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Volkswagen Is Ordered to Recall Nearly 500,000 Vehicles Over Emissions Software

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So, about 2 O'clock this afternoon I said to myself, "I gotta visit the local VW dealer and see what the climate is like". I drove down to my dealer where I had bought a Jetta TDI in 2010 whcih my son still has as we wait for Model 3. Of course, the salesmen came out to look at my Model S as they always do. These are very nice people at Ventura VW, they always have been. I suggested to the employees I spoke to that the owners of the dealership have been ripped off to an even greater degree than the consumers, the employees fully agreed with me. Think about it...the dealership built a building, supplied service, employees, advertising etc, at huge cost all the while under the assumption VW would supply legal cars.

I asked if they had recent buyers of TDI's asking for their money back. They told me that nobody has made this request. They told me two people came in hoping to get a TDI while they still could. Of course, they could not. But both these customers put down deposits for if/when the TDI would be available again. My guess these customers have not thought it through. Even if they can get a TDI, it likely will not be the nice driving car they test drove.

Years ago, I was a pro mechanic for VW, Audi, Porsche and even Renault, Citroen, and Peugeot. Most here and on other forums are concerned with lower MPG and performance should the software simply be switched on "emissions mode" permanently. I think there is the grave possibility that the TDI could self destruct within 100 miles under such conditions. Should "emissions mode" result in any substantial change in mixture, meaning more lean or more rich, you could be looking at severe head temps or motor oil dilution. Either would destroy the engine rapidly.

Me, I hope VW has to buy my TDI back at full purchase price as at no time had I ever received the car that I had paid my money for. To only refund me $3500 for the diesel option would not suffice.

They way I see it, besides the EPA, Jerry Brown, and the Justice Department on VW's butts, the class action lawsuits will be not just from consumers, but you will have stock holders who lost 20% today and you will actually have the VW dealerships as well.
 
Me, I hope VW has to buy my TDI back at full purchase price as at no time had I ever received the car that I had paid my money for. To only refund me $3500 for the diesel option would not suffice.

Great idea. VW should have to buy back all affected models at full retail value. The punishment of a recall is not enough. VW needs to be severely damaged by such incompetence.
 
IMO good riddens... the demise of 'clean diesel' is one less FUD talking point. Bring on the eGolf.
I test drove a eGolf, I liked it, but after this fiasco, I will never buy another VW. To have trusted VW, bought a TDI at a premium price while the whole time VW knew they were scamming us, well, it feels a bit like being cheated on by a girlfriend.
 
While I fully support the idea that those who made the nefarious decisions be put before a firing squad, there is some hypocrisy around all of this.

Ponder for a moment the full size diesel 4x4 pickups stuck in traffic on the freeway around you, 'commuting' to work. Or the same trucks pulling a huge fifth wheel travel trailer over a mountain pass. How much more fuel do they burn per km than the average Jetta and A3 TDI? How much lower are the emissions standards they have to meet? When was the last time you saw a 'coal roller' pulled over and ticketed, with a tow truck waiting to haul the dirty P.O.S away to impound?

I would love to see stats to compare the emissions per km from a 'legal' pickup and a 'non-compliant' TDI. Given what I see and smell behind a typical domestic diesel pickup, I have a hard time believing the TDI's could be any worse. Don't get me wrong, that certainly doesn't give the TDI a free pass, but it sure makes me wonder why the trucks are allowed to be on the road, spewing what they do.
 
I would love to see stats to compare the emissions per km from a 'legal' pickup and a 'non-compliant' TDI. Given what I see and smell behind a typical domestic diesel pickup, I have a hard time believing the TDI's could be any worse. Don't get me wrong, that certainly doesn't give the TDI a free pass, but it sure makes me wonder why the trucks are allowed to be on the road, spewing what they do.
In the US at least, pick ups are qualified under a different standard because they are designed to be commercial vehicles. Of course plenty of people use it for commuting. However, the idea is that it is not practical to expect vehicles in that size class to be able to meet the same standards as a typical passenger vehicle. If they used a uniform standard, it may either overburden the trucks, be too easy for the passenger vehicles, or both.
 
Uh, no Hyperbole here at all AR...

<rant>
I'll go on the record and state that VW, the company, will be bankrupt within two years. Like I said. This is unprecedented. Drastic actions call for drastic measures. The Governor of California is absolutely dead serious when it comes to climate change, public health, the environment in general, and the future of the planet and all those that happen to occupy it now and in the future. If you think for one minute that this isn't going to be the biggest s**tstorm that ever hit VW, you have a lot to learn about how things work here.

Jerry is somewhat disappointed he didn't make the Oval Office the 3 times he tried. Nothing would make him happier than turning all the resources at his disposal to make an example of these knuckle heads, who apparently have no regard for what their products are doing to the environment. Apologies aren't going to cut it I'm thinking.

</rant>

RT

They are done. Two years. I'll bet all my TSLA stock on it. And I'll also put a little extra money on the December 2016 Chapter 7 call options :wink:

You have absolutely no understanding of what Volkswagen is, if you make such claims. Volkswagen goes bankrupt only if Germany does, and historically, not even then.

Not that it ever would come to that anyway. In the end, if it becomes big enough, it becomes national policy and people larger than Governor of California will intervene.

California, of course, may fine Volkswagen to the high heaven and kick them out even. That, I'm sure, you are more qualified to judge than me.
 
I would love to see stats to compare the emissions per km from a 'legal' pickup and a 'non-compliant' TDI. Given what I see and smell behind a typical domestic diesel pickup, I have a hard time believing the TDI's could be any worse. Don't get me wrong, that certainly doesn't give the TDI a free pass, but it sure makes me wonder why the trucks are allowed to be on the road, spewing what they do.

1. I'm sure they all cheat. VW just didn't pay off the right people.

2. Commercial vehicles are exempt from almost all rules due to the strong lobbying and political payoffs.

3. You can't park a diesel vehicle in an attached garage unless you want your whole house smelling.

4. If your TDI is white, the black on the rear bumper isn't from road dirt.
 
I agree that the 2l TDI is done... possibly all VW diesels... but VW is a HUGE... HUUUUUGE company worth ~$400B (assets not stock value). Worst case they could pay $16B in fines... buy back every effected TDI and still soldier on.

IMO good riddens... the demise of 'clean diesel' is one less FUD talking point. Bring on the eGolf.

Even more important than their assets are Volkswagen's national (and legal) standing in Lower Saxony, Germany - and through Germany's standing in the European Union, the Europe.

I understand it may be hard to fathom from a more private American perspective, but Volkswagen is no ordinary company.

And especially the idea that foreign sanctions could kill it? Preposterous, ridiculous. Not even WWII could kill Volkswagen.
 
No one is going to kill VW, VW is doing that on its own.

California, of course, may fine Volkswagen to the high heaven and kick them out even.
VW is not just VW, it is also audi and porsche. And Skoda and Seat, and Buggati and ...
If everything associated with VW gets banned in California, you think no one else will follow suit just to paint themselves caring and to win next elections?

One can fool small group of people a long time and a big group of people a short time.

Take a look at various other forums, there is an uniform outcry. People abandoning VW like a sinking ship.
What a new CEO needs to do to change such a public image?
Go full on EV. I don't see anything that would help. Hydrogen? No way.
 
No one is going to kill VW, VW is doing that on its own.


VW is not just VW, it is also audi and porsche. And Skoda and Seat, and Buggati and ...
If everything associated with VW gets banned in California, you think no one else will follow suit just to paint themselves caring and to win next elections?

One can fool small group of people a long time and a big group of people a short time.

Take a look at various other forums, there is an uniform outcry. People abandoning VW like a sinking ship.
What a new CEO needs to do to change such a public image?
Go full on EV. I don't see anything that would help. Hydrogen? No way.

Once you have owned a VW, you'll never buy another one, but that doesn't seem to have hurt VW much.

Us: $5 = VW $1B
Us: $50 = VW $16B
Us: $10,000 = VW $100B

Fines in the amounts that they have been imposed upon large companies are barely slaps on the wrist.
 
No one is going to kill VW, VW is doing that on its own.


VW is not just VW, it is also audi and porsche. And Skoda and Seat, and Buggati and ...
If everything associated with VW gets banned in California, you think no one else will follow suit just to paint themselves caring and to win next elections?

One can fool small group of people a long time and a big group of people a short time.

Take a look at various other forums, there is an uniform outcry. People abandoning VW like a sinking ship.
What a new CEO needs to do to change such a public image?
Go full on EV. I don't see anything that would help. Hydrogen? No way.

When I say Volkswagen I speak of all of their brands, of course.

California is quite different from even the rest of the U.S., let alone the rest of the world. And even if Volkswagen were to face serious repercussions in California or even the whole of U.S., the idea that it would be enough to bankrupt them is just silly. And obviously the rest of the world won't automatically follow suit either. Do you think you can win elections in Europe by killing Volkswagen, considering it is a major manufacturer and employer in many EU countries? Let alone win in Germany? Do you have any idea how important that industry is to Germany - and how important Germany is to the EU? Volkswagen is the kind of company laws are made for. Heck, laws are named for.

When you think of Volkswagen, think of it like what would Tesla be, were it owned (and directed) in large part by, say, the state of California (Lower Saxony in the case of Volkswagen), would employ a large part of the population of U.S. and its industry and have a history spanning back to the roots of the existence of the modern United States... you might get a glimpse of what Volkswagen is. And, even then not really, because U.S. does not share the social and political environment that makes Germany and Europe much less privatized so to speak. If some things are too big to die, then certainly Volkswagen would be on that list.

It would take a significant change in German political environment to kill Volkswagen, combined with a market disruption far larger and far more unanticipated than it as hand now. Not saying nothing could do it, certainly world going all EV and Volkswagen refusing to follow suit could do it eventually, but this here, now, today, is not that something. Heck, I am not even seeing any numbers that would threaten Volkswagen's current fiscal viability were it just any company (even with maximum fine and buying back all the U.S. cars, which are unrealistic anyway). And of course, it is not just any company. Volkswagen is covered by its massive assets as well as its political clout.

Now, speculation about effect on stock valuation and Volkswagen's (and their brands') position in the U.S., those are of course quite relevant. This certainly can set back Volkswagen's U.S. aspirations by quite a bit. It will have a material effect on their fiscal results. It will also interesting to see if this results in management changes and wider market repercussions. This is big news, no doubt, as reflected by the stock drop yesterday. But the notions made by some here that 2 liter TDI and Volkswagen are dead... Let's just say those are not of this world.

Tone down the concern a bit to a more realistic level and then we have an interesting and useful conversation, in my opinion.
 
Volkswagen is the kind of company laws are made for
Last time I checked, there was not a law that I must buy VW. That one thing is enough for their sells to plummet allover the world, and go extinct in USA.
Add increased scrutiny in the future that will cause average diesel car prices to increase. Diesel is VW's name of the game for the future.
It is enough to loose 10% of world sells to cause major financial troubles. Without even starting the talk about fines and damages.

Wake up and smell the coffie. The list of problems is long, very long.
 
Last time I checked, there was not a law that I must buy VW. That one thing is enough for their sells to plummet allover the world, and go extinct in USA.
Add increased scrutiny in the future that will cause average diesel car prices to increase. Diesel is VW's name of the game for the future.
It is enough to loose 10% of world sells to cause major financial troubles. Without even starting the talk about fines and damages.

Wake up and smell the coffie. The list of problems is long, very long.

Of course there is no law to buy Volkswagen, like I said certainly a market disruption big enough could kill even Volkswagen. But what I think most here are discussing is the government(s) sanctions killing Volkswagen (or mortally wounding it so the market does the rest) and I don't see that happening for the reasons stated, California is not big enough to do it and there is sufficient political clout in the rest of the world to not want to do it.

As for the market disruption, people stopping buying Volkswagens, I don't see that happening either on a dangerous scale on the account of the TDI case. I agree this is the part that can kill any company, but I don't see it happening here on that scale. In all likelihood, Volkswagen will IMO eat a lot of humble pie and a material fiscal hit, resets some market goals (especially in the U.S.), do some recalls and fixes, and then moves on as usual.

I have no interest in Volkswagen and I am not German. In this case, I think I am merely a realist. Saying that this will kill the 2 liter TDI and Volkswagen, two mainstays of the German automotive industry, is hyperbole in my opinion.
 
California is quite different from even the rest of the U.S., let alone the rest of the world. And even if Volkswagen were to face serious repercussions in California or even the whole of U.S., the idea that it would be enough to bankrupt them is just silly. And obviously the rest of the world won't automatically follow suit either. Do you think you can win elections in Europe by killing Volkswagen, considering it is a major manufacturer and employer in many EU countries? Let alone win in Germany? Do you have any idea how important that industry is to Germany - and how important Germany is to the EU? Volkswagen is the kind of company laws are made for. Heck, laws are named for.

<snip>....

Tone down the concern a bit to a more realistic level and then we have an interesting and useful conversation, in my opinion.

I see your point AR but sometimes a subject becomes so toxic that the politicians will jump to the other side for the sake of, well, politics.

This isn't a just a California or U.S. issue anymore: http://www.bbc.com/news/business-34325005

Volkswagen says 11 million vehicles worldwide are affected by the scandal that has erupted over its rigging of US car emissions tests.
 
I see your point AR but sometimes a subject becomes so toxic that the politicians will jump to the other side for the sake of, well, politics.

This isn't a just a California or U.S. issue anymore: http://www.bbc.com/news/business-34325005

Fair post. I agree with you that this will have global implications on some level - and that political players will certainly try to benefit in many parts of the world, not just U.S.

I'm fairly skeptical that it would have - outside of the U.S. - wings to cause major damage, though. An inquiry here, some fine there, recalls and product changes, certainly actions related to testing and standards, but probably not more.

And I am certain it will not cause mortal damage (globally speaking), either to the 2 liter TDI or to Volkswagen. :)
 
I'm fairly skeptical that it would have - outside of the U.S. - wings to cause major damage, though. An inquiry here, some fine there, recalls and product changes, certainly actions related to testing and standards, but probably not more.

I'd wait and see. France has already called for an EU investigation and VW admits it affects 11mn cars. Should it escalate far enough a fine of $10k per vehicle could reach over $100bn, which would certainly have the potential to end VW as we know it. I doubt it'll go that far, but this story is far from over.
 
From VW press release:

Volkswagen does not tolerate any kind of violation of laws whatsoever. It is and remains the top priority of the Board of Management to win back lost trust and to avert damage to our customers. The Group will inform the public on the further progress of the investigations constantly and transparently.

Meh :)