Meeting Advertised Mileage Could Save Volkswagen Money

Aaron Cole
by Aaron Cole

Volkswagen of America CEO Michael Horn told a congressional committee Thursday that the fixed diesel cars would achieve the fuel economy figures advertised on the cars when they were purchased as new.

“We know we can fix these vehicles to achieve emissions standards,” Horn said.

Horn said that performance such as horsepower and torque for the cars could be impacted, but by keeping those cars at or above advertised mileage, the carmaker could mitigate damage brought by forthcoming class-action and federal lawsuits.

Horn said the cars, which were fitted with illegal defeat devices beginning in 2009, would need a wide range of fixes to bring into compliance those cars. Newer cars would need a software update, older cars could need a combination of hardware and software fixes.

Horn said newer cars could be fixed as soon as early 2016. Older cars could take several years to fix.

Rick Wynkoop, a Denver lawyer whose practice specializes in automotive cases — specifically Lemon Law — said Volkswagen delivering advertised mileage would be a good offensive move for the automaker as it looks to keep a flood of class-action cases at bay.

“Would it mitigate damages? Certainly, if there are damages at all,” he said.

Wynkoop said he does not represent any Volkswagen owners in pending cases against the automaker.

He said quantifying damages for owners whose cars have been fixed and still deliver advertised mileage could be difficult. If a fix reduced mileage, it would be a simple calculation to determine real damage. For example, if the fix reduced fuel efficiency from 45 mpg to 40 mpg, the owner could claim real damage based on mileage.

It would be the same for resale value as well, which may be hard if the market for used Volkswagen diesels are all over the place. Any dip in power and performance would qualify as damage, but would be harder to quantify monetarily, Wynkoop said.

Wynkoop added that pending Volkswagen lawsuits could target non-economic damages, which could range from adverse health effects to psychological damage.

The early lawsuits against Volkswagen covered a wide range of territory, he said, from fraud to breach of contract and consumer protection.

Aaron Cole
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  • Sgeffe Sgeffe on Oct 09, 2015

    My guess is that mileage might not matter a damn if the only practical way to engineer a fix that passes muster will yield a vehicle which can barely get out of its own way. (Those with Westmoreland Wolfsburg Edition memories may lift their middle-digit to The People's Car and line up at the Toyota dealer (or even the Chevy dealer, if the price is reasonable). On the subject of Prii: are there TRD pieces available for the "regular" 4-door HB? I'd be interested just to see the effect of mounting wheels which will aid all-around handling of a Prius, on its mpgs. (I've had my doors blown off by a Prius once whilst I was set at a solid 80mph, so I know they can likely hit a buck-ten.)

  • George B George B on Oct 10, 2015

    1) Volkswagen will pay huge fines. 2) The marketing value of "Clean Diesel" is gone. 3) More engineering resources with be applied to achieving certification of new not yet sold TDI cars than retrofitting old cars. 4) Most TDI owners in the non-CARB states will choose not to "upgrade" the emission control systems of their cars. If OBDII says "good", the CEL isn't on, and the car runs well, why would they make it run worse?

  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
  • TheEndlessEnigma Poor planning here, dropping a Vinfast dealer in Pensacola FL is just not going to work. I love Pensacola and that part of the Gulf Coast, but that area is by no means an EV adoption demographic.
  • Keith Most of the stanced VAGS with roof racks are nuisance drivers in my area. Very likely this one's been driven hard. And that silly roof rack is extra $'s, likely at full retail lol. Reminds me of the guys back in the late 20th century would put in their ads that the installed aftermarket stereo would be a negotiated extra. Were they going to go find and reinstall that old Delco if you didn't want the Kraco/Jenson set up they hacked in?
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