Volkswagen Sets Aside 6.5 Billion to Cover 11 Million Vehicles With Cheating Emissions Software

Mark Stevenson
by Mark Stevenson
volkswagen sets aside 6 5 billion to cover 11 million vehicles with cheating

Volkswagen announced Tuesday that it “plans to set aside a provision of some 6.5 billion EUR ($7.3 billion) recognized in the profit and loss statement in the third quarter of the current fiscal year,” but that the final number is subject to change as the emissions scandal unravels.

The automaker has also admitted that the software, which includes a “defeat device” to hide on-road NOx emissions, has been used on 11 million vehicles sold worldwide.

The latest admission and act to mitigate the damage is another chapter in what seems to be a very long story that only came to light this past Friday. Nearly a half a million vehicles sold in the United States with four-cylinder diesel engines are affected. CARB and the EPA gave Volkswagen a chance to rectify on-road emissions issues last year by way of a voluntary recall, but the fix did not bring NOx emissions down to an acceptable level.

Volkswagen, in a statement released Tuesday, said they are “working at full speed to clarify irregularities concerning a particular software used” in the vehicles and that newer Euro 6 compliant vehicles are not affected by the “defeat device” software.

Diesel Volkswagen and Audi models were held up at port for months waiting for a Certificate of Compliance from the EPA. When the EPA held cars at port, Volkswagen admitted to using abnormal software measures and engine mapping to manipulate particulate test results.

Volkswagen and Audi have stopped the sale of the affected models in the United States and Canada.

After admitting to the emissions manipulation, Volkswagen’s stock price close to 20 percent, erasing a significant amount of value from the company. The company is also now under investigation from the U.S. Department of Justice.

In the U.S., Volkswagen could be fined up to $18 billion, or $37,500 per non-compliant vehicle sold.

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  • 28-Cars-Later 28-Cars-Later on Sep 22, 2015

    Here's a question, how will this affect gas VW sales and thus impact Chattanooga?

    • Jthorner Jthorner on Sep 22, 2015

      I think it will hurt all VW sales, gas or diesel. Personally I was thinking seriously about test driving a Golf Sportwagon as there are almost no alternatives in the reasonably priced station wagon class. But now, do I want to potentially own the product of a cheating company which might collapse and leave me with an orphan vehicle? Nope.

  • Jthorner Jthorner on Sep 22, 2015

    Oh boy, the competitors' attorney's might pile on as well: "No doubt we will hear a lot from plaintiffs’ attorneys representing the poor car buyers but I guess the group that would have been hurt most would have been the other car manufacturers who compete with Volkswagen," said one Swiss-based hedge fund manager, speaking on condition of anonymity.

  • Zerofoo "there are almost 20,000 Ram 2500s and Jeep Gladiators for sale"How many days inventory is that?
  • Akear The Prius outsells all GM EVs combined, which is really not saying much.
  • Akear The sad truth is the only vehicle FCA sold that broke the 200,000 sales barrier was the 200. I rented one and found it impressive. It is certainly better than the Renegade. At this point I would buy a used 200 over a Renegade. Who in their right mind would buy a Renegade?
  • Akear I just realized 80% of these EV vehicles producers are going to be liquidated within the next five years. It is not possible to survive by selling only 3000 vehicles a year. This reminds me of the bust of the late 90s and early 2000s. Those who don't learn from history repeat it.
  • 3SpeedAutomatic I drove a rental Renegade a few years back. Felt the engine (TIgerShark) was ready was ready to pop out from under the hood. Very crude!! Sole purpose was CAFE offsets. Also drove a V6 Cherokee which was very nice and currently out of production. Should be able to scoop up one at a fair deal.🚗🚗🚗