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Volkswagen is making progress with moving on from the diesel emission scandal as they have announced a proposed agreement for the 3.0L TDI V6. Filed in federal court last night, the agreement totals $1.2 billion and hopes to resolve civil claims for 78,000 vehicles. The settlement includes,

• Buy back or terminate the lease of approximately 20,000 eligible 2009-2012 Volkswagen Touareg and Audi Q7 TDI models (dubbed the Generation 1 models). There is also the possibility of Volkswagen offering owners of these models a fix if approved by the U.S. Government.
• Repair the approximately 58,000 Generation 2 models (2013-2016 Volkswagen Touareg, Porsche Cayenne, and Audi Q7; 2014-2016 Audi A6, A7, A8, Q5, and Q7).
• Offer compensation payments as much as $16,114 for all owners of 3.0L TDI V6 models

The agreement needs the approval of a federal judge. A hearing on this will take place a couple weeks from now. 

“With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc in a statement.

Source: Bloomberg, Volkswagen
Press Release is on Page 2

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VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH PRIVATE PLAINTIFFS AND U.S. FEDERAL TRADE COMMISSION ON 3.0L TDI V6 VEHICLES IN THE UNITED STATES

• Program, if approved, would include provisions to recall and repair most affected vehicles.
• Options for older affected vehicles include buybacks or trade-in credits, or lease termination.
• All eligible owners and lessees of affected vehicles will receive cash payments.

Herndon, VA (February 1, 2017) – Volkswagen AG and Volkswagen Group of America, Inc. (together, Volkswagen) announced today that they have reached proposed agreements to resolve outstanding civil claims regarding approximately 78,000 affected 3.0L TDI V6 diesel engine vehicles in the United States.

Two agreements have been submitted to the Court for approval: (1) a proposed class settlement with private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee (PSC) on behalf of a nationwide class of current and certain former owners and lessees of eligible 3.0L TDI V6 vehicles; and (2) a proposed Consent Order submitted by the U.S. Federal Trade Commission (FTC).

“With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc.

Proposed 3.0L TDI Settlement Program

Under the 3.0L TDI settlement program, Volkswagen has agreed, among other terms, to provide cash payments to all eligible members of the class, and take the following specific actions:

• Recall and repair, free of charge to the customer, approximately 58,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles (so-called Generation 2 vehicles) to bring them into compliance with the emissions standards to which they were originally certified, if an appropriate Emissions Compliant Repair is approved by U.S. regulators.
• Buy back or offer trade-in credit of equal value for, or terminate the leases of, approximately 20,000 eligible 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles (so-called Generation 1 vehicles) or, if approved by U.S. regulators, modify the vehicles to substantially reduce their nitrogen oxide (NOx) emissions so as to allow eligible owners and lessees to keep them.

Volkswagen has agreed to pay up to approximately $1.2 billion in benefits for the 3.0L TDI settlement program, assuming 100% participation in the program, a 100% buyback of all eligible Generation 1 vehicles and availability of an Emissions Compliant Repair for Generation 2 vehicles. Volkswagen expects to be able to bring affected Generation 2 vehicles to the same emissions standards to which the vehicles were originally certified.

Volkswagen will begin the 3.0L TDI settlement program as soon as the Court grants final approval to the settlement agreements. At the earliest, approval will occur in May 2017. 

Potential claimants under the class settlement do not need to take any action at this time. Individual class members will receive extensive notification of their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed class settlement at a hearing scheduled to take place on February 14, 2017. More information about the proposed 3.0L TDI settlement program can be found at www.VWCourtSettlement.com.

Notes to Editors

The proposed settlement applies to all 3.0L TDI V6 diesel engine vehicles that Volkswagen, Audi, or Porsche marketed or sold in the United States for Model Years 2009 through 2016. The vehicles are divided into two generations, as follows:

Generation 1 Vehicles

• Volkswagen Touareg: 2009-2012
• Audi Q7: 2009-2012

Generation 2 Vehicles

• Volkswagen Touareg: 2013-2016
• Audi Q7: 2013-2015
• Audi A6, A7, A8, A8L, Q5: 2014-2016
• Porsche Cayenne Diesel: 2013-2016
   

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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

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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:

1. 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.
2. Jens Hadler: from May 2007 until March 2011, Hadler worked for VW as head of Engine Development for VW.
3. 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.
4. Bernd Gottweis: from 2007 until October 2014, Gottweis worked for VW as a supervisor with responsibility for Quality Management and Product Safety.
5. 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.
6. 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.

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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

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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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The Volkswagen CC is getting a bit long in the tooth and will be soon phased out. But there is a successor to the CC in the pipeline known as the Arteon which the German automaker has begun to start teasing.

 

Shown off in a pencil sketch, the Arteon looks very similar to the Sport Coupe Concept GTE shown at last year's Geneva Motor Show - a long front end, stubby rear end, and a coupe-like roofline. Volkswagen says the Arteon will feature a grille that extends into the LED headlights, and frameless windows.

As for the name, Volkswagen says Arteon is a combination of 'Art' and 'Eon'.

We'll see the production version next March at the Geneva Motor Show with sales following in the summer.

 

 

Source: Volkswagen
Press Release is on Page 2

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The Volkswagen Arteon: New Premium Saloon Combines Avant-Garde Design and Dynamic Handling

• Four-door saloon implements new progressive Volkswagen design language
• Headlights and Volkswagen emblem merge into a wholly new interpretation of the front section

Wolfsburg, 28.11.2016 – Three months ahead of its world premiere at the Geneva Motor Show, Volkswagen is providing a first look at the fascinating contours of its new premium saloon, the Arteon. The totally new model sits above the Passat and emphasises emotion in the upper mid-class.

In addition to a new and emotive outline Volkswagen is also introducing with the Arteon a highly expressive, horizontally accentuated brand look. The bars of the radiator grille extend into the three-dimensional headlights, while LED lighting elements additionally emphasise the striking layout and demonstrate dominance.

The four-door saloon impresses both through revolutionary design and great practicality. While the doors' frameless windows reflect the typical stylistic elements of a grand tourer, the top-hinged and wide-opening tailgate provides optimum access to the huge boot. Tobias Sühlmann, Exterior Designer, explains: “At first sight, the Arteon arouses enthusiasm through its expressive design. It then surprises through its practical virtues. This combination is unique."

The name Arteon – with the emphasis put on the first syllable – is made up of two component parts: 'Art' describes the saloon's harmonious lines and emotionality. The ending 'eon' identifies it, in the same way as Volkswagen's top model for the Chinese market, the PHIDEON, as a premium model.

The new Arteon is being publicly unveiled for the first time at the Geneva Motor Show; its launch will then follow in summer 2017.

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Volkswagen has unveiled the updated Mark 7 Golf today in Europe. 

The exterior hasn't seen many alterations aside from new bumpers and LED lighting for the front and rear. But it only disguises the big changes Volkswagen has done.

It begins in the interior as Volkswagen has swapped the standard insturment cluster for a digital display - think Audi virutal cockpit. All Golfs will also feature touchscreen infotainment systems ranging from 6.5 to 9.2 inches. The largest screen will offer gesture controls.

For engines, the Golf will be the first Volkswagen model to debut a new 1.5L turbo-four with two power outputs - 128 horsepower and 148 pound-feet of torque for the economical BlueMotion and 148 horsepower and 184 pound-feet for the standard engine. GTI models will see an increase in power as well - the standard model sees power jump from 210 to 227 horsepower while the Performance variant now features 242 horsepower. A new seven-speed dual-clutch transmission will take the place of the six-speed version.

In terms of safety, the Golf will come with a new Traffic Jam Assist system that uses the adaptive cruise control and lane keep assist to allow the vehicle to crawl in traffic. There will also be front collision assistance with pedestrian detection and a trailer assist system (for Europe only).

The updated Golf will go on sale next year in Europe. The U.S. will likely get the updated Golf in the 2018 model year.

Source: Volkswagen
Press Release is on Page 2

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In brief – the world premiere of the 2017 model year Golf

Wolfsburg, November 2016. Volkswagen is digitalising the most successful model in the Group’s history – the Golf – with a major update. The main focus of the 2017 model year is – alongside new engines, keener design and new assistance systems – a completely new generation of infotainment systems. As a world first in the compact class, the top-of-the-range “Discover Pro” system can be operated by gesture control. With its 9.2-inch screen it forms a conceptual and visual entity with the Active Info Display, which is also new to the Golf. In parallel to this, the range of online services and apps has also been enlarged. The update to the Golf, of which over 33 million have been sold to date, also reflects a new standard for assistance systems in the compact class: technologies such as City Emergency Braking with new Pedestrian Monitoring function, the new Traffic Jam Assist (partially automated driving at speeds of up to 60 km/h) and Emergency Assist, which is also new in this segment, significantly improve safety.

New TSI engines and a new 7-speed DSG. The progressive digitalisation is accompanied by the enhanced EA211 TSI engine family. The new Golf initially sees the debut of the new turbocharged petrol engine, the “1.5 TSI Evo” – a 110 kW/150 PS four-cylinder turbo with Active Cylinder Management (ACT). This will be followed by a BlueMotion version producing 96 kW/130 PS. Volkswagen has also boosted the performance of the Golf GTI, the new version of which will produce 169 kW/230 PS and 180 kW/245 PS (GTI Performance) and a new 7-speed DSG (dual clutch gearbox) will gradually replace the 6-speed DSG as a high-efficiency gearbox for the Golf.

Powerful, more refined design and new LED lights. Volkswagen presents the update to the two- and four-door Golf, the Golf Variant and the sporty Golf GTI and Golf GTE at Volkswagen’s headquarters in Wolfsburg. The more refined design of all new versions of the Golf makes a more powerful impression than ever before. The modifications include new bumpers at the front and rear, new halogen headlights with LED daytime running lights, new full LED headlights instead of xenon headlights, new front wings, new full LED tail lights – which come as standard for every version of the Golf – as well as new wheels and colours, and the interior of the 2017 model year Golf is finished off with refined new decorative trims and fabrics. The range of equipment versions of the Golf remains unchanged.

The design in detail – a charismatically enhanced icon

Confident Golf front section. New details give the Golf’s iconic design yet more unmistakable clarity, in particular the combination of the radiator grille and the headlights, which round off the original stylishly. The lower chrome strip on the radiator grille extends to the left and right as a chrome element (painted red on the GTI and blue on the GTE) and LED daytime running lights out to the headlights (the LED headlights, which either comes as standard or as an optional extra, depending on the equipment version, replace the xenon headlights in the new Golf). The cooling openings in the lower part of the bumper, which have also been redesigned, accentuate the width of the Volkswagen even more than before. The interplay of the new details make the Golf even more striking. Another optical highlight for the versions with Adaptive Cruise Control ACC and/or Front Assist including the City Emergency Braking function with new Pedestrian Monitoring is that the radar sensor for these systems on the TDI, TSI, LNG, GTD and GTI versions will no longer be located (visibly) in the lower cooling air intake in the bumper, but will instead now be hidden behind the VW logo in the upper radiator grille.

Full LED tail lights as standard. The back of the car has also been made more charismatic: from now on, all versions of the Golf and Golf Variant will come with full LED tail lights. In contrast to many standard LED tail lights, none of the functions of the Golf’s new tail lights will use conventional light bulbs. Also, the top-of-the-range version of the full LED tail lights (available for the 2 and 4-door Golf) will have animated flowing indicators. This version can be recognised by a translucent white LED stripe that turns orange when indicating. Last, but not least, the top-of-the-range version is set apart by a visually striking switch-over between the LED tail light and the LED brake lights when the brakes are applied.

Refined interior. For the interior of the Golf, Volkswagen’s‎ design division “Colour & Trim” has come up with new decorative trim panels in the doors, the dash panel and the centre console, as well as new seat covers.

Golf GTI. The sporty GT versions are set apart by colour applications to match the character of the specific Golf version, instead of the chrome strip in the radiator grille and headlights. One of the most important Golf GTI insignias – the red stripe in the radiator grille – is now extended as an even more distinctive feature. The crossbar in the radiator grille and little winglets at the side of the standard dual LED headlights are also red. The back of the 2017 model year Golf GTI is distinguished not only by the new bumpers and the full LED tail lights, but also by the enlarged cross-section of the chrome-plated exhaust pipes.

Golf GTE. Similar to the Golf GTI, with its red design elements, the latest Golf GTE features the characteristic blue design elements of the plug-in hybrid version. The blue winglets in the GTE’s new LED headlights, which also come as standard, visually emphasise the dynamism of this efficient Volkswagen.

Golf Variant. The diverse model range of the Golf has traditionally included the Golf Variant. The latest version of this all-rounder is also celebrating its world premiere. A new rear bumper makes the Golf Variant appear even more elongated and elegant. The full LED tail lights, which also come as standard with this version, suit this look perfectly. Just like the Passat Variant, the Golf Variant is also available with sophisticated trapezoidal chrome trim panels, which are directly integrated into the diffuser, as an option.

Digital Golf – Active Info Display, gesture control and online services

Digital instrumentation and gesture control.The update of the Golf is most readily visible inside, because the 2017 model year offers a new and increasingly digital display and control concept. It is based on the new Active Info Display and the first infotainment system with gesture control to be offered in a Volkswagen. Along with this, Volkswagen has updated its whole range of infotainment systems. Its most important characteristic is the sophisticated new design, larger touchscreens and, as outlined above, – in the case of the top-of-the-range “Discover Pro” model – gesture control, which is implemented here for the first time in the Golf's compact car class.

Active Info Display – the full digital cockpit

Instrumentation for a new generation. The Golf’s Active Info Display is a fully digital instrument cluster with numerous interactive functions. All of the instruments are displayed virtually on the 12.3-inch colour display. The navigation information can be displayed in 2D or 3D. Its resolution of 1,440 x 540 pixels enables extremely precise and sophisticated interactive display of all the details. There are five different information profiles, in which the kind of information and graphics displayed in certain areas changes. The driver can select from one of the following profiles: “Classic”, “Consumption & Range”, “Efficiency”, “Performance & Driver Assistance” or “Navigation”. The “Navigation” profile is a good example of the interactive features of the Active Info Display: here, the speedometer and rev counter are moved to the sides to make more room for the map in the middle. Information on driving, navigation and assistance functions can also be integrated into the graphic areas of the speedometer and rev counter, as required. Data such as telephone contact images or CD covers can also be displayed on the Active Info Display. Depending on the model, the graphics can be customised: in the Golf GTI, for example, the graphics use GTI red as a contrasting colour, while the Golf GTE uses GTE blue to help the instruments blend in with the look of the plug-in hybrid. The Active Info Display is available as an optional extra for all versions of the Golf, as an alternative to analogue instruments.

The latest generation of the MIB – with gesture control for the first time

World premiere. Gesture control celebrates its world premiere in the compact class with its debut in the updated Golf. It will be available with the top-of-the-range version of the modular infotainment matrix (MIB) – “Discover Pro” as soon as the new model year is launched.

6.5- to 9.2-inch screens. Volkswagen has replaced all of the existing infotainment systems in the Golf with a new generation of the MIB. The most important feature is that all of the systems now offer a new design and larger touchscreens, although the names of the infotainment systems remain unchanged. The 5-inch “Composition Touch” and “Composition Colour” systems (with a display resolution of 400 x 240 pixels) have been replaced by the new 6.5-inch “Composition Colour” system, with a touchscreen resolution of 800 x 480 pixels, and the black-and-white “Composition Touch” has been discontinued. The next level up, “Composition Media” and “Discover Media” (incl. navigation) have so far had 6.5-inch screens. They have also been replaced by systems with the same names, but with 8.0-inch screens, while the resolution of 800 x 480 pixels also remains unchanged. The 8.0-inch screen of the top-of-the-range “Discover Pro” system (incl. navigation) will from now on be replaced by a 9.2-inch touchscreen, with the resolution increased from 800 x 480 to 1280 x 640 pixels. The new “Discover Pro” will be the first Volkswagen infotainment system to offer both touch- and voice-command operation with gesture control in addition to proximity sensors – a world premiere in the compact car segment. Volkswagen plans to introduce the new systems in several other product lines in the course of 2017.

“Discover Pro” in detail. Not only does the “Discover Pro” version of the MIB have a 9.2-inch display with a resolution that has increased from 117 to 155 dpi, it has also been completely redesigned. In contrast to the previous 8.0-inch system used in the Golf, the entire front is spanned by a stylish glass surface (also applies to the new “Discover Media” system). Conventional buttons and controls are a thing of the past with “Discover Pro”; all haptic operation is performed via the touchscreen and five capacitive panels on the left side of the new infotainment system. This vertical bar on the left comprises the functions: “Menu”, “Home”, “On/Off”, “Volume up” and “Volume down” – in other words the main commands, because the driver needs to have direct access to functions such as the volume control. The same applies to the capacitive panel “Home”, with which the driver can get back to the main menu – and thus the home screen – from any of the sub-menus in an instant.

Individually configurable home screen. In contrast to the previous version of the “Discover Pro”, the driver can now also configure the home screen. The navigation function is displayed  in a large panel on the left of the screen, while there are two smaller panels arranged verticallyon the right. The driver can assign important functions to these two display panels, which are also interactive – for instance the radio or the media library in the top panel and his phone contacts in the bottom panel. Like on a smartphone, as soon as the driver touches the “Home” button – no matter which menu they may currently be in – , the system will return to the personalised home screen, as outlined above.

Gesture, touch and voice control. Another first – as outlined above – is that the “Discover Pro” system is now performed by gesture and touch controls as well as voice control. Of course, the new “Discover Pro” is also equipped with a proximity sensor, thanks to which even more menu functions appear on the display when a hand comes close to the screen. Despite a range of equipment and functions offered by the new infotainment system hitherto unseen in the Golf, the operation of the system – as is typical of Volkswagen – remains intuitive and simple.

Gesture control. Gesture control can be used in various different menus. All it takes is a swipe gesture to move the horizontally arranged menu items left or right, allowing the driver to scroll through the main menu, change radio stations, flip through the playlist or browse through the Picture Viewer and albums in the media library (CoverFlow). A 'light flare' indicates which options can be operated by gesture control and operation is supported by visual interactive feedback. Successful swipes are also confirmed by a sound effect, which can optionally be deactivated.

Fully integrated and with maximum compatibility. The range of equipment offered with the “Discover Pro” system also includes an amp with an output of 4 x 20 watts, a DVD drive, two USB ports (Apple compatible), two SD card slots, AUX-IN socket, a 10 GB SSD drive, the full range of music playback capabilities, a movie player, jukebox, podcast player, proximity sensor and voice control as well as navigation. Optional are a “Rear View” (reversing camera), DAB+, up to two extra USB sockets as well as two mobile phone interfaces. In the updated Golf the driver or front seat passenger can simply put their smartphone in a redesigned optional storage compartment with an interface for mobile telephones (“Comfort” mobile phone pre-installation). The highlight here is that the phone can be charged and coupled to the vehicle's external antenna inductively – that is, without cables, (in accordance with the Qi standard). Other optional extras include the Car-Net options “App Connect”, “Security & Service” (new in the Golf) and “Guide & Inform”, while “Media Control” is available as an optional extra for the infotainment functions.

Media Control. With the “Media Control” app, Volkswagen offers an infotainment interface for tablets (and smartphones). The app can be used to control many of the functions of the infotainment system conveniently from a tablet or phone. Passengers simply connect their tablet to the “Discover Media” or “Discover Pro” infotainment system using the WiFi hotspot. The systems that can be controlled include the radio, all audio and video sources (e.g. USB, CD, DVD, hard drive) as well as the navigation system. The information shown on the menu includes artist, album name and cover. Standard features in the navigation menu are supplemented by an address-search function that uses the Internet and which can also be used to enter selected search results as destinations. Over and above this, rear seat passengers can also send calendar events and address book entries on the tablet or smartphone to the infotainment system as destinations for the navigation system now, turning “Media Control“ into a mobile extension of the infotainment system and an affordable modern-day rear seat entertainment system.

Volkswagen Car-Net – apps and online services for the Golf

App Connect. The latest generation of the modular infotainment matrix allows the Golf to connect to current Apple and Android smartphones via App Connect, because, along with MirrorLink™ (Android), App Connect can now also integrate CarPlay™ (Apple) and Android Auto™ (Google) into vehicle infotainment systems.

Security & Service. This is the first time that Volkswagen has offered the “Security & Service” package in the Golf. This gives the driver mobile access to assistance in a wide range of situations. The highlights include services such as “Automatic Accident Notification”, “Breakdown Call” and “Service Scheduling” (for making maintenance appointments with your garage). Breakdown Call allows the driver to use the infotainment system to contact the Volkswagen Emergency Call Centre, which can then arrange for prompt assistance or medical attention, while the system already sends the vehicle data and its location to the emergency services when the driver calls for roadside assistance. Over and above this, “Security & Service” offers functions like online monitoring of “Doors & Lights” as well as information on “Parking Position” (by smartphone or web portal). Anyone who has a learner driver in the family will appreciate “Area Alert” (which automatically notifies you if the Golf is driven in or leaves certain areas) and “Speed Alert” (which is activated as soon as a certain speed is exceeded). Another useful feature is the “Online Anti-Theft Alarm”, which will send you a notification via the Volkswagen Car-Net app on your smartphone or by email if an attempt is made to break into the car.

Guide & Inform. “Guide & Inform” allows the use of a wide range of online services. It includes an app for the “Discover Media” system and an extended range of apps for the “Discover Pro” system. The services available for “Discover Media” include apps such as “Online POI Search”, “Destination Import”, “Fuel Info” (location and price), “News”, “Parking Info” (location and availability), “Weather”, “Charging Stations” (for Golf GTE and e-Golf) and “Online Traffic Information”. The “Online Traffic Information” service (current traffic situation information) makes it easier to predict how long each journey in the Golf will take, as it feeds data such as traffic density and traffic jams, clearance of traffic jams and other congestion into the navigation system’s dynamic route guidance virtually in real time, so that it can be taken into account. The messages themselves can be viewed in detail via the “Traffic” menu item, while graphics and coloured marks on the map displayed on the screen permanently provide up-to-date information on the traffic situation The “Online Traffic Information” service can thus help you to avoid jams in real time. The larger range of apps for “Discover Media” system also includes Google Street View™, Google Earth™, “POI Voice Search” and “Online Map Update”.

New assistance systems – increased safety and comfort

The Golf protects its driver, passengers and pedestrians. If there has ever been a model series that has democratised progress, then it is the first seven generations of the Golf. Systems such as ABS, ESC and later the whole broad spectrum of assistance systems came to be taken for granted by millions of people the world over thanks to the affordable Golf. It was, for example, one of the first cars in the compact class with Adaptive Cruise Control (ACC), Front Assist with City Emergency Braking System, Lane Assist, Blind Spot Sensor, Rear Traffic Alert, Park Assist, Driver Alert System, reversing camera (Rear View), traffic sign recognition, Automatic Post-Collision Braking System and trailer stabilisation. The updated Golf continues this tradition. With the 2017 model year Volkswagen is expanding the range of assistance systems, adding Traffic Jam Assist, the new Pedestrian Monitoring for Front Assist with City Emergency Braking, Trailer Assist, which is the first time ever that a trailer manoeuvring system has been available in the compact class, and Emergency Assist. The proactive passenger protection system (PreCrash) has also been refined.

Traffic Jam Assist – the Golf is capable of partially automated driving.

Semi-automated driving in traffic jams. Volkswagen has developed Traffic Jam Assist on the basis of Lane Assist (lane departure warning system) and ACC (automatic distance control) for all Golf models with a DSG gearbox. The system makes traffic jams or stop-and-go driving in the Golf much more comfortable. It also makes driving in jams safer, as the assistant helps the driver to avoid the rear-end collisions so typical of traffic jams. By combining various assistance systems the Golf is, for the first time, capable of partially automated driving.

Lane Assist plus ACC. Lane Assist provides the basis for this system with adaptive lane guidance even at speeds of below 60 km/h. Not only does the system countersteer to make corrections if the car is about to leave the lane, but, with adaptive lane guidance enabled, it also keeps the Golf in the middle of the driving lane or in the driver's preferred position. ACC is also integrated in Traffic Jam Assist as a second assistance system, because, with ACC, braking and accelerating is automatic even at stop-and-go speeds. ACC and Lane Assist thus merge into Traffic Jam Assist, which means that the system enables assisted lateral and longitudinal guidance. The car steers, accelerates and brakes automatically, within the system’s boundaries, but only under the condition that the driver's hands are on the steering wheel and participating in steering, so that the driver can intervene at any time.

Emergency Assist – in an emergency, the Golf can stop automatically

The Golf notices if the driver is incapacitated.Another system in which Lane Assist and ACC merge to create a new assistance system is Emergency Assist: as soon as the sensors detect that the driver is not making any steering, braking or acceleration movements any more, the system initiates various escalating actions to alert the driver, and if the driver remains inactive, it initiates an emergency stop. The hazard warning lights are activated automatically and the Golf executes a gentle steering manoeuvre to make surrounding traffic aware of the hazardous situation. ACC prevents the vehicle from colliding with the traffic ahead. Finally, the system brakes the Golf gradually to a standstill to avoid a serious accident, if possible.

Front Assist and City Emergency Braking – detects pedestrians

Safety in the city. Front Assist is a system which warns the driver and brakes automatically in the event of an imminent collision. One component of the Front Assist system is the City Emergency Braking function. The latest version of the Front Assist function is not only capable of detecting other vehicles, but also pedestrians who are crossing the street. As soon as a pedestrian is at risk, the system warns the driver and eventually slows the Golf down autonomously.

Trailer Assist – partially automated manoeuvring with a trailer

Reversing with a trailer is child’s play now.Another novelty in the compact class is Trailer Assist. The idea behind it: Trailer Assist is designed to free the driver of the complicated rethinking needed when reversing with a car and trailer, turning the steering wheel to the left so that the trailer turns to the right – and vice versa. Generally, the goal was also to make reversing over straight and longer distances easier and more exact. Trailer Assist is now capable of doing this almost automatically. To reverse a Golf with a trailer into a parking bay or an entrance from the street, all the driver needs to do is stop at a suitable spot and engage reverse gear. The system is activated by pushing a button. Then the current driving angle and possible driving angles are displayed on the instrument cluster. This is achieved with image-processing algorithms that use data from the rear-view camera, which monitors and analyses the angle between the car and the trailer. With the help of the mirror adjustment switch, which serves as a sort of joystick, the driver can freely adjust the desired driving direction of the car-trailer combination. The Golf executes the steering commands entered by the driver, who only needs to operate the accelerator pedal and the brake. The driving direction of the Golf is automatically controlled by the electromechanical power steering system.

Park Assist 3.0 – semi-automated parking and manoeuvring

Brakes and steers automatically. Park Assist makes it possible to park in any parking space that is parallel or perpendicular to the carriageway semi-automatically, and the system can also exit from parallel parking spaces. In the case of perpendicular parking spaces, not only is parking in reverse supported for the first time in a Golf, but it is also possible to park in a forward direction semi-automatically. The first generation of Park Assist assisted the driver by performing automated steering for parallel parking. The second generation of Park Assist added automatic steering for reverse parking into spaces perpendicular to the carriageway, and parallel parking spaces could also be smaller. In addition, automatic exiting from parallel parking spaces was also possible. The third generation of Park Assist, which is now available for the Golf, also makes it possible, as outlined above, to park forwards semi-automatically in parking bays. Due to its high functional versatility, Park Assist 3.0 can optimally assist the driver, especially in difficult traffic situations, because it speeds up the parking process.

Proactive passenger protection system (PreCrash) – maximum possible safety

Be prepared. The Golf is one of the first cars in its class to feature a proactive passenger protection system (PreCrash). The Golf update includes further refinement of the proactive passenger protection system. It also interacts intelligently with the Front Assist system to react to strong autonomous braking interventions and acute collision hazards in order to provide the best possible support to passengers in critical situations. How it works: if the system detects a potential accident situation – for example, through the initiation of hard braking because a brake assistant is activated – the front seatbelts are automatically pre-tensioned to ensure the best possible protection by the air bag and seatbelt system. When a critical and unstable driving situation is detected – such as severe oversteer or understeer with ESC intervention – the side windows and sunroof are also closed, except for a small gap. The reason for this is that when the windows and roof are nearly closed, the head and side airbags offer optimal energy absorption and thereby achieve their best possible effectiveness.

Personalisation – individual settings are saved

The key serves as your ID. The number of convenience and assistance systems increases with each new generation of vehicles. As outlined above, this is also true of the new Golf. Many of these systems are individually adjusted, often by different drivers of the car. This means that drivers constantly have to restore their personal settings. Volkswagen has designed a new generation of personalisation that simplifies this process significantly. This involves combining the individual settings for a driver into a user account, which is saved by the vehicle. Drivers can open the user management menu to activate their individual user account, and thus implement their individual settings. Drivers simply identify themselves using their car key, which takes place when the Golf is unlocked. This activates initial settings such as adjusting the seat position on the driver's side, which can now be saved using the memory function. An overview of personalisation options in the Golf, depending on the specific equipment version:

Ambient lighting
ACC Adaptive Cruise Control
Front Assist
Infotainment system (incl. media library, navigation & telephone)
Automatic air conditioning settings
Instrument cluster/multifunction display
Lane Assist
Light and Sight (“leaving home” and “coming home” functions, rain sensor and automatic dimming rear-view mirror)
Park Assist
Locking/unlocking
Blind Spot Monitor with Rear Traffic Alert
Driver’s seat (seat with memory function)
New engines and gearboxes – TSI petrol engine saves up to 1.0 litre per 100 km

New TSI engines and a new 7-speed DSG.Volkswagen has enhanced the EA211 TSI engine family; the new turbocharged petrol direct-injection engines celebrate its debut in the Golf. It’s roll-out begins with the “1.5 TSI Evo” – a 110 kW/150 PS four-cylinder turbocharged petrol engine with Active Cylinder Management (ACT) and efficient common rail direct injectiontechnology. The new TSI is particularly agile and refined; it develops its maximum torque of 250 Nm at low revs of just 1,500 rpm. NEDC fuel consumption: 4.9 l/100 km* (equating to 110 g/km CO2*). A BlueMotion version of the 1.5 TSI Evo with 96 kW/130 PS is also in preparation. The NEDC fuel consumption of this version will be 4.6 l/100 km* (104 g/km CO2*). Among the special characteristics of these high-tech engines are a new combustion cycle (derived from the Miller cycle) and a turbocharger with variable turbine geometry (VTG). The engine develops its maximum torque of 200 Nm at just 1,400 rpm. As a world premiere, the 1.5 TSI Evo with 130 PS also offers an extended coasting function when the engine is deactivated – completely shutting down the TSI when the driver releases the accelerator. Such engine deactivation has only been seen in conjunction with hybrid vehicles up to now, as systems like the electromechanical power steering and the brake servo still need to be supplied with energy even when the Evo motor is switched off. This is the case in the Golf 1.5 TSI Evo with 130 PS; the extended coasting function, which comes as standard, reduces fuel consumption in real-life operation by up to 0.4 l/100 km. Thanks to the coasting function and the other technical innovations, this 1.5 TSI Evo will offer a fuel consumption advantage of up to 1.0 l/100 km, depending on driving style.

GTI models with improved performance. Volkswagen has also improved performance of the Golf GTI models with this update. With 169 kW/230 PS (an increase of 7 kW/10 PS), the standard version is now as powerful as the previous Performance version, while the power output of the new Golf GTI Performance has risen to 180 kW/245 PS.

New 7-speed DSG. Volkswagen has also developed a new 7-speed dual clutch gearbox (DSG). The new DSG will gradually replace all of the 6-speed DSGs used in the Golf to date, helping to cut CO2.

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Volkswagen has never understood the U.S. marketplace since the first Beetle. Their vehicles were either too expensive or didn't fit the needs of a buyer. But the company hopes with their new 2018 Atlas crossover, they can make end roads into the U.S. market and begin fixing their tattered image.

The Atlas is basically the production version of the CrossBlue concept that debuted at the 2013 Detroit Auto Show. Details such as the long grille, flat-topped wheel fenders, a crease along the side, and sloping rear window are here. If you didn't know this was Volkswagen, you would swear it was a Jeep Grand Cherokee. Using a stretched version of Volkswagen's MQB modular platform (yes, the same one used in the Golf), the Crossblue measures 198.3 inches long, 77.9 inches wide, and 69.6 inches tall. To put this in perspective, the GMC Acadia is about 4.7 inches shorter and 2.5 inches narrower than the Atlas.

Inside, the Atlas features three rows of seating for seven people. Volkswagen is quick to point out a clever folding mechanism for the second row that allows someone to enter the third row with a child's seat in the second. As for technologies, all Atlas trims will get Apple CarPlay, Android Auto, and MirrorLink integration. Optional will be Volkswagen's Digital Cockpit which swaps the standard instrument cluster for a reconfigurable screen and a 12-speaker Fender audio system.

At launch, the Atlas will come with two engine options,

• Turbocharged 2.0L four-cylinder with 238 horsepower
• 3.6L VR6 with 280 horsepower

No torque figures were given for either engine. An eight-speed automatic and front-wheel drive comes standard for both engines. 4Motion all-wheel drive is only available for the VR6. 4Motion will offer various drive modes for various road conditions. A hybrid model is expected down the road.

Volkswagen says the Atlas will be available at dealers next spring and will be built at the company's Chattanooga, TN plant. Pricing will be announced before then.

Source: Volkswagen
Press Release is on Page 2

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VOLKSWAGEN UNVEILS THE 2018 ATLAS, AN ALL-NEW SEVEN-PASSENGER SUV BUILT IN AMERICA FOR THE MODERN AMERICAN FAMILY

The Chattanooga-built Atlas arrives with a full slate of available driver assistance and technology features, a massive interior and a choice of two powertrains

• Largest Volkswagen ever assembled in America
• Five trim levels, priced for the heart of the competitive SUV market
• Available interior features include innovative Volkswagen Digital Cockpit instrumentation
• Two engine options: four-cylinder TSI® turbo or the available powerful VR6®, both with eightspeed automatic transmission
• Seating for two adults in the third row, with innovative access system
• Based on the award-winning Modular Transverse Matrix (MQB) architecture
• Optional 4Motion® all-wheel-drive system on VR6 models or standard front-wheel-drive

Santa Monica, Calif. – The 2018 Volkswagen Atlas, unveiled tonight on the Santa Monica Pier at the end of historic Route 66, launches a new chapter in the company’s American history. Built in Tennessee, the seven-passenger Atlas offers class-competitive levels of technology and spaciousness combined with hallmark Volkswagen driving dynamics and attention to detail, all at a price designed to draw customers’ attention in the family SUV segment.

“This is the biggest and boldest Volkswagen we have ever built in the United States, delivering the distinctive design and craftsmanship we’re known for, now with room for seven, ” said Hinrich J. Woebcken, CEO of the North America Region, Volkswagen. “The Atlas marks a brand new journey for Volkswagen to enter into the heart of the American market.”

Engineered from Volkswagen’s award-winning Modular Transverse Matrix (MQB) architecture, the Atlas draws on the latest Volkswagen design DNA to create a bold new look in the SUV segment. At 198.3 inches long, 77.9 inches wide, and 69.6 inches high, Atlas is larger than any other Volkswagen on sale in the U.S., yet it retains classic proportions and clean lines that create a sense of timelessness and precision. Up front, standard LED headlights and LED Daytime Running Lights combine for a unique visual signature, with optional LED taillights to complete the look.

Inside, the Atlas makes maximum use of its dimensions to offer space for seven adults and their luggage. The third-row can be easily reached by an innovative folding seat solution, one that works even with child seats installed in the second row. Simple, driver-centric displays enhance the feeling behind the wheel rather than distracting from it; while the available Volkswagen Digital Cockpit allows drivers to reconfigure how they view vehicle information.

The available Volkswagen Car-Net® system provides a full suite of connected vehicle services, including standard App-Connect technology that offers integration with the three major smartphone platforms—Apple CarPlay™, Android Auto™ and MirrorLink®. The vehicle also features an available Fender® Premium Audio System that is the most sophisticated yet seen in a Volkswagen, with 12 channels, a 480-watt amplifier and 12 speakers.

The Atlas offers available driver assistance features that had been previously been reserved for premium SUVs, at an affordable level. These include: Adaptive Cruise Control (ACC); Forward Collision Warning and Autonomous Emergency Braking (Front Assist); Blind Spot Monitor with Rear Traffic Alert; Lane Departure Warning (Lane Assist), which actively helps the driver steer the car back into its lane; and Parking Steering Assistant (Park Assist).

Also, the Atlas is the only vehicle in its class to offer 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 reduce residual kinetic energy and, in turn, the chance of additional damage.

The Atlas arrives with a choice of two powertrains: the 2.0-liter turbocharged and direct-injection TSI® four cylinder with 238 horsepower or the available 3.6-liter VR6 engine with 280 horsepower. Either engine routes power through an eight-speed transmission to help maximize engine efficiency, and the Atlas can be configured either as front-wheel-drive or with available 4Motion all-wheel-drive in VR6 trims. The 4Motion system has a Driving Mode Selection feature that allows the driver to select specific parameters based on driving conditions. EPA fuel economy estimates will be released ahead of the launch in the Spring of 2017.

The Atlas is built alongside the Passat at the Volkswagen Chattanooga assembly plant, the result of an additional $900 million investment by Volkswagen in the facility. The Chattanooga plant is the only automotive manufacturing facility in the world to receive Platinum certification by the U.S. Green Building Council’s Leadership in Energy & Environmental Design (LEED) program.

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Almost five months after Volkswagen and the U.S. Government announced they had reached a settlement totaling $14.7 billion over the 2.0L TDI engine scandal, U.S. District Judge Charles Breyer has given the final approval today in San Francisco . The approval marks a pivotal moment for the German automaker as they begin to move away from a scandal that has done a lot of harm not only to them, but also diesel fuel.

The majority of the settlement will be used by Volkswagen to give owners of vehicles equipped with the 2.0L TDI four-cylinder two options,

• Have Volkswagen buy back the vehicle at NADA trade-in value before the scandal broke along with a one-time cash payment
• Wait for Volkswagen to come up with a fix for the 2.0L TDI (a one-time cash payment is included)

The remainder of the settlement will be split between offsetting the excess emissions and the development of zero-emission vehicles.

“Final approval of the 2.0L TDI settlement is an important milestone in our journey to making things right in the United States, and we appreciate the efforts of all parties involved in this process. Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc in a statement.

Work is still being done on a settlement for the 85,000 vehicles equipped with the 3.0L TDI V6.

Source: Volkswagen, Reuters
Press Release is on Page 2

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Volkswagen AG, Volkswagen Group of America, Inc. and certain affiliates (together, Volkswagen) announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted final approval to the settlement agreement between Volkswagen and private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States. Concurrently, Judge Breyer also approved a Consent Decree between Volkswagen and the U.S. Department of Justice on behalf of the Environmental Protection Agency (EPA) and the State of California by and through the California Air Resources Board (CARB) and the California Attorney General; and a Consent Order between Volkswagen and the U.S. Federal Trade Commission. All three agreements were previously announced. 

“Final approval of the 2.0L TDI settlement is an important milestone in our journey to making things right in the United States, and we appreciate the efforts of all parties involved in this process. Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc.

Volkswagen remains focused on resolving other outstanding issues in the United States and continues to work towards an agreed resolution for customers with affected 3.0L TDI V6 diesel engines.

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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

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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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Volkswagen and their U.S. dealers have had a tense relationship since the diesel emission scandal broke. From the departure of Michael Horn to dealer meetings where tough questions were being asked to Volkswagen executives. But it seems some progress is being made on repairing it. 

In a statement released today, Volkswagen announced they have reached an “agreement in principle” with its dealers over compensation for losses due to the diesel emission scandal. According to Automotive News, the preliminary agreement will see dealers get a cash payout within 18 months from a settlement fund. The payout for each dealer will be determined by a formula that is currently being worked out. Volkswagen has also agreed to purchase "“unfixable, used” diesel vehicles from dealer inventory under the same terms as buyback offers for consumers".

This settlement comes after a group of Volkswagen dealers filed a lawsuit against the German automaker back in April.

The settlement is still being finalized and will need to get the approval of U.S. District Judge Charles Breyer in San Francisco before anything else can happen. Volkswagen says they hope to have everything finalized by September.

“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen in a statement.

Source: Automotive News (Subscription Required), Volkswagen

Press Release is on Page 2

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Volkswagen and VW-Branded Franchise Dealers in the U.S. Reach Agreement in Principle to Resolve Diesel Litigation

Herndon, VA - August 25, 2016 - Volkswagen Group of America, Inc. (“Volkswagen”) today announced it has reached an agreement in principle to resolve the claims of VW-branded franchise dealers in the United States relating to TDI vehicles affected by the diesel matter and other matters asserted concerning the value of the franchise. Volkswagen has agreed to make cash payments and provide additional benefits to the dealers to resolve alleged past, current and future claims of losses in franchise value. Volkswagen and the dealers’ counsel will now work to finalize details of the proposed settlement, including how to apportion payments to dealers in the appropriate manner.

Details of the agreement in principle are still under discussion and are expected to be finalized at the end of September. Any proposed agreement will become effective only after approval by the Court, and the parties have agreed to keep further terms confidential as they work to finalize the agreement. Under the agreement, Volkswagen will consent to the certification – for settlement purposes only – of a class of VW-branded franchise dealers in the United States as of an agreed date. 

“We believe this agreement in principle with Volkswagen dealers is a very important step in our commitment to making things right for all our stakeholders in the United States,” said Hinrich J. Woebcken, CEO of the North American Region, Volkswagen. “Our dealers are our partners and we value their ongoing loyalty and passion for the Volkswagen brand. This agreement, when finalized, will strengthen the foundation for our future together and further emphasize our commitment both to our partners and the U.S. market.”

Steve Berman, Managing Partner of the dealers’ counsel Hagens Berman, said, “Our clients recognized the best solution would be one that not only allows them to recoup lost franchise value and continue to employ thousands of American workers, but one that also charts a strong course for the recovery of the Volkswagen brand in the United States.”  Berman added, “Now that there is a path forward for dealers, they can continue to work proactively to take great care of their customers, who are also VW customers.”

The plaintiffs filed the initial complaint against Volkswagen on April 6, 2016, in the U.S. District Court for the Northern District of Illinois. The litigation was subsequently transferred to the multidistrict proceedings in the U.S. District Court for the Northern District of California.

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Last month, Volkswagen announced that it had reached a $14.7 billion settlement with the U.S. Government over the illegal software used on the 2.0L TDI engine. But before anything could be put into motion, it had to get the go-ahead from U.S. District Court Judge Charles Breyer.

 

Yesterday at a hearing in San Francisco, Judge Breyer gave his preliminary approval on the settlement. This now means Volkswagen and Audi can start sending out official notices to owners explaining what happens next. Those hoping for buyback offers will need to wait a few more months. Breyer has scheduled a hearing on October 18th to hopefully give the final approval.

 

Also, a lawyer for the Department of Justice told the court yesterday that Volkswagen would be proposing a new fix for the 3.0L TDI V6 within the next month.

 

Source: Reuters, Volkswagen

 

Press Release is on Page 2

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VOLKSWAGEN ANNOUNCES PRELIMINARY APPROVAL OF 2.0L TDI SETTLEMENT PROGRAM IN THE UNITED STATES

 

Wolfsburg / Herndon VA 2016-07-26 -- Volkswagen AG announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted preliminary approval of the settlement agreement reached on June 28 with private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States.

 

Individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the Court grants final approval to the class settlement, which is anticipated on October 18, 2016.

 

Under the proposed settlement, eligible customers will have two choices: (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Customers who select any of these options under the settlement will also receive a cash payment from Volkswagen. More information about the program can be found at www.VWCourtSettlement.com.

 

Volkswagen appreciates the constructive engagement of all the parties, under the direction of Judge Breyer and with the active participation of Special Master Robert S. Mueller III, as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers.

 

Notes to Editors

 

The following 2.0L TDI engine vehicles are included in the proposed 2.0L TDI settlement program:

 

VW Beetle VW Golf VW Jetta VW Passat Audi A3

 

2013- 2015 2010-2015 2009-2015 2012-2015 2010-2013; 2015

 

Volkswagen continues to work closely with the EPA and CARB on an approved emissions modification for each of the 2.0L TDI engine vehicles listed above. Volkswagen is also trying to secure approval of a technical resolution for affected vehicles with a V6 3.0L TDI engine as quickly as possible.

 

In addition to the proposed class settlement, Volkswagen has entered into a separate Consent Decree with the United States Department of Justice (acting on behalf of the EPA), CARB and the California Attorney General and a separate Partial Stipulated Order for Permanent Injunction and Monetary Judgment with the United States Federal Trade Commission regarding 2.0L TDI vehicles. Volkswagen has also resolved current and potential consumer protection claims of 44 U.S. states, the District of Columbia and Puerto Rico.

 

The agreements are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. The company continues to work to resolve other outstanding legal matters in the United States.

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After ten months when news came to light that Volkswagen used illegal software to cheat emission tests in the U.S. the German automaker has agreed to a $14.7 billion settlement.

This morning, the U.S. Justice Department filed details of the settlement in U.S. District Court in San Fransisco. As part of the settlement, Volkswagen will offer owners of affected models the choice of either having their vehicle bought back or repaired if and when a repair is approved by the EPA and CARB.

If you decide to have your vehicle bought back by Volkswagen, will be determined based on the 'Clean Trade-In Value' by the National Automobile Dealers Association, along with adjustments on mileage and options. If you have a loan through a third-party, Volkswagen would pay it off. Those leasing can terminate it with no penalties.

Whichever option you decide to go for, Volkswagen will also provide a compensation payment ranging from $5,000 to $10,000. Again, the amount will be determined by various factors such as the age of the vehicle.

Owners will be notified this fall with buybacks expected to begin in October.

Volkswagen will also pay $2.7 billion over the next three years to a fund to reduce the excess amount of NOx emissions that Volkswagen's diesel vehicles emitted, and an additional $2 billion to expand zero emission vehicle infrastructure, access and awareness initiatives.

Now this settlement needs to be approved by Judge Charles Breyer. A hearing will be held today for this.

While Volkswagen is still not out of the woods with this scandal (more penalties and deal still needed for the 3.0L TDI V6), it is good to see some movement is happening to help bring this mess to a close.

Source: Volkswagen, EPA

Press Release is on Page 2

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VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH U.S. FEDERAL REGULATORS, PRIVATE PLAINTIFFS AND 44 U.S. STATES ON TDI DIESEL ENGINE VEHICLES

• Proposed settlement program includes vehicle buybacks and lease terminations, emissions modifications (if approved) and cash payments to affected customers for approximately 475,000 eligible 2.0L TDI vehicles
• Volkswagen agrees to $2.7 billion environmental remediation fund and to invest $2.0 billion in initiatives to promote the use of zero emissions vehicles in the U.S.
• Separate resolution with U.S. states settles consumer protection claims

Herndon, Va. /Wolfsburg, Germany (June 28, 2016) – Volkswagen AG announced today that it has reached settlement agreements with the United States Department of Justice (DOJ) and the State of California; the U.S. Federal Trade Commission (FTC); and private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI diesel engine vehicles in the United States. Of approximately 499,000 2.0L TDL vehicles that were produced for sale in the United States, approximately 460,000 Volkswagen and 15,000 Audi vehicles are currently in use and eligible for buybacks and lease terminations or emissions modifications, if approved by regulators. Volkswagen will establish a maximum funding pool for the 2.0L TDI settlement program of $10.033 billion. That amount assumes 100% participation and that 100% of eligible customers choose a buyback or lease termination.

 

The agreements covering the proposed 2.0L TDI settlement program are subject to the approval of Judge Charles R. Breyer of the United States District Court for the Northern District of California, who presides over the federal Multi-District Litigation (MDL) proceedings related to the diesel matter.

 

Volkswagen also announced that it has agreed with the attorneys general of 44 U.S. states, the District of Columbia and Puerto Rico to resolve existing and potential state consumer protection claims related to the diesel matter for a total settlement amount of approximately $603 million.

 

“We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” said Matthias Müller, Chief Executive Officer of Volkswagen AG. “We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead. We know that we still have a great deal of work to do to earn back the trust of the American people. We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.”

 

Three agreements have been submitted to the Court for its approval with respect to the proposed 2.0L TDI settlement program: (1) a Consent Decree filed with the Court by the DOJ on behalf of the Environmental Protection Agency (EPA) and by the State of California by and through the California Air Resources Board (CARB) and the California Attorney General; (2) a Consent Order submitted by the FTC; and (3) a proposed class settlement agreement with the PSC on behalf of a nationwide settlement class of current and certain former owners and lessees of eligible 2.0L TDI Volkswagen and Audi vehicles. The parties believe that the class settlement as presented to the Court will provide a fair and reasonable resolution for affected Volkswagen and Audi customers. Volkswagen continues to work expeditiously to reach an agreed resolution for affected vehicles with 3.0L TDI V-6 diesel engines.

 

On April 22, 2016, Volkswagen recognized total exceptional charges of €16.2 billion in its financial statements for 2015 for worldwide provisions related to technical modifications and repurchases, legal risks and other items as a result of the diesel matter. As noted at that time, due to the complexities and legal uncertainties associated with resolving the diesel matter, a future assessment of the risks may be different.

 

"Today’s announcement is within the scope of our provisions and other financial liabilities that we have already disclosed, and we are in a position to manage the consequences. It provides further clarity for our U.S. customers and dealers as well as for our shareholders. Settlements of this magnitude are clearly a very significant burden for our business. We will now focus on implementing our TOGETHER-Strategy 2025 and improving operational excellence across the Volkswagen Group,” said Frank Witter, Chief Financial Officer of Volkswagen AG.

 

The agreements announced today are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. Regulations governing nitrogen oxide (NOx) emissions limits for vehicles in the United States are much stricter than those in other parts of the world and the engine variants also differ significantly. This makes the development of technical solutions in the United States more challenging than in Europe and other parts of the world, where implementation of an approved program to modify TDI vehicles to comply fully with UN/ECE and European emissions standards has already begun by agreement with the relevant authorities.

 

Volkswagen to Spend Up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0 Liter Diesel Vehicles

• Settlements Require VW to Spend up to $10 Billion to Buyback, Terminate Leases, or Modify Affected 2.0 Liter Vehicles and Compensate Consumers, and Spend $4.7 Billion to Mitigate Pollution and Make Investments that Support Zero-Emission Vehicle Technology

WASHINGTON – In two related settlements, one with the United States and the State of California, and one with the U.S. Federal Trade Commission (FTC), German automaker Volkswagen AG and related entities have agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology.

 

The settlements partially resolve allegations by the Environmental Protection Agency (EPA), as well as the California Attorney General’s Office and the California Air Resources Board (CARB) under the Clean Air Act, California Health and Safety Code, and California’s Unfair Competition Laws, relating to the vehicles’ use of “defeat devices” to cheat emissions tests. The settlements also resolve claims by the FTC that Volkswagen violated the FTC Act through the deceptive and unfair advertising and sale of its “clean diesel” vehicles. The settlements do not resolve pending claims for civil penalties or any claims concerning 3.0 liter diesel vehicles. Nor do they address any potential criminal liability.

 

The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.

 

“Today’s settlement restores clean air protections that Volkswagen so blatantly violated,” said EPA Administrator Gina McCarthy. “And it secures billions of dollars in investments to make our air and our auto industry even cleaner for generations of Americans to come. This agreement shows that EPA is committed to upholding standards to protect public health, enforce the law, and to find innovative ways to protect clean air.”

 

“By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our atmosphere,” said Deputy Attorney General Sally Q. Yates. “This partial settlement marks a significant first step towards holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public’s trust. And while this announcement is an important step forward, let me be clear, it is by no means the last. We will continue to follow the facts wherever they go.”

 

“Today’s announcement shows the high cost of violating our consumer protection and environmental laws,” said FTC Chairwoman Edith Ramirez. “Just as importantly, consumers who were cheated by Volkswagen’s deceptive advertising campaign will be able to get full and fair compensation, not only for the lost or diminished value of their car but also for the other harms that VW caused them.”

 

According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on January 4, 2016, Volkswagen allegedly equipped its 2.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on full emissions controls only during that testing process. During normal driving conditions, the software renders certain emission control systems inoperative, greatly increasing emissions. This is known as a “defeat device.” Use of the defeat device results in cars that meet emissions standards in the laboratory, but emit harmful NOx at levels up to 40 times EPA-compliant levels during normal on-road driving conditions. The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emission standards. Vehicles with defeat devices cannot be certified.

 

The FTC sued Volkswagen in March, charging that the company deceived consumers with the advertising campaign it used to promote its supposedly “clean diesel” VWs and Audis, which falsely claimed that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value.

 

The settlements use the authorities of both the EPA and the FTC as part of a coordinated plan that gets the high-polluting VW diesels off the road, makes the environment whole, and compensates consumers.

 

The settlements require Volkswagen to offer owners of any affected vehicle the option to have the company buy back the car and to offer lessees a lease cancellation at no cost. Volkswagen may also propose an emissions modification plan to EPA and CARB, and if approved, may also offer owners and lessees the option of having their vehicles modified to substantially reduce emissions in lieu of a buyback. Under the U.S./California settlement, Volkswagen must achieve an overall recall rate of at least 85% of affected 2.0 liter vehicles under these programs or pay additional sums into the mitigation trust fund. The FTC order requires Volkswagen to compensate consumers who elect either of these options.

 

Volkswagen must set aside and could spend up to $10.03 billion to pay consumers in connection with the buy back, lease termination, and emissions modification compensation program. The program has different potential options and provisions for affected Volkswagen diesel owners depending on their circumstances:

 

Buyback option: Volkswagen must offer to buy back any affected 2.0 liter vehicle at their retail value as of September 2015 -- just prior to the public disclosure of the emissions issue. Consumers who choose the buyback option will receive between $12,500 and $44,000, depending on their car’s model, year, mileage, and trim of the car, as well as the region of the country where it was purchased. In addition, because a straight buyback will not fully compensate consumers who owe more than their car is worth due to rapid depreciation, the FTC order provides these consumers with an option to have their loans forgiven by Volkswagen. Consumers who have third party loans have the option of having Volkswagen pay off those loans, up to 130 percent of the amount a consumer would be entitled to under the buyback (e.g., if the consumer is entitled to a $20,000 buyback, VW would pay off his/her loans up to a cap of $26,000).

 

EPA-approved modification to vehicle emissions system: The settlements also allow Volkswagen to apply to EPA and CARB for approval of an emissions modification on the affected vehicles, and, if approved, to offer consumers the option of keeping their cars and having them modified to comply with emissions standards. Under this option in accordance with the FTC order, consumers would also receive money from Volkswagen to redress the harm caused by VW’s deceptive advertising.

 

Consumers who leased the affected cars will have the option of terminating their leases (with no termination fee) or having their vehicles modified if a modification becomes available. In either case, under the FTC order, these consumers also will receive additional compensation from Volkswagen for the harm caused by VW’s deceptive advertising. Consumers who sold their TDI vehicles after the VW defeat device issue became public may be eligible for partial compensation, which will be split between them and the consumers who purchased the cars from them as set forth in the FTC order.

 

Eligible consumers will receive notice from VW after the orders are entered by the court this fall. Consumers will be able to see if they are eligible for compensation and if so, what options are available to them, at VWCourtSettlement.com and AudiCourtSettlement.com. They will also be able to use these websites to make claims, sign up for appointments at their local Volkswagen or Audi dealers and receive updates. Consumer payments will not be available until the settlements take effect if and when approved by the court, which may be as early as October 2016.

 

Emissions Reduction Program: The settlement of the company’s Clean Air Act violations also requires Volkswagen to pay $2.7 billion to fund projects across the country that will reduce emissions of NOx where the 2.0 liter vehicles were, are or will be operated. Volkswagen will place the funds into a mitigation trust over three years, which will be administered by an independent trustee. Beneficiaries, which may include states, Puerto Rico, the District of Columbia, and Indian tribes, may obtain funds for designated NOx reduction projects upon application to the Trustee. Funding for the designated projects is expected to fully mitigate the NOx these 2.0 liter vehicles have and will emit in excess of EPA and California standards.

 

The emissions reduction program will help reduce NOx pollution that contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers), and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. NO2 formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.

 

Zero Emissions Technology Investments: The Clean Air Act settlement also requires VW to invest $2 billion toward improving infrastructure, access and education to support and advance zero emission vehicles. The investments will be made over 10 years, with $1.2 billion directed toward a national EPA-approved investment plan and $800 million directed toward a California-specific investment plan that will be approved by CARB. As part of developing the national plan, Volkswagen will solicit and consider input from interested states, cities, Indian tribes and federal agencies. This investment is intended to address the adverse environmental impacts from consumers’ purchases of the 2.0 liter vehicles, which the governments contend were purchased under the mistaken belief that they were lower emitting vehicles.

 

FTC’s Injunctive Relief: The FTC settlement includes injunctive provisions to protect consumers from deceptive claims in the future. These provisions prohibit Volkswagen from making any misrepresentations that would deceive consumers about the environmental benefits or value of its vehicles or services, and the order specifically bans VW from employing any device that could be used to cheat on emissions tests.

 

The provisions of the U.S./California settlement are contained in a proposed consent decree filed today in the U.S. District Court for the Northern District of California, as part of the ongoing multi-district litigation, and will be subject to public comment period of 30 days, which will be announced in the Federal Register in the coming days. The provisions of the FTC settlement are contained in a proposed Stipulated Final Federal Court Order filed today in the same court.

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Volkswagen was planning to release the preliminary findings of its internal investigation into the diesel emission scandal this month. But now, the company has scrapped those plans. In a statement, the German automaker cites strong objections from their lawyers and “unacceptable risks” to the company.

 

But there might be more this than what Volkswagen is saying. Last week, Volkswagen finally reached a deal with the U.S. Government over the emission mess. By releasing the results, it might put Volkswagen in a difficult sport.

 

“Publishing such a preliminary report would not only endanger the complex and confidential settlement talks [with authorities and plaintiffs], it would also have a negative effect on ongoing investigations as individuals who have yet to be questioned could align their statements with the contents of the report. We must avoid this,” said Volkswagen board director Wolfgang Porsche to reporters in Wolfsburg.

 

It isn't being helped that the investigation has hit a few bumps in the road. According to Automotive News, the Jones Day law firm - hired by Volkswagen to do the investigation - have so far failed define key points of the scandal. Bloomberg goes on to say that the firm has been confounded by engineers using code words to describe the illegal software and outdated computer systems.

 

The final investigation report is not expected until the fourth quarter of the fourth year.
Source: Automotive News (Subscription Required), Bloomberg, Volkswagen

 

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Statement by Volkswagen AG regarding the status of the comprehensive investigation in connection with the diesel matter

 

At the end of September 2015, the Supervisory Board of Volkswagen Aktiengesellschaft assigned law firm Jones Day with a comprehensive investigation in connection with the diesel matter. This investigation is already far advanced and is being pursued intensely. For this purpose, approximately 65 million documents were submitted for electronic review, of which more than 10 million were forwarded for review by Volkswagen's lawyers. Around 450 interviews have also been conducted about the diesel matter; dozens of additional interviews are planned. Based on the current assessment, Jones Day expects the investigation to conclude in the fourth quarter of 2016.

 

After a thorough examination of the legal situation, the Supervisory Board and the Management Board of Volkswagen have nevertheless had to recognize that a disclosure of interim results of the investigation at this point in time would present unacceptable risks for Volkswagen and, therefore, cannot take place now. This decision is based on the assessment of the U.S. law firms retained by Volkswagen (Sullivan & Cromwell and Jones Day), which have both strongly advised against such a disclosure independently of each other.

 

Volkswagen regrets that it has had to move away from the original plan to disclose interim results of the investigation by the end of April. The reasons lie in the following developments in proceedings involving Volkswagen in connection with the diesel matter in the United States:

 

Volkswagen's complex negotiations with a large number of parties in the United States (including private plaintiffs and multiple U.S. regulators, including the Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the Federal Trade Commission, the Attorneys General of each of the 50 states, and, in particular, the U.S. Department of Justice) have entered a decisive phase sooner than anticipated and require Volkswagen to maintain the highest degree of confidentiality. The extensive and confidential nature of these negotiations and Volkswagen's cooperation with the Department of Justice restrict Volkswagen´s ability to comment further on necessarily tentative results of the continuing investigation.

 

The further disclosure or characterization of interim results, which are currently available, would likely prejudice the rest of the investigation at this time, in particular because individuals who have yet to be questioned could align their statements with the contents of the interim report.

 

In counsel's view, a disclosure would also significantly impair Volkswagen's cooperation with the Department of Justice and weaken Volkswagen's position in any remaining proceedings.

 

In counsel's view, such disclosure could also jeopardize the credit that Volkswagen may expect to receive in the event of its full cooperation with the Department of Justice. According to Volkswagen's legal advisers, this could have very substantial negative financial consequences.
lf a full settlement can be achieved with the Department of Justice, the Supervisory Board and the Management Board currently expect that a detailed statement of the facts of this matter will be made public in the U.S. at that time. This is because the settlement of a criminal investigation with the Department of Justice is customarily accompanied by a detailed statement of facts, agreed to by the parties.

 

Volkswagen explicitly regrets that it is not able to publish interim results by the end of April as initially planned. However, due to the reasons outlined above, the Management Board and the Supervisory Board see themselves forced to refrain from a disclosure in the interest of the company.

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It seemed like it would never happen. But today in a federal courtroom in Calfornia, Volkswagen and the U.S. Justice Department announced they have reached an agreement over the 570,000 2.0L diesel vehicles equipped with illegal software that cheated EPA emission tests.

 

The preliminary "agreement in principle" states the Volkswagen will give owners the option of selling their affected TDI vehicles back to VW or have the vehicle modified to meet U.S. emission standards. Those who are leasing a TDI model can cancel their lease agreement.

 

The agreement also includes two different compensation funds. The first will be for owners that will give them a substantial amount of compensation - the amount is currently unknown. The second will be for “appropriate remediation efforts” against the excess NOx emissions the affected Volkswagen diesel models emitted. Volkswagen will also be required to promote "green automotive technology."

 

One other detail revealed in the hearing is that Volkswagen will be settling all of the class-action lawsuits against it in the coming weeks.

 

"Volkswagen is committed to winning back the trust of its customers, its dealers, its regulators and all of America," said VW lawyer Robert Giuffra.

 

The agreements are "an important step forward on the road to making things right," added Giuffra.

 

The agreement must be finalized by June 21st. A court hearing will follow on July 26th discussing the full details. In the meantime, U.S. District Judge Charles Breyer has issued a gag order on the discussion of the agreement.

 

As the for the Volkswagen, Audi, and Porsche models equipped with the 3.0L TDI V6, negotiations between Volkswagen and Justice Department are continuing.

 

This agreement is the beginning for Volkswagen to begin closing this dark and devasting chapter. There are still fines that need to levy against the German automaker, along with various investigations that need to be finished up. But it seems the madness is starting to come to an end.

 

Source: Automotive News (Subscription Required) Bloomberg, Reuters, Volkswagen

 

Press Release is on Page 2

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Volkswagen has reached an agreement in principle with the US authorities

 

In connection with the diesel issue, Volkswagen AG confirms that an agreement in principle with the Department of Justice (Environmental Division), the Environment Protection Agency (EPA), and the California Air Resources Board (CARB), with the full involvement of the Federal Trade Commission (FTC), has been reached in the United States. This agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC in the coming weeks.

 

Furthermore, Volkswagen has reached an agreement on the basic features of a settlement with the class action plaintiffs in the lawsuit in San Francisco. This agreement will be incorporated into a comprehensive settlement in the coming weeks.

 

The judge presiding over today's court hearing in San Francisco, Charles R. Breyer, expressly welcomed this development.

 

The arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States.

 

Ongoing investigations by the Department of Justice, Criminal Division, and the State Attorneys General are not prejudiced by these agreements in principle.

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A number of Volkswagen executives will not be seeing their full bonus for 2015. In a statement today, Volkswagen announced bonus payments for top executives will be cut "significantly." This announcement comes a week after it was revealed that Volkswagen Group Chairman Hans Dieter Poetsch would be getting about 10 million euros (about $11.4 million) as compensation for stepping down as the company's CFO.

 

News about this bonus angered Volkswagen's labor leaders and the state of Lower Saxony, Volkswagen's second-largest shareholder. They argued Volkswagen should just scrap the bonuses since Volkswagen could experience more financial pains due to the diesel emission scandal.

 

"Supervisory Board and Management Board jointly agreed that – given the current situation of the company – a signal should also be sent with respect to the topic of the Management Board's remuneration," said Volkswagen in a statement.

 

Volkswagen hasn't said how much the bonuses will be cut, but a source tells Reuters that it will be around 30 percent. Sources also reveal that further measures are being discussed to reduce variable pay even further, but that might be enough resolve the dispute with the union leaders and Lower Saxony.

 

Volkswagen's supervisory board will make a decision on the cuts at its next meeting later this April.

 

Source: Reuters, Volkswagen

 

Press Release is on Page 2

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Volkswagen AG informs on Wednesday:
"Supervisory Board and Management Board jointly agreed that – given the current situation of the company – a signal should also be sent with respect to the topic of the Management Board's remuneration.
Different models which would constitute a reasonable and fair solution for all parties involved are currently discussed and coordinated.
As a consequence, this would lead to a significant reduction of the variable remuneration. This would also subsequently apply to Mr. Poetsch at his own request.
The individual compensation components will be adopted in the forthcoming Supervisory Board meeting and will be published in the annual report on 28 April."

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Another day, another lawsuit for Volkswagen over the diesel emission scandal. The U.S. Federal Trade Commission filed a lawsuit today in U.S. District Court in San Francisco against Volkswagen of America for false advertising. The suit says Volkswagen claimed in ads their diesel vehicles were clean, when actually they were polluting more thanks to illegal software.

 

"For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," FTC Chairwoman Edith Ramirez said in a statement.

 

The FTC also says in the filing that consumers in the U.S. suffered "billions of dollars in injury" as a result of the illegal software.

 

For many years, Volkswagen promoted their "clean diesel" message through various mediums - print, television, and online ads. The ads were targeted at “environmentally-conscious” consumers.

 

Automotive News says the FTC is seeking a court order to force Volkswagen to compensate U.S. consumers who bought a diesel vehicle and an injunction to prevent the automaker doing this again.

 

Volkswagen spokeswoman Jeannine Ginivan tells Automotive News that the automaker has received the complaint and "continues to cooperate" with all U.S. regulators.

 

Source: Automotive News (Subscription Required), Federal Trade Commission

 

Press Release is on Page 2

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FTC Charges Volkswagen Deceived Consumers with its "Clean Diesel" Campaign
Seeks Compensation for Those Who Bought or Leased Affected VW and Audi Vehicles over Seven-Year Period

 

March 29, 2016

 

The Federal Trade Commission has charged that Volkswagen Group of America, Inc. deceived consumers with the advertising campaign it used to promote its supposedly "clean diesel" VWs and Audis, which Volkswagen fitted with illegal emission defeat devices designed to mask high emissions during government tests. The FTC is seeking a court order requiring Volkswagen to compensate American consumers who bought or leased an affected vehicle between late 2008 and late 2015, as well as an injunction to prevent Volkswagen from engaging in this type of conduct again.

 

In a complaint filed in federal court, the FTC alleges that during this seven-year period Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value. The cars sold for an average price of approximately $28,000.

 

"For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," said FTC Chairwoman Edith Ramirez. "Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen's deceptive and unfair practices."

 

According to the FTC's complaint, Volkswagen promoted its supposedly "clean" cars through a high-profile marketing campaign that included Super Bowl ads, online social media campaigns, and print advertising, often targeting "environmentally-conscious" consumers.

 

For example, Volkswagen promotional materials repeatedly claimed that its "Clean Diesel" vehicles have low emissions, including that they reduce nitrogen oxides (NOx) emissions by 90 percent and have fewer such emissions than gasoline cars. In fact, the FTC's complaint states that they emit up to 4,000 percent more than the legal limit of NOx — a dangerous pollutant that contributes to environmental harms and respiratory ailments.

 

The complaint alleges that Volkswagen also claimed that "Clean Diesel" vehicles met "stringent emission requirements," were "50-state compliant," and would maintain a high resale value. Yet, according to the FTC's complaint, these claims were also false because without the illegally installed software, the "Clean Diesel" vehicles would not have passed federal emissions standards and the hidden defeat devices will significantly reduce the vehicles' resale value.

 

The FTC also charged that Volkswagen provided the means and instrumentalities for others to deceive consumers, and that installing the emissions defeat devices was an unfair practice.

 

The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, and Touareg SUVs, as well as TDI Audi models. The suggested sale prices for the affected vehicles ranged from approximately $22,000 for the least-expensive Volkswagen model with a 2.0-liter engine to approximately $125,000 for the most-expensive Audi model with 3.0-liter engine.

 

The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of California, San Francisco Division.

 

NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

 

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook (link is external), follow us on Twitter (link is external), read our blogs and subscribe to press releases for the latest FTC news and resources.

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Just moments ago, Volkswagen announced that CEO and President of Volkswagen of America, Michael Horn has stepped down effective immediately. In a statement released by the company, the departure was reached "through mutual agreement."

 

Hinrich J. Woebcken - recently announced as the head of Volkswagen's North American operations - will act as the interim CEO and President.

 

Volkswagen would like to thank Horn for his contributions to the company during his tenure in the United States. “I want personally to say ‘thank you’ to Michael Horn for the great work he has done for the brand and with the dealers in the United States. During his time in the U.S., Michael Horn built up a strong relationship with our national dealer body and showed exemplary leadership during difficult times for the brand,” said Herbert Diess, CEO of Volkswagen brand in a statement.

 

Horn joined Volkswagen back in 1990 and was named CEO and President of Volkswagen of America in 2014. His departure comes about six months after the EPA revealed the company used illegal software in their diesel vehicles to cheat emission tests.

 

This news is a blow to Volkswagen's U.S. dealers who respected Horn as he was very upfront and worked on improving profits.

 

“The [VW] National Dealer Advisory Council wants to acknowledge Michael for his leadership and strength through the continued mismanagement of the diesel scandal that has plagued our sales and reputation more than any other global market,” Volkswagen's dealer council said in a statement to Automotive News.

 

The council also blasted Volkswagen's handling of the emission scandal and are very concerned about this change in leadership.

 

"There is no sense of a resolution to the diesel scandal. We are troubled watching the mismanagement of this scandal from Germany, and how it may impact the ultimate decisions by the authorities in the United States. This change in management can only serve to put the company at more risk, not less.”

 

Source: Volkswagen, Automotive News (Subscription Required)
Pic Credit: William Maley for Cheers & Gears

 

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VOLKSWAGEN GROUP OF AMERICA ANNOUNCES EXECUTIVE LEADERSHIP CHANGE

 

Herndon, VA (March 9, 2016) – Volkswagen Group of America today announced the departure of Michael Horn, president and CEO, Volkswagen Group of America. Through mutual agreement with Volkswagen AG, Horn will be leaving to pursue other opportunities effective immediately. On an interim basis, Hinrich J. Woebcken, who was recently announced as the new Head of the North American Region and Chairman of Volkswagen Group of America, will assume the role of president and CEO of Volkswagen Group of America.

 

Volkswagen would like to thank Horn for his contributions to the company during his tenure in the United States. “I want personally to say ‘thank you’ to Michael Horn for the great work he has done for the brand and with the dealers in the United States,” said Herbert Diess, CEO of Volkswagen brand. “During his time in the U.S., Michael Horn built up a strong relationship with our national dealer body and showed exemplary leadership during difficult times for the brand,” he added.

 

Michael Horn (54) assumed the role as president and CEO of Volkswagen Group of America in January 2014 and has over twenty five years of experience with the Volkswagen Group. Prior to his current role, Horn served as the Global Head of After Sales at Volkswagen AG (VW). Horn joined Volkswagen in 1990 and has held many roles of increasing responsibility within the brand over his tenure, including Head of Volkswagen sales North West Europe, Head of sales and marketing luxury class vehicles, and Head of sales for Europe.

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The U.S. Department of Justice has filed a civil suit against Volkswagen today for allegedly violating the Clean Air Act by using illegal cheating devices on nearly 600,000 diesel vehicles.

 

"The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation's clean air laws," said Assistant Attorney General John Cruden.

 

A senior official at the Department of Justice tells Reuters the penalties in the lawsuit could cost the German automaker billions of dollars. The official also says the suit doesn't preclude the Justice Department from filing criminal charges against Volkswagen.

 

The suit will be filed in the Eastern District of Michigan, before heading to Northern California where the class-action lawsuits will be heard.

 

UPDATE: Volkswagen has issued a statement after the lawsuit was filed.

 

"Today, the United States Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA) filed a civil lawsuit against Volkswagen, Audi and Porsche in the United States District Court for the Eastern District of Michigan. The claims in the Complaint pertain to the 2.0L and 3.0L TDI engine equipped vehicles that have been the subject of EPA investigations and allege violations of the same provisions of the Clean Air Act as were noted in the EPA’s September 18 and November 2 Notices of Violation.

 

Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI vehicles into full compliance with regulations as soon as possible. In addition, we are working with Kenneth Feinberg to develop an independent, fair and swift process for resolving private consumer claims relating to these issues. We will continue to cooperate with all government agencies investigating these matters."

 

We also have a total amount of penalties that Volkswagen could be facing. In the suit, U.S. environmental officials are asking for these penalties to be applied,

• $37,500 for each Volkswagen diesel vehicle that emits more than the legal limit of emissions
• $37,500 for each Volkswagen diesel vehicle that was 'tampered'
• Up to $3,750 for each defeat device
• Up to $37,500 for each day since 2009 that Volkswagen violated the Clean Air Act
  

Add it all up and Volkswagen could be looking at a maximum of $40 billion in fines.

 

Source: Reuters, U.S. Department of Justice

 

Press Release is on Page 2

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United States Files Complaint Against Volkswagen, Audi and Porsche for Alleged Clean Air Act Violations
The Department of Justice, on behalf of the Environmental Protection Agency (EPA), today filed a civil complaint in federal court in Detroit, Michigan, against Volkswagen AG, Audi AG, Volkswagen Group of America Inc., Volkswagen Group of America Chattanooga Operations LLC, Porsche AG and Porsche Cars North America Inc. (collectively referred to as Volkswagen). The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution. The complaint further alleges that Volkswagen violated the Clean Air Act by selling, introducing into commerce, or importing into the United States motor vehicles that are designed differently from what Volkswagen had stated in applications for certification to EPA and the California Air Resources Board (CARB).
“Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint.”
“With today’s filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action.”
“Today’s complaint is the first stage in bringing Volkswagen to justice for failing to disclose the defeat device while seeking certification for its diesel vehicles from EPA’s Office of Transportation and Air Quality in Ann Arbor, Michigan,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan. “The alleged misrepresentations allowed almost 600,000 diesel engines to emit excessive air pollution across the country, harming our health and cheating consumers.”
Consistent with EPA’s Notices of Violation, issued on Sept. 18, 2015, for 2.0 liter engines and Nov. 2, 2015 for certain 3.0 liter engines, the complaint alleges that the defeat devices cause emissions to exceed EPA’s standards during normal driving conditions. The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution. Motor vehicles equipped with illegal defeat devices cannot be certified.
The complaint alleges that Volkswagen equipped certain 2.0 liter vehicles with software that detects when the car is being tested for compliance with EPA emissions standards and turns on full emissions controls only during that testing process. During normal driving situations the effectiveness of the emissions control devices is greatly reduced. This results in cars that meet emissions standards in the laboratory and at the test site, but during normal on-road driving emit oxides of nitrogen (NOx) at levels up to 40 times the EPA compliance level. In total, the complaint covers approximately 499,000 2.0 liter diesel vehicles sold in the United States since the 2009 model year.
The complaint further alleges that Volkswagen also equipped certain 3.0 liter vehicles with software that senses when the vehicle is undergoing federal emissions testing. When the vehicle senses the test procedure, it operates in a “temperature conditioning” mode and meets emissions standards. At all other times, including during normal vehicle operation, the vehicles operate in a “normal mode” that permits NOx emissions of up to nine times the federal standard. In total, the complaint covers approximately 85,000 3.0 liter diesel vehicles sold in the United States since the 2009 model year.
NOx pollution contributes to harmful ground-level ozone and fine particulate matter. These pollutants are linked with asthma and other serious respiratory illnesses. Exposure to ozone and particulate matter is also associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants. Recent studies indicate that the direct health effects of NOx are worse than previously understood, including respiratory problems, damage to lung tissue and premature death.
Today’s filing of a civil complaint under Sections 204 and 205 of the Clean Air Act seeks injunctive relief and the assessment of civil penalties. A civil complaint does not preclude the government from seeking other legal remedies. The United States will seek to transfer its case and fully participate in the pretrial proceedings now initiated in the related multi-district litigation in the Northern District of California. The United States’ investigation is ongoing, in close coordination with CARB. EPA and CARB have been in active discussion with Volkswagen about potential remedies and recalls to address the noncompliance, and those discussions are ongoing.
Affected 2.0 liter diesel models and model years include:

• Jetta (2009-2015)
• Jetta Sportwagen (2009-2014)
• Beetle (2013-2015)
• Beetle Convertible (2013-2015)
• Audi A3 (2010-2015)
• Golf (2010-2015)
• Golf Sportwagen (2015)
• Passat (2012-2015)
  

Affected 3.0 liter diesel models and model years include:

• Volkswagen Touareg (2009-2016)
• Porsche Cayenne (2013-2016)
• Audi A6 Quattro (2014-2016)
• Audi A7 Quattro (2014-2016)
• Audi A8 (2014 – 2016)
• Audi A8L (2014-2016)
• Audi Q5 (2014-2016)
• Audi Q7 (2009-2015)
  

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The California Air Resources Board (CARB) has given Volkswagen a reprieve on the diesel emission scandal. According to Reuters, CARB has extended the deadline to approve or reject Volkswagen's fix for the nearly 500,000 vehicles with the cheating 2.0L TDI to January 14, 2016. The reason for the extension is Volkswagen continued to submit "significant information and data" about the repair effort for the affected models since submitting the proposed fix back on November 20th.

 

VW spokeswoman Jeannine Ginivan tells Reuters the German automaker continues "to fully cooperate with EPA and CARB as we work to develop an approved remedy as quickly as possible."

 

Volkswagen has said previously that newer TDI vehicles will need only a software upgrade to fix the issue, while older models might need some new equipment to go along with the upgrade.

 

Source: Reuters, CARB

 

Press Release is on Page 2

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UPDATE: CARB sends VW letter on proposed recall plan
CARB to act on or before January 14, 2016
SACRAMENTO - As the result of submissions by VW over the past week, CARB sent VW America a letter indicating that it would act on the proposed recall plan on or before January 14, 2016.
The letter follows below, and can be found at: http://www.arb.ca.gov/msprog/vw_info/vw_diesel_info.htm
~~~~~~~~~~~~~~~~~~~~~~~
December 18, 2015
David GeanacopoulosExecutive Vice President Public Affairs and General Counsel
Volkswagen Group of America, Inc.2200 Ferdinand Porsche Drive
Herndon, Virginia 20171David.Geanacopoulos@vw.com
Subject: Volkswagen 2.0 L Recall Plan Submission
Dear Mr. Geanacopoulos:
As a result of Volkswagen Group of America's (VW) continued submission of additional significant information and data to the California Air Resources Board (CARB) as part of VW's proposed 2.0L influenced emission recall plan (Title 13, Cal. Code Regs. § 2113) --- including information VW submitted in writing on December 14, 2015, and verbally as recently as December 16, 2015 --- CARB plans to act on your proposed 2.0L influenced emission recall plan on or before January 14, 2016.
Mr. Stuart Johnson, on behalf of VW, discussed this issue with me earlier this week. Please confirm in writing to me, no later than noon Pacific Time, Monday, December 21, 2015, that VW has no objection to CARB's planned response date of on or before January 14, 2016.
As you know, VW submitted a December 15, 2015, request for an extension to submit VW's supplemental, proposed 2.0L influenced emission recall plan to CARB. CARB will also respond to this extension request on or before January 14, 2016.
If you have any questions, I can be reached at (626) 450-6150.
Sincerely,
Annette Hebert, Chief
Emissions Compliance, Automotive Regulations, and Science Division

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Kenneth Fineberg finds himself helping out another automaker in crisis. Volkswagen announced yesterday they have brought in Fienberg to work on and oversee a new claims program for owners of Volkswagen models involved in the diesel emission scandal.

 

“We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America in a statement.

 

Automobile Magazine was on a conference call with Feinberg to discuss his involvement and plans. Fineberg made it clear this was going to be a tough task as he'll have to figure out what is a legitimate claim and what is the appropriate remedy for those who apply in the program.

 

"The issues are always the same: Who's eligible to file a claim? What is the remedy? What are the proof requirements when somebody commits a claim?" said Feinberg.

 

"What is an appropriate remedy that would give the car owner total peace. And that is a very, very challenging question which we certainly can't answer yet."

 

Feinberg said on the call he expects as many as 500,000 potential claimants in the U.S. The hope for this program is to consolidate the number of lawsuits against Volkswagen. At the moment, there are more 500 lawsuits against Volkswagen that are related to the diesel emission scandal.

 

Feinberg didn't give a timeline as to when we could see a claims program go live.

 

"This is going to take some time. But we'll begin as soon as possible," said Feinberg.

 

Before being brought in by Volkswagen, Feinberg was the administrator for General Motors' ignition switch compensation fund for victims and family of victims. Under his watch, the fund determined that 124 people were killed by the ignition switch turning off unexpectedly and causing the car to lose power. The fund also determined that 275 people were injuried because it.

 

Source: Automobile Magazine, Volkswagen

 

Press Release is on Page 2

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Volkswagen Announces Engagement of Kenneth R. Feinberg to Design and Administer a Claims Program Related to the TDI Emissions Compliance Issue

 

Herndon, VA (December 17, 2015) Volkswagen announced today that it has retained attorney Kenneth R. Feinberg, managing partner of The Law Offices of Kenneth R. Feinberg, PC, to design and administer an independent claims resolution program to address claims related to the 2.0L and 3.0L TDI vehicles affected by the emissions compliance issue. Volkswagen believes Mr. Feinberg will develop an independent, fair and swift process for resolving these claims.

 

“We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America.

 

Mr. Feinberg stated that he will “commence work immediately designing an independent claims process that will meet claimants’ needs.” He added that “we hope to have a claims program designed as expeditiously as possible. In order to do so, we will need the input not only of Volkswagen, but also vehicle owners, their lawyers, and other interested parties.”

 

Mr. Feinberg is a well-respected attorney with extensive experience managing high-profile issues and many of the nation’s most challenging legal matters. He was appointed to two presidential commissions by Presidents Reagan and Clinton and administered several other significant programs. More information on Kenneth Feinberg can be found at http://feinberglawoffices.com/

 

Volkswagen continues to fully cooperate with the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) as the Company works to develop approved remedies for the affected TDI vehicles as quickly as possible. As the claims program is developed, Mr. Feinberg will consult these agencies for their input.

 

For more information regarding the Volkswagen TDI emissions compliance issue, please visit www.vwdieselinfo.com

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This morning at Volkswagen's headquarters in Wolfsburg, Germany, executives admitted there were parts of the company "tolerated breaches of rules" and would be 'relentless' in finding those involved in the diesel emission scandal.

 

Volkswagen Chairman Hans Dieter Pötsch told reporters at the press conference that investigations into the affair were going well, but it would take time for the investigation to figure out which individuals were the key players. Poestch also reiterated that a small group of individuals were involved in the cheating.

 

The key question is how did the cheating happen in the first place? Poetsch explained there were three key reasons,

• “Mindset in some areas of the Company that tolerated breaches of rules.”
• Misconduct of individuals
• Flaws in processes that prevent issues like this
  

"It is clear that, in the past, deficiencies in processes have favored misconduct on the part of individuals. This is true, for example, for test and certification processes affecting our engine control devices, which were not suited to preventing use of the software in question. Group Audit has suggested specific remedies to correct this. We are concentrating on structuring these processes more transparently and systematically. For example, in the future, software for engine control devices will be developed more strictly in accordance with the 4-eyes principle. In addition, the bodies responsible for the release of such software are being reorganized," Volkswagen said in a statement.

 

Aside from an internal investigation, Volkswagen has also brought in the law firm Jones Day to do an external investigation. The firm is expected to present the results of their investigation in April during Volkswagen' annual meeting.

 

Volkswagen CEO Matthias Mueller also spoke at the conference and announced that changes were coming to how Volkswagen corporate structure will look like. Muller is also committed to keeping the twelve brands and protecting jobs.

 

"We will not allow the crisis to paralyze us. Although the current situation is serious, this company will not be broken by it," said Muller.

 

Source: Automotive News (Subscription Required), Jalopnik, Volkswagen

 

Press Release is on Page 2

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Volkswagen making good progress with its investigation, technical solutions, and Group realignment

• Initial results of the emissions investigation available
• Approximately 450 external and internal experts involved in the investigations
• 100 terabytes of data secured – equivalent to information in approximately 50 million books
• Volkswagen will have future emissions tests evaluated independently
• Technical solutions for customers in Europe developed; implementation to begin
• in January 2016
• Group realignment making good progress
  

The Volkswagen Group’s realignment is well underway. The Group is making progress on all five of the priorities it set at the end of October: The technical solutions for customers in Europe have been devised, presented to the authorities, and positively evaluated by them. These solutions will begin to be implemented in January 2016. The emissions investigation is producing results, and initial consequences have already been drawn based on the findings to date. The implementation of the new structure is proceeding according to plan, and the process of developing a new strategy has commenced. The Chairman of the Supervisory Board of Volkswagen AG, Hans Dieter Pötsch, told the press in Wolfsburg today: “The Volkswagen Group is fully functional in every respect, even during these eventful days. How, and when we meet the current challenges is primarily – although not solely – up to us. In order to pass this test, we must make an enormous, common effort – and we are all ready to do so.” The Chairman of the Board of Management, Matthias Müller, said: “We are doing everything to overcome the current situation, but we will not allow the crisis to paralyze us. On the contrary, we will use it as a catalyst to make the changes Volkswagen needs.”

 

For the first time, the Company provided detailed commentary on the status of its investigation, which is being coordinated by a special committee of the Supervisory Board. Approximately 450 internal and external experts are involved in the investigations, which are being conducted in two phases. An internal review, being conducted by a task force of experts from various Group companies with a clearly defined mandate and a deadline, is focused on the mandate to Group Audit by the Supervisory Board and the Management Board to investigate relevant processes, reporting and monitoring systems, and the associated infrastructure. Group Audit will provide its findings to the external experts of Jones Day. The Supervisory Board has given this internationally respected law firm a parallel mandate to completely clarify the facts and responsibilities – i.e., among other things, it has been asked to conduct a forensic investigation. In connection with its work, Jones Day is being provided with operational support by the audit firm Deloitte.

 

Group Audit has identified process weak points
As reported on Wednesday, extensive internal investigations, which were subject to external independent review, did not confirm the suspicion of irregularities during the CO2 certification process. Now, the first significant findings in the investigation of the nitrogen oxide (NOx) issue are available. Group Audit’s examination of the relevant processes indicates that the software-influenced NOx emissions behavior was due to the interaction of three factors:

• The misconduct and shortcomings of individual employees
• Weaknesses in some processes
• A mindset in some areas of the Company that tolerated breaches of rules.
  

It is clear that, in the past, deficiencies in processes have favored misconduct on the part of individuals. This is true, for example, for test and certification processes affecting our engine control devices, which were not suited to preventing use of the software in question. Group Audit has suggested specific remedies to correct this. We are concentrating on structuring these processes more transparently and systematically. For example, in the future, software for engine control devices will be developed more strictly in accordance with the 4-eyes principle. In addition, the bodies responsible for the release of such software are being reorganized. They will be given more sharply defined and binding powers and responsibilities. Deficiencies were also found in reporting and monitoring systems. The main problem there was that responsibilities were not sufficiently clear. Volkswagen will now further sharpen them. Group Audit also found deficiencies in some areas of Volkswagen’s IT infrastructure. These deficiencies will also be remedied. Volkswagen will introduce IT systems that allow individual processes to be monitored with greater efficiency and transparency. This will simultaneously reduce our dependence on individuals when problematic processes have to be identified and, if necessary, escalated. As Pötsch stated: “Group Audit’s investigation is producing valuable findings, which will help us create a structure that, rather than favoring breaches of regulations, will prevent them, or at least allow them to be detected early on.”

 

The Company has already drawn a key conclusion based on Group Audit’s findings, namely that its testing practice must undergo comprehensive changes.

 

Volkswagen has decided that in the future emissions test will be evaluated externally and independently. In addition, randomly selected real-life tests to assess emissions behavior on the road will be introduced. Chairman of the Supervisory Board Pötsch stated: “We hope that this will help Volkswagen regain lost trust.”

 

More time is required for the external investigation
Although Group Audit’s analysis of the processes will be concluded shortly, Jones Day will need well into next year in order to finish its work. The external investigators will need more time for their investigation, for two reasons. The first is that they have a massive volume of data to screen. At present, 102 terabytes of information have been secured, which is the equivalent of the information contained in approximately 50 million books. More than 1,500 electronic data storage units have been collected from approximately 380 employees. The second reason is that their investigation of the facts takes legal responsibility into account. Therefore, their findings must not only be plausible and consistent, but must also hold up in court. Volkswagen plans to provide a status update on the external investigation at its Annual General Meeting on April 21, 2016.

 

The information that has been screened to date has largely explained the origin and development of the nitrogen oxide issue. It proves not to have been a one-time error, but rather a chain of errors that were allowed to happen. The starting point was a strategic decision to launch a large-scale promotion of diesel vehicles in the United States in 2005. Initially, it proved impossible to have the EA 189 engine meet by legal means the stricter nitrogen oxide requirements in the United States within the required timeframe and budget. This led to the incorporation of software that adjusted nitrogen oxide emission levels according to whether vehicles were on the road or being tested. Later, when an effective technical process was available to reduce NOx emissions, it was not employed to the full extent possible. On the contrary, the software in question allowed the exhaust gas treatment additive “AdBlue” to be injected in variable amounts such that the NOx values were particularly low when vehicles were in the test bay, but significantly higher when vehicles were on the road.

 

Hans Dieter Pötsch stressed that, “No business transaction justifies overstepping legal and ethical bounds.” As a first step, nine managers who may have been involved in the manipulations were suspended. Pötsch emphasized: “I here and now guarantee that we will pursue our thorough investigation to its conclusion. I vouch for this personally, as does the entire Supervisory Board of Volkswagen AG.”

 

Technical solutions, which have been positively evaluated by the German Federal Motor Transport Authority (“Kraftfahrtbundesamt”), are now available for the European variants of the EA 189 engine type affected. Volkswagen is thus ensuring that the models affected in Europe will meet all legal requirements in the future. The costs of implementing these solutions will be manageable in technical, manufacturing, and financial terms. The software of the 2.0 and 1.2 liter TDI will be updated. For the 1.6 liter TDI, a so-called flow transformer will be used that increases the measurement precision and, in combination with redesigned software, will optimize injection quantity.

 

Now that the technical solutions have been approved, Volkswagen is working intensely on plans to implement them. The recall of the highest-volume variant, the 2.0 liter TDI, will begin in January 2016. The recall of the 1.2 liter TDI is currently scheduled to begin in the second quarter. The implementation phase for the 1.6 liter models is planned to begin in the third quarter to allow time to prepare for the hardware modification. Under the current plan, the entire initiative will take at least all of calendar year 2016. Matthias Müller, Chairman of the Board of Management, promised: "Volkswagen will not rest until this matter has been resolved once and for all to our customers’ satisfaction.” Volkswagen will inform the owners of the affected vehicles individually as to when their vehicles will be updated. Volkswagen guarantees that the solutions will be implemented free of charge. The company waives any statute of limitations for the technical solutions, and will provide an appropriate replacement vehicle if required.

 

Due to far stricter nitrogen oxide limits in the United States, it is a greater technical challenge to retrofit the vehicles such that all applicable emissions limits can be met with one and the same emissions strategy. To this end, Volkswagen is cooperating closely with the United States Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). The solution designed for North America will be presented as soon as it has been approved by the responsible authorities.

 

Implementation of the new Group structure commenced
Parallel to overcoming the crisis, Volkswagen is also instituting a comprehensive new alignment that affects the structure of the Group, as well as its way of thinking and its strategic goals.

 

Volkswagen will be managed in a more decentralized fashion in the future, and its brands and regions will be granted more independence. The Group’s Board of Management is fully focused on its core task: advancing the major, global issues for the future, as well as synergies, controls, and strategy. Volkswagen will have significant input to the technical changes that have a major impact on its own business model, becoming more agile, and streamlining its decision-making processes. In addition, Volkswagen will become leaner and improve cost efficiency. All these structural changes ultimately aim to reduce managerial complexity and ensure that the Group can be effectively led over the long term.

 

At an organizational level, with the appointment of Dr. Christine Hohmann-Dennhardt, the Integrity & Law area will be represented as its own department on the Group’s Board of Management in the future – a clear indication that these issues are extremely important to Volkswagen. Significantly more importance will be attached to digitalization, which will report directly to the Chairman of the Board of Management. Overall, direct reports will be reduced from more than 30 to 19.

 

The renewal of personnel in the Group has recently again been given new impetus. Since the beginning of 2015, the Group’s Board of Management has seen six new members join, seven of the brands have had their top personnel changed, and eight departments falling within the CEO’s area of responsibility now have new heads. Müller stated: "The team with which we wish to address the challenges of the coming months and years is in place.” The details of the new structure are to be worked out in the first quarter of 2016. The new structure will be in place Group-wide by the start of 2017.

 

New mindset initiated
Müller noted: “We can have the best people, and a great organization, but we can do nothing without the right attitude and mentality.” During the upcoming process of change toward a new way of thinking, Volkswagen can build on its traditional strengths: quality consciousness, strong identification with its vehicles, and a high degree of social responsibility. According to Müller, the future will be about more open discussions, closer cooperation, and a willingness to allow mistakes if they are understood as an opportunity to learn. The Chairman of the Board of Management stated, “We don’t need yes-men, but managers and engineers who make good arguments in support of their convictions and projects, who think and act like entrepreneurs. I am calling for people who are curious, independent, and pioneering. People who follow their instincts and are not merely guided by the possible consequences of impending failure. In short: the future at Volkswagen belongs to the bold. We need a little more Silicon Valley, coupled with the competence from Wolfsburg, Ingolstadt, Stuttgart, and the other Group locations.”

 

New strategic destination under development
In addition, Volkswagen has initiated development of a new strategic target: “Strategy 2025”, with which Volkswagen will address the main issues for the future, is scheduled to be presented in mid 2016.

 

Müller explained, “We are realigning Volkswagen strategically and technologically. Our goal is to courageously and decisively participate in shaping the future of mobility.” Among other things, the Group aims to achieve a significant expansion of its sales outside of its current core business. Furthermore, a digitalization and an electrification offensive are being prepared.

 

In parallel, Volkswagen is currently doing everything it can to limit the effect the current situation has on its business performance. The operating business is meeting expectations, and the 2015 annual forecast, which was updated at the end of October, remains unchanged. The sales figures are very mixed as regards the various markets and brands. Müller explained, “Overall, the situation is not dramatic, but, as was to be expected, it's tense.”

 

In summary, the Chairman of the Board of Management stated: “Although the current situation is serious, this company will not be broken by it. We have a clear mission: we will create a new, better, and stronger Volkswagen. A company that uses its strengths to make the transition to the new world of automobiles. A company that now releases new forces, and takes better advantage of its huge potential. And, last but not least, a company that will be successful over the long term on the basis of strong values.”