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.)
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.
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.
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.
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.
The diesel emissions scandal can’t be blamed for all of Volkswagen’s sales woes.
Today, the automaker announced first-quarter profits fell 86 percent compared to the same time last year, not surprising given its sidelined diesel models, the hit to its reputation, and a hastily cobbled together $18.2 billion scandal fund.
Worldwide sales of Volkswagen passenger cars fell 1.3 percent (year-over-year) this quarter, but the scandal doesn’t tell the whole story. That number would have been in positive territory if select countries weren’t grab-your-money-and-get-out economic disasters.
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.
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.
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.
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