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Found 203 results

  1. It slices! It dices! No, we're not trying to sell you a set of knives. This is the best way to describe Volkswagen's strategy for the U.S.; price cuts. Bloomberg reports that Volkswagen will be changing their strategy in the U.S. to become more mass-market in the U.S. This will mean a wider product range and lower prices. The hope is the strategy can reverse a downward spiral in U.S. sales that has been taking place before the diesel scandal broke. Volkswagen for many hasn't been able to crack the U.S. market. Despite becoming the world's largest automaker in terms of sales this year and making up 10 percent of total automobile sales in Europe, Volkswagen has been a blip in the U.S. In the past ten years, Volkswagen has never gotten up to 5 percent of U.S. (At the moment, Volkswagen only makes up 1.7 percent of total U.S. auto sales). The German automaker has tried making the Jetta cheaper and making a Passat for the U.S., which hasn't gotten them anywhere. It doesn't help that Volkswagen has missed the boat with growing demand for crossovers in the U.S. “Volkswagen is facing an uphill battle to revive the brand in the U.S. Volkswagen is struggling with the loser image of the past, and now in the present the brand is burned. They need a good story that assures people it’s really a new start. Just adding another SUV won’t do it,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen. We don't think going for a mass-market plan is a good idea either at the moment. But who knows, it could be the thing that saves VW. Source: Bloomberg
  2. It slices! It dices! No, we're not trying to sell you a set of knives. This is the best way to describe Volkswagen's strategy for the U.S.; price cuts. Bloomberg reports that Volkswagen will be changing their strategy in the U.S. to become more mass-market in the U.S. This will mean a wider product range and lower prices. The hope is the strategy can reverse a downward spiral in U.S. sales that has been taking place before the diesel scandal broke. Volkswagen for many hasn't been able to crack the U.S. market. Despite becoming the world's largest automaker in terms of sales this year and making up 10 percent of total automobile sales in Europe, Volkswagen has been a blip in the U.S. In the past ten years, Volkswagen has never gotten up to 5 percent of U.S. (At the moment, Volkswagen only makes up 1.7 percent of total U.S. auto sales). The German automaker has tried making the Jetta cheaper and making a Passat for the U.S., which hasn't gotten them anywhere. It doesn't help that Volkswagen has missed the boat with growing demand for crossovers in the U.S. “Volkswagen is facing an uphill battle to revive the brand in the U.S. Volkswagen is struggling with the loser image of the past, and now in the present the brand is burned. They need a good story that assures people it’s really a new start. Just adding another SUV won’t do it,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen. We don't think going for a mass-market plan is a good idea either at the moment. But who knows, it could be the thing that saves VW. Source: Bloomberg View full article
  3. Take this story with a fair amount of salt as the outlet who broke this story doesn't say where it got this information. According to a report from German newspaper Bild am Sonntag, U.S. authorities have uncovered three more pieces of illegal software in the 3.0L TDI V6 used on the Volkswagen Touareg, Audi Q7, and Porsche Cayenne. The various pieces of software can turn off the emissions control systems after 22 minutes of driving. This would allow a vehicle to pass an emissions test (which lasts about 20 minutes). The use of this type of software is common in vehicles sold in Europe thanks to a loophole in European Union laws. This came to light back in May as the German Government asked Opel for more information on software used on the Zafira diesel that would turn off the emission controls. Bild goes on to say that U.S. authorities have set up a meeting with Audi officials this week to discuss this. Not surprisingly, Audi and the EPA declined to comment. Source: Bild am Sonntag via Reuters
  4. Take this story with a fair amount of salt as the outlet who broke this story doesn't say where it got this information. According to a report from German newspaper Bild am Sonntag, U.S. authorities have uncovered three more pieces of illegal software in the 3.0L TDI V6 used on the Volkswagen Touareg, Audi Q7, and Porsche Cayenne. The various pieces of software can turn off the emissions control systems after 22 minutes of driving. This would allow a vehicle to pass an emissions test (which lasts about 20 minutes). The use of this type of software is common in vehicles sold in Europe thanks to a loophole in European Union laws. This came to light back in May as the German Government asked Opel for more information on software used on the Zafira diesel that would turn off the emission controls. Bild goes on to say that U.S. authorities have set up a meeting with Audi officials this week to discuss this. Not surprisingly, Audi and the EPA declined to comment. Source: Bild am Sonntag via Reuters View full article
  5. 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 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.
  6. 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 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. View full article
  7. Volkswagen is facing criminal charges over the diesel emission scandal in the U.S. The Wall Street Journal reports that investigators from the U.S. Justice Department have found evidence of criminal wrongdoing. It is unclear what the evidence is. According to sources, federal prosecutors are still trying to figure out what charges should be brought against Volkswagen. Sources go on to say that prosecutors and lawyers from Volkswagen have held preliminary discussions about the case. The two parties are trying to reach a settlement before the end of the year. A matter up for debate is whether the Justice Department will seek a guilty plea or a deferred prosecution agreement; a deal with the U.S. Government would aim to dismiss the charges at a later date if the automaker complies to terms of a settlement. Both Toyota and General Motors have gone down this route recently, dealing with safety issues. Investigators have been reviewing over 1.5 million documents as part of the criminal probe. Deputy Attorney General Sally Yates said back in June the probe involved “multiple individuals.” It is unknown if prosecutors are planning to charge Volkswagen employees over the diesel emission scandal. If so, they would need to be extradited from Germany to have their day in court. Source: The Wall Street Journal (Subscription Required)
  8. Volkswagen is facing criminal charges over the diesel emission scandal in the U.S. The Wall Street Journal reports that investigators from the U.S. Justice Department have found evidence of criminal wrongdoing. It is unclear what the evidence is. According to sources, federal prosecutors are still trying to figure out what charges should be brought against Volkswagen. Sources go on to say that prosecutors and lawyers from Volkswagen have held preliminary discussions about the case. The two parties are trying to reach a settlement before the end of the year. A matter up for debate is whether the Justice Department will seek a guilty plea or a deferred prosecution agreement; a deal with the U.S. Government would aim to dismiss the charges at a later date if the automaker complies to terms of a settlement. Both Toyota and General Motors have gone down this route recently, dealing with safety issues. Investigators have been reviewing over 1.5 million documents as part of the criminal probe. Deputy Attorney General Sally Yates said back in June the probe involved “multiple individuals.” It is unknown if prosecutors are planning to charge Volkswagen employees over the diesel emission scandal. If so, they would need to be extradited from Germany to have their day in court. Source: The Wall Street Journal (Subscription Required) View full article
  9. One of the stumbling blocks for Volkswagen with the diesel emission scandal has been trying to find a fix that the feds would agree to. Previous attempts for the 2.0 and 3.0L TDI have ended with rejection from the California Air Resources Board due to the "submissions are incomplete, substantially deficient, and fall far short of meeting the legal requirements to return these vehicles to the claimed certified configuration." But it seems progress is being made on this. In an interview with Reuters, CARB's head Mary Nichols said they are working with Volkswagen on testing potential fixes for the three generations of the 2.0L TDI four-cylinder engine. “They brought in a whole new team of people to work on various aspects of this. There’s just a greater sense that we’re dealing with people who have access to the decision makers in Germany, and who understand their credibility is on the line," said Nichols. The potential fixes must improve emissions by 80 to 90 percent of federal pollution standards. This seems odd since regulators wanted Volkswagen to get the vehicles fully meeting standards, but they are willing to give the company some breathing room as Volkswagen will be paying $2.7 billion to reduce the excess NOx emissions spewing from their vehicles. Getting a fix approved could be Volkswagen's saving grace as they could offer owners the choice of either having their vehicles bought back or having them fixed, which in turn could lessen the hurt of buying back all of the affected vehicles. Whether this pans out remains to be seen. Source: Reuters View full article
  10. One of the stumbling blocks for Volkswagen with the diesel emission scandal has been trying to find a fix that the feds would agree to. Previous attempts for the 2.0 and 3.0L TDI have ended with rejection from the California Air Resources Board due to the "submissions are incomplete, substantially deficient, and fall far short of meeting the legal requirements to return these vehicles to the claimed certified configuration." But it seems progress is being made on this. In an interview with Reuters, CARB's head Mary Nichols said they are working with Volkswagen on testing potential fixes for the three generations of the 2.0L TDI four-cylinder engine. “They brought in a whole new team of people to work on various aspects of this. There’s just a greater sense that we’re dealing with people who have access to the decision makers in Germany, and who understand their credibility is on the line," said Nichols. The potential fixes must improve emissions by 80 to 90 percent of federal pollution standards. This seems odd since regulators wanted Volkswagen to get the vehicles fully meeting standards, but they are willing to give the company some breathing room as Volkswagen will be paying $2.7 billion to reduce the excess NOx emissions spewing from their vehicles. Getting a fix approved could be Volkswagen's saving grace as they could offer owners the choice of either having their vehicles bought back or having them fixed, which in turn could lessen the hurt of buying back all of the affected vehicles. Whether this pans out remains to be seen. Source: Reuters
  11. 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 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. View full article
  12. 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 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.
  13. Volkswagen finds itself in legal trouble once again as three U.S. states - Massachusetts, Maryland, and New York - have filed separate lawsuits over the diesel emission scandal. The lawsuits allege that the automaker undertook a massive cover-up of the illegal software and was orchestrated by high-level executives - including the former CEO. “The idea that this level of fraud could take place and involve so many people at such high levels of a major international corporation is appalling,” said New York Attorney General Eric Schneiderman at a press conference this week. The New York Times, Road & Track, and Car and Driver got their hands on the New York lawsuit and it is quite damning. The suit cites internal documents, staff emails, interviews, and investigation as to how Volkswagen got to this point. The defeat device was originally developed back in 2004 by Audi. Internally known as "Acoustic Function," the system would reduce emissions by turning off a system called "Pilot Injection" Pilot Injection would inject additional fuel during engine start to help reduce diesel clatter This system would be used on the European market 3.0L TDI V6 from 2004 to 2006 [*]In 2006, Volkswagen was trying to figure out how to make the 2.0L TDI four-cylinder meet U.S. emission standards Engineers apparently looked at selective catalytic reduction (SCR) that uses urea injection to reduce nitrogen oxide (NOx) emissions. This was thrown out due to needing a separate tank for the urea and paying Mercedes-Benz for a license to use it. Instead, the decision was made to use a lean-trap system. This system works by trapping particulates in a soot filter. The particulates would be burned off by running the engine in a fuel-rich mode. This system had a major problem as the filter would prematurely fail due to excess build up. Thus the fateful decision of employing the "Acoustic Function" was used. [*]The complaint also notes that communications between executives within each brand, along with lateral moves of employees and executives between the brands meant that everyone knew about the use/possible use of this device in various vehicles. We highly recommend checking out the pieces from the sources below as we only scratched the surface on this. Source: Car and Driver, The New York Times, Road & Track View full article
  14. Volkswagen finds itself in legal trouble once again as three U.S. states - Massachusetts, Maryland, and New York - have filed separate lawsuits over the diesel emission scandal. The lawsuits allege that the automaker undertook a massive cover-up of the illegal software and was orchestrated by high-level executives - including the former CEO. “The idea that this level of fraud could take place and involve so many people at such high levels of a major international corporation is appalling,” said New York Attorney General Eric Schneiderman at a press conference this week. The New York Times, Road & Track, and Car and Driver got their hands on the New York lawsuit and it is quite damning. The suit cites internal documents, staff emails, interviews, and investigation as to how Volkswagen got to this point. The defeat device was originally developed back in 2004 by Audi. Internally known as "Acoustic Function," the system would reduce emissions by turning off a system called "Pilot Injection" Pilot Injection would inject additional fuel during engine start to help reduce diesel clatter This system would be used on the European market 3.0L TDI V6 from 2004 to 2006 [*]In 2006, Volkswagen was trying to figure out how to make the 2.0L TDI four-cylinder meet U.S. emission standards Engineers apparently looked at selective catalytic reduction (SCR) that uses urea injection to reduce nitrogen oxide (NOx) emissions. This was thrown out due to needing a separate tank for the urea and paying Mercedes-Benz for a license to use it. Instead, the decision was made to use a lean-trap system. This system works by trapping particulates in a soot filter. The particulates would be burned off by running the engine in a fuel-rich mode. This system had a major problem as the filter would prematurely fail due to excess build up. Thus the fateful decision of employing the "Acoustic Function" was used. [*]The complaint also notes that communications between executives within each brand, along with lateral moves of employees and executives between the brands meant that everyone knew about the use/possible use of this device in various vehicles. We highly recommend checking out the pieces from the sources below as we only scratched the surface on this. Source: Car and Driver, The New York Times, Road & Track
  15. The diesel emission scandal has left Volkswagen at a bit crossroad in a number of areas. One of them deals with their brand identity in the U.S. For a better part of a decade, Volkswagen was known as the brand that sold 'clean diesels'. But the company is working to rebuild and change their identity. Part of that plan is taking diesel and putting it on the backburner. Volkswagen Group of America CEO Hinrich Woebcken tells Automotive News that diesel will not be a core element of their identity going forward. That isn't to say diesel will be banished from the brand. Woebcken said the fuel are still in their plans from 2017 to 2019 if they can get regulatory approval. But he did say they are re-evaluating diesel in their future lineup for the U.S. “We are not stopping diesel. Wherever diesel makes sense as a package to the car, we’ll continue. But in reality, we have to accept that the high percentage of diesels that we had before will not come back again,” said Woebcken. “The regulations from 2019-2020 are going to be so hard that we would have had to find an alternative to a certain extent anyhow. The diesel crisis is forcing us simply to think about this earlier.” Volkswagen's image rebuilding process in U.S. will see them at the beginning putting more emphasis on crossovers and all-wheel drive offerings. The first part of this process kicks off with the Golf Alltrack launching later this year. This will be followed by the long-awaited three-row crossover next March or April, and the long-wheelbase version of the Tiguan sometime in the summer. In 2020, Volkswagen will launch the first of many electric vehicles using their MEB modular platform in the U.S. Source: Automotive News (Subscription Required) View full article
  16. Volkswagen and U.S. regulators have finally agreed to a plan on the diesel emission scandal and possible dates have been set up for fixing the various the vehicles involved. Despite this, some of the diesel vehicles will not be fully compliant with clean air laws. According to Bloomberg, the oldest 2.0L TDI engines found in the last-generation Jetta and Golf, and 2009 Beetle will emit more emissions even with a possible fix. According to the California Air Resources Board, the possible fix will cut the emissions down by 80 to 90 percent. But even with the cut, the vehicles could emit as much as 40 times the permitted amount of NOx. This has some environmental advocates angry at the U.S. Government. “For reasons they didn’t state, they’re allowing fixed vehicles to not be fixed, but to allow vehicles to emit twice as much pollution as they otherwise would allow,” said Daniel Becker, director of the Safe Climate Campaign. Part of the reason Volkswagen might not be able to fully fix some of the diesel vehicles comes down to cost. There was talk about adding a urea-tank system on older models, but it was deemed to be too expensive. Instead, Volkswagen and regulators came up with alternate ways of cleaning up the air such as buy backs. We got our first indication of this back in March when a CARB official said that some of the affected TDI vehicles will only get a partial fix. At the current moment, a fix for any of the 2.0L TDI vehicles hasn't been approved by the government. Bloomberg says Volkswagen will send a proposal for the so-called third-generation 2.0L TDI vehicles as soon as July 29th and could be approved by October. Here is the remainder of Volkswagen's schedule, First-Generation 2.0L TDI: Proposal by November 11th, could be approved in January 2017 Second-Generation 2.0L TDI: Proposal by December 16th, could be approved by March 2017 Source: Bloomberg View full article
  17. Volkswagen and U.S. regulators have finally agreed to a plan on the diesel emission scandal and possible dates have been set up for fixing the various the vehicles involved. Despite this, some of the diesel vehicles will not be fully compliant with clean air laws. According to Bloomberg, the oldest 2.0L TDI engines found in the last-generation Jetta and Golf, and 2009 Beetle will emit more emissions even with a possible fix. According to the California Air Resources Board, the possible fix will cut the emissions down by 80 to 90 percent. But even with the cut, the vehicles could emit as much as 40 times the permitted amount of NOx. This has some environmental advocates angry at the U.S. Government. “For reasons they didn’t state, they’re allowing fixed vehicles to not be fixed, but to allow vehicles to emit twice as much pollution as they otherwise would allow,” said Daniel Becker, director of the Safe Climate Campaign. Part of the reason Volkswagen might not be able to fully fix some of the diesel vehicles comes down to cost. There was talk about adding a urea-tank system on older models, but it was deemed to be too expensive. Instead, Volkswagen and regulators came up with alternate ways of cleaning up the air such as buy backs. We got our first indication of this back in March when a CARB official said that some of the affected TDI vehicles will only get a partial fix. At the current moment, a fix for any of the 2.0L TDI vehicles hasn't been approved by the government. Bloomberg says Volkswagen will send a proposal for the so-called third-generation 2.0L TDI vehicles as soon as July 29th and could be approved by October. Here is the remainder of Volkswagen's schedule, First-Generation 2.0L TDI: Proposal by November 11th, could be approved in January 2017 Second-Generation 2.0L TDI: Proposal by December 16th, could be approved by March 2017 Source: Bloomberg
  18. The California Air Resources Board has rejected Volkswagen's plan to fix the 3.0L TDI V6. "VW's and Audi's submissions are incomplete, substantially deficient, and fall far short of meeting the legal requirements to return these vehicles to the claimed certified configuration," CARB wrote in a letter to the German automaker. This comes as a bit of a surprise as last month, Volkswagen's lawyer Robert Giuffra said the company was close to a fix for this engine and it wouldn't affect overall performance. Volkswagen apparently did not learn its lesson when its proposed fix for the 2.0L TDI four-cylinder was rejected by CARB earlier this year for the same reasons. Complicating matters further is CARB saying that certain test data would not be available until December. They need this data to help make a determination if a fix would work for the all of the affected models or if Volkswagen needs to set up a buyback program similar to the one for the 2.0 TDI. Source: Reuters, California Air Resources Board View full article
  19. The California Air Resources Board has rejected Volkswagen's plan to fix the 3.0L TDI V6. "VW's and Audi's submissions are incomplete, substantially deficient, and fall far short of meeting the legal requirements to return these vehicles to the claimed certified configuration," CARB wrote in a letter to the German automaker. This comes as a bit of a surprise as last month, Volkswagen's lawyer Robert Giuffra said the company was close to a fix for this engine and it wouldn't affect overall performance. Volkswagen apparently did not learn its lesson when its proposed fix for the 2.0L TDI four-cylinder was rejected by CARB earlier this year for the same reasons. Complicating matters further is CARB saying that certain test data would not be available until December. They need this data to help make a determination if a fix would work for the all of the affected models or if Volkswagen needs to set up a buyback program similar to the one for the 2.0 TDI. Source: Reuters, California Air Resources Board
  20. If you're wondering when Volkswagen will resume sales of diesel vehicles in the U.S., you're going to have to wait a bit longer. Automotive News has learned that the German automaker hasn't applied for the necessary EPA approvals to start selling diesel vehicles in the U.S. "They need to address our concerns" before sales can resume, an EPA official said. Those concerns most likely relate to Volkswagen coming up with a fix that meets the standards of the EPA and California Air Resources Board (CARB). As we have reported previously, Volkswagen might not be able to fully fix some of the TDI vehicles. Source: Automotive News (Subscription Required) View full article
  21. If you're wondering when Volkswagen will resume sales of diesel vehicles in the U.S., you're going to have to wait a bit longer. Automotive News has learned that the German automaker hasn't applied for the necessary EPA approvals to start selling diesel vehicles in the U.S. "They need to address our concerns" before sales can resume, an EPA official said. Those concerns most likely relate to Volkswagen coming up with a fix that meets the standards of the EPA and California Air Resources Board (CARB). As we have reported previously, Volkswagen might not be able to fully fix some of the TDI vehicles. Source: Automotive News (Subscription Required)
  22. In addition to $14.7 billion settlement reached with the U.S. Government, Volkswagen will pay an additional $86 million in civil penalties to California over the diesel emission scandal. "We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air," said California's Attorney General Kamala Harris in a statement. Harris explained the civil penalties resolved certain claims made by state officials against Volkswagen dealing with the state's unfair competition law, along with certain violations of federal law. The majority of $86 million will go to the Attorney General's office to "defray costs relating to investigation and litigation of the emissions scandal," according to court documents. The remainder will be used for grants given to government agencies and universities to study technology that can detect 'defeat devices'. Source: Reuters View full article
  23. In addition to $14.7 billion settlement reached with the U.S. Government, Volkswagen will pay an additional $86 million in civil penalties to California over the diesel emission scandal. "We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air," said California's Attorney General Kamala Harris in a statement. Harris explained the civil penalties resolved certain claims made by state officials against Volkswagen dealing with the state's unfair competition law, along with certain violations of federal law. The majority of $86 million will go to the Attorney General's office to "defray costs relating to investigation and litigation of the emissions scandal," according to court documents. The remainder will be used for grants given to government agencies and universities to study technology that can detect 'defeat devices'. Source: Reuters
  24. It came as a shock to many when Volkswagen admitted that it used illegal software to cheat emission tests with their diesel. But there was one group that wasn't surprised, automakers. Kent Falck, a future product specialist at Volvo said a recent event that many automakers were very suspicious of Volkswagen's emission results with their TDI engines. Falck explained that many were puzzled as to how Volkswagen was able to achieve lower emissions despite using the same suppliers as other automakers. “We have the same suppliers, we have Bosch, we have Denso, we are working with the same partners, so we know this technology doesn’t exist,” said Falck. “I have known that for seven years.” “We sat in a room and reviewed all the facts, figures, whatever we have, with the specialists. (But) we can’t manage it, how are the others doing it? We don’t know.” At first, Falck thought Volkswagen had some sort of proprietary technology to pull this off without resorting to such technologies such urea injection. “There is always intellectual properties in the world ... there might be something out there in the technology ... that we are not allowed to buy because it’s owned by a supplier. We were wondering how (VW met strict US emissions targets) that’s for sure.” But soon enough, Falck and other people at various automakers realized Volkswagen was going at it an illegal way. Source: News.com.au View full article
  25. It came as a shock to many when Volkswagen admitted that it used illegal software to cheat emission tests with their diesel. But there was one group that wasn't surprised, automakers. Kent Falck, a future product specialist at Volvo said a recent event that many automakers were very suspicious of Volkswagen's emission results with their TDI engines. Falck explained that many were puzzled as to how Volkswagen was able to achieve lower emissions despite using the same suppliers as other automakers. “We have the same suppliers, we have Bosch, we have Denso, we are working with the same partners, so we know this technology doesn’t exist,” said Falck. “I have known that for seven years.” “We sat in a room and reviewed all the facts, figures, whatever we have, with the specialists. (But) we can’t manage it, how are the others doing it? We don’t know.” At first, Falck thought Volkswagen had some sort of proprietary technology to pull this off without resorting to such technologies such urea injection. “There is always intellectual properties in the world ... there might be something out there in the technology ... that we are not allowed to buy because it’s owned by a supplier. We were wondering how (VW met strict US emissions targets) that’s for sure.” But soon enough, Falck and other people at various automakers realized Volkswagen was going at it an illegal way. Source: News.com.au

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