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VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

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  • VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

    VW has admitted to rigging emissions tests on its diesel engine cars, has halted production and sales in the U.S. Could be fined up to $18 billion. In contrast, GM refused to fix their faulty ignition switches for 13 years, resulting in the deaths of 124 people, resulting in a fine of $900. In addition, GM got bailed out at taxpayer expense. Good thing we have our priorities straight.

    VW Is Said to Cheat on Diesel Emissions; U.S. to Order Big Recall

    By CORAL DAVENPORT and JACK EWINGSEPT. 18, 2015

    WASHINGTON — The Obama administration on Friday directed Volkswagen to recall nearly a half-million cars, saying the automaker illegally installed software in its diesel-power cars to evade standards for reducing smog.

    The Environmental Protection Agency accused the German automaker of using software to detect when the car is undergoing its periodic state emissions testing. Only during such tests are the cars’ full emissions control systems turned on. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A. said.

    “We expected better from Volkswagen,” said Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance. She called the automaker’s actions “a threat to public health.”

    Agency officials issued the car company a notice of violation and said it had admitted to the use of a so-called defeat device. The recall involves 4-cylinder Volkswagen and Audi vehicles from model years 2009-15.

    A spokeswoman for Volkswagen confirmed that the company had received the notice and said the automaker was cooperating with the investigation. She declined to comment further on the case.

    The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The pollutants are linked to a range of health problems, including asthma attacks, other respiratory diseases and premature death.

    Experts in automotive technology said that disengaging the pollution controls on a diesel-fueled car can yield better performance, including increased torque and acceleration.

    “When the pollution controls are functioning on these vehicles, there’s a trade-off between performance and emissions,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research group. “This is cutting corners.”

    It was Mr. Kodjak’s group, in conducting research on diesel vehicles, that first noticed the discrepancy between Volkswagen’s emissions in testing laboratories and on the road. They brought the issue to the attention of the E.P.A., which conducted further tests on the cars, and ultimately discovered the use of the defeat device software.

    California has issued a separate notice of violation to the company. California, the E.P.A. and the Justice Department are working together on an investigation of the allegations.

    Over the next year, E.P.A. officials said, owners of the affected vehicles should expect to receive recall notices from the company, including information about how to get their cars repaired at no cost to them.

    The recall covers roughly 482,000 diesel passenger cars sold in the United States since 2009.

    Affected diesel models include the 2009-15 Volkswagen Jetta, 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat and 2009-15 Audi A3.

    Friday’s notice of violation was the Obama administration’s “opening salvo” in the Volkswagen case, said Thomas Reynolds, an E.P.A. spokesman. The Justice Department’s investigation could ultimately result in fines or penalties for the company. Under the terms of the Clean Air Act, the Justice Department could impose fines of as much as $37,500 for each recalled vehicle, for a possible total penalty of as much as $18 billion.

    Be kinder than necessary because everyone you meet is fighting some kind of battle.

  • #2
    Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

    verx fer me - was it last year they were offering jettas fer 10k orso - or the year b4?
    esp since #2 is now back where it should be (10% under reg)

    Comment


    • #3
      Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

      VW scandal: carmaker admits 11m vehicles are involved

      Volkswagen’s emissions scandal has escalated dramatically and left the future of its chief executive hanging in the balance after the world’s second-biggest carmaker admitted that 11m vehicles worldwide have been fitted with a defeat device designed to cheat emissions tests.

      The carmaker revealed the potential financial liabilities for the first time as it put aside €6.5bn (£4.7bn) to deal with the potential costs of the crisis, prompting a further 20% fall in its share price.

      About €25bn has now been wiped off the value of Volkswagen’s shares in the last two days – a third of its stock market value – since the scandal erupted on Friday.

      The company was forced to deny a report in Germany that Martin Winterkorn will leave as chief executive this Friday, to be replaced by Matthias Müller, the chairman of sister company Porsche.

      The VW financial update was issued on Tuesday after its US chief said on Monday night that the company had “totally screwed up” over the emissions scandal. Michael Horn admitted at an event in New York that VW had been dishonest with regulators and the public.

      The number of cars affected is far more than the 482,000 VWs and Audis recalled by the US Environmental Protection Agency (EPA). It is also more cars than VW sells in a year worldwide, reflecting the scale of the crisis.

      While the company denied the report of change at the top, there was a separate intervention by Olaf Lies, a member of VW’s supervisory board and also the economy minister for the state of Lower Saxony. He said there was likely to be management changes at the company as a result of the scandal.

      In a statement, VW said: “Discrepancies relate to vehicles with Type EA 189 engines, involving some 11m vehicles worldwide. A noticeable deviation between bench test results and actual road use was established solely for this type of engine.

      “Volkswagen is working intensely to eliminate these deviations through technical measures. The company is therefore in contact with the relevant authorities and the German Federal Motor Transport Authority.”

      Max Warburton at Bernstein warned it could lead to a collapse in diesel car sales.

      The analyst, who on Sunday called VW the “Lance Armstrong of automakers”, said: “Diesel has been under growing pressure in recent years, as regulators recognise that it is still not as clean as gasoline, despite meeting official tests.

      “The move against VW is going to act as a catalyst to speed up the fall in diesel market share in Europe and halt it in the US.

      “In fact, regulators will now be much more conservative about what they permit and much tougher real world tests may prove either too difficult – or too expensive – for diesel to meet.”

      http://www.theguardian.com/business/2015/sep/22/vw-scandal-escalates-volkswagen-11m-vehicles-involved

      Comment


      • #4
        Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

        Yes, you may recall that as early as late last year i spoke of a "War on Diesel". In the UK we have what we call "Red Diesel", its Diesel with a red dye added to show its not paied any tax. The goverment has sussed that a vast amout of "Bootlegging" is going on & its impossable to police.

        While diesel has its place (truck/tractor) i feel it has NO PLACE in normal cars. I lost cont of the number of BMW 320 d's that have banged their foot down when i been try to make any overtake. While the engines don't produce that much bhp (150-180 ish) they can make 250-300 flbs of torque.

        So even in a high gear at low ish revs they see you coming & can fend you off (unless you got room).

        I can't wait to see a total backlash & hopefully Diesel will get priced out of the game. I see BMW just put a 1500 cc 3 pot turbo engine in the 3 series (318).......that's more like it! )
        Mike

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        • #5
          Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

          Oh Yes, its NOT just going to be VW either............& VW CEO is leaving this week!

          Automotive LIE-BOR !

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          • #6
            Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

            The END for Diesel cars?
            http://www.thenorthernecho.co.uk/fea...d_for_diesel_/
            If VW were at it i doult very much the others were not...........are we going to see a drip, drip. drip from the REST of them?
            Mike

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            • #7
              Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

              Volkswagen scandal could kill off diesel cars

              Car giant's chief executive is under pressure following emissions furore that could spell the end of diesel cars

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              Top four powerful diesels on the market Former Stig Ben Collins says that performance is about engineering, technology and using the right fuel

              Sponsored by Shell



              By Marion Dakers

              7:38PM BST 22 Sep 2015
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              The Volkswagen scandal could spell the end of the diesel engine, experts have predicted, as the fallout from the firm’s falsification of emissions data spread around the world and piled further pressure on its chief executive.


              As Volkswagen admitted that dishonest emission readings could affect 11m vehicles worldwide, analysts said the gulf between increasingly tough environmental standards and the real-world performance of diesel cars could prove too difficult to bridge.


              The investment house Bernstein said the scandal “probably does” signal the end of diesel, after several decades of the European authorities promoting the fuel on the grounds that it produces less carbon dioxide than gasoline.


              More than half of all new cars sold throughout Europe run on diesel engines, making the impact of the rigged nitrogen oxide readings in the US and possibly further afield over the past six years even more stark.


              “The move against VW is going to act as a catalyst to speed up the fall in diesel market share in Europe and halt it in the US,” Bernstein said in a note to clients. “In fact, regulators will now be much more conservative about what they permit and much tougher real world tests may prove either too difficult – or too expensive – for diesel to meet.”


              The analysts also predicted that the revelations that Volkswagen used a prohibited “defeat device” to fudge the numbers on laboratory emissions testing on five US diesel models would lead to changes at the top of the world’s biggest car manufacturer.

              VW’s supervisory board was reportedly gathering on Tuesday night, bringing forward a long-standing appointment to meet on Friday to discuss chief executive Martin Winterkorn’s continued leadership of the firm until 2018, which would keep him in post until he is 71 years old.

              Mr Winterkorn issued a second apology for the firm’s practices on Tuesday alongside the news that the company was setting aside €6.5bn (£4.7bn) to pay for the fallout from the scandal. Under the Clean Air Act, the US Environmental Protection Agency could fine the firm $37,500 for every car that breached standards – meaning the total bill for half a million non-compliant cars could be as high as $18bn.

              “At this point, I don’t have the answers to all the questions,” Mr Winterkorn said. “But we’re in the process of ruthlessly investigating the issue, and to that end everything will be put on the table as fast, thoroughly and transparently as possible.”
              However, the firm brushed aside as “nonsense” reports in the German press that Matthias Müller, the boss of Porsche, had been lined up to replace Mr Winterkorn as chief executive.


              “We have totally screwed up. We must fix the cars to prevent this from ever happening again and we have to make this right. This kind of behaviour is totally inconsistent with our qualities,” said Michael Horn, the head of the company in the US, where the firm made about 6pc of its global sales in the first half of the year.

              Shares in the Frankfurt-listed company plunged a further 20pc on Tuesday, taking its losses for the week so far to 35pc. This represents about €25bn in market value, or the equivalent value of Renault and Peugeot combined. Shares in car firms across Europe followed VW lower.

              “We don’t see any stop to this bloodbath unless there is a change at the head of VW and full cooperation with authorities. Some heads need to roll to get investors buying back VW,” Vincenzo Longo, a strategist for IG Group in Milan, told Bloomberg.

              Authorities around the world are now scrutinising their testing practices to establish the depth of this problem. South Korea pledged to investigate three VW models, while in Britain the transport secretary Patrick McLoughlin joined France in calling for a united European investigation. “We are closely monitoring the situation and have been pushing for action at a European level for more accurate tests that reflect driving on the road,” he said.

              The US Justice Department is said to be launching a criminal investigation led by its environmental and natural resources division.

              According to the Society of Motor Manufacturers and Traders, European tests are carried out in government-appointed facilities and will soon incorporate real-world driving as well as laboratory readings. The US Environmental Protection Agency tends to rely on tests conducted by the manufacturers themselves.

              “Consumers should be reassured that cars sold in the UK must comply with strict European laws. All cars must complete a standard emissions test, which, unlike in the US, is independently witnessed by a government-appointed independent agency,” said the SMMT.

              British factories will produce almost 900,000 diesel engines this year, 85pc of which will be exported. This represents about a quarter of all engine production in the country.

              Comment


              • #8
                Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                The New "Target"
                http://www.autocar.co.uk/car-review/...i-sport-review
                I see, the BMW has LESS power & slighy more torque than my hubble Fiesta 140, which weights 1075Kgs...the BMW weights 1475 Kgs (40% more) yet can match the acceration & is 5 mph faster ? !!!!!!!!!!

                Just wait till 2017 when i replace the Ford with POLO GT 155 bhp, 190 Fbls & & DSG Gears!
                Ho Ho Ho F*ckers!

                Comment


                • #9
                  Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                  In December of 2008 you could have purchased the stock of Ford Motor Company for just $2 per share.
                  Today it is $14

                  There might be an opportunity like that here for Volkswagen shares.

                  Comment


                  • #10
                    Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                    Originally posted by Mega View Post
                    Volkswagen scandal could kill off diesel cars

                    ...
                    More tripe from idiot journalists. It'll stop snowing in Siberia before the diesel cars are killed off.
                    Now that VW has halted new sales (and presumably new TDI model production) for the time being it means the price of good used VW diesels will probably go up.
                    Might be an interesting time to buy a well engineered, well built, economical used VW TDI model if that type of vehicle was under consideration.


                    Comment


                    • #11
                      Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                      Originally posted by GRG55 View Post
                      More tripe from idiot journalists. It'll stop snowing in Siberia before the diesel cars are killed off.
                      Now that VW has halted new sales (and presumably new TDI model production) for the time being it means the price of good used VW diesels will probably go up.
                      Might be an interesting time to buy a well engineered, well built, economical used VW TDI model if that type of vehicle was under consideration.


                      the state where i live has mandatory emissions testing every few years. these cars will be identified and there will be a mandatory retro-fit likely hobbling the engines.

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                      • #12
                        Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                        Originally posted by jk View Post
                        the state where i live has mandatory emissions testing every few years. these cars will be identified and there will be a mandatory retro-fit likely hobbling the engines.
                        After the fines there will be a big class action lawsuit from the owners.

                        Be kinder than necessary because everyone you meet is fighting some kind of battle.

                        Comment


                        • #13
                          Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                          Talk here is this IS the end of Diesel.............lots more to come on this subject.
                          The Euro-greens are all over it..........BIG Polical power!
                          Lots to bash the Germans with.........although it IS proving to be a most useful Decoy away from the Invasion of Europe...

                          Mike

                          Comment


                          • #14
                            Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                            Originally posted by Mega View Post
                            Talk here is this IS the end of Diesel.............lots more to come on this subject.
                            The Euro-greens are all over it..........BIG Polical power!
                            Lots to bash the Germans with.........although it IS proving to be a most useful Decoy away from the Invasion of Europe...

                            Mike
                            You get the gold star for the day.

                            Be kinder than necessary because everyone you meet is fighting some kind of battle.

                            Comment


                            • #15
                              Re: VW Cheats, Halts Sales on Diesels, faces $18 BILLION fine

                              it IS proving to be a most useful Decoy away from the Invasion of Europe...
                              there may be something in the timing, Mike . . .

                              Volkswagen Test Rigging Follows a Long Auto Industry Pattern

                              By DANNY HAKIM and HIROKO TABUCHI




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