It didn’t take long for sources to squeal about the size of the settlement forged yesterday between Volkswagen and its ornery U.S. dealer network.
According to people familiar with the deal, 652 VW dealers will share about $1.2 billion to offset losses from unsold vehicles and sunk costs, Bloomberg reports. But cash is only one part of the company’s plan. The other involves its customers’ wallets.
America’s Volkswagen dealers took the brunt of the automaker’s diesel emissions scandal, but a cash payout designed to ease their troubles is on the way.
Volkswagen’s long-awaited three-row SUV has appeared on a Chinese website completely free of camouflage, months ahead of its expected appearance at the Los Angeles Auto Show.
The Chattanooga-built SUV, which will likely take the Teramont name, draws inspiration from the 2013 CrossBlue concept and is a big part of Volkswagen’s planned American brand revival.
If you go through Volkswagen’s historical model catalogue, you’ll notice many occurrences of the exact same model sporting unique names in the U.S. and Canadian markets.
For example, Volkswagen marketed the last-generation Jetta Wagon in the United States as the Golf Wagon in Canada beginning in 2010. Roll ahead to present day, Volkswagen has called its Golf SportWagen (U.S.) the Golf Sportwagon in Canada since 2015.
Thankfully, that’s about to change.
According to Volkswagen Canada representative Thomas Tetzlaff, the Canadian outpost will drop the Sportwagon name in favor of the name used in the United States — SportWagen.
A grownup game of keep-away is taking place in Germany, and Volkswagen is the kid without the ball.
Work stoppages are looming or already occurring at four of the automaker’s plants after a supplier dispute left Volkswagen without key transmission and seat parts. With the costly fallout of its emissions scandal top of mind, the automaker plans to waltz into the supplier’s factories and take what it needs, Automotive News Europe reports.
The powers that be at Volkswagen aren’t big fans of the Pokémon Go app. While most people think of it as a fun and nerdy augmented reality game, the automaker’s executives see it as a one-way ticket to industrial espionage.
Because of this, Volkswagen’s 70,000 employees are forbidden from installing the app on their company phones, according to the German publication Bild (via Carscoops).
Two decades’ worth of Volkswagen Group vehicles are vulnerable to a simple, cheap hack that can unlock their doors.
A research paper released this week (first reported by Wired) describes how multiple Volkswagen, Audi, Seat and Skoda models built since 1995 can be unlocked using a handmade radio that copies key fob signals.
Three unapproved software programs were found on Volkswagen, Audi and Porsche models outfitted with 3.0-liter diesel engines, a German newspaper reports.
The publication Bild am Sonntag said that U.S. authorities discovered the software, though it didn’t reveal a source for the information, according to Reuters (via Automotive News).
Forget the American displacement wars of the 1960s (and to a lesser degree, the 1990s). On the other side of the Atlantic, it’s all about who has the biggest all-electric lineup.
Volkswagen, hoping to wash its hands of diesel residue, announced three modular vehicle platforms that could spawn 30 electric vehicles across the company’s brand portfolio. Meanwhile, Mercedes-Benz wants a whole new sub-brand for its looming crop of EVs.
Volkswagen of America has a new head honcho in charge of product and marketing, and he’ll have his work cut out for him.
Today, Volkswagen named Dr. Hendrik Muth as the new vice-president of product marketing and strategy for its beleaguered U.S. division. His job? To sell vehicles. Ideally, lots of them.
Consider it a low point in German-Korean relations.
Thanks to the diesel emissions scandal, South Korea just decertified about 68 percent of all Volkswagen, Bentley and Audi vehicles sold in that country over the past decade, Reuters reports. The country also revoked the certification of 80 model variants and leveled a large fine, meaning VW’s one-time Asian market breakthrough is truly busted.
Is there anybody left in this country who gives a single damn about Volkswagen? If so… why?
This is a company that has spent the past 40 years treating their American customer base with the kind of contemptuous disdain that most of us associate with the wait staff at Le Bernardin. The thousand injuries of Wolfsburg we have borne as best we could — from the Westmoreland Rabbits to the 8-valve Mk2 GTI to every single aspect of the Phaeton ownership experience — but when the company ventured upon insult to the very air we breathe, that should have been enough for all of us to abandon the brand permanently.
The problem is that some of us just can’t let go. Maybe it’s misplaced loyalty. Maybe it’s dim memories of the Corrado VR6. Maybe it’s just a certain delight in the way that Volkswagens feel when you’re driving them. Whatever the reason, there’s still some goodwill left in the United States on which the company can capitalize. One of the ideas being floated is a “hot Passat”, or at least a slightly sportier Passat. Our own Steph Willems made the case earlier in the week that such a car would be a waste of time.
I disagree, and I’ll tell you why.
Volkswagen’s multi-billion-dollar make-nice deal with U.S. regulators and owners was given a tentative green light today, after a federal judge gave the settlement his preliminary approval.
The San Francisco hearing is the first of two, and approval of the $14.7 billion buyback and compensation plan could get a full go-ahead on August 25. The hearing shed light on what owners of defeat device-equipped diesels can expect in the coming months.
Volkswagen is toying with the idea of creating a hot, performance-oriented Passat variant that grabs people’s souls, assaults their eyes and won’t let go of their imagination. It shouldn’t bother.
According to Motor Authority, the automaker wants to wring more sales out of its increasingly overlooked midsizer by appealing to the enthusiast set. Even with visual cues and a power boost, it’s extremely unlikely that Golf fanboys will move their lust (and cash) to the Passat camp.
If Volkswagen wants to halt falling sales, it needs to change the foundation and house, not just paint the window trim.
His company’s product is under investigation by the National Highway Transportation Safety Administration, but Tesla CEO Elon Musk likes the favorable press the NHTSA gave to its Autopilot system.
Musk tweeted a link to a Wall Street Journal report that quotes NHTSA administrator Mark Rosekind praising the semi-autonomous driving system at a Detroit conference last week. The NHTSA is investigating what role Autopilot played in a fatal Florida crash on May 7.
SUV sales are exploding in the United States. It doesn’t just seem as though the quality, origins, price, power, credibility, and style of a utility vehicle matter not one whit — it really doesn’t.
Critically panned and antiquated SUVs such as the Jeep Compass and Jeep Patriot are selling better than ever. The original Audi Q5, on sale since 2009, is on track for its seventh consecutive year of growth. Sports car builder Porsche now produces 60 percent of its U.S. sales with the Macan and Cayenne. The Buick Encore, a questionable Chevrolet Sonic-based subcompact crossover, is easily Buick’s best-selling model. Sales of the Ford Explorer are on track to rise to a 12-year high.
Easy peasy. Build it and they will come. Too small? No problem. Too big? Not an issue. Too ugly? More power to you. Impractical? Ignore the U in SUV; it won’t hold you back.
It’s therefore a great time for Volkswagen to finally release an SUV in the heart of the market.
Forget head-scratching model names like Tiguan and Touareg. For its new midsize crossover, Volkswagen scrapped its naming-by-German-committee tradition and turned the process over to its American division.
When the new models goes on sale next year, expect a rugged, easy-to-pronounce name designed solely for the U.S. market, Automotive News reports. That name could be “Teramont.”
It won’t come as a surprise that Volkswagen’s U.S. arm is eager to put all that happy-go-lucky “clean diesel” stuff behind it.
Once the diesel emissions scandal sinks from the headlines like the Deepwater Horizon, the automaker plans to head in a different direction stateside, Automotive News reports, and oil burners won’t be a big part of it.
Volkswagen diesel owners will be able to spend many happy, polluting miles on the road, even after they request a fix instead of a buyback.
Buried in the automaker’s $15.3 billion U.S. settlement is the expectation that most of the recalled vehicles will still spew twice the allowable rate of emissions after being repaired, according to Bloomberg. A fix for the 475,000 2.0-liter diesels hasn’t been approved, but regulators fully expect any repair plan to fail — and they’re grudgingly okay with it.
The state of New York wants its pound of flesh from Volkswagen, as well as $450 million.
A lawsuit filed against the automaker by New York Attorney General Eric Schneiderman alleges widespread knowledge of the emissions-cheating “defeat device” used in millions of diesel vehicles, according to the Wall Street Journal.
California’s Air Resources Board wants nothing to do with Volkswagen’s proposed fix for its 3.0-liter VW, Audi and Porsche TDI models equipped with emissions-cheating defeat devices.
The regulator rejected the automaker’s plan yesterday, and later issued a release calling it “incomplete and deficient in a number of areas.” For Volkswagen, CARB’s rejection is a major setback to its goal of settling the rest of its diesel emissions scandal fallout without another expensive buyback program.
With no approved U.S. diesel fix in its grasp, Volkswagen hasn’t even bothered asking the Environmental Protection Agency for permission to resume selling its maligned TDI models, Automotive News reports.
Sales of all new and certified pre-owned TDIs were frozen last September after the diesel emissions scandal became public. Even after agreeing to a $15.3 billion U.S. settlement last month, it looks like the models will cool their heels for months to come.
A software fix designed to bring sidelined 2.0-liter diesel Volkswagen models into compliance just made the vehicle dirtier, a European consumer group claims.
According to Reuters, the Italian consumer group Altroconsumo tested an Audi Q5 that underwent Volkswagen’s technical fix, only to find that nitrous oxide emissions were 25 percent higher than before.
There’s a good chance that the former managing director of Audi Volkswagen Korea will soon find himself pleading for a sip of Coke during the 11th hour of a grueling interrogation process.
Park Dong-hoon, now CEO of Renault Samsung Motors, was recently identified as a suspect in South Korea’s investigation into the Volkswagen emissions-cheating scandal, according to Wards Auto. That means a date with the “VIP Suite.”
After agreeing to fork over up to $14.7 billion to U.S. owners (and the environment) in its U.S. diesel emissions scandal settlement, Volkswagen is saying Nein! to a similar buyback in Europe, because that kind of payout would just be insane.
According to Left Lane News, the embattled automaker isn’t planning any compensation to its clients on the Continent, meaning its 2.0-liter TDI models will go on well into the future, albeit in a slightly detuned form.
A former Volkswagen employee who claimed he was fired when the company discovered his plan to report it for obstruction of justice has dropped his lawsuit.
Daniel Donovan, an information manager working for Volkswagen’s data center in Auburn Hills, Michigan, withdrew the suit on June 9, according to the New York Times. Donovan had claimed he tried to prevent the destruction of documents related to the diesel emissions scandal.
Good news, owners of Volkswagen, Audi and Porsche models powered by a 3.0-liter TDI engine — your heavily polluting diesel probably won’t have to be bought back and scrapped.
A lawyer for the automaker said in court today that Volkswagen believes the 85,000 vehicles can be cleaned up with a not-too-complicated fix, Reuters reports.
It’s like the Rapture, but for polluting German vehicles.
Starting this fall, owners of the 466,000 defeat device-equipped Volkswagen and Audi 2.0-liter TDI models still left on the road will head to their dealer, hand over their keys, sign a mountain of paperwork, and walk away with a fat check issued by the bean counters in Wolfburg.
So, what happens to your once-trustworthy diesel-powered steed after the buyback?
With the settlement now filed with the courts between Volkswagen, regulators, and other plaintiffs in the ongoing diesel emissions scandal, the United States District Court Northern District of California has published the exact figures for buy backs and settlement figures.
Click the jump to find out how much money you’ll receive for your affected Volkswagen and Audi 2.0-liter equipped TDI.
Imagine for a second that the cash Volkswagen must now spend to get itself out of trouble in the U.S. was a pile. It would be a great day for tobogganing.
The initial settlement for the diesel emissions scandal — vehicle buyback, compensation, make-the-air-nice-again programs — rings in at $14.7 billion, but the automaker has roughly $18 billion set aside to handle all of the American fallout.
When it comes to cash, the bigger the number, the harder it is to imagine what that figure really looks like. What could it buy? How many bananas is that? Well, there are countries that make less money in a year than Volkswagen, maker of the Jetta, just paid out to one country. (Keep in mind, there’s more countries waiting in the wings for their cash.)
We don’t yet know the exact price of Volkswagen USA’s 2017 Golf Alltrack.
We are certain, however, that Volkswagen, a company with a brand image severely tarnished in the United States, will be able to do no better than slightly undercut the basic price of the Subaru Outback.
And that might be a problem.
Christmas is coming early for owners of polluting Volkswagen TDI models now that the automaker has agreed to pay up to $14.7 billion to settle claims in the diesel emissions scandal.
Volkswagen’s settlement with the federal government, owners and regulators will see it buy back some 475,000 2.0-liter diesel vehicles in the U.S. at pre-scandal values and offer their owners up to a cool $10,000 in extra compensation, according to figures reported by the New York Times.
Owners of the 482,000 2.0-liter TDI models caught up in the diesel emissions scandal will get cash compensation tied to the age of their vehicle, anonymous sources said today.
Volkswagen won’t release details on its buyback/fix/remediation plan until Tuesday of next week, but sources briefed on the matter blabbed to the media despite a court-imposed gag order. The Associated Press puts the cost of settling the U.S. fallout at $10.2 billion, with some of that money going towards government penalties.
It’s already known that Volkswagen plans to buy back (or fix, at the owner’s request) 2.0-liter diesel models sold from 2009 on. What’s murky is whether the figures quoted by the sources relate to the vehicle buyback or the separate compensation expected to be handed to owners.
If you’ve long since erased the Volkswagen Jetta Hybrid from your memory bank, don’t worry. Buyers forgot about it at the same time, and the automaker is prepared to do the same.
When Volkswagen rolled out a list of changes to its 2017 year vehicles today, the Jetta Hybrid was nowhere to be seen. Instead, the automaker placed a note in its empty chair, reading “Jetta Hybrid no longer available.”
It was an undignified (but not unexpected) end for a very unpopular model — one the automaker doesn’t need weighing it down as it tries to streamline its operations in a bid to save cash.
Let’s hope the cutlery was plastic and the sandwiches didn’t come with toothpicks.
Amid an investigation into the emissions scandal that recently ensnared the company’s ex-CEO and current brand chief, Volkswagen shareholders big and small gathered today to calmly discuss the company’s actions and finances.
By all accounts, the calm didn’t last.
A day after German prosecutors announced an investigation into former Volkswagen CEO Martin Winterkorn, the company’s brand chief was named as the second executive placed under the microscope in their probe of the diesel emissions scandal.
Herbert Diess, the man lured away from BMW last year to oversee the Volkswagen passenger car brand, now gets to enjoy his own investigation, according to Reuters.
The first suspect identified by German prosecutors in their probe of the Volkswagen diesel emissions scandal is none other than the company’s former CEO.
Martin Winterkorn is under investigation for his role in the “defeat device” deception after the country’s financial watchdog demanded it, according to the New York Times.
Volkswagen Group wants to give its operation a top-to-bottom shakeup, which means ditching the bureaucratic, centralized ways of the past and positioning itself as a lean, nimble player in a rapidly evolving marketplace.
Oh, and there will be tons of electric vehicles. Piles and piles of them.
In its announcement of the TOGETHER – Strategy 2025 plan, the automaker came off sounding more like a tech startup, touting a newfound “entrepreneurial mindset and approach” that will bring the company out of the long shadow of the emissions scandal.
With its expansion dreams fading fast in the rear-view, Volkswagen needs to shrink and streamline its operations in a hurry, meaning unwanted brands could soon be priced to sell in its driveway.
According to Bloomberg, the automaker plans to conduct a wide-ranging strategy and portfolio review, with details of the strategy expected to go public tomorrow. An asset sale could be in the works, and insiders are already hinting at which brands will be dropped.
As the Environmental Protection Agency readied charges against Volkswagen, the automaker’s employees were told to remove evidence related to the diesel emissions scandal, German media reports claim.
The New York Times says several Volkswagen employees told investigators that just before the scandal broke, someone in a “supervisory position” told them indirectly to remove evidence of the emissions-cheating defeat devices installed in millions of diesel vehicles.
Volkswagen can start hauling the first of 800,000 Passat, CC and Eos models off of European streets after a German regulator granted approval to the automaker’s diesel emissions fix.
The Federal Motor Transport Authority (KBA) says there’s nothing wrong with the plan to bring 2.0-liter diesel versions of those models into compliance with pollution laws. No doubt Volkswagen execs are happy to cross off another thing off their “to do” list.
If you want the best chances of being treated right as a new car buyer, head over to a Toyota or Mercedes-Benz dealer, a new report says.
Temkin Group, a customer experience research and consulting firm, ranked 294 companies, including 20 auto dealers, based on satisfaction surveys from 10,000 Americans. While Toyota took the top spot with a 66 percent rating, the report holds bad news for many automakers, and the industry as a whole.
If there was ever a hermetically sealed time capsule of a car, this is it. And we can thank an old, religious Italian man who hated driving for keeping it so fresh.
A beyond pristine 1974 Volkswagen Beetle, once a common sight on roadways everywhere, just sold at Silverstone Auctions in Denmark for a price that would make an original buyer choke on their Tab. Did they get a good deal? It depends on how much value you put on “perfect.”
America — would you buy a modern Škoda?
According to AutoGuide, Škoda submitted four separate trademark applications for “Skoda Superb”, “Superb”, “Octavia”, and “Yeti” with the United States Patent and Trademark Office (USPTO) on May 24 and May 25, 2016. USPTO has yet to publish them for opposition.
While this is nothing new for Škoda (the company has continually filed trademarks in America since the 1920s), it’s worth noting what the company applied to trademark compared to what it usually trademarks.
First-quarter earnings just released by Volkswagen Group show a massive hit to the company’s namesake brand, all thanks to fallout from the diesel emissions scandal.
Profit at Volkswagen passenger cars fell 86 percent to 73 million euros ($81 million), down from 514 million euros last year. That plunge leaves the brand with a nano particle-thin operating margin of 0.3 percent.
Still, the scandal isn’t a killing blow for the company. Why? Investment advisers aren’t lying when they say diversity is key to weathering shocks.
The Volkswagen Beetle’s days are numbered, but at least it will go to its grave with updated looks.
Design changes are coming for the 2017 model, with a host of new trim lines on tap — in Europe, at least. Expect the updated model to be the resurrected nameplate’s last makeover, as production is said to end in late 2018.
Pity poor Volkswagen. It’s constantly accused of doing the wrong thing in the wake of the diesel emissions scandal.
But guess what? There’s reason for it, and here’s yet another example.
TTAC reader Rudy Lukez has waited months to find out what Volkswagen plans to do with his 2014 Jetta Sportwagen TDI. So, when a package from the company showed up in his Highlands Ranch, Colorado mailbox this morning, the repeat Volkswagen owner figured his questions were about to be answered.
Not wanting to be left out of the mobility party, Toyota and Volkswagen recently invested in two ride-sharing companies, becoming the latest automakers to sink cash into the sharing economy.
Toyota invested a rumored $100 million in the ubiquitous ride-sharing company Uber, while Volkswagen, which has to meter out its dough carefully (thanks to a pesky little scandal), dropped $300 million on Uber’s taxi-hailing rival Gett.
Owners of 2.0-liter Volkswagen diesels will have to wait a little longer before learning exactly when their rolling pariahs will leave their driveways.
The automaker is on track to meet a June 21 settlement deadline, a federal judge stated yesterday, but details on the wildly expensive U.S. buyback and compensation program won’t be made public just yet.
Do investors trust Volkswagen to investigate itself and lay the appropriate blame? Not these three groups.
Volkswagen can’t wait for the day when it doesn’t have to spend time and resources dealing with a huge, stressful scandal.
Grey skies will clear up eventually, so the automaker has 250 employees busily crafting its Strategy 2025, a plan designed to carry the company out of its darkest chapter and into future prosperity, Bloomberg reports.
Volkswagen has big, expensive (but not too expensive) things in the works, so say goodbye to the boring, sensible company you thought you knew. At least, that’s the implied message.
The jumps in price from the four-door Volkswagen Golf GTI to the Volkswagen Golf R to the Audi S3, three closely related cars, are not insignificant. Yet in spite of the dollar differences, or perhaps because of the dollar differences, the trio inevitably undergoes the value proposition comparison, as if “value” is the reason 460 buyers per month spend around $40,000 on a Volkswagen hatchback.
I’ve now been privileged to spend a week with each car. Sadly, a Lapiz Blue 2016 Volkswagen Golf R just left my driveway to make room for, as fate would have it, a 2016 Toyota Prius.
And I have no trouble making the case for the Golf R as the fast VeeDub to own.
Norway is gearing up for a legal fight, and its sights are set on a troubled automaker from Germany.
The country’s sovereign wealth fund, built from oil and gas revenues and assorted investments, plans to file a class-action lawsuit targeting Volkswagen over its diesel emissions scandal, Reuters reports.
When a concept car is introduced at a major auto show, it provides a glimpse into the future of an automaker’s next model. Some concepts are really cool. Some are not. Most never make it into production. A few do. The Baja Bug-inspired VW New Beetle Dune Concept was unveiled at the 2000 Los Angeles Auto Show. It was an off-road-ready New Beetle powered by a 2.3-liter VR5 that sent its power to all four wheels via a six-speed manual transmission.
More than a decade later, a similar, but water-downed, Beetle Dune Concept was shown at the 2014 North American International Auto Show. That car was raised two inches, had a 210 horsepower engine, a cool ski rack, but was front wheel drive. That concept car finally made it into production this year with relatively minor changes — but should it have?
Investigators are still probing Volkswagen’s actions in the diesel emissions scandal, but the board that oversees the actions of the company’s top brass isn’t too concerned.
The supervisory board, made up of investor and labor interests, just cleared Volkswagen’s management of any breaches of duty in 2015 in preparation for their annual shareholders meeting, Bloomberg reports.
To say 2015 was an eventful year for Volkswagen is akin to saying Neil Armstrong had fun in the late ’60s. It was so eventful, its CEO took a permanent vacation. Many medicine cabinets in Wolfsburg were likely renovated to handle an influx of new prescriptions.
After agonizing over a fix for its 2.0-liter diesel models, Volkswagen is close to finalizing a plan for vehicles powered by the 3.0-liter TDI V6.
The first fix forced Volkswagen into a wildly expensive buyback-and-fix program for the nearly half million 2.0-liter TDIs sidelined by the diesel emissions scandal, but that won’t be needed for the bigger engines, sources close to the issue tell Bloomberg.
In the 1970s, the Audi 80 was sold in the United States as the Audi Fox. In the following decade, Volkswagen decided to sell the Brazilian-made Volkswagen Gol as a Volkswagen Fox in the United States, presumably using the Fox name because it was so good.
The Fox was cheap and disposable and most were crushed before the end of the 1990s, so this ’88 wagon is an unusual find these days.