VW to Buy Back 500,000 U.S. Vehicles Which Cheated Emissions Laws

[thumper]

but what about canada?

Volkswagen AG will buy back about 500,000 diesel vehicles which were part of the emissions scandal that rocked the German automaker last year when it became known the vehicles used illegal software to cheat U.S. emissions law.

The new buyback program for applicable diesel vehicles includes versions of the VW Jetta and Golf, as well as the Audi A3, from 2009 through today—specifically the 2.0L diesel models. It will not include the 3.0L diesel vehicles also found to have exceeded U.S. pollution limits, including Audi and Porsche SUVs, according to Reuters, which was first to report the story.

From Reuters:

“It is not clear if the deal will resolve the U.S. Justice Department’s civil suit filed in January against VW or if VW will agree to pay a civil penalty,” the Reuters story said. “VW also faces ongoing criminal investigations by the Justice Department and other prosecutors around the world.

“Separately, Germany’s Die Welt newspaper reported Wednesday that the deal to settle the case would involve it paying each affected customer $5,000. But a person briefed on the matter told Reuters that no decisions on how individual compensation will be awarded have been made.”

In September 2015, Volkswagen admitted to rigging 482,000 cars with illegal software designed to cheat emissions testing. About 2.8 million diesel vehicles in Germany were affected. Volkswagen diesel cars were actually polluting up to 40 times the government-mandated threshold in real-world driving conditions in the United States and Europe.

The U.S. Environmental Protection Agency kicked off a global firestorm for Volkswagen and the auto industry with its public announcement that the world’s largest automaker had intentionally and systematically installed software designed to cheat emissions testing.

The fallout has been enormous. Volkswagen lost a third of its value (more than $22 billion) in less than a week, and is facing untold fines and litigation in the United States, and perhaps from many countries. At least 11 million Volkswagen vehicles have the illegal software installed, the company admitted.

In the U.S. alone, Volkswagen could theoretically be fined $18 billion for violating the Clean Air Act, though industry watchers speculate the fines aren’t likely to reach that level given the precedent set by the government’s handling of recent fines for General Motors and Toyota. GM settled with the Department of Justice for $900 million even though 124 deaths were directly linked to faulty ignition switches GM engineers knew about. Toyota settled for $1.2 billion after some Toyota cars were found to have both sticky gas pedals and a vulnerability to gas pedal entrapment with certain floor mats.

[CorneringArtist]

Considering that Canada followed suit with the $1000 in cards a few months ago, I have a feeling that the program will be the same. In my case, time for a GTI/Golf R...because my car is affected!

[thumper]

the fallout continues...

German carmakers to recall 630,000 cars to check emissions software - Business - CBC News

Volkswagens, Porsches, Audis and Mercedes included in recall

German car manufacturers will recall 630,000 Porsche, Volkswagen Opel, Audi and Mercedes vehicles to fix diesel emissions management software, a German government official said on Friday, widening a clampdown on pollution in the wake of the Volkswagen scandal.

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German public broadcaster ARD reported that the recall was voluntary.

The recall is to ensure that a legal loophole which allows manufacturers to throttle back emissions treatment systems under certain circumstances is tightened to ensure lower levels of pollution going forward, according to the government official.

As part of a broader investigation into high levels of health-threatening nitric oxide diesel emissions, the German government ordered tests on a broad range of vehicles but found only Volkswagen had installed illegal manipulation software commonly referred to as a defeat device.

Volkswagen has already acknowledged using special software to cheat on U.S. diesel emissions tests and offered to pay substantial fines and compensation to American owners.

Big financial hit

The car company also said Friday it will take a 16.2 billion-euro ($23.3 billion Cdn) hit in its 2015 accounts related to the emissions scandal in the U.S. The writedown is more than double the 6.7 billion euros the company had previously estimated.

The company had delayed its earnings announcement until it could get a better estimate of the costs involved.

Analysts say the total costs in fines, legal judgments and lost sales will be significantly higher.

Analysts at Warburg Research think direct cost of fines, recalls and settlements worldwide will end up reaching 28.6 billion euros for fines — and that's excluding any impact on sales and market share.

[heleu]

This is actually very good news if you own a TDI ; I know more VW TDI owners than non-TDI.

You're basically driving your car with no depreciation.

[Tegra_Devil]

The question is can I buy one of these cars for cheaper, then have vw buy it back...profit?!

[Jmac]

Does VW make diesel engines for Mercedes-Benz?

[CorneringArtist]

Originally Posted by Tegra_Devil

The question is can I buy one of these cars for cheaper, then have vw buy it back...profit?!

Supposedly they'll be checking purchase dates prior to September 2015...unless its like those people who bought undrivable Tacomas when they were being bought back for frame rust.

[a00755836]

lucky...i would use that money and get a tesla model 3 or s.