Volkswagen Must Offer To Buy Back Diesel 4-Cylinder Cars in $14.7 Billion Settlement

Ivan Leon

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Volkswagen has been ordered to buy back any diesel 2.0-liter four-cylinder car in the United States as part of its unprecedented $14.7 billion settlement with federal regulators, U.S. Justice Department officials said this morning.

The buyback order will include some 482,000 diesel Volkswagen and Audi cars sold between 2009 and 2015, officials said.

Owners will have the choice between selling their car back to VW, or getting the cars fixed at no cost. Owners with leases can choose to have their leases terminated at no cost. That fix has not been announced yet.

No matter what owners decide to do, they will also receive cash compensation from VW.

Most owners will get between $5,100 and up to $10,000, officials said.

“By duping the regulators, VW turned half a million American drivers into unwitting accomplices in an unprecedented assault on our environment,” Deputy U.S. Attorney General Sally Q. Yates said in a press conference.

The company has been ordered to set aside $10.03 billion for buybacks; $2 billion to invest in projects “that will encourage americans to expand use of zero emission vehicles in the future”, Yates said; and $2.7 billion to an environmental trust that will remedy NOx emissions from TDI cars.

The settlement is part of the largest monetary obligation in the history of Clean Air Act, Yates said.

Yates said that this settlement is only the beginning, and does not cover the ongoing criminal investigation or penalties related to the 3.0-liter diesel V6 engine.

Reuters reports that a separate settlement worth at least $600 million will also be announced later with states.

Buybacks are expected to begin in October, with fixes rolled out by November.

In addition: VW cannot resell or export the vehicles bought back unless the U.S. Environmental Protection Agency approves a fix, the documents said.

Volkswagen must repair or buy back 85 percent of the 475,000 vehicles by June 2019 or face penalties of $100 million for every percentage point it falls below that figure.

Last year Volkswagen admitted to cheating NOx emissions on nearly half a million diesel cars in the U.S. over almost a decade, then conceded to cheating emissions with diesel cars in most other markets.

The automaker has since been besieged by plummeting sales, criminal investigations, lawsuits and resignations and firings at the executive level.

The cars affected include the diesel Volkswagen Golf, Jetta, Passat, Jetta Sportwagen, Beetle and Audi A3.

Volkswagen officials said the following in a statement:

“We take our commitment to make things right very seriously and believe these agreements are a significant step forward,” said Matthias Müller, Chief Executive Officer of Volkswagen AG.

“We appreciate the constructive engagement of all the parties, and are very grateful to our customers for their continued patience as the settlement approval process moves ahead."

"We know that we still have a great deal of work to do to earn back the trust of the American people."

"We are focused on resolving the outstanding issues and building a better company that can shape the future of integrated, sustainable mobility for our customers.”

More on this as we get it.

http://jalopnik.com/volkswagen-must-offer-to-buy-back-any-diesel-four-cylin-1782730728
 

prostarr

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If i was living in the US this would be the only time I'd wish that I owned a VW Diesel :crylaugh::crylaugh::crylaugh:
 

CyberDemon

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And if it was GM or another American company? ...Blind eye
I don't like severity of the punishment. They should be punished but at these amounts I can only imagine the poorer, hardworking people will lose their jobs around the world. Will do more harm than good IMO. There is only a small factory in the USA so it doesn't bother them too much.

BTW - Good time to buy VW shares for the long haul.
 
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FNfal

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This is only USA the rest of the world still has to get busy with VW .
 

toeksie@gmail.com

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It does seem severe, especially if you consider that those same cars are sold here and because our policies on emissions are somewhat less stringent there will be no recourse. I suppose they want to make an example. One things for sure, there's going to be changes in the world of motoring in the coming years.
Here's a question, does it change your mind here in SA about buying a VW?
 

kripstoe

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“By duping the regulators, VW turned half a million American drivers into unwitting accomplices in an unprecedented assault on our environment,” Deputy U.S. Attorney General Sally Q. Yates said in a press conference.
This coming from the only signatory that has not ratified the Kyoto Protocol.
 

kripstoe

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Here's a question, does it change your mind here in SA about buying a VW?
No. Why should it? The made cars which exhibit better driveability and consumption, at the expense of NOx. Had it been the other way around, they would have been slated for CO2.
 

Ivan Leon

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Here's What Will Happen To The Thousands Of Diesels Volkswagen Buys Back

After an unprecedented $14.7 billion settlement released yesterday, we learned that Volkswagen will offer to buy back nearly 500,000 four-cylinder diesel cars affected by the emissions cheating scandal in the U.S.

But what is the fate of the cars once they’ve been bought back? Are they all doomed?

The answer is yes, these cars are doomed to the scrapper unless VW can come up with a fix.

The consent decree released yesterday by the U.S. Justice Department reads:

"All Eligible Vehicles returned to Settling Defendants through the Recall Program shall be rendered inoperable by removing the vehicle’s Engine Control Unit (“ECU”) and may be, to the extent possible, recycled to the extent permitted by law."

It goes on to say that none of these bought-back vehicles can ever be rendered operable again unless they’ve been modified to reduce emissions below acceptable levels:

"Settling Defendants may elect to resell or sell any returned Eligible Vehicle or any 2.0 Liter Subject Vehicle in the United States, provided, however, that Settling Defendants first modify the particular vehicle in accordance with the applicable Approved Emissions Modification ..."

But can VW just sell the returned cars in some other country with less stringent emissions regulations? Nope. Nice, try:

"Settling Defendants may not export or arrange for the export of 2.0 Liter Subject Vehicles, unless such vehicle has been modified in accordance with the applicable Approved Emissions Modification ..."

Okay, so the cars are going to be “recycled” unless VW comes up with a fix.

But maybe VW can come up with a technical solution, right? Perhaps, but it’s not looking good, as is made clear right on page three of the 200-page document:

"At the present time, there are no practical engineering solutions that would,without negative impact to vehicle functions and unacceptable delay, bring the 2.0 Liter Subject Vehicles into compliance with the exhaust emission standards and the on-board diagnostics requirements to which VW certified the vehicles to EPA and CARB..."

Doesn’t sound promising.

So if VW and regulators continue to flounder at finding a fix for these NOx-breathing diesels, there are likely to be lots and lots of Volkswagen TDI parts at your local junkyard—which could be a godsend for TDI owners who plan on keeping their cars, and don’t mind doing a bit of junkyard-surfing.

We don’t know exactly which parts will be salvageable, but the U.S. Justice Department does specify that the ECU, diesel oxidation catalyst and diesel particulate filter are off limits. But you probably don’t need those parts for your Volkswagen TDI race car anyway, right?

Also, in the “Eligible Mitigation Actions” section of the settlement, which talks about how VW can reduce NOx produced by large trucks and other polluting machinery, the document defines the word “scrapped” as:

"...to render inoperable and available for recycle, and, at a minimum, to specifically cut a 3-inch hole in the engine block for all engines. If any Eligible Vehicle will be replaced as part of an Eligible project, scrapped shall also include the disabling of the chassis by cutting the vehicle’s frame rails completely in half."

If that definition for “scrapped” doesn’t just apply to mitigation projects, but also for Volkswagen cars, you can probably expect your junkyard to soon be filled with ECU-less, catalyst-less, DPF-less VW TDIs with huge holes in their engines and hacked unibodies.


http://jalopnik.com/heres-what-will-happen-to-the-thousands-of-diesels-volk-1782815084
 

Tsepz_011

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It does seem severe, especially if you consider that those same cars are sold here and because our policies on emissions are somewhat less stringent there will be no recourse. I suppose they want to make an example. One things for sure, there's going to be changes in the world of motoring in the coming years.
Here's a question, does it change your mind here in SA about buying a VW?
Nope, because I can bet many other car makers have similar pieces of tech installed to cheat, they just haven't been caught.
 

Ivan Leon

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Cheating Volkswagen Diesels Have Become A Hot Commodity - Jalopnik



After Volkswagen admitted to cheating on the emissions tests of hundreds of thousands of cars back in 2015, the company was forced to buy back the vehicles, modify them to produce fewer emissions but still perform well and resell the cars with a strong warranty.

The resulting used VW's are surprisingly compelling, which is why—according to a report from the New York Times—people can’t get enough of them.

We’ve written extensively about Dieselgate—about what VW did, about the details of the settlement and buyback, about how the company stored the vehicles in huge holding lots, and how many folks made small fortunes by buying up cheating diesels.

Still, it’s been about four years since the scandal broke and three years since the buybacks started, and the topic remains fascinating, with the New York Times providing an update on what’s going on with the cheating cars.

It turns out, they’re a bit of a hot commodity.
Read the full article at the link below:

 
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