German Motor Transport Grants Fix on Dirty VW Diesels

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.”

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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One Response to German Motor Transport Grants Fix on Dirty VW Diesels

  1. Volkswagen says:

    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.”

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