Those U.S. Volkswagen Diesels Aren't the Easiest Thing to Fix; VW Rounds Up Scandal Bill to $30 Billion

Twenty-seven billion seemed like an odd number, so Volkswagen upped the financial cost of its diesel emissions scandal to an even $30B. Actually, the extra expense comes entirely from the repair of older U.S.-market vehicles, which are proving less easy to fix than anticipated.

Because of this, VW has to rustle up some extra cash. The automaker set aside $26.7 billion to put the scandal behind it, and this latest price jump has the company pole vaulting over that marker.

This isn’t the only new grief facing VW, however. German media and The New York Times are reporting the arrest of the highest-ranking official so far — VW Group’s former powertrain chief.

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Suspended Top Audi Engineer Quits After 30 Years With German Automaker

Ulrich Hackenberg, who was Audi’s chief engineer and among the first to be rumored to catch heat for Volkswagen’s diesel scandal, resigned Thursday according to the automaker.

Audi’s new chairman of its supervisory board, Matthias Müller, said Hackenberg was responsible for implementing designs such as the automaker’s current MQB global architecture and cars such as the A3, A4, A6, A8 and TT.

“Above all, the modular toolkit system is inseparably connected with the name of Ulrich Hackenberg. He had that idea already in the early nineties at Audi. Today, the entire Group profits from it,” Müller said in a statement.

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Report: Volkswagen Lobbied for More Tax Credits for Diesels

Volkswagen lobbied hard in 2011 to receive the same — or higher — clean vehicle credits as electric cars, the New York Times reported Wednesday.

“They wanted a special deal for diesel cars that we now know weren’t even meeting the standard,” Margo Oge, a former director of the E.P.A. Office of Transportation and Air Quality, told the New York Times.

The LA Times reported that roughly $51 million in credits was paid by taxpayers in 2009 for diesel cars that lied about mileage and emissions — essentially a cheap bar trick.

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  • Alan As the established auto manufacturers become better at producing EVs I think Tesla will lay off more workers.In 2019 Tesla held 81% of the US EV market. 2023 it has dwindled to 54% of the US market. If this trend continues Tesla will definitely downsize more.There is one thing that the established auto manufacturers do better than Tesla. That is generate new models. Tesla seems unable to refresh its lineup quick enough against competition. Sort of like why did Sears go broke? Sears was the mail order king, one would think it would of been easier to transition to online sales. Sears couldn't adapt to on line shopping competitively, so Amazon killed it.
  • Alan I wonder if China has Great Wall condos?
  • Alan This is one Toyota that I thought was attractive and stylish since I was a teenager. I don't like how the muffler is positioned.
  • ToolGuy The only way this makes sense to me (still looking) is if it is tied to the realization that they have a capital issue (cash crunch) which is getting in the way of their plans.
  • Jeff I do think this is a good thing. Teaching salespeople how to interact with the customer and teaching them some of the features and technical stuff of the vehicles is important.