Daimler Takes a Billion-dollar Hit for Diesel Violations

There’s a whiff of diesel in the air this morning, as all the news out of Europe seems to stem from compression-ignition trickery by German automakers. Hot on the heels of the indictment of Volkswagen boss Herbert Diess and his company’s chairman, Daimler finds itself on the hook for nearly $1 billion in fines in the same country.

The penalty comes by way of Germany prosecutors who claim some 684,000 Mercedes-Benz vehicles came equipped with rigged exhaust gas after-treatment systems.

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Ghosn, Nissan Fined $16 Million by SEC

On Monday, the Securities and Exchange Commission announced that Nissan and its former chairman, Carlos Ghosn, are on the hook for $16 million in fines. The SEC alleges that the automaker failed to disclose millions of dollars in compensation that the former Renault-Nissan-Mitsubishi Alliance chairman was due to receive via a 2004 board decision that allowed him to decide the compensation of high-ranking executives — including himself.

Reports from Bloomberg stipulate that Ghosn and subordinates managed to withhold over $90 million in compensation from shareholders since 2009, with the ousted CEO attempting to put another $50 million away for his retirement allowance.

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Audi Still Under Threat of New Dieselgate Fines

Dieselgate never dies. Germany’s Federal Motor Transport Authority (Kraftfahrt-Bundesamt) has informed Audi that it will be subjected to additional fines if it fails to meet upcoming deadlines for retrofitting manipulated diesel models with updated software.

Reports from Bild am Sonntag, later confirmed by Reuters, claim the regulatory authority issued three letters to the automaker stipulating that it had until September 26th to replace the software in emissions-cheating V6 and V8 TDI engines (originally certified as EU6 compliant) lest it be fined 25,000 euros (about $27,500) per vehicle. While fines are only applicable to cars still carrying illicit software, the transport ministry estimated some 127,000 Audi vehicles qualified in Europe last year. There were originally around 850,000.

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Wells Fargo Settles for $386 Million in Auto Insurance Suit

Wells Fargo will reportedly pay customers a minimum of $386 million to settle class-action claims that the bank covertly signed customers up for auto insurance they did not want or need.

Back in the summer of 2017, the bank found itself implicated in widespread auto insurance and mortgage lending abuses. Over a year later, Wells Fargo was slapped with a $1 billion fine from the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency to settle U.S. investigations into the company’s insurance and mortgage practices.

While the auto insurance plan ended in 2016, roughly 800,000 customers (or 600k by Wells Fargo’s estimates) were believed to be affected by the auto insurance issue over roughly a four-year period. For most, that meant being overcharged for insurance they didn’t need., but some customers ended up with their vehicles repossessed and their credit rating demolished, promoting the class-action suit.

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New Lawsuit Alleges Wells Fargo Execs Knew About Auto Insurance Scam for Years

Roughly a year ago, Wells Fargo got itself into hot water over shady business practices relating to widespread auto insurance and mortgage lending abuse. After a lengthy investigation, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency eventually suggested Well Fargo pay $1 billion to “resolve” the governmental probes. President Donald Trump then said federal agencies needed to go after the bank hard to set an example. The agencies came back with a consent order saying it was time to pay up.

Despite the insurance issue affecting an estimated 800,000 customers over a four-year period, Wells Fargo seemed able to recover from the scandal and move past it. However, new allegations claim the bank’s leadership was aware customers were probably being overcharged several years before it finally cancelled the program.

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Appeals Court Says Trump Cannot Delay CAFE Penalties

During the Trump administration’s year-long quest to roll back Corporate Average Fuel Economy (CAFE) targets, it attempted to give automakers in violation of the current standards a break by delaying the scheduled increase of penalties. The logic here is that the federal government is reassessing the Obama era standards, so it lumped in the new fines that were supposed to go into effect last July.

Those penalties represent an increase of $8.50 for every tenth of a mile per gallon a new car consumes above the minimum fuel standard. But with the new targets in quasi limbo, the updated fines were not being applied.

On Monday, a federal appeals court ruled the Department of Transportation cannot do that. Since the old rules are technically still in effect, the court ruled that automakers are still subject to the fine.

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Wells Fargo Fined $1 Billion For Auto Insurance Scandal, Mortgage Misdeeds

Wells Fargo is getting slammed with all kinds of penalties over shady business practices. Currently prohibited from growing its business as investigators look into its practices, the bank has restructured itself after it was implicated in widespread auto insurance and mortgage lending abuse in the summer of 2017. It’s also still coping with an earlier scandal involving local branches opening fake accounts for customers.

Last week, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency suggested Well Fargo pay $1 billion to “resolve” the governmental probes into those issues. That changed today when the bureau filed a consent order announcing it was time for the bank to pay up.

The fine applies to the mortgage lending issues, as well as Wells Fargo’s past practice of charging thousands of auto loan customers for insurance they didn’t need and often didn’t even know about. The move caused some borrowers to default on their loans, resulting in their vehicles being repossessed. The consent order mandates that the bank remediate those customers.

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U.S. Pondering a Criminal Fine That Stops Just Short of Killing Volkswagen: Report

How much can we chop away while keeping the body alive?

The U.S. Justice Department’s plans for Volkswagen’s criminal fine is like a horror movie, only with corporate finances playing the role of a writhing human subject.

According to two sources close to the negotiations, the DOJ wants to extract as much monetary lifeblood from the automaker as possible, while keeping the company afloat, Bloomberg reports.

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Volkswagen Hasn't Started the Process to Resume U.S. Diesel Sales; Germany Readies a Big Fine

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.

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Uber Settles Class Action in CA, MA for $100M, Fined By PA for $11.4M

Uber isn’t having the best week.

In two separate legal disputes, Uber will pay out a total of $111.4 million. However, the larger of those two payments — $100 million to settle a class-action suit with drivers — is being considered a win by the ride-sharing company.

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Feds To Fine Fiat Chrysler Automobiles $70M For Under-reporting Death, Injuries

Federal regulators Thursday fined Fiat Chrysler Automobiles $70 million for under-reporting death and injury claims from vehicles as far back as 2003, officials announced in a statement. The fine is related to a September announcement from the automaker to the Transportation Department that the automaker had violated terms of the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act.

The automaker issued a statement saying it would accept the penalty and agree to a consent order that would require FCA to submit crash data from the cars.

“FCA US LLC accepts these penalties and is revising its processes to ensure regulatory compliance. However, FCA US is confident that it identified and addressed all issues that arose during the relevant time period, using alternate data sources,” the company said in a statement.

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Report: Taxpayers Paid $20.7 Million For 'Clunker' Volkswagen Diesels

Justin Hyde at Yahoo Autos has fine, fine reporting that U.S. taxpayers paid more than $20 million in incentives for Volkswagen diesel models under the “Cash for Clunkers” program.

According to the report, 4,599 VW Jetta and Jetta Sportwagen diesel cars qualified for the maximum $4,500 incentive under the program. Those cars were equipped with a 2-liter turbocharged diesel engine that the Environmental Protection Agency said used an illegal defeat device to cheat emissions.

The Yahoo report follows a report by the L.A. Times that shows that more than $51 million was paid to Volkswagen by the U.S. for now-bogus “green” claims.

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This is Why Volkswagen Won't Pay $18 Billion

It’s entirely possible that the Environmental Protection Agency could levy the largest ever civil penalty for Clean Air Act violations against Volkswagen after the automaker lied about emissions from their diesel engines.

In 2014, the government agency fined Hyundai and Kia $100 million for spewing 4.75 million metric tons of greenhouse gases above what they reported for 1.1 million cars.

For Volkswagen, using the EPA’s own penalty worksheet (which is apparently a thing), the fine may be substantially more than that levied against the Korean automakers — about $3.15 billion more.

Here’s how we got that number.

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After the NOx Particulates Settle, Everyone Loses

Volkswagen broke the law.

Scratch that. Volkswagen knowingly went out of their way to break the law, did as much as they could to cover up that fact, and only admitted to wrongdoing when the evidence was so heavy that the German giant couldn’t stand under the weight of its own conspiracy.

Nearly 11 million vehicles worldwide — of which 482,000 made their way to the United States — were fitted with a “defeat device” which used a different engine map when being tested for emissions. That device allowed the Volkswagen TDIs to pass sniffer tests on a dyno, but on-road evaluations by the International Council on Clean Transportation showed the four-cylinder diesels were emitting up to 40 times the allowable nitrogen oxides in the real world.

A few things are going to happen. None of it will be pretty. Nobody is going to walk away from this without oily blowback on their faces.

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Volkswagen Facing Criminal Charges in Emissions Probe

The investigation that Volkswagen installed illegal “defeat devices” on its cars to cheat emissions tests will reach the U.S. Department of Justice, Bloomberg (via Automotive News) reported.

Sources within the department said they would investigate the automaker, but no details were given.

The Justice Department recently suspended prosecution of General Motors for covering up a faulty ignition switch that was linked to 124 deaths. It’s unclear what, if any charges, could be brought against Volkswagen for the illegal emissions, however the Justice Department charged GM with wire fraud violations in conjunction with its ignition switch coverup.

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  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
  • Lorenzo At my age, excitement is dangerous. one thing to note: the older models being displayed are more stylish than their current versions, and the old Subaru Forester looks more utilitarian than the current version. I thought the annual model change was dead.
  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.