Germany’s Federal Motor Transport Authority, aka KBA, has approved a software upgrade for dirty diesels in Volkswagen Passat, CC and Eos models with the so-called 2.0l TDI EA 189 engines. Such an inexpensive fix is not possible in the U.S. where emissions standards are much tighter, and regulatory authorities – it could be argued – are not in the pocket of auto companies and major suppliers.
More than 800,000 vehicles are affected here dirty diesels will be recalled. Owners will receive letters from Volkswagen – unspecified under the deal – and then they can then arrange a service appointment.
Volkswagen Group set a breathtaking loss of -$4.6 billion (-€4.1B) during 2015 because of this ongoing – and ever more expensive – diesel emissions cheating scandal. The lawbreaking company based in Germany took a charge of $18.9 billion (€16.9B, with €16.2B solely for diesel cheating) for the year.
U.S. Situation More Dire
Here’s where we are in the U.S., according to VW:
“Volkswagen’s complex negotiations with a large number of parties in the United States (including private plaintiffs and multiple U.S. regulators, including the Environmental Protection Agency (EPA), the California Air Resources Board (CARB), the Federal Trade Commission (FTC), the Attorneys General of each of the 50 states, and, in particular, the U.S. Department of Justice (DOJ) have entered a decisive phase sooner than anticipated and require Volkswagen to maintain the highest degree of confidentiality. The extensive and confidential nature of these negotiations and Volkswagen’s cooperation with the Department of Justice restrict Volkswagen´s ability to comment further on necessarily tentative results of the continuing investigation.”
In the U.S. where a pending resolution for owners of illegal VW cars with dirty diesels is sealed under court order, the company said: “Volkswagen is committed to earning back the trust of its customers, dealers, regulators and the American public. These agreements in principle are an important step on the road to making things right. As noted today in court, customers in the United States do not need to take any action at this time.”
The official German response to this complicated tangle of “cover your butt” legalese is following, but beware that this a multi-aspect “plea bargain” – details unknown -that could fall apart with severe judicial – multiple criminal and /or civil actions – with consequently enormous negative financial implications. Moreover, the deals are also sure to be controversial, possibly subject to further litigation and liabilities.
Herewith the VW lawyer language: “In connection with the diesel issue, Volkswagen AG confirms that an agreement in principle with the Department of Justice (Environmental Division), the Environment Protection Agency (EPA), and the California Air Resources Board (CARB), with the full involvement of the Federal Trade Commission (FTC), has been reached in the United States,” VW Group said. “This agreement in principle will be incorporated into binding consent decrees by the Department of Justice and the FTC in the coming weeks.
“Furthermore, Volkswagen has reached an agreement on the basic features of a settlement with the class action plaintiffs in the lawsuit in San Francisco. This agreement will be incorporated into a comprehensive settlement in the coming weeks… he arrangements in the making in the United States will have no legal bearing on proceedings outside of the United States.”
VW Statement on Fixing Another One Million Dirty Diesels in Germany:
“The recall process has also begun at Audi. The KBA’s go-ahead has been received for a series of A4, A5, A6 and Q5 vehicles with EA 189 2.0-litre TDI engines. For the SEAT Exeo with the same engine model the modification work is also already underway as planned.” …
“Precisely how the technical solutions are being carried out within the EU and in the rest of the world (outside of the USA and Canada)is dependent on the official stipulations in each individual country. In Germany customers are being informed in a two-stage process:all affected holders have so far been notified in a first letter that their vehicle is affected by the recall. As soon as the technical solution for any group of vehicles has been approved by the KBA, the customers are being asked in a second letter to make an appointment with a partner business of their choice.The modification of the complete vehicle group is being done in various stages in order to ensure that the service process runs smoothly.”