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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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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