VW emissions scandal

[302 Hi Pro]

The fixes for the EU and US markets will be vastly different as the US diesel emissions are much stricter.

VW will look for the cheapest fix for each market, but they have also been ordered by the German Government to begin recall repairs by a certain date. Last I saw it was to commence EU repairs in January 2016.

The US market will take longer and will require a more detailed fix. I suspect (IMO), the US diesels may require the install/retro fit of additional pollution control systems, like exhaust fluid injection systems. We will have to wait to see what VoA proposes.

302 Hi Pro

 

[TMSBOSS]

Exhaust fluid injection is likely to be needed......Will they pay the bill or "Continue" researching repairs?

 

[302 Hi Pro]

Exhaust fluid injection is likely to be needed......Will they pay the bill or "Continue" researching repairs?

Good question, but I suspect both. Right now this is Job 1, (Ford Speak), at VW, they are throwing everything they have in the R&D for the US emissions fix. IMO, they know how to fix it now, but are working feverishly to minimize the cost of the fix, even the Actuaries are working OT!

The 2016 pose a large holding expense, the last I heard in late September was that VoA withdrew their 2016 Diesel Emissions Certification Application from the EPA. I don't know if they have even resubmitted it for certification, I suspect not until the US fix is announced. Then the EPA will be all over them as they previously submitted prior fixes for certification that also failed.

This will take a long time to sort out.
302 Hi Pro

 

[PhilTaylor]

Audi engines too? 2 engineers suspended:
http://www.wsj.com/articles/audi-engines-implicated-in-emissions-scandal-1448575533
http://www.dnaindia.com/world/report-volkswagen-emission-scandal-audi-suspends-two-engineers-in-emissions-probe-2149198

legal issues outside the class action lawsuits starting to pile up, besides the already announced USA and German criminal investigations. and Google searches now have multiple law firms advertising for the "individual buyer" class action claims, but below are new "state oriented legal issues", somewhat more serious.

1) South Korea fines and recall, the fines seem small potatoes so far:
http://www.nytimes.com/2015/11/27/business/international/volkswagen-south-korea-recall.html?_r=0

2) German government opens tax evasion/fraud investigation:
http://money.cnn.com/2015/11/24/news/companies/volkswagen-emissions-tax-evasion/index.html

3) Jail for execs in UK, buy-back in Europe?
http://www.autocar.co.uk/car-news/industry/vw-emissions-scandal-fixes-announced-ea189-diesel-engines

and finally US Dealers suing VAG too, very bad PR when your own sue you...
http://www.zdnet.com/article/dealers-hit-volkswagen-with-class-action-lawsuits-over-emissions-scandal/

 

[WinterSucks]

I had a feeling it would not be very long before dealers started to jump ship. To me, those lawsuits are no surprise. I would sue to get back my franchise fees back then rip off the VW sign and go to another brand if I was a dealer. I am curious to see the numbers on which brands consumers go with who would have bought a VW if this had not happened.

 

[302 Hi Pro]

I understand your sentiment on this, but unfortunately it is very difficult to obtain a different new vehicle manufacture franchise. In most markets everything is taken and individual state laws protect existing Dealers AOR's. It takes extensive market action planning on the part of the manufacturer and in some cases takes years to install a new Dealer in an established market.

Some VW Dealers have just completed multi million dollar renovations or built completely new facilities, and they are in a world of hurt. These are the Dealers who made the commitment to the brand and now have to deal with VW's deceit.

What a shame.

302 HP

 

[VoodooBoss]

A friend of mine traded in his Audi A3 TDI yesterday on a new S3 and he felt the dealer treated him very well and he was happy with the exchange. The dealer is where he purchased the A3 four years ago. He asked what they are doing with the trade-ins and they stated they are storing them until there's a fix. At that time they will repair and sell them.

 

[WinterSucks]

I understand your sentiment on this, but unfortunately it is very difficult to obtain a different new vehicle manufacture franchise. In most markets everything is taken and individual state laws protect existing Dealers AOR's. It takes extensive market action planning on the part of the manufacturer and in some cases takes years to install a new Dealer in an established market.

Some VW Dealers have just completed multi million dollar renovations or built completely new facilities, and they are in a world of hurt. These are the Dealers who made the commitment to the brand and now have to deal with VW's deceit.

What a shame.

302 HP

Good point. And in my area where there is one dealer there are usually 4-5 others just down the road. That makes it even harder.

 

[PhilTaylor]

Nov sales show 25% drop in US:
http://money.cnn.com/2015/12/01/news/companies/volkswagen-sales-plunge-emissions-scandal/

and 20% in UK:
http://www.theguardian.com/business/2015/dec/04/vw-sales-drop-uk-new-car-registrations

Audi exec, 1 of the 8 suspended, 1st to resign:
http://www.nytimes.com/2015/12/05/business/international/ulrich-hackenberg-suspended-over-volkswagen-emissions-scandal-resigns.html?_r=0

VAG communications "blunders", sure to be Business School "how not to":
http://www.ft.com/cms/s/0/b9f35440-98ed-11e5-bdda-9f13f99fa654.html#axzz3tNr7WG3t

quote of the article:
“The mismanagement of the crisis will be a classic case study in business schools around the world,” says Professor Erik Gordon of the Ross School of Business at the University of Michigan.

Bosch now sued:
http://www.reuters.com/article/us-volkswagen-emissions-bosch-idUSKBN0TK5OK20151201#DT3txaxJ26WZg7rP.97

VAG may have to sell Lambo, Bugatti, Ducati to cover costs of scandal:
http://www.extremetech.com/extreme/218932-vw-may-have-to-sell-bugatti-lamborghini-ducati-to-cover-emissions-scandal-costs

given how much Bugatti loses, that might be the end for the rebirth of that famous marque.

 

[WinterSucks]

Every time I feel like everything has been found out... I think the German government is going to come down hard on individuals, let alone the US. At this point they are ruining the German auto industry reputation and the hurting German economy. I would hate to see workers lose their jobs over higher-ups BS like this so I hope they just clean house of everyone with a manager title or higher. The problem is obviously so widespread I don't feel anyone in VW management at any level is safe to keep... Anyone who is stubborn enough to have not jumped ship already is probably part of the problem.