Archive for Volkswagen

The #DieselGate Scandal Gets Even Worse For Volkswagen

Posted in Commentary with tags on October 15, 2015 by itnerd

The noose is tightening around Volkswagen as German officials have ordered to company to recall vehicles that were rigged with software to evade emissions tests. Here’s what the CBC had to say on that:

German Transport Minister Alexander Dobrindt said the country’s KBA automotive watchdog had ordered Volkswagen to start a mandatory recall of 2.4 million vehicles at the beginning of next year.

The Bild newspaper said the KBA had rejected the idea owners could voluntarily bring in their vehicles.

The KBA has given Volkswagen until the end of the month to come up with a plan for a software fix needed for 2.0 litre vehicles affected by the recall, Dobrindt said.

The carmaker has until the end of November to come up with a technical solution for 1.6 and 1.2 litre vehicles, he added.

That pretty much forces Volkswagen to come up with a fix now rather than sometime early next year which is what they announced that they were going to do. But the story doesn’t end there. It is now being reported that 2016 diesel models have additional software installed that may help them to cheat on emissions:

Volkswagen has disclosed to U.S. regulators that there is additional suspect software in its 2016 diesel models that would potentially help their exhaust systems run cleaner during government tests.

Volkswagen confirmed that the “auxiliary emissions control device” at issue operates differently from the “defeat” device software included in the company’s 2009 to 2015 models disclosed last month. That disclosure triggered the worldwide cheating scandal engulfing the world’s largest automaker.

The newly revealed software makes a pollution control catalyst heat up faster, improving performance of the device that separates smog-causing nitrogen oxide into harmless nitrogen and oxygen gases.

VW spokeswoman Jeannine Minivan said the new issue with the 2016 diesel models, known as an auxiliary emissions control device, was first revealed last week to U.S. Environmental Protection Agency and California regulators.

“This has the function of a warm-up strategy which is subject to approval by the agencies,” Ginivan said. “The agencies are currently evaluating this and Volkswagen is submitting additional information.”

Automakers routinely place auxiliary emissions control devices on cars, though they are required by law to disclose them as part of the process to receive clean emissions certifications required to sell cars in the country.

Well, that’s just delightful. Even if this doesn’t help them to cheat on emissions, it’s likely not going to go over well just because of what has happened to date. If it does help them to cheat on emissions, expect a mushroom cloud to appear over VW HQ due to the bomb that is sure to be dropped on that company.

Volkswagen Trying To Change The Channel On #DieselGate

Posted in Commentary with tags on October 14, 2015 by itnerd

The #DieselGate scandal that’s plagued Volkswagen over the past month will be tough to recover from. But they’re trying to change the channel and Wired Magazine is reporting that they’re doing two things:

  • First, they’ll be revamping their flagship Phaeton vehicles to be all-electric. Haven’t heard of the Phaeton? You won’t be alone. They were only in Canada for a short amount of time and I don’t believe that they were marketed in the US at all. Thus I am not sure how much of an impact that will have in North America. Plus I’m sure that Tesla is not going to lose sleep over this.
  • Second, they’ve announced their intention to install top-of-the-line environmental protection systems in their new diesel cars. In other words they’ll actually do what they’re required by law to do instead of cheating, but vehicle prices will jump significantly.

Their press release is difficult to decipher, given the density of buzzwords and vague promises, but they indicate a greater general focus on hybrids and electric vehicles in the future. My question is, is this enough to save the company or have things gone too far for them to recover?

#Dieselgate Recalls To Begin In January….. And VW Digs Deep To Get You To Buy Their Cars

Posted in Commentary with tags on October 7, 2015 by itnerd

If you have a diesel Voklkswagen and you’ve been waiting for a fix, you’ll have to wait until January. That’s when the company plans to begin recalling the 11 million or so vehicles that need to be addressed. But this is still being planned out as the Toronto Star illustrates:

Volkswagen has said up to 11 million vehicles worldwide across several of its brands contain the diesel engine with the software used to cheat on U.S. emissions tests. CEO Matthias Mueller told the daily Frankfurter Allgemeine Zeitung: “It will hopefully be fewer, but in any case still far too many.”

Asked when the recall will begin, Mueller said in an interview published Wednesday that “care goes before speed.”

“If everything goes as planned, we can start the recall in January,” he said. “All the cars should be in order by the end of 2016.”

Volkswagen Canada said no details are available about when the recalls will begin Canada. “There is still a lot that needs to be done, including figuring out exactly where the issue lies and the best solution to that problem,” VW Canada spokesman Thomas Tetzlaff said Wednesday.

In short, VW will have to figure out if the cars simply need a software update, or will they need additional parts to meet emission standards. And they’ll have to do this for each country that they are in. Sounds like fun. Not.

In the meantime, VW sales in Canada have fallen off a cliff because of #dieselgate. No shock there. To try and get you to buy their vehicles, VW has a incentive package on the table. Until November 2, VW is offering zero-percent financing for 84 months, or big discounts for cash buyers. Of course, with the diesel engine stop-sale order still in place, these deals apply only to the brand’s gasoline-powered models.The full list of offers can be found here, but one wonders what will happen if their sales are still in the tank after November 2nd.

Volkswagen Tells Planet Earth That It Could Recall 11 Million Vehicles Because Of #Dieselgate

Posted in Commentary with tags on September 29, 2015 by itnerd

Volkswagen popped up today to tell the world that it is about to announce a massive recall to address #dieselgate related issues on 11 million cars:

New Chief Executive Matthias Mueller said the German car maker would tell customers in the coming days they would need to have diesel vehicles with illegal software refitted, a move which some analysts have said could cost more than $6.5-billion.

I have to assume that we’re talking about a software update of some sort. But it is possible that there might be hardware involved too. The reason why I think that the latter might be possible is that the software was designed to do whatever was required to meet emission regulations, and that meant cutting horsepower and torque. Thus one has to wonder if Volkswagen can hit emission regulations without giving up horsepower and torque simply by changing the software. But that’s pure speculation on my part. We’ll have to see details of the actual recall when it arrives to see what their plan is.

In the meantime, I will leave you with this witty Tweet via @GregCarrasco:

#Dieselgate Continues To Get Worse…. And Worse…. And Worse

Posted in Commentary with tags on September 28, 2015 by itnerd

Martin Winterkorn who got bounced from being the CEO of Volkswagen because of the ongoing nightmare involving diesel powered cars and cheating on emission tests work up to some really bad news today. German authorities are going to investigate him over this scandal:

The investigation will concentrate on the suspicion of fraud committed through the sale of vehicles with manipulated emissions data, and aims to determine who was responsible, prosecutors in Braunschweig said in a statement.

In the German system, anyone can file a criminal complaint with prosecutors, who are then obliged to examine them and decide whether there is enough evidence to open a formal investigation.

In this case, following the revelations about the rigged tests, prosecutors in Braunschweig, near VW’s headquarters in Wolfsburg, received about a dozen complaints, including one from Volkswagen itself, said spokeswoman Julia Meyer.

Lovely. I hope he has a good lawyer. One wonders how much worse this can get. Oh. It just got worse as the news is out that 2.1 million Audi cars are affected by this:

The Audi models that need to be upgraded to meet emissions regulations include the A1, A3, A4, A5, A6 sedans, the TT roadster and the Q3 and Q5 SUVs with 1.6-liter and 2-liter diesel engines, de Graeve said.

Of the 2.1 million autos, 577,000 are registered in Germany, 847,000 elsewhere in western Europe and 13,000 cars in North America. Audi, which is poised to lose its rank this year as the world’s second-biggest luxury carmaker to Daimler AG’s Mercedes-Benz, sold 1.74 million vehicles in 2014.

This could not have come at a worse time for the Audi brand as they were really starting to make inroads into the North American luxury market. I suspect that this will stall those efforts. Perhaps even kill them.

I wonder what’s next in this story?

Volkswagen Warned About #Dieselgate Like Tricks Years Ago….. And They Have A New CEO

Posted in Commentary with tags on September 27, 2015 by itnerd

This isn’t going to help Volkswagen’s image…. Though I’m not sure at this point what would. The Toronto Star is reporting that Volkswagen was warned about the sort of emissions cheating that they have been accused of doing years ago:

German weekly Bild am Sonntag reported that VW’s internal investigation has found a 2007 letter from parts supplier Bosch warning Volkswagen not to use the software during regular operation.

Separately, the Frankfurter Allgemeine Sonntagszeitung reported that a Volkswagen technician raised concerns about illegal practices in connection with emissions levels in 2011. The weekly also cited VW’s internal investigators.

A spokesman for Volkswagen declined to comment on the reports, saying that as a matter of principle the company wouldn’t comment on what he called “rumours and speculation.”

“Volkswagen is working with all its strength to conduct a thorough and merciless investigation of this matter,” Andreas Lampersbach said in an email.

The magazines in question are well respected ones. Thus I am personally more likely to believe them. But that’s just me.

By the way, they have a new sucker CEO:

Matthias Mueller, head of the Porsche sports-car brand, is to take over as Volkswagen’s chief executive with the unenviable task of repairing the automaker’s battered reputation.

Mueller, 62, had been widely tipped to succeed Martin Winterkorn, who quit on Wednesday after admitting the world’s largest automaker had installed software designed to cheat emissions testing on its diesel vehicles.

Volkswagen’s supervisory board choose Mueller on Friday, turning to an insider who has helped revitalize the Porsche brand.

He’s a braver man than I as I am not sure I would take that job under these circumstances. He’s the one who’s going to have to answer for all of this, plus he’s got the toughest job in the world which is to save VW from this mess. Perhaps he can go to GM CEO Mary Barra for advice? She had just been on the job as CEO for days when the ignition switch fiasco broke. Since them GM seems to be all right for the most part. So I guess there’s hope for VW yet.

It Seems That #DieselGate Is Evolving Quickly

Posted in Commentary with tags on September 25, 2015 by itnerd

The fallout from the Volkswagen diesel scandal appears to be spawning some new developments:

Expect to see more developments on this story because it is far from over. Finally, a quick reminder. If you want a more detailed overview of dieselgate, click here.

Here’s What You Need To Know About #DieselGate

Posted in Commentary with tags on September 24, 2015 by itnerd

I’ve got a fair amount of questions asking about Volkswagen’s diesel nightmare where the company was caught using software to cheat on emissions tests, known on social media as #dieselgate. That’s led to investigations by various nations and the exit of their CEO. That’s made me put together a quick primer on this:

What’s the core issue?: Volkswagen and Audi cars with “clean diesel” engines sold in the United States from the model year 2009 onwards have been found to be in violation of Environmental Protection Agency (EPA) standards for tailpipe emissions. As a result, the company has been ordered to recall about 500,000 of them in the US to fix the issue.

How did Volkswagen cheat?: It’s actually very clever. Programmers working for Volkswagen came up with a software algorithm that used the car’s sensors to monitor the movement of the steering wheel and accelerator pedal. Using that information, the algorithm determined when the vehicle was in a lab being tested for emissions. If that were the case, it would tell the engine and emission systems to do everything possible to minimize the emissions coming from the tailpipe. When this was no longer the case, emissions returned to normal, which was as high as 40 times what it should have been.

Why did Volkswagen feel that it had to cheat?: That’s a tough question to answer. But I suspect it was a combination of things. First they wanted to be the #1 automaker on the planet. Something that they had achieved when this scandal hit. So they might have decided to do whatever was required to get there. Second, sometime around the mid 2000’s, the standards for tailpipe emissions got much more stringent. To meet those standards, anyone who was making a diesel powered car for North America (BMW and Mercedes Benz for example) had to use an additive in the exhaust which was a mixture of roughly 35% urea and 65% de-mineralized water to reduce the amount of nitrogen oxides (NOx) coming from the tailpipe. But this is expensive from a service standpoint as well as being less convenient as these cars would not start if you ran out of this solution or you had problem with the plumbing that delivered the solution to the exhaust. I am guessing that Volkswagen, who was in the process of making their cars more price competitive with the GM’s, Honda’s and Toyota’s of the planet didn’t want to go this route, so they instead cheated.

Why is this an issue in North America versus the rest of the world?: Diesel fuel in North America has one thing that diesel fuel in Europe doesn’t have. Sulfur. This creates loads of NOx that car companies have to deal with if they want to sell a diesel car in North America. Also, In Europe, the focus is on carbon-dioxide emissions; In North America, the emissions standards also focus on NOx. So that puts car companies in the position of having to make cars for two different markets. That’s not a cheap thing to do. The fact that they may sell only a fraction of diesel vehicles in North America compared to what they sell in Europe makes this kind of expensive for a car company.

What penalties are Volkswagen facing?: At the very least, Volkswagen is facing a fine that could be as high as $18 billion dollars from the EPA. But they’re also facing investigations in other countries that could lead to criminal charges and further fines. They are also facing lawsuits in Canada and the United States that could get expensive in a hurry.

Is Volkswagen finished?: They have a very loyal group of owners and that could help them to survive this. But that would assume that their owners still trust them. They will also likely not be getting many new customers anytime soon. They have to also survive the lawsuits, fines, and potential criminal charges. That might be a bigger problem for them. File this one under “to be continued.”

VW CEO Out Because Of #dieselgate

Posted in Commentary with tags on September 23, 2015 by itnerd

Yes Volkswagen’s diesel related problems now have a hashtag. They’re also are without a CEO as Martin Winterkorn resigned on Wednesday. Here’s the details from The Globe And Mail:

“Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation,” Winterkorn said in a statement.

He said he was shocked by events of the past few days, above all that misconduct on such a massive scale was possible at the company.

Okay. The CEO is gone, but that doesn’t solve the core issue which is that Volkswagen cheated on emissions tests and lied to consumers. That’s a massive violation of trust that they’re going to have to recover from. My suggestion is to start with how they’re going to address and make whole the 11 million owners of cars with the diesel engines that fall into this category.

Das Uh Oh! Volkswagen Under Further Scrutiny Because Of Emissions Cheating

Posted in Commentary with tags on September 22, 2015 by itnerd

Things are going from bad to worse for Volkswagen. After getting caught using software to cheat on emissions tests, VW is now facing investigations in various parts of the globe. If that’s not bad enough, VW now says that 11 million cars could be affected. Here’s what the Globe And Mail had to say:

Volkswagen AG said irregularities on diesel-emission readings extend to 11 million vehicles around the world, forcing the German car maker to set aside €6.5-billion ($7.3-billion) in an initial tally of the potential costs.Volkswagen extended its slide after the announcement, falling as much as 30.85 euros and bringing the drop in two days to 37 per cent.

That has wiped out €24-billion in market value, as the probe into rigged air-polution widens. Regulators from Germany, France, South Korea and Italy have vowed to scrutinize the German automaker’s vehicles. To address the growing crisis, the executive committee of the car maker’s supervisory board will meet Wednesday, said people familiar with the matter.

Lovely. To add to this mess. the Environmental Protection Agency in the US will be testing other diesel powered cars to see if they cheated. Now in the US a lot of those cars will be German, so that won’t cast the German car industry in the best light if anything else is found to be nefarious.

Stay tuned to this story as it is likely to develop further.