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

Why Europe Should Be Worried About the Runaway Success of the Ford Mustang

The 2016 Ford Mustang is a great car, especially in the supercar-slaying GT350/GT350R form. It’s relatively fast, affordable, and can be easily modified. It turns out that the Yankee muscle car is now the most popular sports car in Germany. Why should they be worried?

In March, the Ford Mustang outsold the Porsche 911, Porsche Cayman and Boxster, and the Audi TT. It’s not that it’s inexpensive in Germany – a Mustang GT with no options costs about 50,000 Euros, while it costs $32,395 here in the U.S.

The Internet loves to trash talk the typical Mustang owner. A spike in high-profile crashes at car club meets doesn’t help with the Mustang’s PR either.

One of the problems that I have found about the Mustang is that the 1979 “Fox body” Mustang and it’s immediate successors were immensely popular and somehow durable. What does that mean? There’s a ton of them around, and used Mustangs are cheap horsepower. In 1979, there was a Dodge Challenger, which was a re-badged Mitsubishi Galant Coupe intended for the Japanese domestic market. The Challenger/Galant had a lifespan of five years at most, so it’s safe to say that your microwave has some Mitsubishi DNA in it!

Because the Mustang is so inexpensive, various misconceptions about the Mustang are out there. There’s nothing like a Porsche 911 or BMW M3 owner looking down on your ragged-looking Mustang GT with a set of Bilstein coilover shocks on it. Those owners have nothing better to do than look down at the lowly Mustang owner. Show up to a track day in a brand-new Mustang GT, and you’ll hear this kind of trash talk: the Mustang is heavy, it wallows, it doesn’t turn or stop very well, the rear end is uncontrollable, and you’re going to end up taking somebody else out when you spin. None of that is really true.

While the Mustang isn’t exactly light, the GT350R comes within 100 pounds of the BMW M4, a direct competitor to the GT350R. The steering in the GT350R is, according to pro race car drivers, worlds better than the M4. Don’t like the way it stops, even with the available massive Brembo brakes? That’s OK; the aftermarket will give you brakes that are IMSA (endurance racing) spec for less than half the cost of a single Porsche 911 GT3’s brake disc. You can walk into any Ford dealer, walk out with a Mustang in 45 minutes, and have a ton of fun. The GT350 (non-R model) is in a league of it’s own among four-seat performance cars. What about the Mustang being a tail-happy crash magnet? Well, the previous generation is notorious for that. It has a live rear axle, which wouldn’t be out of place on a Conestoga wagon, and couple that with 400+ horsepower, a driver who doesn’t know how to handle that much horsepower, and you know where I’m going. It’s mostly due to user error that there are so many Mustangs crashing. There have been a good deal of BMW M4 crashes as well. Trust me, it’s the same thing with Porsches.

If you haven’t driven a Mustang in a while, or your opinions are based on the old Mustangs with the live rear axle, I strongly encourage you to go down to the local Ford dealer and take a Mustang for a test drive. Any Mustang will do. Your expectations will be shattered.

Inside the Mustang, you’ll be pleasantly surprised. The fit and finish holds up against whatever Germany and Japan have to offer. The interior is both classic and modern. The seats hold you in a bear hug, but are incredibly comfortable for any person. The infotainment systems are easy-to-use, and you’ll never really want more out of them. You’ll get plenty of feedback from the steering wheel, and all of the controls feel like Ford pulled them out of an Audi.

While the Mustang might be a large car, it feels perfectly comfortable on small back roads. You know exactly where the car is, what it’s doing, and how much gas you can give it. The overall driving experience feels like something Mercedes-Benz and Audi would co-develop. The only real differences between any current Mustang and a BMW 4-Series are the high door sills in the Mustang…and the availability of a manual transmission with every engine!

But, don’t take my word for any of this. I’m just an 18-year-old car enthusiast who does all of his automotive homework. Just ask any German car enthusiast. Clearly there’s something amazing about the Mustang, or there’d be a spike in Audi TT sales. Don’t get me wrong – all of the major automotive magazines have given rave reviews of the TT. It’s just you get a whole lot more car for the money out of the Mustang. Even in it’s home country, the Porsche 911, Cayman, Boxster, or BMW M4 is a rare sight. Why? Because they’re really expensive to buy and maintain. While it’s true that the Porsche 911 GT3RS will leave the Mustang (and most cars) far behind at any race track, the 911 GT3RS is a very rare and expensive sighting.

Of course, most German car enthusiasts will say that this article is a load of garbage. Why? Because the March sales are an “isolated incident.” It’s just inventory availability, rebates, and the same occasional fascination with American novelty that sends so many European tourists to the U.S. to ride rental Harley-Davidson motorcycles along Route 66. But, what if it’s not an isolated incident? What if it’s a perfectly reliable indicator of things to come?

After all, BMW, Mercedes-Benz, and Audi have spent the past 15 years engineering any semblance of character and authentic heritage out of their vehicles. The same industry that introduced so many to wonderful cars like the air-cooled Porsche 911, the Mercedes-Benz 450SEL 6.9, the E39 BMW M5, the Audi Quattro, the E30 BMW M3, the AMG Hammer, and the Porsche 944, has abandoned those wonderful examples for 5000-pound SUVs making gobs of horsepower from high-tech twin-turbocharged engines, put down to the ground through fragile AWD drivetrains, all controlled by hundreds of pounds of self-destructive electronics meant to save them from doing just that.

Let’s imagine that this isn’t just an isolated incident. Maybe the Germans are tired of driving expensive, self-destructive, massive transportation pods. They want something that reminds them of their dad’s AMG Hammer, their grandpa’s Mercedes-Benz 450SEL 6.9, their uncle’s Audi Quattro. They want something different. Something real. The Mustang will continue to sell in droves. Soon, the mighty roar and scream of the Dodge Challenger Hellcat will be heard across the Atlantic on the last unrestricted sections of the Autobahn. Trails once populated by Nissan Patrols and Mercedes-Benz G-Classes will be filled to capacity with Jeep Wrangler Rubicons. You’ll hear the bellowing shriek of the Corvette Z06 at the Nurburgring and the Hockenheimring. What’s that massive hulking truck taking up the tiny country road? Is it really a Ford F-250?

OK, I’m going to start to wrap this up. What does this all mean? No matter what happens, there is a very important lesson to be heard. American automakers got lazy during the late 1970s through the late 1980s. This in turn allowed German automakers to bring us incredible cars. Can you imagine picking a Lincoln Versailles over a BMW 528i, or picking a Cadillac DeVille over a Cosworth-powered Mercedes-Benz 190E 2.3-16 (2.3 is the engine size in liters, 16 is the number of valves)?

If German car enthusiasts are buying a Ford Mustang over a BMW M4 or a Porsche Cayman, that should be a message ringing loud and clear in automotive executive boardrooms all over Europe. The last time something like this happened, it was in 1989 with the Lexus LS400. That sent BMW, Mercedes-Benz, Audi, and Lincoln scrambling back to their drawing boards. In turn, that gave us such gems as the BMW 740i, a wonderful crisp, clean cruiser plagued by electronic maladies, and the Lincoln Town Car, which was a great car held back by the fact that it had a horrific drivetrain. The Lexus LS400 also inspired hideous cars like the early 1990s version of the Mercedes-Benz S-Class, which had so many electrical problems it was a miracle if the door opened.

It seems like it might be America’s turn. The German Big Three put peanut butter on their homework and gave it to their dog. America did the same thing 30 years ago, but they have made massive strides with their cars.

All of this is not to say that the BMW M4, Porsche 911, Cayman, Boxster, and Audi TT are horrible cars. In fact, it’s quite the opposite. They are all incredible performance cars that many of us would love to own, or at least go for a spirited drive in. This is a golden age of automotive performance, and the performance cars put out by various manufacturers (American or otherwise) are fantastic.

 

Some of the Most Amazing American Race Cars

Racing is in America’s blood. We started off racing horses, which is still one of the most profitable forms of betting to this day. We also love boat racing, whether it be sailboats or motor boats. We also love racing planes. It should only seem logical that we decided to race cars when they came out.

Our country has created some of the boldest, most successful and boldest racecars in history. These cars are some of my personal favorites, and they only scratch the surface of America’s storied racing heritage.

  • Chaparral 2E: Chaparral’s 2D was a very successful racing chassis, the 2J earned immortality thanks to it’s snowmobile-engine-driven suction fans. The 2D was better than both combined. It ushered in the aerodynamics era thanks to it’s driver-adjustable rear wing (which was adjusted via a pedal in the cockpit) and it’s side-pod mounted water cooling system. It was pure Texan ingenuity. Every modern race car owes at least something to the Chaparral 2E.chaparral-2e-03
  • 1967 Gurney Eagle-Weslake Mk. 1: Dan Gurney was a true American racing pioneer. This is what I view to be his masterpiece. He also won a Formula 1 race in this car. That’s about as good as it gets, but I still love this car to pieces. The tiny 11,000 RPM V12 and styling that looks like a shark and torpedo are just icing on the cake.gurneyeagleweslakemk1
  • Lotus 56: It’s not just another turbine-powered IndyCar. It was a car that solidified the basic shape of most high-level race cars from 1967 on out. It sent the cigar shape packing. It also had a one-speed automatic and AWD. While turbines and AWD would be banned from future IndyCar seasons, the shape remained and evolved. Even though it’s got a Lotus name and Peter Chapman modifications, it’s still basically an all-American STP-Paxon car.lotus56
  • 2016 Ford GT GTE: There was no doubt in any car or race fan’s mind when this car rained on every other car’s parade at the Detroit Auto Show this year. It’s 3.5-liter EcoBoost V6 has been proven in the TUDOR Championship series, Chip Ganassi Racing has had lots of success racing Fords and is ready for a new challenge, and what might be most important to those automotive fans who like to cook (like me) is the fact that the rear diffuser is big enough to chiffonade an acre of potatoes without trying. The fact that it is dressed up in a very patriotic livery makes it just that much more amazing.fordgtgte
  • Dodge Viper GTS-R Mk. 1: The original Dodge Viper GTS-R immediately proved that a big V10 is an essential asset in endurance racing. On it’s third outing at Le Mans, the SRT Motorsports team took a class win in 1998. Again in 1999 and 2000. You can’t forget the overall wins at the Nurburgring, Daytona, Spa, and the five (yes, five) FIA GT and two ALMS championships. Plus, the fact that it was incredibly intimidating helped.dodgevipergtsrmk1
  • Corvette Racing’s C5.R, C6.R, and C7.R: For 17 years, The Corvette Racing team has put three generations of increasingly amazing Corvette race cars on the track. All have had an “.R” designation, except the first, which was a “-R.” They have proved themselves multiple times. 1999 marked the first year of the C5-R, which snatched three class wins at Le Mans (among many other wins). The C6.R took seven thundering liters of American muscle around the world, and won many races. The C7.R just grabbed the GTE Pro class win at Le Mans, and that was one of it’s first races!corvettec5-rcorvettec6.rcorvettec7.r
  • Panoz LMP-1 and LMP07: Many, many years before Nissan’s GT-R LM caused folks to scratch their heads as to why a front-engine endurance race car is a good idea, Panoz’s LMP-1 Roadster S and it’s less successful sibling LMP07 proved to the world that an endurance racing prototype does not need to carry their engine behind the driver. Neither car was wildly successful, but the LMP-1 certainly got into a few good battles with the BMW V12 LMRs and Ferrari 333 SPs to snag the 1999 ALMS team championship.panozlmp-1panozlmp07
  • Ford 999: Henry Ford should go down in the history books as a stark raving lunatic (for several reasons) because he took the crude, incredibly dangerous 18.9-liter Ford 999 racecar to 92 mph (the equivalent of somebody taking a car to 300 mph today) – a world record – on a frozen lake. The frozen lake was the only place large enough to get the car up to that speed. It made a whopping 80 horsepower, a lot of noise, and had killed a man a year before. It was a brutish, outrageous car that put Ford on the map, even if he became known for utilitarian and economical Model T’s and the now-legendary 1932 Ford.ford999
  • DeltaWing: No other American creation has so upset the normality of what race cars should look like as the Ben Bowlby-designed, Panoz-managed, Gurney’s All-American Racers-built DeltaWing. The car drastically reduced frontal area to reduce drag and fuel consumption. It worked, and even sparked a copycat (the Nissan ZEOD RC), even though it didn’t achieve any incredible success.deltawing
  • Cadillac ATS-V.R: Cadillac attained massive success for ten years with the CTS-V.R in the Pirelli World Championship Series. Now it’s the turn for the ATS-V.R to take the reins. It’s got some big shoes to fill. It’s got a twin-turbocharged 3.6-liter V6 making somewhere around 600 horsepower that sits somewhere between the massive fender flares and the huge extractor hood. Between this car and the Ford GT GTE, it looks like most, if not all, future American race cars will have forced induction engines.cadillacats-v.r
  • Swift 007.i: The year 1997 was a lucky year. The team owned by Paul Newman and Carl Haas stopped running a Lola chassis, and switched to a chassis made by the American company Swift. The car had a Ford Cosworth engine, Goodyear tires, and an all-American driver in Michael Andretti. I should probably mention that it won it’s first-ever race outing. Talk about coming in with style. Oh, and I was born that year.swift007.1
  • Shelby Cobra Daytona Coupe: This is quite possibly one of the most beautiful cars ever made, as well as one of the most successful. Carroll Shelby needed to make the already-successful Cobra 427 faster, but that meant he needed a more aerodynamic body. He brought on legendary designer Peter Brock, who helped design the 1963 Chevrolet Corvette Stingray. Brock designed a flowing, muscular body that still looks like nothing else on the track. The result was a smashing success. The car won the 24 Hours of Daytona, Le Mans, Spa, and countless other races.shelbycobradaytonacoupe
  • Dodge Daytona/Plymouth Superbird: Mopar’s “Winged Warriors” made aero cars illegal in NASCAR. That should be telling as to how good those cars were. They packed quite the punch with their 426 HEMI engines and special aerodynamics packages. NASCAR outlawed aero cars after 1970. Buddy Baker campaigned a Daytona through 1970, and Richard Petty had one of his most dominant years in 1970 with his Superbird. It’s also one of the most iconic race cars ever.dodgedaytonaplymouthsuperbird
  • 1966 Chevrolet Corvette: The 1966 Chevrolet Corvette is one of the best race cars Chevrolet ever had. It had a walloping punch with it’s 427 cubic-inch big block V8, with the code-name L-88. This engine made any car it was in a true monster. It’s still fast enough to show a modern NASCAR stock car how it’s done on a road course. It’s like carving a statue with a hydraulic shovel. 1966chevroletcorvettel88