

    Interior

    Inside, the Alltrack offers the same spacious 94.3 cubic feet of passenger volume as the SportWagen, as well as 30.4 cubic feet of cargo room behind the rear seats and 66.5 cubic feet with the rear seats folded. Headroom also remains the same at 38.6 inches, as does the front and rear shoulder room of 55.9 and 53.9 inches and front and rear legroom of 41.2 and 35.6 inches.

    Despite having the same measurements, there are some notable differences that make the Alltrack’s upscale cabin stand out. V-Tex leatherette seating surfaces—including a unique “Marrakesh” brown color option—are standard equipment across the line, along with heatable front seats. A 12-way power driver seat is standard on the SEL trim. The unique interior equipment of the Alltrack adds a black headliner, a 4Motion-branded chrome strip on the center console, stainless-steel door kickplates with the Alltrack logo, and custom aluminum-look pedals.

    In addition to the expansive interior space, driver controls are positioned to help optimize ergonomics and usability. The seat position, height of the shifter and the spacing between the pedals are fine-tuned for increased driver comfort. This driver-centric design focus is evident from the center stack, which is angled towards the driver, a feature frequently seen in premium luxury or performance vehicles. Ambient lighting further highlights this upscale character, as well as the use of premium materials throughout, such as the soft-touch plastics and leather-wrapped handbrake, shifter knob and multi-function steering wheel.

    An equal amount of attention has been paid to helping to optimize comfort and convenience throughout the lineup. The Alltrack comes equipped with a long list of modern comfort, convenience and entertainment features, including power windows, locks and mirrors, rearview camera, Bluetooth® technology and Volkswagen Car-Net® Security and Service. KESSY® keyless access with push-button start is standard equipment on SE and SEL trim levels, as is the Fender® Premium Audio System, while Climatronic® automatic dual-zone climate control is standard on SEL models. The Alltrack S is equipped with an eight-speaker audio system.

    As standard equipment across the Alltrack line, the MIB II infotainment system not only creates the foundation for the next generation of Volkswagen’s Car-Net connected vehicle services platform, but also offers one of the most comprehensive suites of connected vehicle services and features available in the automotive industry today. The Composition Media unit is standard in S and SE trims, while the Discover Media navigation unit is found in the SEL trim. Both MIB II units are anchored around a 6.5-inch, 800x480 capacitive color touchscreen display with proximity sensor.

    The Alltrack SEL also features the Discover Media unit, which upgrades the 6.5-inch touchscreen with 2.5D Navigation, one-shot voice destination entry, predicts possible destinations based on often used routes, and Destination Entry with Quick Search and Auto-complete, and Car-Net Guide & Inform.

    Compatible smartphone integration is a key part of this system, offering users the ability to run certain smartphone apps directly on the vehicle’s display through services like Apple CarPlay®, Android Auto™ and MirroLink®.  Alltrack’s infotainment system also offers AUX-in, SD card and USB multimedia interfaces with Apple iPhone® and iPod® compatibility, as well as a rearview camera display and Bluetooth technology with audio streaming for compatible phones. Other features include the ability to sync two phones simultaneously, along with a JPEG viewer, SiriusXM® Satellite Radio, HD Radio and support for lossless audio file format (Free Lossless Audio Codec FLAC).

    Security & Service

    With the Car-Net Security & Service suite, owners can access their VW remotely through vw.com/carnet as well as a smartphone app, providing access to the features available from virtually anywhere your mobile device is connected to wireless internet.

    Available security related features include Automatic Crash Notification, which can automatically notify an operator who can contact first responders in the event of an collision; Manual Emergency Call, a feature that allows for quick access to customer specialists at the touch of a button; Roadside Assistance, for added peace-of-mind in the event of trouble on the road; and Stolen Vehicle Location Assistance, which uses VW Car-Net Security & Service to assist law enforcement with locating your vehicle in the event that it is stolen.

    In addition, Volkswagen Car-Net Security & Service offers layers of convenience, such as remote vehicle access, remote door lock and unlock, remote honk and flash (of lights), last parked location information, and remote status check (doors and windows).

    The Car-Net Security & Service also offers Family Guardian, a suite of features that help families. Features including speed alert, which can notify the owner of the vehicle when the preset maximum speed limit is exceeded; and boundary alert, which can alert you if the vehicle has traveled outside of a pre-set virtual boundary.

    Diagnostics and maintenance information is also available through VW Car-Net. A Vehicle Health Report allows Volkswagen customers to check to see an overview of vehicle diagnostics. When it’s time for scheduled service, Car-Net Security & Service can not only alert the customer, but also provide a simple way to schedule a dealer visit. It can even identify the closest dealer in case you need a recommendation.

    Customers purchasing new Volkswagen models equipped with Volkswagen Car-Net Security & Service connected vehicle services (not including App-Connect) will receive a no-charge trial for six months after purchase. To extend the benefits of this connectivity system, customers can choose from a number of Volkswagen Car-Net payment options: 1 year, for $199; 2 years for $378; 3 years for $540; or, month-to-month, for $17.99.

    Guide & Inform. Car-Net Guide & Inform offers an enhanced navigation and infotainment experience for Volkswagen customers. Volkswagen has incorporated technologies that enhance existing navigation offerings while adding an additional level of information that empowers owners.

    Satellite navigation is refined with Car-Net Guide & Inform, which incorporates several layers of information right onto the screen. MIB II-equipped Volkswagen models with in-vehicle navigation systems feature real-time fuel prices, sports scores, movie information and weather data as part of the three month SiriusXM Travel Link trial. Volkswagen customers will also enjoy real-time traffic information and a complimentary three-month SiriusXM Traffic trial.

    Customers purchasing new Volkswagen models equipped with Volkswagen Car-Net connected vehicle services (not including App-Connect) will receive a no-charge trial for six months after purchase. To extend the benefits of this connectivity system, customers can choose from a number of Volkswagen Car-Net payment options: 1 year, for $199; 2 years for $378; 3 years for $540; or, month-to-month, for $17.99. App-Connect can be used free-of-charge and is not included as part of the subscription-based services. Car-Net Guide & Inform services are provided by SiriusXM, and following the three-month trial period of SiriusXM Travel Link and SiriusXM Traffic, customers can contact SiriusXM at www.siriusxm.com to learn how to initiate paid subscriptions to these services.

    Powertrain

    The Alltrack shares its 1.8-liter TSI engine with other members of the seventh-generation Golf lineup. This four-cylinder gasoline unit is a member of the latest EA888 engine family, utilizing turbocharged induction and direct fuel injection to help achieve excellent efficiency while still delivering impressive power. Output is rated at 170 horsepower at 4500 rpm and a stout 199 pound-feet of torque beginning at just 1600 rpm.

    Across all grades, Alltrack is launching with a six-speed DSG dual-clutch automatic transmission. A six-speed manual transmission will be available early in 2017 on the S and SE trimlines. Regardless of transmission, power is routed to all four wheels via the 4Motion all-wheel-drive system.

    Also unique to Alltrack is a large 14.5-gallon fuel tank, which offers a greater range for adventure than SportWagen’s 13.2-gallon tank. The EPA-estimated fuel economy is 30 mpg highway and 22 mpg city.

    4Motion all-wheel-drive system

    One of the Alltrack’s key features is the 4Motion permanent all-wheel-drive system. The latest-generation 4Motion system is activated before any wheelspin occurs, helping eliminate nearly all traction losses. The system achieves this by using an advanced control function based on specific driving conditions. When operating under a relatively low load or when coasting, the front wheels are driven and the rear wheels are decoupled, which can help save fuel. However, the rear wheels can be engaged in fractions of a second whenever necessary via the center differential, which is activated by an electro-hydraulic oil pump.

    A control unit continually calculates the ideal drive torque for the rear wheels and controls how much the multi-plate clutch should be closed by activating the oil pump. The oil pressure increases the contact pressure at the clutch plates in proportion to the torque desired at the rear axle. So, the amount of pressure applied to the clutch plates can be used to continuously vary the amount of torque going between the front and rear wheels, up to a maximum of 50 percent at the rear axle.

    In addition to the center differential that acts longitudinally, electronic differential locks (EDL) that are a function of the electronic stability control system act laterally. The system can briefly brake a wheel that is slipping, enabling uninterrupted and stable transfer of drive power to the wheel on the opposite side.

    Chassis

    As a member of the modern Golf lineup, Alltrack is built on the same MQB chassis architecture as the rest of the line. The unitary construction chassis has two solid-mounted subframes with bolt-on front fenders, and utilizes new technologies such as laser clamp welding, which produces “wobble seam” welds in a wave pattern to help maximize strength in a limited space, offering up to four times the strength of a traditional spot weld.

    The stamped steel body and chassis boasts a large percentage of high-strength, hot-formed steel. This technology, along with the use of newly developed ultra-high-strength steels, allows much of the chassis and body to be constructed from thinner and lighter parts without any loss in strength. Additionally, thanks to the use of selective thickness for parts, a single component can be tailor-rolled to have as many as 11 zones of varying thicknesses.

    Thanks to the extensive use of modern construction techniques and high- and ultra-high strength steels, Alltrack’s chassis manages to remain lightweight despite its upscale features and enhanced crash structure. Throughout the car, incredible attention to detail has optimized components—such as the seats, air conditioning system, and even the electrical architecture—to help save weight.

    The Alltrack has its own, unique suspension tuning, with a ride height that is raised by 0.6 inches. Up front, a strut layout uses coil springs, telescopic dampers, and an anti-roll bar, with a multilink arrangement with coil springs, telescopic dampers and anti-roll bar at the back.

    The Golf Alltrack’s braking system features 11.3-inch vented front discs and 10.7-inch solid rear discs with standard three-channel ABS with electronic brake pressure distribution. The rack-and-pinion steering features electric power assist and features a 13.6:1 ratio that allows for 2.76 turns from lock to lock and a vehicle turning circle of 35.8 feet.

    The Alltrack features a unique Driving Mode Selection that enables an Off Road Mode setting. This driving profile alters the ABS system and accelerator pedal character and activates the hill descent function, helping Alltrack deliver exceptional performance off the beaten path. The available Off-Road HMI that is part of the navigation system displays compass, steering angle, and altitude when driving off-road.

    Alltrack is also equipped with the XDS+® Cross Differential System—a feature originally developed for the performance-oriented GTI model. This technology acts somewhat like an electronic substitute for a traditional mechanical limited-slip differential, working by actively monitoring data from each wheel sensor. If the suspension becomes unloaded, the system automatically applies braking to the driven inside wheel as needed to help reduce understeer (the tendency for the front wheels to run wide). This not only helps stability, but can also help improve handling and cornering performance.

    Safety

    Like the rest of the Golf line, Alltrack provides an intelligent combination of both passive and active safety systems. The 2017 Alltrack has been given a 5-star overall safety rating from the National Highway Transportation Safety Administration (NHTSA).

    A standard feature on all 2017 Alltrack models is the Automatic Post-Collision Braking System. This builds on the premise that a collision is rarely a single, instantaneous action, but rather a series of events that follow the initial impact—the most significant of which can cause additional collisions. The Automatic Post-Collision Braking System addresses this by applying the brakes when a primary collision is detected by the airbag sensors, thus helping to reduce residual kinetic energy and, in turn, the chance of additional damage.

    The Alltrack also includes Volkswagen’s Intelligent Crash Response System that shuts off the fuel pump, unlocks the doors, and switches on the hazard lights if the car is involved in certain types of collisions. All Alltrack models are equipped with standard Electronic Stability Control (ESC).

    Driver Assistance Systems

    The Alltrack S and SE are available with the Driver Assistance Package (MSRP $845) that adds Adaptive Cruise Control (ACC), Forward Collision Warning and Autonomous Emergency Braking (Front Assist), front and rear Park Distance Control (ParkPilot), and Parking Steering Assistant (Park Assist). The Alltrack SEL can be equipped with the Driver Assistance & Lighting Package ($1,995), which includes the above-listed systems and adds an auto-dimming rearview mirror, Lane Departure Warning system (Lane Assist), High Beam Control (Light Assist), and Bi-Xenon headlights with the Adaptive Front-lighting System (AFS).

    Adaptive Cruise Control (ACC) uses forward facing radar to maintain a set speed while helping maintain a set distance to the vehicle in front. The driver sets the speed and the desired spacing via buttons on the multifunction steering wheel and can use the accelerator, brake pedal, or steering wheel to cancel or override the ACC function. All system messages appear in the central multifunction display.

    When the roadway ahead of the vehicle is empty, the system maintains the set speed. Alltrack models fitted with automatic transmissions and ACC can match the speed of a vehicle in front and come to a stop, as well as resume ACC control after the driver presses the accelerator pedal or the “resume” button on the steering wheel. On manual transmission Alltrack models, the ACC ceases to operate below 19 mph.

    Within physical system limits, Forward Collision Warning helps warn the driver of critical front-end collision situations, both acoustically and visually by a warning symbol in the instrument cluster, and, if necessary, Autonomous Emergency Braking is activated to slow the vehicle if the driver fails to brake. If the brake pedal is applied but the driver brakes too lightly, the brake pressure is increased by the system.

    If there is an indication that the vehicle is unintentionally straying from its lane, an available Lane Departure Warning system can actively countersteer to help keep the vehicle in the lane above 40 mph. The system’s camera can recognize visible lane markings (one side can suffice) and, using a special algorithm, calculates the risk of the car leaving the lane. If the driver takes their hands off the wheel for a defined period of time, or the vehicle crosses a lane marking without use of a turn signal, the system countersteers and later provides an audible warning and a visual signal in the instrument cluster, asking the driver to take over steering.

    The system works in the dark and/or in fog, but will not engage if it cannot properly detect lane markings. If the turn signal has been set before crossing a lane marking, the Lane Departure Warning system will not engage or give a warning. The driver can “override” the system at any time by applying minimal force, and is not relieved of responsibility to make conscious driving decisions.

    Park Distance Control uses ultrasonic sensors located in the front and rear bumpers to monitor a range of up to five feet in front or behind the vehicle. The system is activated when reverse gear is engaged or below a speed of 9 mph and helps provide guidance when parking or in tight situations. The system has audible and visual warnings when the car starts to approach parked cars or static objects from the front or rear.

    Park Assist can automatically steer the car into parallel and perpendicular parking spaces in reverse. After pressing the Park Assist button – once for parallel and twice for perpendicular – the driver only needs to activate the accelerator pedal and brake once a gear is selected.

    The driver can override or deactivate the steering assistance at any time by turning the steering wheel, disengaging reverse gear or pressing the button. Below 25 mph, the system can scan both the left-hand and right-hand sides of the road, for example in a one-way street, for any parking spaces as it drives past. By activating the turn signal, the driver stipulates which side of the road they wish to park on.

    Limited Warranty

    2017 Golf Alltrack models are offered with Volkswagen’s standard five-year/60,000-mile (whichever occurs first) powertrain limited warranty and three-year/36,000-mile (whichever occurs first) new vehicle limited warranty.

    Model Line-up

    Destination on all Golf Alltrack models is $820

    Alltrack S
    $25,850 with manual transmission (late availability)
    $26,950 with automatic transmission

    Alltrack SE
    $29,430 with manual transmission (late availability)
    $30,530 with automatic transmission

    Alltrack SEL
    $32,890 with automatic transmission

    Competitive Set
    Subaru Outback
    Subaru XV Crosstrek

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    4 minutes ago, Frisky Dingo said:

    Man, if this only had the 2.0T, I'd trade my GTI and wife's Rav in on it in a heart beat.

    I actually thought the same thing. I was uber disappointed when I read it has the 1.8T.

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    12 minutes ago, ccap41 said:

    I actually thought the same thing. I was uber disappointed when I read it has the 1.8T.

     

    I'm not disappointed, because the 1.8T is still a great little engine. I just wouldn't want to go down in power/performance. The 1.8 makes GTI numbers with just a flash/tune. And even in stock guise, they are more than adequate. Punchy down low, but without running of breath up top. Paired with the DSG, this is probably a quite enjoyable package. 

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    18 hours ago, Frisky Dingo said:

     

    I'm not disappointed, because the 1.8T is still a great little engine. I just wouldn't want to go down in power/performance. The 1.8 makes GTI numbers with just a flash/tune. And even in stock guise, they are more than adequate. Punchy down low, but without running of breath up top. Paired with the DSG, this is probably a quite enjoyable package. 

    Indeed, but I would want a DSG tune as well.  Was going to put one on the Jetta before the buy back scenario.

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      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.

      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
      Most of us knew this was going happen, but there were some that hoping that somehow the Chevrolet SS would continue on after production of the Holden VF Commodore ended. To those who fall into this camp, it is time to move on as the SS will be no more after 2017.
      Alan Batey, head of GM North America confirmed this yesterday at the Detroit Auto Show. Batey also said there would not be a replacement for the rear-drive sedan.
      “Obviously it’s unlikely there is anything to follow because of what is going on in Australia. It was an optimistic play from our perspective and it’s played out well and been a nice addition to the range. It’s not mainstream. It’s small volume,” said Batey
      In 2016, Chevrolet moved 3,013 SS sedans.
      Source: Motor Trend
      Pic Credit: William Maley for Cheers & Gears

      View full article
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