Category: Engines

By on November 16, 2015


On Friday, Barclays Plc announced it estimates the near-term costs of Volkswagen’s seemingly ever expanding emissions scandal will be about $27 billion USD (25 billion Euros).

Volkswagen’s automotive group had $29.6 billion in net liquidity at the the end of the third fiscal quarter of this year. About $10.8 billion is allocated to protect the company’s credit ratings. That leaves about $19 billion in cash for the company to work with.

There are fines that will be paid in a number of countries, along with goodwill gestures to owners of affected VW vehicles and incentives needed to sell cars from a tainted brand. Then there will the cost of litigation and any judgments or settlements that come out of those lawsuits.

About the same time as Barclays’ announcement, Automotive News and Bloomberg reported Volkswagen AG will be meeting in Wolfsburg this week with representatives of about a dozen banks to secure as much as $21.5 billion in loans by the end of this year. Those meetings aim to shore up the company’s financing and show the credit markets that VW has enough liquid assets to cover emissions-related costs. Read More >

By on November 14, 2015

Volkswagen Polo

Update: A spokesman for Volkswagen of America said U.S. cars aren’t affected. 

Volkswagen announced Friday that more than 400,000 of its cars with “irregularities” in reported carbon dioxide emissions were new cars, which could shed new light on how many more cars the beleaguered automaker would have to pay for.

This month, Volkswagen announced 800,000 cars emitted more carbon dioxide than reported to regulators. Of those cars, Volkswagen announced Friday that 430,000 were 2016 models across many of the automaker’s brands including Volkswagen, Audi, Skoda and Seat. It’s unclear how many older models may be added to the list of cars that emit more carbon dioxide. Read More >

By on November 13, 2015

2015 Volkswagen Jetta TDI (3 of 8)

How many among Volkswagen’s ranks were involved in the automaker’s ongoing diesel scandal? Works council boss Bernd Osterloh says it’s anyone’s guess.

In a joint interview with VW brand CEO Herbert Diess, Osterloh told Reuters the scandal could involve 10, 50, or 100 people, if not more. He added those involved would still “remain a limited group” out of a global workforce of 600,000.

Read More >

By on November 10, 2015

Volkswagen Eos at University Volkswagen Circa August 2015

As Volkswagen works to make amends with customers and the public, TDI owners ready to give up their illegally polluting cars are hearing conflicting messages from some Volkswagen dealers who are either unwilling to or begrudgingly taking in those cars on trade.

A TDI owner said when he took his car into Flow Motors Volkswagen in North Carolina last month the dealership told him it wouldn’t initially accept his vehicle for trade. The dealer originally had asked if the owner had found a willing dealership to take his car.

“ … Let me know as I have a couple of other diesel owners I will send if things worked out for you,” the dealer wrote in an email after they turned down the man’s diesel car.

“To say I’m irritated is an understatement,” the TDI owner wrote.
Read More >

By on November 10, 2015

TDI Clean Diesel

Increased scrutiny on diesel-powered cars’ emissions hasn’t revealed any other cheating cars beyond Volkswagen’s models, German magazine Wirtschaftswoche reported (via Reuters).

In an interview with California Air Resources Board Chairwoman Mary Nichols, the German outlet reported that Nichols said Volkswagen appeared to be alone in cheating so far.

“Up until now we have found no fraudulent defeat device in vehicles of other brands,” she told the magazine. “There is nothing that comes close to the magnitude of the excess in VW vehicles. “ Read More >

By on November 9, 2015

Screen Shot 2015-11-09 at 8.31.07 AM

UPDATE: There is a clause in the ‘Program Rules’ that could allow Volkswagen to change the terms of the agreement after the fact. We’ve added statements from Volkswagen, a law firm representing TDI owners and a law professor so you can make an informed decision on whether or not to register for the Goodwill Package.

Owners who signed up for Volkswagen’s “Goodwill Program” to receive $1,000 will still be able to take the automaker to court, according to documents posted by Volkswagen on Monday.

The program outlines specific steps owners would need to take to receive the benefits offered. Including taking ownership of the 2-liter diesel cars before Nov. 9, owners would need to take their cars to Volkswagen dealers to have their gift cards activated, an action Volkswagen deems necessary to curb fraud. Cards will also be printed with the name of the goodwill package recipient.

Volkswagen said it would send one $500 black prepaid Visa card that could be used anywhere, and another $500 white prepaid card that could be redeemed at Volkswagen dealerships only.

The automaker also offered three years of roadside assistance in addition to the gift cards.

At least one dealer group is planning to use the activation procedure to its advantage, telling employees that dealer management hopes customers will spend both prepaid cards at its Volkswagen store. Read More >

By on November 9, 2015


Analysts have questioned whether newly hired Volkswagen CEO Matthias Müller will effectively navigate the automaker through a deepening scandal as more vehicles and more cheating is uncovered, Automotive News reported.

Müller, who took over as Volkswagen AG CEO from the top spot at Porsche, has yet to instill confidence in investors, according to analysts.

“It’s a like a virus that’s spreading,” Dave Sullivan, an analyst with AutoPacific, told Automotive News. “With every new bit of information that’s uncovered, it digs the knife in a little deeper and produces more doubt and skepticism that they have an understanding of how deep this crisis is.”

Read More >

By on November 9, 2015


Update: Information about retracted article below with links to published documents.

On Sunday, Volkswagen of America launched signups for its “2.0L TDI Customer Goodwill Package”, which is fully expected to provide prepaid debit cards to owners of the 500,000 affected diesel vehicles that pollute up to 40 times the amount allowed by law.

However, if you are one of those TDI owners, it might be best to wait a day or two before signing up as Volkswagen has not yet published the terms of accepting the goodwill package.

Read More >

By on November 9, 2015

Screen Shot 2015-11-09 at 8.31.07 AM

Volkswagen’s “2.0L TDI Customer Goodwill Package”, expected to be announced sometime today, will include three years of 24-hour Roadside Assistance in addition to two prepaid cards. Those cards will be valued at $500 each — one that can be spent anywhere and the other that can only be used at a Volkswagen dealer.

Whether you must waive certain rights or not as part of signing up to receive the package is still unknown. Volkswagen has not yet posted additional program details.

Read More >

By on November 8, 2015

2.0L TDI Customer Goodwill Package

UPDATE: Another TTAC reader is seeing different prompts without the Goodwill Package offer.

The Volkswagen Diesel Information website is now listing the “2.0L TDI Customer Goodwill Package” and requesting vehicle identification numbers (VINs) for registration in the program. However, it does not seem to be working for all website visitors.

The signup form asks owners for a physical address, email address and vehicle mileage before asking for permission to use the information to contact the owner regarding future diesel emissions related updates.

TTAC was able to obtain a VIN for one of the affected vehicles with an owner’s permission to complete the sign up process.

Read More >

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  • Contributing Writers

  • Jack Baruth, United States
  • Bark M., United States
  • Chris Tonn, United States
  • Doug DeMuro, United States
  • Steven Lang, United States
  • Brendan McAleer, Canada
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, United States
  • Cameron Aubernon, United States