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  1. Volkswagen has gotten the approval on a fix for their older first-generation 2.0L TDI models involved in the diesel emission scandal. Now they're waiting for Federal officials to give the go ahead for the automaker to begin selling these vehicles. When that approval comes, Volkswagen's head of North America Hinrich Woebcken says they have a plan to get them to dealers. Speaking with Automotive News, Woebcken said the company would slowly release the 2.0L TDI vehicles to their 652 dealers in the U.S. Dealers will get a "right of first refusal" for models that were returned through their dealerships. The slow release is to try and keep the residual values somewhat stable. Dealers are excited to start selling these fixed vehicles according to Woebcken. "There is, of course, a community of customers who would like to take a look at these cars, once they fulfill the regulations, and that's why we are pretty optimistic that we will have a successful remarketing of those cars," said Woebcken. The first-generation 2.0L TDI models require a more extensive fix than the second-generation 2.0 TDI with new hardware and software. However, not all of the first-generation 2.0L TDI models will be fixed. Herbert Diess, global head of the Volkswagen brand said some of the higher-mileage models would be scrapped. "If the mileage is too high and the residual value is too low, it doesn't make sense anymore" to fix them. But the majority of the cars are going to be resold," said Diess. Source: Automotive News (Subscription Required)
  2. Volkswagen has gotten the approval on a fix for their older first-generation 2.0L TDI models involved in the diesel emission scandal. Now they're waiting for Federal officials to give the go ahead for the automaker to begin selling these vehicles. When that approval comes, Volkswagen's head of North America Hinrich Woebcken says they have a plan to get them to dealers. Speaking with Automotive News, Woebcken said the company would slowly release the 2.0L TDI vehicles to their 652 dealers in the U.S. Dealers will get a "right of first refusal" for models that were returned through their dealerships. The slow release is to try and keep the residual values somewhat stable. Dealers are excited to start selling these fixed vehicles according to Woebcken. "There is, of course, a community of customers who would like to take a look at these cars, once they fulfill the regulations, and that's why we are pretty optimistic that we will have a successful remarketing of those cars," said Woebcken. The first-generation 2.0L TDI models require a more extensive fix than the second-generation 2.0 TDI with new hardware and software. However, not all of the first-generation 2.0L TDI models will be fixed. Herbert Diess, global head of the Volkswagen brand said some of the higher-mileage models would be scrapped. "If the mileage is too high and the residual value is too low, it doesn't make sense anymore" to fix them. But the majority of the cars are going to be resold," said Diess. Source: Automotive News (Subscription Required) View full article
  3. There were concerns that Volkswagen would not be able to come up with a fix for their 1st-generation 2.0L TDI models that would meet the approval of various U.S. regulators. But never say never as the Environmental Protection Agency and California Air Resources Board have given their approval for Volkswagen's proposed fix for 326,000 vehicles with this engine. Reuters reports the fix will involve Volkswagen making numerous upgrades to the hardware and software, including a new emissions catalyst. This will make these vehicles legal, but drop average fuel economy figures by 2 mpg. “To obtain this approval, VW submitted test data and technical information that demonstrates that the modification will reduce emissions without negatively affecting vehicle reliability or durability. VW will thoroughly identify any differences in vehicle attributes (such as fuel economy) so owners may make an informed choice,” said the EPA in a statement. Volkswagen still needs to come up with a resale plan for 2009-2014 TDI models that were bought back as part of their settlement. Reuters says a plan is due in the coming weeks. Source: Reuters View full article
  4. There were concerns that Volkswagen would not be able to come up with a fix for their 1st-generation 2.0L TDI models that would meet the approval of various U.S. regulators. But never say never as the Environmental Protection Agency and California Air Resources Board have given their approval for Volkswagen's proposed fix for 326,000 vehicles with this engine. Reuters reports the fix will involve Volkswagen making numerous upgrades to the hardware and software, including a new emissions catalyst. This will make these vehicles legal, but drop average fuel economy figures by 2 mpg. “To obtain this approval, VW submitted test data and technical information that demonstrates that the modification will reduce emissions without negatively affecting vehicle reliability or durability. VW will thoroughly identify any differences in vehicle attributes (such as fuel economy) so owners may make an informed choice,” said the EPA in a statement. Volkswagen still needs to come up with a resale plan for 2009-2014 TDI models that were bought back as part of their settlement. Reuters says a plan is due in the coming weeks. Source: Reuters
  5. With Volkswagen buying back a large chunk of the 2.0L TDIs involved the diesel emission scandal, the question arises of where to store them. The answer according to the German automaker is they are storing them at "regional facilities." One of those regional facilities is the parking lot of the Pontiac Silverdome - former home to the Detroit Lions - in Pontiac, MI. However, the vehicles stored there find themselves in a bit of legal trouble. The Oakland Press reports that the City of Pontiac has filed a lawsuit against the owners of Silverdome, the Triple Investment Group for numerous violations in zoning, safety, and a municipal code dealing with the storage of vehicles; "a special exemption permit is needed for parking and exterior storage of vehicles." A hearing was planned last week, but was adjourned. “Our client is actively engaged and working with the city. We hope to resolve our differences with the city and we believe we are making good progress and working together. We are still waiting on a schedule for (the hearing) but we are hopeful that we will resolve the differences in the meantime and further hearings won’t be necessary,” said J. Patrick Lennon, a partner at Honigman Miller Schwartz and Cohn, the lawfirm representing Triple Investment Group. A Volkswagen spokeswoman told Automotive News the company is talking with their “service provider” to see if all of the permits that allow vehicles to be stored at the Silverdome are up to date. Source: The Oakland Press, Automotive News (Subscription Required) Pic Credit: WXYZ View full article
  6. With Volkswagen buying back a large chunk of the 2.0L TDIs involved the diesel emission scandal, the question arises of where to store them. The answer according to the German automaker is they are storing them at "regional facilities." One of those regional facilities is the parking lot of the Pontiac Silverdome - former home to the Detroit Lions - in Pontiac, MI. However, the vehicles stored there find themselves in a bit of legal trouble. The Oakland Press reports that the City of Pontiac has filed a lawsuit against the owners of Silverdome, the Triple Investment Group for numerous violations in zoning, safety, and a municipal code dealing with the storage of vehicles; "a special exemption permit is needed for parking and exterior storage of vehicles." A hearing was planned last week, but was adjourned. “Our client is actively engaged and working with the city. We hope to resolve our differences with the city and we believe we are making good progress and working together. We are still waiting on a schedule for (the hearing) but we are hopeful that we will resolve the differences in the meantime and further hearings won’t be necessary,” said J. Patrick Lennon, a partner at Honigman Miller Schwartz and Cohn, the lawfirm representing Triple Investment Group. A Volkswagen spokeswoman told Automotive News the company is talking with their “service provider” to see if all of the permits that allow vehicles to be stored at the Silverdome are up to date. Source: The Oakland Press, Automotive News (Subscription Required) Pic Credit: WXYZ
  7. You would think the stigma of the diesel emission scandal would keep people away from picking up a fixed Volkswagen TDI model, but you would be wrong. Reuters notes that in April, 12 percent of Volkswagen's sales were for TDI models (about 3,196 vehicles). This is quite impressive when you take into consideration that Volkswagen was only given the go-ahead to sell TDI models with the fix back in mid-April. But we have to wonder if this percentage would be the same if Volkswagen didn't put some enticing incentives on TDI vehicles. As we reported last month, Volkswagen is offering either 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy or an $8,500 cash bonus if you lease. Source: Reuters View full article
  8. You would think the stigma of the diesel emission scandal would keep people away from picking up a fixed Volkswagen TDI model, but you would be wrong. Reuters notes that in April, 12 percent of Volkswagen's sales were for TDI models (about 3,196 vehicles). This is quite impressive when you take into consideration that Volkswagen was only given the go-ahead to sell TDI models with the fix back in mid-April. But we have to wonder if this percentage would be the same if Volkswagen didn't put some enticing incentives on TDI vehicles. As we reported last month, Volkswagen is offering either 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy or an $8,500 cash bonus if you lease. Source: Reuters
  9. If the Volkswagen diesel emission scandal hasn't swayed you from wanting one, then you'll be happy to hear Volkswagen will once again be able to sell brand-new 2015 model year TDI models. Green Car Reports says near 11,000 TDI models will soon be back up for sale once they are updated with new software, making them legal. Volkswagen does caution those interested in picking up a new TDI to call their nearest dealership to see if they have any in stock. But that's not all. Volkswagen is offering some massive discounts on these models. CarsDirect reports that Volkswagen is offering 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy. Interested in leasing one? Volkswagen will offer a cash bonus of $8,500. There are a couple of caveats to this offer. First, you need to have an excellent credit history to qualify for either offer. Second is that Volkswagen isn't advertising this offer. "We will not be advertising the available incentives from our financing arm as they [sic] vehicle availability will vary per dealership," said Volkswagen spokeswoman Jeannine Ginivan. Source: Green Car Reports, CarsDirect
  10. If the Volkswagen diesel emission scandal hasn't swayed you from wanting one, then you'll be happy to hear Volkswagen will once again be able to sell brand-new 2015 model year TDI models. Green Car Reports says near 11,000 TDI models will soon be back up for sale once they are updated with new software, making them legal. Volkswagen does caution those interested in picking up a new TDI to call their nearest dealership to see if they have any in stock. But that's not all. Volkswagen is offering some massive discounts on these models. CarsDirect reports that Volkswagen is offering 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy. Interested in leasing one? Volkswagen will offer a cash bonus of $8,500. There are a couple of caveats to this offer. First, you need to have an excellent credit history to qualify for either offer. Second is that Volkswagen isn't advertising this offer. "We will not be advertising the available incentives from our financing arm as they [sic] vehicle availability will vary per dealership," said Volkswagen spokeswoman Jeannine Ginivan. Source: Green Car Reports, CarsDirect View full article
  11. More good news for Volkswagen as the EPA has finally given the ok for the company to start selling repaired TDI vehicles. Bloomberg has learned from Volkswagen Group of America spokeswoman Jeannine Ginivan that dealers can sell TDI models from the 2015 model year once they have been updated with new software. The fix will also include new hardware for the diesel engine, but dealers don't have to wait for the parts to come in early next year. "We are still finalizing the details of this program and will provide more information on its implementation at the appropriate time,” said Ginivan. It should be noted this is only a symbolic step as only 67,000 vehicles are eligible for this - 12,000 of which are currently sitting on dealer lots. The big question is whether or not anyone is interested in buying a Volkswagen TDI vehicle considering all of the trouble it has brought. Source: Bloomberg View full article
  12. More good news for Volkswagen as the EPA has finally given the ok for the company to start selling repaired TDI vehicles. Bloomberg has learned from Volkswagen Group of America spokeswoman Jeannine Ginivan that dealers can sell TDI models from the 2015 model year once they have been updated with new software. The fix will also include new hardware for the diesel engine, but dealers don't have to wait for the parts to come in early next year. "We are still finalizing the details of this program and will provide more information on its implementation at the appropriate time,” said Ginivan. It should be noted this is only a symbolic step as only 67,000 vehicles are eligible for this - 12,000 of which are currently sitting on dealer lots. The big question is whether or not anyone is interested in buying a Volkswagen TDI vehicle considering all of the trouble it has brought. Source: Bloomberg
  13. There will always be those who try their best to find loopholes. Case in point are some Volkswagen TDI owners who deciding to strip their vehicles for parts before turning them into dealers. This came to light a couple of weeks ago on Jalopnik as it had found various threads on Reddit and TDI forums with such titles as “Will anyone be stripping salvaging parts before selling back?” and "Stripping the Turn-Ins". Why are there owners who are seriously considering this? It comes down to EPA's consent decree which states a vehicle must be 'operatable'. This is defined by the court as, "“Operable” means that a vehicle so described can be driven under its own 2.0-liter TDI engine power. A vehicle is not Operable if it had a branded title of “Assembled,” “Dismantled,” “Flood,” “Junk,” “Rebuilt,” “Reconstructed,” or “Salvaged” as of September 18, 2015, and was acquired by any person or entity from a junkyard or salvaged after September 18, 2015." This definition leaves a lot of room for interpretation and some are taking that to mean it is ok to remove a number of parts. In fact, one Volkswagen TDI owner in Ohio basically removed almost everything on his Golf to see if Volkswagen would buy it back and was brought to light by Jalopnik last week. But this loophole has been closed. USA Today reports that U.S. District Court Judge Charles Breyer warned owners last Thursday not to strip their vehicles. This was brought up by Volkswagen's attorney which referenced the Jalopnik story. "Clearly the purpose of the agreement by Volkswagen was to accept these cars in the condition that they were in as they were being driven on the road, and not to strip the cars," Breyer said at the hearing. Jonathan Cohen, an attorney for the Federal Trade Commission told USA Today that the agency is "absolutely against bad-faith behavior by consumers" but also noted that VW cannot reject buybacks based on "the vehicle's superficial condition." (i.e. normal wear and tear). Breyer said he would consider taking further action if needed at a later time. Source: Jalopnik, 2 , USA Today
  14. There will always be those who try their best to find loopholes. Case in point are some Volkswagen TDI owners who deciding to strip their vehicles for parts before turning them into dealers. This came to light a couple of weeks ago on Jalopnik as it had found various threads on Reddit and TDI forums with such titles as “Will anyone be stripping salvaging parts before selling back?” and "Stripping the Turn-Ins". Why are there owners who are seriously considering this? It comes down to EPA's consent decree which states a vehicle must be 'operatable'. This is defined by the court as, "“Operable” means that a vehicle so described can be driven under its own 2.0-liter TDI engine power. A vehicle is not Operable if it had a branded title of “Assembled,” “Dismantled,” “Flood,” “Junk,” “Rebuilt,” “Reconstructed,” or “Salvaged” as of September 18, 2015, and was acquired by any person or entity from a junkyard or salvaged after September 18, 2015." This definition leaves a lot of room for interpretation and some are taking that to mean it is ok to remove a number of parts. In fact, one Volkswagen TDI owner in Ohio basically removed almost everything on his Golf to see if Volkswagen would buy it back and was brought to light by Jalopnik last week. But this loophole has been closed. USA Today reports that U.S. District Court Judge Charles Breyer warned owners last Thursday not to strip their vehicles. This was brought up by Volkswagen's attorney which referenced the Jalopnik story. "Clearly the purpose of the agreement by Volkswagen was to accept these cars in the condition that they were in as they were being driven on the road, and not to strip the cars," Breyer said at the hearing. Jonathan Cohen, an attorney for the Federal Trade Commission told USA Today that the agency is "absolutely against bad-faith behavior by consumers" but also noted that VW cannot reject buybacks based on "the vehicle's superficial condition." (i.e. normal wear and tear). Breyer said he would consider taking further action if needed at a later time. Source: Jalopnik, 2 , USA Today View full article
  15. The first person has been charged in the U.S.' Volkswagen diesel emission probe. Today at the U.S. Federal Court in Detroit, James Robert Liang, leader of diesel competence for Volkswagen from 2008 until June of this year entered a plea of guilty to conspiracy to defraud the U.S. government, commit wire fraud, and violate the Clean Air Act. According to grand jury indictment filed back in June and unsealed today, “Liang and his co-conspirators, including current and former employees, and others, agreed to defraud the U.S. and VW customers, and violate the Clean Air Act, by misleading the U.S. and VW customers about whether VW diesel motors complied with U.S. emissions standards,” prosecutors wrote. Documents showed Liang was on the team that developed the diesel engine at the center of this scandal, the EA 189 2.0L four-cylinder back in 2006. The team realized that the engine wouldn't meet the strict U.S. standards on nitrogen oxide emissions while also attracting “sufficient customer demand.” Thus the decision was made to develop and install the 'defeat device' software on the EA 189 to pass emission tests. This engine would be installed on various Volkswagen vehicles starting in 2009. In 2014, Liang's team would update the software to help cut down on warranty claims. Engineers believed the reason for the increase in claims was due to the vehicle operating with the defeat device on for too long. Around this time, U.S. regulators would begin asking Volkswagen questions about the discrepancies between the amount of emissions being emitted during lab tests and in real-world driving. Various Volkswagen employees either lied when talking with regulators. “I know VW did not disclose the defeat device to U.S. regulators in order to sell the cars in the U.S. That’s what makes me guilty,” said Liang to the court. Liang faces up to five years in jail and a fine of up to $250,000 or twice the gross gain or loss. In a plea agreement signed on August 31st, prosecutors say in exchange for his agreement to cooperate with the probe, the U.S. government agrees not to use any new information about Liang’s own criminal conduct during the sentencing hearing expected to take place on January 11th. Liang's cooperation could help out in the investigation and shine a light on more people involved. When asked for comment, Volkswagen spokeswoman Jeannine Ginivan declined. Source: Automotive News (Subscription Required), Bloomberg, The Detroit News
  16. You're a Volkswagen 2.0L TDI owner who decided to take the buy-back offer. You have a sizeable check in your pocket and decide to go looking for a new car. The folks at Hyundai and Volvo are hoping you buy one of their vehicles and are offering special deals to try and rope you in. CarsDirect has learned about the offers the two automakers are putting forward to former Volkswagen owners. Hyundai's offer is the Hyundai Circle V-Plan - think Ford's X plan pricing for friends and family. This plan takes 3 percent off the MSRP, plus $1,250 V-Plan cash and current incentives. You'll need to break out the calculator to figure how much you'll save, but it appears to be significant. As for Volvo, they are offering 5 years of complimentary "Safe + Secure Coverage" - this includes 5 years or 50,000 miles of warranty coverage, free scheduled maintenance, free roadside assistance, and wear and tear coverage for various components. There is also a $750 credit along with a 7-Year/100,000 Mile warranty with free roadside assistance if you go for a Certified Pre-Owned model. On the face of it, the Volvo isn't as generous as the Hyundai one. But Volvo has existing conquest incentives for Volkswagen and Audi owners that switch over. Case in point, the 2016 V60 has $4,500 sitting on the hood. To qualify for either deal, you'll need to present the Class Settlement letter (Hyundai) or proof of ownership and insurance (Volvo). Don't be surprised if you begin seeing other automakers offer something similar to draw former Volkswagen 2.0L TDI owners in the near future. Source: CarsDirect, 2 View full article
  17. You're a Volkswagen 2.0L TDI owner who decided to take the buy-back offer. You have a sizeable check in your pocket and decide to go looking for a new car. The folks at Hyundai and Volvo are hoping you buy one of their vehicles and are offering special deals to try and rope you in. CarsDirect has learned about the offers the two automakers are putting forward to former Volkswagen owners. Hyundai's offer is the Hyundai Circle V-Plan - think Ford's X plan pricing for friends and family. This plan takes 3 percent off the MSRP, plus $1,250 V-Plan cash and current incentives. You'll need to break out the calculator to figure how much you'll save, but it appears to be significant. As for Volvo, they are offering 5 years of complimentary "Safe + Secure Coverage" - this includes 5 years or 50,000 miles of warranty coverage, free scheduled maintenance, free roadside assistance, and wear and tear coverage for various components. There is also a $750 credit along with a 7-Year/100,000 Mile warranty with free roadside assistance if you go for a Certified Pre-Owned model. On the face of it, the Volvo isn't as generous as the Hyundai one. But Volvo has existing conquest incentives for Volkswagen and Audi owners that switch over. Case in point, the 2016 V60 has $4,500 sitting on the hood. To qualify for either deal, you'll need to present the Class Settlement letter (Hyundai) or proof of ownership and insurance (Volvo). Don't be surprised if you begin seeing other automakers offer something similar to draw former Volkswagen 2.0L TDI owners in the near future. Source: CarsDirect, 2
  18. The first person has been charged in the U.S.' Volkswagen diesel emission probe. Today at the U.S. Federal Court in Detroit, James Robert Liang, leader of diesel competence for Volkswagen from 2008 until June of this year entered a plea of guilty to conspiracy to defraud the U.S. government, commit wire fraud, and violate the Clean Air Act. According to grand jury indictment filed back in June and unsealed today, “Liang and his co-conspirators, including current and former employees, and others, agreed to defraud the U.S. and VW customers, and violate the Clean Air Act, by misleading the U.S. and VW customers about whether VW diesel motors complied with U.S. emissions standards,” prosecutors wrote. Documents showed Liang was on the team that developed the diesel engine at the center of this scandal, the EA 189 2.0L four-cylinder back in 2006. The team realized that the engine wouldn't meet the strict U.S. standards on nitrogen oxide emissions while also attracting “sufficient customer demand.” Thus the decision was made to develop and install the 'defeat device' software on the EA 189 to pass emission tests. This engine would be installed on various Volkswagen vehicles starting in 2009. In 2014, Liang's team would update the software to help cut down on warranty claims. Engineers believed the reason for the increase in claims was due to the vehicle operating with the defeat device on for too long. Around this time, U.S. regulators would begin asking Volkswagen questions about the discrepancies between the amount of emissions being emitted during lab tests and in real-world driving. Various Volkswagen employees either lied when talking with regulators. “I know VW did not disclose the defeat device to U.S. regulators in order to sell the cars in the U.S. That’s what makes me guilty,” said Liang to the court. Liang faces up to five years in jail and a fine of up to $250,000 or twice the gross gain or loss. In a plea agreement signed on August 31st, prosecutors say in exchange for his agreement to cooperate with the probe, the U.S. government agrees not to use any new information about Liang’s own criminal conduct during the sentencing hearing expected to take place on January 11th. Liang's cooperation could help out in the investigation and shine a light on more people involved. When asked for comment, Volkswagen spokeswoman Jeannine Ginivan declined. Source: Automotive News (Subscription Required), Bloomberg, The Detroit News View full article
  19. 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
  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)
  21. 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 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. View full article
  22. 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 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.
  23. Towards the end of February, U.S. District Judge Charles Breyer gave Volkswagen a deadline. On March 24th, the German automaker would have to give a definitive answer on the status of a fix for nearly 600,000 diesel vehicles. At a hearing this week, Breyer has moved the deadline to April 21st. According to Reuters, both the EPA and Volkswagen said at the hearing they are making progress on a reaching an agreement. But there are still a number of issues to work out. A possible issue is whether the EPA would accept a partial fix on some Volkswagen diesel vehicles. Earlier this month, an official from CARB said it might not be possible for Volkswagen to fully fix some of the diesel models involved in the scandal. But Judge Breyer told Volkswagen this was their only extension. If they don't reach a deal with the EPA by April 21st, Breyer would bring this issue to a trial. Source: Reuters
  24. Towards the end of February, U.S. District Judge Charles Breyer gave Volkswagen a deadline. On March 24th, the German automaker would have to give a definitive answer on the status of a fix for nearly 600,000 diesel vehicles. At a hearing this week, Breyer has moved the deadline to April 21st. According to Reuters, both the EPA and Volkswagen said at the hearing they are making progress on a reaching an agreement. But there are still a number of issues to work out. A possible issue is whether the EPA would accept a partial fix on some Volkswagen diesel vehicles. Earlier this month, an official from CARB said it might not be possible for Volkswagen to fully fix some of the diesel models involved in the scandal. But Judge Breyer told Volkswagen this was their only extension. If they don't reach a deal with the EPA by April 21st, Breyer would bring this issue to a trial. Source: Reuters View full article
  25. We're getting close to entering the seventh month of not having a fix for Volkswagen's cheating TDI engines in the U.S. A couple weeks back, a Federal judge in California gave Volkswagen a deadline of March 24th to provide a definitive status of a fix. But Volkswagen might not have the answer the judge or affected owners want. In an interview with German newspaper Wolfsburger Allgemeine Zeitung, Volkswagen brand boss Herbert Deiss said it could take months before Volkswagen and U.S. authorities come to an agreement. "I think that we have a good chance to reach an agreement with the authorities in the US in the coming months," said Deiss. There are a couple possible reasons for Deiss' response. First is that Volkswagen still doesn't have another solution ready. As we reported back in January, Volkswagen's first proposal was rejected by CARB due to it being "incomplete, substantially deficient and fall far short of meeting the legal requirements to return these vehicles” to compliance. Volkswagen has been hard at work on a new proposal since then. There has been talk this new proposal will include a buyback program. The second reason comes down to money. Volkswagen knows that it will be facing large fines from various regulators, along with the massive costs in terms of fixing vehicles and dealing with lawsuits. Source: Wolfsburger Allgemeine Zeitung, Reuters

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