Posts Tagged ‘emission scandal’

Protecting Consumers from VW Buyback Scandals

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By now, we know that Volkswagen has officially released a strategy to compensate their customers who currently own one of their affected 2.0L TDI diesel powered vehicles. The details on how the company will operationalize the program is yet to be made official, but we do know that customers can either sell their car back to Volkswagen as part of the buy back program, or fix the vehicle through VW’s recall. With the buy back program, customers will get maximum compensation for the value of their vehicle from prior to the emission scandal. The problem doesn’t reside with Volkswagen, it’s the vultures that are out there waiting to put a scam in place on owners who might not know the full details to Volkswagen’s compensation strategy.

The Federal Trade Commission (FTC) has already stepped in to make sure that consumers are fully aware on what options they have, and also some tips on how to protect themselves. What consumers should watch out for are scammers who want to purchase their vehicles at a lower price than the buy back and in turn flip the vehicle back to VW for some quick cash. Owners should also watch out at the dealership and know their own rights with this compensation program. Owners will not have to spend their compensation money at the dealership, the money is free for them to choose to do what they want.

With the full details of the compensation program still to come, consumers will have to wait a little bit more to determine their own course of action.


BMW Diesel Gets EPA Approval

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Ever since the emission scandal hit the news from Volkswagen, diesel sales in North America has dropped dramatically and emission regulations have become even more tightly scrutinized by the Environmental Protection Agency on any diesel vehicle approved to be sold in the US. One of the cars which has been greatly delayed by testing and red tape is BMW’s 2017 diesel. The EPA required BMW to pass rigorous testing in order for their car to be given a clean OK for sales in the US. This is just a hint at what’s more to come with the diesel industry as a whole in the US.

Any diesel vehicle being manufactured over seas and shipped into the US for sales will go through the stringent testing set forth by the EPA. The next on the list will be Mercedes’ 2017 diesel vehicles which are still going through the regulator’s testing process. Volkswagen, the company that started it all, still has a stop sale on their 2016 diesel vehicles because they can’t get them to pass the emission standards.


Volkswagen Gets Early Green Light for Diesel Fix

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After a long wait, owners of those dirty diesels from Volkswagen may finally get some clarity on what to expect next. The United States District Court has given a preliminary green light to Volkswagen’s proposed fix to bring their 2.0L diesel vehicles into compliance. The settlement totalling $14.7-billion in the US also includes customer restitutions, a buy back plan, as well as the hefty fines resulting from the diesel scandal.

Owners will have to wait for the paperwork to process, but there should be information coming from Volkswagen in the mail to let owners know what their options are moving forward. The next official step will happen at the final approval hearing on October 18, 2016.


Volkswagen’s 3.0L Diesel Fix Denied

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Some may recall that Volkswagen’s 2.0L diesel engine wasn’t the only motor in the company’s lineup that was misleading emission regulators. Volkswagen 3.0L diesel motors found in Audis and Porsches were also part of the emission scandal. Recently, Volkswagen submitted a recall to regulators but the solution was far from acceptable according the the California Air Resources Board (CARB).

As CARB put it, “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,” Currently, vehicles built between 2009 and 2016 which use the 3.0L diesel engine is affected. If VW doesn’t come up with a plan that satisfied regulators, they may be forced to purchase the vehicles back from customers.


How Will Volkswagen’s Payout Deal Affect Dealers?

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The current valuation for Volkswagen dealership isn’t quite that healthy considering the hit the brand took when the diesel emission scandal broke last September. Sales have been down, service has been down, and all of that hits the bottom line hard. Add on top of that the market value for the brand name has also dwindled, it makes for a rough ride for dealership owners. So with the Volkswagen’s recent settlement details hitting the news, there will likely be a spark of activity making its way to the dealers shortly.

Volkswagen’s emission scandal settlement includes spending $15 billion with car owners, the federal government and many states. In that there is also $10 billion allotted to customer buybacks, early lease terminations and customer restitution payments. Dealer activity will increase and hopefully those loyal to the Volkswagen brand will move into a new vehicle which will continue to help dealerships rebuild. However, the actual value of the dealership will likely remain low for some time to come as the entire Volkswagen brand forges it’s way forward to rebuild their image and customer trust.

According to Alan Haig, president of Haig Partners who specializes in dealership buy-sell advisory, “You’ll see an increase in the number of stores that trade hands because now it’s clearer on what will happen. Some dealers will give up on it and sell. Others will be optimistic and want to buy.”


Volkswagen’s $10 Billion Bill

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Customers who own a 2.0L TDI Volkswagen have been patiently waiting for the automaker to officially come out with their plan to fix their cars. Rumors have been swirling since April when loose details from the automaker came out reporting that their may be a fix or buy back plan as well as a compensation package for customers. Now, nearing the regulators demanded final date for Volkswagen to report on a solution, there is another bus circulating around a supposed $10 billion plan to fix half-a-million cheating diesel cars in the U.S.

All official solutions from Volkswagen will require both the EPA and CARB to approve of the plan. Volkswagen is all ready to fork over $6.5 billion to car owners and $3.5 billion to the U.S. government and California regulators in fines. With the currently proposed plan, Volkswagen will give the option to customers to have their non compliant vehicles repaired. According to calculations, it would take approximately 2 years for all the repairs to be completed, if Volkswagen can even get to all 482,000 affected cars in the US.


Volkswagen’s Ex Boss Under Investigation Again

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Martin Winterkorn, Ex-Volkswagen Group CEO, is under investigation again in Germany, but this time it isn’t because of the emission scandal, he is being investigated for financial crimes. Well, to be specific, the crime itself is still liked to the emission scandal. Specifically, German authorities are investigating whether Wintercorn withheld information about the investigation which was under way internally in order to prop up the inevitable crash of Volkswagen stocks.

The investigation followed immediately after news of Volkswagen’s emission cheating software on their diesel vehicles broke headlines last September. The investigation against Wintercorn now is to determine whether the Ex-CEO was aware of the emission cheating software at Volkswagen because if he did it may mean that he committed the financial crime.


Volkswagen Streamlines Operations to Help Rebuild Brand

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A lot has happened since last September when Volkswagen was caught cheating emission regulators. The public has been waiting for an answer from the automaker on how it will resolve non-compliant vehicles in the US and Canada. The company itself has been working with regulators to try to answer that exact question, albeit very slowly. But behind the scenes, Volkswagen has been hard at work putting together a strategy to save a company that’s been hit hard financially by the scandal.

Volkswagen Group’s CEO, Matthias Mueller, is proposing a move forward strategy which may include getting into the car sharing industry, as well as focusing development efforts on EVs. The focus on EV isn’t a bad move considering the damper that’s been put on the diesel industry as a whole. But that can’t be all blamed on Volkswagen considering the large number of companies who are now being revealed to have some form of deception with regulators as well.


Mitsubishi CEO Quits

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Mitsubishi Motors President Tetsuro Aikawa will resign from his job on June 24 amidst the company’s fuel economy scandal. In a statement released by Mitsubishi, “Mitsubishi Motors Corporation has caused tremendous trouble and concern to our customers and all of our stakeholders. Considering this, Mr. Aikawa and Mr. Nakao decided today that they will resign.”

Aikawa joined Mitsubishi in 1978 and continued to grow in his career becoming a specialized engineer and credited with Mitsubishi’s mini-cars. Aikawa’s decision to leave the company was to enable the brand to have a new start.


Opel Denies Emission Cheating Software

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Opel CEO has come out and refuted all allegations that the company is using illegal emission defeat devices. As allegations continues to come, this time from the environmental group Deutsche Umwelthilfe (DU), the German media is demanding Opel CEO Karl-Thomas Neumann to restate the company’s stance on the illegal devices. The reason why Opel has to say it again is unclear except for the fact that this is just a media circus.

To appease public and press, Opel CEO came out to say again “we at Opel do not have any illegal software. Our engines are in line with the legal requirements. We anticipate the authorities to share this point of view.”


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