Volkswagen Workers Under Criminal Investigation for Breaking Tax Laws in Germany

German investigators are looking into whether Volkswagen executives or engineers broke laws by lying about carbon dioxide emissions in 800,000 cars sold in Europe, the New York Times reported.

Authorities near the automaker’s headquarters in Wolfsburg say they are focused on five Volkswagen employees, but wouldn’t identify those employees. Investigators are determining if Volkswagen employees knowingly provided false information to authorities about those cars and their emissions to qualify those cars for lower tax rates. In admitting that it lied about its emissions levels this month, Volkswagen said it would repay governments for back tax revenue lost because of the bogus claims.

This month, Volkswagen admitted it underestimated carbon dioxide output from 800,000 cars sold in Europe and said the scandal could cost the company more than $2.1 billion. According to the New York Times report, Volkswagen’s admission included a promise to repay taxes owed on owners’ cars it sold with bogus carbon dioxide numbers.

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BREAKING: Audi Admits to Defeat Device, Details Fix For 3-liter Diesel Engines

Audi, a brand within Volkswagen Group that markets the majority of 3-liter diesel engines sold by the group in the United States, released a statement Monday detailing how it plans to fix vehicles that use a defeat device. The automaker also stated that three separate Auxiliary Emissions Control Devices — not just one — are used in 2009 and later 3-liter diesels used by Audi, Volkswagen (Touareg) and Porsche (Cayenne).

AECDs for those engines will “be revised, documented and submitted for approval,” Audi said in the statement.

Of the three AECDs, the EPA questioned the legality of a temperature conditioning procedure of the exhaust-gas cleaning system.

“One of (the AECDs) is regarded as a defeat device according to applicable US law. Specifically, this is the software for the temperature conditioning of the exhaust-gas cleaning system,” Audi said in a statement.

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Volkswagen Beats EPA Buzzer, Details Fix to US Officials

On Friday, Volkswagen of America detailed its plan to fix nearly 500,000 illegally polluting diesels in the United States to officials with the Environmental Protection Agency, the government body announced in a statement late Friday. The automaker was required to detail the fix no later than Friday.

The EPA, along with the California Air Resources Board, will review the proposal, said the statement. However, the EPA did not detail the proposal to the media or public and did not give a timeframe on when to expect the proposal to be detailed publicly.

The proposal only addresses issues detailed by the EPA in its September 18 Notice of Violation that applies to Volkswagen’s 2-liter diesel engines and not the 3-liter diesels which may also be cheating emissions tests.

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More Volkswagen, Audi Vehicles Included in EPA's 3-liter Diesel Notice of Violation

During a meeting Thursday between the Environmental Protection Agency, Volkswagen and Audi, officials from the automakers told the regulator an emissions program for 3-liter turbodiesel engines is also used on 2009 through 2016 model year vehicles, the EPA said in a statement today.

An earlier statement from the EPA on November 2 pointed the finger at a limited number of models and model years equipped with the 3-liter diesels, even though other model years of those same vehicles are virtually identical with regards to their emissions systems.

In the latest statement, the EPA is still calling the emissions program a defeat device, though Volkswagen, Audi and Porsche have yet to recant their claim that the emissions program is legal and doesn’t violate emissions laws.

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Fix Due Friday For Volkswagen's Dirty Diesels

Volkswagen will have to submit Friday its plans to the California Air Resources Board and Environmental Protection Agency to fix hundreds of thousands of illegally polluting cars in the U.S., Reuters reported ( via Automotive News). Although a fix is due today, testing that fix could take months before it would be installed in cars.

The deadline for the automaker comes after it announced it would ask Michael Steiner, head of Porsche development and quality, to oversee Volkswagen’s compliance with officials worldwide to fix up to 11 million cars. In Europe, Volkswagen demonstrated a fix for its 1.6-liter diesel engine that included an air sensor and software update that cost around $10.68, according to German outlet Wirtschaftswoche.

Volkswagen has said that its newer cars would likely only need a software update to be compliant. Older cars that are equipped with EA189 2-liter diesel engines may need more costly fixes.

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LA 2015: 2016 Volkswagen Beetle Dune Isn't Your Dad's Buggy

Volkswagen announced Tuesday, one day before the opening of the 2015 Los Angeles Auto Show, that it will sell two new special editions of the Beetle that harken back to previous specials offered up by the automaker.

The Beetle Dune is as close as you can get to a Murano CC without getting all-wheel drive or a Land Rover Evoque. The jacked-up Beetle will wear unique body cladding and Dune stickers that are in no way a nod to the Frank Herbert novels of yesteryear.

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Piston Slap: Oil Burning and Carbon Cleaning (Part II)

Arley writes:

Dear Sanjeev, [Oh, come on!!! —SM]

I have a ’03 Jetta 1.9-liter TDI. Do you know if the emission controls were tampered with on these models? If they are not part of the recall, am I to assume everything is as it should be? Resale value has dropped noticeably.

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Volkswagen, Audi Meeting With US Officials To Talk Fix

Officials from Volkswagen will meet with U.S. environmental regulators this week to discuss how it plans to fix nearly 500,000 illegally polluting cars, according to Reuters. Officials from Audi will meet with regulators separately.

According to the report, Friedrich Eichler, VW’s powertrain development chief, will meet with officials from the Environmental Protection Agency and California Air Resources Board to discuss proposed fixes for its cars ahead of its Nov. 20 deadline.

This month, a source indicated to TTAC that Volkswagen would start fixing its cars in February, pending approval from the EPA and CARB.

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Will Volkswagen Hock Its Roundel for $21.5 Billion in Loans?

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.

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Volkswagen Says 430,000 New Cars Cheated CO2 Levels

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.

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Osterloh: Volkswagen Diesel Emissions Scandal Could Involve 100 Employees

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.

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Winterkorn Resigns Post At Audi … Wait, He Still Had A Job At Audi?

Former Volkswagen CEO Martin Winterkorn announced Wednesday that he would resign his position as chairman of Audi’s supervisory board following revelations two months ago that those cars may have been illegally polluting, which threw the automaker into a tailspin.

Winterkorn stepped down from his role as chairman from Volkswagen in September after the scandal broke and resigned his position at Porsche Automobil Holding SE, VW’s largest shareholder, in October. Winterkorn may have stepped down from his position at Audi because what took him so long?

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Could Volkswagen Skate On A Technicality in Europe?

The New York Times is reporting that a loophole in emissions regulations for European cars could keep Volkswagen from paying billions to governments for illegally polluting cars. Regulators considered closing the loophole in 2011, but ultimately failed to do so, which could leave the escape hatch ever-so cracked for Volkswagen to run through.

According to the report, which cites internal meeting notes of European regulators in Geneva, automakers can send through testing cars programmed for special circumstances that daily drivers can’t access.

“A manufacturer could specify a special setting that is not normally used for everyday driving,” British regulators warned in 2011, according to the New York Times.

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Volkswagen to Announce Whistleblower Amnesty Deadline

Volkswagen will announce Thursday a deadline for whistleblowers to come forward with information related to the ongoing diesel scandal without reprisal.

According to the CBC, German newspaper Sueddeutsche Zeitung reported Wednesday the automaker is working to gather as much information on the scandal as possible by applying more pressure to employees who may have known anything about what happened regarding the rigging of diesel emissions through software.

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Hammer Time: How a Smelly Dog Helped Me Buy a Volkswagen

Babies are tough. Bosses can be tougher. But the indisputable boot camp of bare knuckled stress inducers has to be a young dog that hasn’t been given the care, love, and discipline it needs and deserves.

Not even the Volkswagen Passat W8 I bought last year can compare to the ball busting doled out by an 8-month-old female boxer named Luna, a hyper-cute animal that ruthlessly channeled all of my inner Cesar Millan this past weekend, and defecated it right on the carpet.

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Volkswagen's Apology and How It Might Save Millions

Volkswagen’s Goodwill Program in the U.S., which may cost the company nearly half a billion dollars all told, may be a form of corporate apology that could insulate the automaker from further lawsuits.

Michael Siebecker, a professor of law at the University of Denver, says the company’s gift cards could be a form of “corporate apology” that studies have shown help shield some doctors from medical malpractice lawsuits.

“I believe that this is a type of watered-down apology. They may be saying ‘You must be hurting, here’s a little something to get by.’ I don’t know what exactly they think consumers need right now,” Siebecker said.

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For Some TDI Owners, Conflicting Messages on Trade-in

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.

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UPDATE: Volkswagen Posts 'Goodwill Program' Details, Catch-All Causes Confusion

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.

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Could Growing Volkswagen Scandal Engulf New CEO Mller?

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.”

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UPDATE: Don't Signup for Volkswagen's "2.0L TDI Customer Goodwill Package" Just Yet

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.

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OFFICIAL: Volkswagen TDI Goodwill Package Includes $1,000, Roadside Assistance

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.

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UPDATE: Volkswagen Launches "2.0L TDI Customer Goodwill Package" Signup, TTAC Registers an Affected TDI

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.

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US, Canada, Germany to Expand Testing for All Diesel Vehicles, Not Just Volkswagen

Government agencies from the United States, Canada and Germany will be testing diesel vehicles from automakers other than Volkswagen to check their compliance with emission laws.

According to The New York Times, regulators in North America “are significantly expanding their on-the-road emissions tests to cover all makes and models of diesel cars.” The same on-road tests found 3-liter V-6 diesel engines to emit more NOx than they did in EPA testing.

The EPA had already notified General Motors that its new Colorado and Canyon diesel pickups would undergo increased scrutiny.

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Volkswagen Engineers Blow Whistle, Admit to CO2 Cheating

A number of Volkswagen engineers cheated on tests used to determine carbon dioxide emissions because goals set by former group CEO Martin Winterkorn were too demanding and difficult to achieve, reported German outlet Bild am Sonntag.

The report was “broadly confirmed” by Volkswagen, stated The New York Times. It’s believed goals set by Winterkorn, which would have made Volkswagen vehicles cleaner than required by European regulations, pressured the engineers to manipulate the tests as they were afraid to admit they could not meet those goals.

The engineers pumped up tire pressures to reduce rolling resistance and put diesel in motor oil to make the vehicles more fuel efficient, thus producing less carbon dioxide. The practice “began in 2013 and carried on until the spring of this year,” reported Automotive News.

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Are US Investigators Confiscating Passports of German Volkswagen Engineers?

Volkswagen engineers in Germany are afraid to do business trips to the U.S. because one employee had his passport confiscated by U.S. investigators, reported Süddeutsche Zeitung, Germany’s largest subscription daily newspaper, on Saturday.

The paper goes on to explain Volkswagen believes U.S. authorities want to question certain engineers and are preventing their exit from the country, and evasion of questioning, by confiscating their passports.

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EXCLUSIVE: Volkswagen Diesel Emissions Fixes to Begin in US in February

According to the same source who revealed to TTAC that Volkswagen will announce next week its “TDI Goodwill Program”, the automaker will also begin to roll out fixes for affected diesel emissions cars in the U.S. in February.

The fix, which was mentioned to dealers and communicated to dealer staff, will comprise of an ECU flash. The details of the ECU flash itself and the specific vehicles to which it will apply were not provided.

It was reported previously that different generations of the affected EA189 diesel engine could receive varying levels of correction, from ECU flashes to the installation of full urea-fed SCR systems. This ECU flash could be just one of two or three fixes for Volkswagen’s dirty diesels.

Volkswagen has supposedly earmarked $4 billion to fix their diesel cars and public reputation in the U.S., which includes money the automaker will use to fund the “TDI Goodwill Program”, said the source.

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EXCLUSIVE: Volkswagen To Announce "TDI Goodwill Program" Next Week

Update: Added background.

Volkswagen of America, in a bid to regain the trust of current diesel owners, will announce a prepaid card campaign on November 9, TTAC has learned.

The program, detailed to dealers Thursday in preparation of its public announcement, is aimed at current owners of affected TDI models regardless of whether they bought their car new or used.

Two prepaid cards will be offered to those TDI owners. The first one will be for $500 and has no restrictions on where it can be used. The second, which may be valued between $500 and $750, will be limited to use at Volkswagen dealerships.

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Volkswagen Dealer Sends Sympathy Card to TDI Owners

Volkswagen dealers are scrambling to keep their customers happy amid the emissions scandal and one has decided to send a TDI eulogy to customers along with a sales pitch. According to a post on TDIClub, Beyer Volkswagen started sending out the slightly hilarious notice sometime this week.

The cover shows a SportWagen with a 2015 date of death for TDI Clean Diesel technology. Directly opposite the picture is an apology that would seem fitting if it came from from an abusive spouse telling their significant other they are kind of sorry but it’ll be different next time. Promise.

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Volkswagen Meeting With EPA To Discuss Diesel Emissions Program

Officials from Volkswagen will meet Thursday with the Environmental Protection Agency to explain to regulators how a “temperature conditioning” mode isn’t illegal, Reuters reported ( via Automotive News).

“(Auxiliary Emission Control Device) software does not alter emissions levels, but it ensures after a cold start (of the engine) that the catalytic converters quickly reach their working temperature and emissions cleaning takes effect,” VW said, according to Reuters.

In its notification to the automaker Monday, officials from the EPA specifically outlined how a “temperature conditioning” mode, specifically timed to the length of the EPA’s initial tests, reduced emissions up to nine times in cars equipped with VW’s 3-liter diesel engine.

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Lutz: Pich's Brutal "Reign of Terror" Likely Cause of Diesel Scandal

Ferdinand Piëch, the man who ruled Volkswagen like the king of a Teutonic fiefdom, was likely the cause of the diesel scandal that’s erased billions of dollars of value from Volkswagen as it looks down the barrel of a gun loaded with further billions of dollars worth of recall work, fines and law suits.

Or, at least, that’s the claim made by Bob Lutz.

Former auto industry executive Lutz called Piëch’s leadership style “a reign of terror” before saying “The guy was absolutely brutal,” in his latest piece for Road & Track.

Tell us what you really think, Bob.

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Germany's Transportation Chief Wants To Retest Every Volkswagen Now

German authorities said Wednesday that they would retest all Volkswagen cars — regardless of engine type or brand — for emissions compliance, Reuters reported.

German transportation minister Alexander Dobrindt expressed his “irritation” with the automaker that more cars were being added to the deepening scandal. On Monday, the Environmental Protection Agency notified the automaker that some of its 3-liter diesel models may contain an illegal “defeat device” to fool emissions tests.

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Volkswagen Says It Lied About CO2 Levels In 800,000 Cars

Volkswagen on Monday said that internal testing revealed 800,000 Volkswagen cars may emit more carbon dioxide than reported and could cost the company $2.1 billion more in penalties.

New CEO Matthias Müller apologized for the deception.

“The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency,” he said in a statement.

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Touareg Enthusiasts Confused About Emissions Violation

The EPA notified Volkswagen yesterday that certain models equipped with the 3-liter diesel engine were in violation of emissions regulations by being equipped with a defeat device. The list of affected models does not contain a range of production years as with the previous models that were found to be in violation, but only one specific year for each model.

Owners and enthusiasts are puzzled that the only year of the Touareg listed as affected is 2014 since the model did not change much from the preceding year. One theory is that the EPA has not listed all of the affected models yet and that more would be affected in the future.

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Volkswagen, EPA Disagree on 'Defeat Device' in 3-liter Models

Responding to the Environmental Protection Agency’s notification that it had uncovered an illegal “defeat device” in some 3-liter, diesel Audi, Volkswagen and Porsche models, Volkswagen AG said in a statement Monday that it “wishes to emphasize that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner.”

The statement flies in the face of the EPA’s allegation that a “temperature conditioning” mode in the vehicles’ computers timed exactly to the length of the agency’s 75 initials emissions tests allowed the cars to reduce emissions of nitrogen oxides by up to 9 times.

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UPDATE: Volkswagen Fitted Defeat Device to 3-liter Diesel SUVs, Sedans

The Environmental Protection Agency notified Volkswagen on Monday that cars equipped with 3-liter diesel engines included an illegal “defeat device” designed to cheat emissions tests, broadening the already damning scanda l for the automaker.

The cars included on the notification were the 2014 Touareg, 2015 Porsche Cayenne Diesel and 2016 models of the Audi A6 Quattro, A7 Quattro, A8, A8L and Q5.

“Volkswagen has once again failed its obligation to comply with the law that protects clean air for all Americans,” Cynthia Giles, assistant administrator for the EPA said.

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Merkel: 'VW is Working On This With All of Its Power' - Including Asking Workers to Roll Over

On her weekly podcast, German Prime Minister Angela Merkel said Volkswagen’s scandal hasn’t harmed the German automobile industry’s image, but that the automaker would need to conduct its investigation with transparency to restore faith in the country’s industry.

“A lot will depend on how Volkswagen deals with the issue,” Merkel said, according to Reuters.

Separately, sources told German newspaper Sueddeutsche Zeitung ( via Reuters) that the automaker, under pressure from investigators, is offering amnesty to employees who reveal what they knew about its cheating devices. Amnesty won’t apply to top-level managers, according to the report.

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Volkswagen Buying Back Bad Diesels From Dealers At Pre-crisis Prices

Volkswagen told dealers that it would buy back some of its unsellable, used diesel cars withering on their lots at fixed prices to help dealers cope during the automaker’s growing diesel scandal, Automotive News reported.

The cars that dealers are accepting on trade-in, but can’t sell due to their illegally polluting engines, have sat on lots while the automaker develops its plan to fix 482,000 cars sold in the U.S. with the illegal “defeat device.” Volkswagen has offered a $2,000 “loyalty discount” for any Volkswagen trade-in, including diesel cars.

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Spotted: 2016 Passat Alltrack Roaming Streets of Phoenix

I love you, unicorn.

A TTAC reader spotted this 2016 Volkswagen Passat Alltrack roaming the streets of Phoenix the other day and dutifully reported “What the hell is that?”

This Passat wagon, which is sold overseas, may be the only one in the States. It’s wearing manufacturer tags and likely just had its way with VW’s massive testing circuit in Phoenix.

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Volkswagen Could Face Millions More In Fines For CAFE Fuel Credit Penalties

Massachusetts Sen. Edward Markey on Thursday sent a letter to the National Highway Traffic Safety Administration asking the agency to re-evaluate millions of fuel economy credits awarded to the automaker by the agency for cheating diesel cars.

The letter, which was addressed to Administrator Mark Rosekind, outlined the automaker’s exceedingly fuel efficient fleet average from 2008, which now could be in jeopardy after the automaker admitted it cheated emissions tests and could impact those cars’ mileage.

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$900M Chattanooga Plant Upgrade Escapes Volkswagen's Axe

Volkswagen will still invest $900 million in its Chattanooga, Tennessee plant despite company-wide cost cutting from its diesel disaster, the automaker announced Thursday.

The company had long planned on a mid-size, three-row SUV to compete in the U.S.. However, those plans were upended when the Environmental Protection Agency announced in September that Volkswagen’s diesels had been illegally polluting, and the company shed billions from its value in following days.

The three-row SUV, which may follow closely Volkswagen’s CrossBlue Concept, was announced last year for the Tennessee plant. Volkswagen said it would begin building the SUV at the end of 2016.

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Volkswagen CEO Muller Outlines Plan To Save Automaker From Scandal

Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

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Volkswagen Scrapping Plans For US Overhaul Until After Scandal

Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.

The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars.

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Volkswagen To Post First Quarterly Loss in 15 Years

Volkswagen will post Wednesday its first quarterly loss in 15 years after the automaker was rocked this summer with a scandal that affected 11 million vehicles and cost the company tens of billions of dollars in lost value already.

Bloomberg (via Automotive News) reported that 10 analysts estimated that the company would post a $3.6 billion loss for the quarter ending Sept. 30.

Although the company said it reserved more than $7 billion to help pay for the scandal, many agree that the loss will be far greater — from $16 billion to $86 billion.

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VW Investigators: 'If You Saw Something, And Didn't Say Something, You're Still in Trouble'

Investigators at Volkswagen are not only looking for the culprits who installed illegal emissions cheating software into their cars, but they’re also looking for managers who didn’t immediately report the devices as well, the New York Times reported.

Up to 10 managers and engineers could be suspended by the automaker for the scandal so far, including top-level executives.

According to the New York Times, investigators have been keen to learn who knew what within the automaker, and how quickly those findings were reported.

The investigation by U.S. firm Jones Day could take months, according to the report. A person who was briefed on the inquiry told the newspaper what investigators were looking for.

Volkswagen of America CEO Michael Horn told congressional investigators he was made aware of a potential problem in the spring of 2014, but wasn’t aware of illegal software until Sept. 2015.

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Volkswagen Discounting New Cars for Diesel Owners in Germany

Volkswagen may discount new car purchases for diesel car owners trading in their illegally polluting cars, German news agency DPA ( via Reuters) reported.

The discount would apply to older 1.6-liter models, according to the report, which would need more significant fixes than many other cars. According to Reuters, roughly 2.4 million cars in Germany are affected by the diesel scandal that has cost the automaker billions so far.

In America, more than 350,000 diesel cars would need significant fixes, according to Volkswagen of America chief Michael Horn. In the States and Canada, Volkswagen offers a “loyalty discount” to returning Volkswagen buyers. So far, the diesel discount only applies to cars in Germany.

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Volkswagen Tabs Former Opel Chief To Lead Strategy

Thomas Sedran, former interim head of Opel and General Motors’ European chief for Cadillac and Chevrolet brands, will join embattled automaker Volkswagen as head of group strategy, according to the automaker.

Sedran was head of Opel in 2012 when that automaker shuttered a plant in Bochum, Germany. Sedran was president and managing director of Cadillac and Chevrolet brands in Europe until June, when he joined global consulting firm Accenture.

According to Volkswagen, Sedran will take over Nov. 1 and report directly to new CEO Matthias Müller.

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VW May Freeze Promotions, Cost Cut Next Golf Amid Scandal

German business magazine Manager Magazin reported Saturday (via Reuters) that managerial promotions may be frozen beginning next year as the company looks to save money wherever it can amid the diesel scandal.

The company may also re-use as many parts possible when developing the eighth-generation Volkswagen Golf in order to cut costs.

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UAW on Path to Represent Maintenance Workers at VW Chattanooga

The United Auto Workers union could make its first real break into the southern U.S. by unionizing 165 “skilled trade” maintenance workers at Volkswagen’s Chattanooga plant, reported the Associated Press (via The Detroit News).

UAW Local 42 represents some workers at Volkswagen Chattanooga but does not have exclusive bargaining rights at the plant. A new election for union representation, which is being requested by maintenance workers at the plant, would give Local 42 exclusive bargaining rights for those workers.

The effort is part of a “renewed collective bargaining push” unrelated to the diesel emissions scandal, union officials told the AP.

The last election saw the UAW defeated in a 712-626 vote.

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Auction Prices for Volkswagen Diesels Are Dropping

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.

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Lawsuits Against Volkswagen Using Mob-inspired Law to Takedown Automaker

Complaints filed against Volkswagen of America are using the Racketeer Influenced and Corrupt Organizations Act to allege that the automaker knowingly committed fraud across state lines, court documents show.

The law, which was created in the 1970s to take down the U.S. mafia, could have serious ramifications for Volkswagen, who admitted that its cars illegally polluted.

Accusing the automaker of violating RICO Act would mean that lawsuits against the automaker could be more lucrative and amplify damage to the automaker.

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Volkswagen Has Brilliant Plan To Sell Cars During Crisis (Hint: It's By Giving You Money)

Volkswagen is offering up to double the average amount of incentives on some of its cars to help dealers during its diesel crisis, Bloomberg reported ( via Automotive News).

Dealers, who received no-strings-attached cash from Volkswagen at the beginning of this month, are offering up to 11 percent off their cars’ stickers to help weather the storm of its diesel cheating scandal. The industry average is roughly 6.2 percent according to TrueCar.

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Volkswagen Says Newer Diesels May Have Illegal Defeat Device, Too

Volkswagen said Thursday that early versions of its EA 288 engines could have been equipped with the illegal emissions software at the heart of its diesel scandal, Reuters reported (via Automotive News).

The revelation would largely affect European cars, and could potentially expand the list of 11 million cars Volkswagen will be forced to recall this year.

U.S. cars using the “Generation 3” engine, which include 2015 models of the Volkswagen Golf, Jetta, Beetle and Passat and Audi A3, were already included in the stop-sale and notification by the Environmental Protection Agency.

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2016 Volkswagen Passat First Drive - Sensical Change

“What brings you to Vermont?” asked the young woman I was sitting beside on my flight to Burlington to drive the newly refreshed Passat.

“Volkswagen,” I replied simply.

After a pause, and with an eyebrow raised, she came back with the question: “Diesel?”

This is how every conversation about Volkswagen will start for years to come. And, to be fair, it’s also how we’ve talked about Volkswagen for the last 20 years — minus the eyebrow. Volkswagen is as intrinsically connected with diesel as Vermont is to small-town values that border on being Canadianesque.

Except now, conversations about Volkswagen diesels are punctuated with that eyebrow — and for all the wrong reasons.

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Report: Volkswagen Suspends Quality Chief For 'Incriminating' Letters

Volkswagen has suspended its chief of quality control for “incriminating correspondence” it found regarding its illegally polluting diesel cars, German newspaper Bild (via Automotive News) reported Wednesday. Tuch was suspended last week, according to the Wall Street Journal.

Frank Tuch is the fifth high-ranking official suspended from Volkswagen because of the scandal. According to reports, Tuch wasn’t part of the company when it developed the EA 189 engines that have become the center of the cheating scandal. The former Lotus COO and Porsche quality control officer may have known about the illegal software after he joined the company in 2010.

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Volkswagen Adds VIN Lookup to Diesel Information Site

Weeks after European Audi owners could look to see if their cars were affected by the Volkswagen cheating scandal, Volkswagen of America added a VIN lookup to its diesel scandal site (which is buried by Google) for U.S. owners, Auto Guide reported.

The service redirects to Volkswagen’s recall site, where owners can enter their vehicle’s VIN. During congressional testimony Oct. 8, VW of America chief Michael Horn admitted that the U.S. site didn’t include the VIN tool and agreed with representatives who said it would be a “good idea” to include that for American customers.

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Police Raid Volkswagen France Headquarters

Investigators in France seized documents and office equipment from Volkswagen offices there in connection with its inquiry into the automaker’s admission that it cheated emissions tests.

The raid, which happened on Friday, wasn’t reported until Sunday, according to the Wall Street Journal.

Investigators in Germany and Italy have already seized documents from Volkswagen’s respective headquarters in those countries relating to the scandal, which affects more than 11 million cars worldwide.

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Report: Multiple Versions of Cheating Software Developed by Volkswagen

Reuters reported that sources within Volkswagen and its ongoing investigation have said the automaker created multiple versions of its “defeat device” to cheat emissions tests.

The news agency said a manager within Volkswagen and an official close to the external investigation ordered by the automaker have revealed the multiple programs, which were developed for four different engine types.

If true, the multiple emissions programs could indicate a widespread cheating program — stretching nearly a decade — that could have needed funding to continue, which would be in stark contrast to the “rogue engineer” explanation offered by executives so far.

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Columnist: 'Normalization of Deviance' Led to Volkswagen Cheating

An investor and analyst argued in column that appears in the New Yorker that Volkswagen engineers may have rationalized illegal behavior by incrementally cheating up to the infamous levels uncovered by researchers last year.

Using the catastrophic failure of the space shuttle Challenger as an example, Paul Kedrosky wrote that “normalization of deviance” could have led Volkswagen engineers to systemically cheat on emissions in the same way engineers rationalized colder and colder launches for the space shuttle until it finally disintegrated in 1986 because of failed, cold o-rings.

It’s more likely that the scandal is the product of an engineering organization that evolved its technologies in a way that subtly and stealthily, even organically, subverted the rules.

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Volkswagen Bringing Next-generation Golf Cabrio to US

Volkswagen will bring the next-generatrion Golf Cabrio to the U.S., the first time since 2002, Car and Driver reported.

The next-generation convertible will be based on the Mark VII Golf and arrive sometime in 2017, according to the report. The Golf Cabrio fill the gap left by the Eos when that ends production — eventually.

The Golf Cabrio has been on sale in other markets, but has been absent from the U.S. lineup for more than a decade. The Golf Cabrio can be equipped with four different gasoline engines and two different diesel options worldwide, although the diesel option probably won’t be making an appearance.

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Transaction Roundup: Daimler Trades Legal Chief To Volkswagen For Player to Be Named Later

Volkswagen announced Friday that Christine Hohmann-Dennhardt would join the embattled automaker from a similar post at Daimler after receiving approval from that automaker’s board of directors.

The Daimler board member and former judge will join Volkswagen on its Board for Integrity and Legal Affairs to help the automaker clean up its severely tarnished image after it admitted it had cheated emissions tests on more than 11 million cars worldwide. From Daimler:

In the interests of the Good Corporate Governance of the German automotive industry, the Chairman of the Supervisory Board of Daimler AG has agreed to this request after consultation with the Presidential Committee of the Supervisory Board, after Compliance is anchored firmly at Daimler and its corporate culture.

(Emphasis mine on the sick, corporate burn.)

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  • Qwerty shrdlu While I've seen BMWs with what looks like disruptive camoflauge driving around Charleston SC, it seems less like a secret and more "Hey look at me!" Likewise, a lot of spy shots are made by photographers who somehow knew exactly when and where to set up to take the shot.
  • Dwford Yes. Why are there so few spy shots online these days?
  • Michael S6 I’m holding out for the Jeep Compass Hellcat edition. I heard that the power to weight ratio will be mind boggling.
  • Jbltg I don't know where to begin with this mess. Nothing off the shelf would have worked?
  • Theflyersfan I think I have this design nailed down. Imagine a Fiat Multipla making sweaty, rancid, unholy, no boundaries love to a Renault Avantime.