It seems that #DieselGate has taken a couple of sudden turns. The first being that Matthias Mueller who is the CEO at Volkswagen is in Washington DC to meet with the EPA:
The meeting comes as the German automaker and U.S. regulators are at an apparent impasse over how to proceed with the expected recall of more than a half million diesel vehicles sold with secret software that illegally turns emissions controls on during government tests, then turns them off on real roads. Mueller has apologized for the scandal, but denies he knew of the scheme.
That sounds serious. So does the fact that there is a rumor that VW is going to buy back some of these dirty diesel cars:
Without citing its sources, Germany’s daily Sueddeutsche Zeitung said the company expected it would have to either refund the purchase price of a fifth of the diesel vehicles affected or offer a new car at a significant discount.
Volkswagen expects that the rest of the vehicles will need major refits, incurring significant costs for parts and a long stay at the garage as parts of the exhaust must be reconstructed and approved, the newspaper reported.
Volkswagen could not be immediately reached for comment.
I guess the lawsuit that was recently filed has had an effect on VW. Basically, it could negotiate a way out of this at a lower dollar amount rather than get sued out of existence. If the company does manage to get a deal done, I suspect that we’ll hear about it very quickly.
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This entry was posted on January 7, 2016 at 2:32 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
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VW CEO In DC While Rumors Of Buy Back Of #DieselGate Cars Persist
It seems that #DieselGate has taken a couple of sudden turns. The first being that Matthias Mueller who is the CEO at Volkswagen is in Washington DC to meet with the EPA:
The meeting comes as the German automaker and U.S. regulators are at an apparent impasse over how to proceed with the expected recall of more than a half million diesel vehicles sold with secret software that illegally turns emissions controls on during government tests, then turns them off on real roads. Mueller has apologized for the scandal, but denies he knew of the scheme.
That sounds serious. So does the fact that there is a rumor that VW is going to buy back some of these dirty diesel cars:
Without citing its sources, Germany’s daily Sueddeutsche Zeitung said the company expected it would have to either refund the purchase price of a fifth of the diesel vehicles affected or offer a new car at a significant discount.
Volkswagen expects that the rest of the vehicles will need major refits, incurring significant costs for parts and a long stay at the garage as parts of the exhaust must be reconstructed and approved, the newspaper reported.
Volkswagen could not be immediately reached for comment.
I guess the lawsuit that was recently filed has had an effect on VW. Basically, it could negotiate a way out of this at a lower dollar amount rather than get sued out of existence. If the company does manage to get a deal done, I suspect that we’ll hear about it very quickly.
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This entry was posted on January 7, 2016 at 2:32 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.