According to Kelley Blue Book, auction prices for Volkswagen’s diesels cars are dropping faster than similar models that are powered by gasoline.
According to auction data gathered before and after news broke that Volkswagen had admitted to federal investigators that their cars illegally polluted, prices for Volkswagen diesel cars dropped 16 percent. Prices for Volkswagen gasoline cars only dipped 2.9 percent over the same period.
According to the car industry site, interest on the Volkswagen diesel models has only declined 2.4 percent.
There has been a lot of coverage recently devoted to that scandal where Volkswagen revealed that its vehicles have been polluting like a chemical company that dumps out its waste in poor neighborhoods late at night.
But this scandal seems to have taken our eye off the Volkswagen ball. I say this because the whole “cheating on diesel” thing is not Volkswagen’s only issue. It is merely one of a myriad of problems that has launched the brand into the mediocre, also-ran position where they find themselves in America today. And right now, I’m here to remind you of the largest of these problems: that they spend their money on absolutely the wrong things.
It is no surprise that environmental activists are staging protests in reaction to the Volkswagen emission scandal. Members of Greenpeace marched last week outside the VW plant in Wolfsburg, Germany. Somewhere in America, we are sure someone will print off one of those red and white pro-union banners saying “Shame on XYZ Volkswagen” and plant themselves in front of a VW dealership.
But to shame a TDI owner who is possibly already miffed knowing his car may be dropping in value — and possibly gas mileage and torque after the emission fix? (Read More…)
According to the LA Times, Volkswagen’s falsified emissions data made certain 2009 model year vehicles eligible for a $1,300 green car subsidy. That subsidy, applicable to 39,500 Jetta and Jetta Sportwagen units sold, equated to a total of $51.35 million available to buyers from the government.
The LA Times used Internal Revenue Service data and Motor Intelligence, an automotive industry research body, to calculate the numbers.
The $51 million in total tax credits is just another case of automakers leveraging dumb government money to incentivize consumers to buy their vehicles.
The presumed fix would come by retrofitting a Selective Catalytic Reduction (Adblue or urea) system although that wouldn’t be the only fix necessary. Researchers discovered that the Passat TDI that they tested, fitted with the SCR system, was 5 to 20 times over the NO limit — less than the 10 to 40 times by the lean NO filter cars, but still illegal.
The long list of items needed to fit models of the Volkswagen Golf, Jetta, Beetle and Audi A3 doesn’t include the engineering needed to retrofit the cars and the costs to crash test the models after the significant modifications. That’ll add hundreds of millions to the bottom line.
Volkswagen in Canada will suspend sales of its Volkswagen Passat, Golf, Jetta, Beetle and Audi A3 cars after the U.S. Environmental Protection Agency announced the engines in those cars had an illegal device that “cheated” emissions tests.
“We will work with our colleagues at Volkswagen of America as well as our parent company in Germany to resolve this matter in the most timely fashion,” Volkswagen Canada spokesman Thomas Tetzlaff said in a statement.
Audi Canada has also issued a stop-sale of the Audi A3 TDI, stated Audi Canada spokesman Cort Nielson. No details were available regarding Audi’s plan for continued availability of the A3 TDI.
VW hasn’t announced a timeline for fixing its cars and resuming sales. Over the weekend, VW’s CEO Martin Winterkorn apologized for the scandal.
In a detailed report on the failed alliance between Suzuki and Volkswagen, Automotive News reports that the Japanese automaker wanted to re-badge and sell Volkswagen Jetta Hybrids in the U.S. before the company eventually decided to close up its local sales arm.
The report, which came out on Monday, is a play-by-play of what happened from the time Suzuki CEO Osamu Suzuki and Volkswagen AG CEO Martin Winterkorn first shook hands in 2009, to when Suzuki announced it was cutting its losses, up to today as the automakers struggle over VW’s 19.9-percent ownership of the Japanese automaker.
Volkswagen just took the wrapper off its 1.4-liter turbocharged four cylinder that will replace the 2-liter naturally aspirated noise machine in most of its Jettas, the automaker announced today.
The engine will produce 150 horsepower (vs. 115 hp in the outgoing model) and will produce 184 pound-feet of torque (vs. 125 in the old engine) and highway fuel economy is expected to reach 39 mpg, the automaker said.
The engine uses a small, single-scroll compressor for its turbocharger and an integrated intercooler. The engine can be mated to either a five-speed manual (!) or six-speed automatic.