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Audi Will Reportedly Buy Back 25,000 Vehicles

Reports have surfaced that Audi will buy back 25,000 vehicles that have the 3.0-liter TDI V-6 in the U.S. This buyback would only apply to older models that can’t be brought into exhaust emissions compliance, the German newspaper Der Spiegel reports.

While the initial Volkswagen Group Dieselgate focused on the 2.0-liter TDI four-cylinder, it was discovered that the 3.0-liter TDI V-6 used by the Volkswagen Group also employed this emissions test-cheating software. Audi is currently in talks with U.S. regulators regarding close to 85,000 vehicles equipped with the 3.0-liter TDI V-6, according to a Reuters article. Approximately 25,000 of those vehicles cannot be brought into emissions compliance.

Audi has been facing less-serious-than-Volkswagen litigation in a U.S. District Court regarding the emissions scandal, nicknamed “Dieselgate,” regarding its 2.0-liter TDI four-cylinder and 3.0-liter TDI V-6 engines. In a statement to Automotive News, Audi said:

“We are working hard with U.S. regulators to reach an agreement an approved resolution for affected 3.0-liter V-6 TDI vehicles and thank our customers for their continued patience. The Court has scheduled a status conference for November 3, 2016 to discuss the matter further.”

Way back in April, the Volkswagen Group agreed to buy back some 482,000 vehicles of the approximately 600,000 vehicles with the 2.0-liter TDI four-cylinder engine affected by the emissions scandal. This decision did not include the 90,000 vehicles equipped with VW’s 3.0-liter TDI V-6 engine.

Why the 85,000 and 90,000? Because approximately 85,000 Audis are affected by the recall, and an additional 5,000 VW Touaregs are lumped in there as well.

Here’s my scoop on what it’s going to be like going forward for the VW Group regarding diesels:

I wonder how true the horsepower/torque ratings, fuel economy ratings, etc., are heavily re-evaulated by U.S. regulators and EU regulators – Volkswagen is required to send vehicles to both. In 3-5 years, which is likely when the VW Group will send cars to the EPA and EU, the regulations are going to be much stricter and more heavily enforced than today’s CARB (California Air Resources Board; VW Group has to get all of their vehicles to pass U.S. testing, plus CARB) regulations. VW and Audi will almost certainly try to re-certify their vehicles in the next few years to try and recover their losses.

While the 2.0-liter TDI engine might have gone 40 times over the regulatory maximum, the regulatory maximum in the U.S. is one of the lowest in the world. It’s still low levels of emissions. Yes, it’s disgusting that the VW Group had to do this, but we still don’t know the real reason why. It could have been reliability issues with the engine or cost-cutting measures. Let’s say that the regulatory maximum is 0.0001 parts per million, why don’t we? 40 times over that is still not very much.

West Virginia Tech’s test results found that the Volkswagen vehicles they tested (a Jetta and a Passat) were within carbon monoxide, carbon dioxide, particulate matter, and total hydrocarbon (THC) emissions compliance. In diesel vehicles, carbon monoxide and THC is never really an issue because of it’s nature of combustion. THC is usually found only in cold starts. NOx always has been the primary concern. Any modern diesel vehicle that hasn’t been tuned to “roll coal” have diesel particulate filters, so rolling coal (particulate matter) isn’t much of a concern. This regulation, however, is not separated for diesel-powered and gasoline-powered vehicles, which means that gasoline-powered vehicles will have higher carbon monoxide emissions than diesel-powered vehicles.

European regulators are saying that numerous other diesel vehicles would fail the same tests that the VWs tested went through. The team at West Virginia Tech is currently testing other diesel vehicles, and are combing through massive amounts of data to quantify what the differences are between real-world driving and certification testing. Just because the certification levels may be low does not necessarily mean that the real-world driving will churn out the same results time-after-time. That difference is always going to be there – whether it be with diesel-powered vehicles, electric vehicles, or gasoline-powered vehicles.

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Volkswagen Engineer Pleads Guilty for Involvement in Dieselgate

A VW engineer pleaded guilty today in a federal court in Detroit for his involvement with the automaker’s diesel emissions cheat device. This makes him the first person to face any criminal charges in connection with the emissions scandal.

According to Bloomberg, Volkswagen engineer James Liang is being charged with “conspiracy to commit fraud against U.S. regulators and customers and to violate the Clean Air Act.” He will be sentenced in January, and he could face up to five years in prison. Bloomberg‘s report states that Liang’s guilty plea comes after a year-long investigation by the Justice Department, which has faced tremendous pressure to hold more individuals accountable in high-profile cases, such as this diesel emissions cheating scandal, which has been dubbed “Dieselgate” by the automotive community.

James Liang is a long-time VW employee who reportedly worked on the team that developed the diesel cheat device for the VW Jetta back in 2006. He is also accused of assisting Volkswagen in its attempt to deceive U.S. regulators during their investigation into how the cheat devices worked.

Liang told the judge, “I know VW did not disclose the defeat device to U.S. regulators in order to sell the cars in the U.S. That’s what makes me guilty.”

His plea comes after VW has agreed to pay at least $16.5 billion to settle a whole host of claims. They also face ongoing investigations in Europe where the European Commission is encouraging consumer groups to take legal action against VW.

Here’s my opinion on what’s going on so far:

In addition to fines, if VW executives are to be paid for the responsibility of overseeing the manufacturing and sales of products, then they should be held fully responsible for such gross negligence. They have already been caught not telling the truth numerous times. James Liang is just a scapegoat for VW executives, who use a lot of money, power, and influence to get off squeaky clean.

This scandal comes amid the Takata airbags scandal and the GM ignition switch scandal, among other things. How many people have died from those? Far too many. Millions of people a year die from respiratory ailments, while millions more are diagnosed with asthma. How many asthma attacks have been triggered by Volkswagen’s emissions cheat device?

Liang is essentially saying “I would have gotten away with it, if it weren’t for those meddling kids!” The judge and attorneys were soon seen peeling out in a green van marked “Mystery Machine.”

In my eyes, it should be former VW chairman, Martin Winterkorn, who should be dragged off to prison. James Liang was following orders given to him by greedy pricks on the other side of the Atlantic. He was ultimately the one who gave the emissions cheating project a green light, but he’s got enough money and influence in the European Commission to stay out of court. Winterkorn must surrender his golden parachute and his gigantic pension, and serve the rest of his life in a federal prison for the crimes he and Volkswagen committed against governments and consumers.

I’m wondering how much VW is going to pay Liang’s family in exchange for his agreeing to fall on the sword for the emperor. It certainly isn’t out of the realm of possibility.

It seems that VW was on top of the world, and now their empire is going to slowly come crashing down on their heads. It was a wicked and wild wind (filled with the emissions their cars spewed out) that opened the doors that has brought down the end of an era. It’s only a matter of time before VW is forced to sell off their many assets – they own Porsche, Audi, Lamborghini, and other automakers. They’re a true giant in the world’s automotive market, but it’s only a matter of time before they’re a shell of what they once were.

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Why Porsche Placed a Bet on Front-Engine Sports Cars

When you hear the word “Porsche,” what car do you think of? Of course it’s the 911. However, Porsche owes much more credit than it is given for the front-engine 944 and 928. Why’s that?

In the mid-1970s, Porsche executives were imagining a vastly different future for Porsche than where it is now. The rear-engine 911, was in their eyes, a flawed and rapidly aging design. They started developing two front-engine cars to replace it. What were those cars? the 924 and the 928. My grandfather owned a 924 at one point, but that’s a story I won’t tell now. Anyways, back to the point. We all know that the future those Porsche executives had planned out didn’t happen. The 911 still remains in production, and is a true masterpiece of automotive engineering and design. However, the 924 and 928 played a vital role in Porsche’s storied history.

The front-engine cars, especially the 944 , were the knight in shining armor for Porsche in the 1980s. They certainly stumbled with the slow, VW-derived 924, but they had a truly runaway success with the 944, which was what kept the 911 in production. In my eyes, it was unfortunate that the big, V8-powered 928 never really caught on with Porsche’s intended audience, but it has gained somewhat of a cult following in the past 15 years or so.

While the 928, and 944 are dearly departed, their spirit lives on, albeit in a different form. The 718 Boxster/Cayman occupy the same space that the 944 did. One can make the case that the 928 was reborn as the Panamera.

What about the 924? While it’s popular for budget track day enthusiasts, it never became as popular as the 928 and 944. Even though it had a VW engine, Porsche was in charge of developing the head for the engine. They played around with a 16-valve head, which meant it had four valves per cylinder (two intake, two exhaust), a turbocharger (which made the 924 quite formidable on a windy road), among other things.

This is a 1976 Porsche 924. You can definitely see the VW design in it, right?
This is a 1976 Porsche 924. You can definitely see the VW design in it, right?
The Porsche 944 was just a 924 with a bigger engine and better suspension. It was aimed at cash-rich, young professionals who wanted a nice sports car. It sold in droves.
The Porsche 944 was just a 924 with a bigger engine and better suspension. It was aimed at cash-rich, young professionals who wanted a nice sports car. It sold in droves.
This is a 1991 Porsche 928 GTS. It had a V8, lots of power, and I think, might have been the ultimate iteration of the front-engine Porsche sports cars born in the mid-1970s.
This is a 1991 Porsche 928 GTS. It had a V8, lots of power, and I think, might have been the ultimate iteration of the front-engine Porsche sports cars born in the mid-1970s.
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VW Refuses to Offer Dieselgate Compensation Program in Europe

Volkswagen agreed to a hugely expensive compensation plan for their TDI diesel car owners here in the U.S., but it looks like that compensation plan won’t be making it across the pond.

According to Reuters, VW CEO Matthias Mueller recently told a German newspaper that they can’t easily afford a similar payout plan for European owners. “You don’t have to be a mathematician to realize that compensation at arbitrarily high levels would overwhelm Volkswagen.”

That’s a massive problem for VW, but they do have something to use in their defense – European emissions regulations are much more relaxed than the laws in the U.S. “In the U.S. the [emission] limits are stricter, which makes the fix more complicated. And taking part in the buyback is voluntary [for customers], which is note the case in Germany, for example,” Mueller said.

Even though there might be different emissions regulations, the Industry Commissioner of Europe, Elzbieta Bienkowska, has told VW to drain their coffers and pay European owners, saying it would be unfair to treat them differently than U.S. customers.

VW has already set aside at least $10 billion to settle it’s so-called “Dieselgate” scandal Stateside. Owners can choose to have their TDI vehicles repaired, or sell them back to VW. Most owners will receive anywhere from $5,000 to $10,000 as compensation. VW has agreed to put $2.7 billion into an environmental trust to offset their excess diesel emissions, and they will also invest $2 billion to bolster the United States’ EV (electric vehicle) charging infrastructure and promote other clean vehicle programs.

What’s my two cents on VW’s refusal? I certainly see their point, and I get that they want to save money. However, they are a gigantic market player in Europe, and are gaining traction here in the U.S. But, owner satisfaction should always come first, and treating European owners differently just because European emissions laws aren’t as stringent as U.S. emissions laws is straight-up foolish. If they want to lose customers, owners, and more importantly, their reputation, then going forward with this plan is a great idea. In the light of Brexit, the European Union is going to go through massive economic changes in the months to come, and to me, it seems like Bienkowska won’t back down from her position on forcing VW to pay European owners as well. VW is already facing massive scrutiny and pressure from both the U.S. government, as well as U.S. owners. It should come as no surprise that the European Union is going to come after them as well. It’s only going to be a matter of time before European owners jump on this bandwagon also.

2015 Volkswagen Jetta TDI