Vw New Beetle on 2040-cars

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Taxpayers wasted $51 million on VW diesel credits

The scope of Volkswagen's diesel emission rules evasion continues to widen with 11 million vehicles now potentially affected around the world, and the company is setting aside over $7 billion to start paying for it all. However, the costs could go even deeper. In a piece that's well worth a read, an analysis by The LA Times finds that the government distributed as much as $51 million in green car subsidies to buyers of these models in 2009 – the first year of the dishonest engine management software. The short-term effects of this scandal on VW are already quite dire. On September 21, the company's stock fell over 20 percent at one point on the German exchange, ended down 17.8 percent that day, and have continued to tank. In addition, the Environmental Protection Agency has forced a stop-sale on 2015 and 2016 diesel models with the 2.0 TDI, and the agency has begun analyzing the 3.0-liter V6 TDI in the Audi A6, A7, A8, Q5, Q7, and Porsche Cayenne to look for similar issues. The Justice Department has also started a criminal investigation, and the automaker has instituted its own external probe, as well. The emissions irregularities were first discovered by researchers at West Virginia University and the International Council on Clean Transportation. The EPA and California Air Resources Board were eventually made aware and launched their own investigations.

Horn, Hackenburg, Hatz to be fired as VW diesel scandal deepens

Volkswagen will sack three more high ranking executives, including the head of its US division, as the company's diesel scandal deepens. Reuters reported Thursday morning that the executives are: Michael Horn, who has led VW's US operations since January 1, 2014; Ulrich Hackenberg, who oversaw Audi's research and development; and Wolfgang Hatz, who was in charge of R&D for Porsche. A VW spokesman wouldn't comment in response to an Autoblog email. The moves come in the wake of longtime VW chief executive Martin Winterkorn stepping down on Wednesday. Volkswagen's board said at the time that it expected more personnel changes to follow. Volkswagen's board is scheduled to meet Friday, and Porsche CEO Matthias Muller has reportedly been named as Winterkorn's successor. The German auto giant was plunged into crisis last Friday when the EPA charged that the company manipulated software in its diesel-powered cars to pass US emissions tests. About 482,000 vehicles in the US are affected, and VW estimates 11 million around the world could have the rigged software. The revelations have prompted outcry from governments and regulatory agencies, and in the US, Volkswagen could face a fine of up to $18 billion. The departure of Horn, Hackenberg, and Hatz is a stunning downfall for three of the company's top and most visible executives. Horn had led US operations for less than two years, taking over from Jonathan Browning, who was well-respected but failed to reach VW's ambitious sales targets. Before overseeing Audi R&D, Hackenberg was hailed as a visionary for work in developing VW's modular architectures, which allow the company to save time and money by building many vehicles off the same chassis. Hatz had led Porsche R&D since 2011 and also was in charge of engines and transmission development for all of Volkswagen. Related Video: News Source: ReutersImage Credit: Getty Images Government/Legal Green Hirings/Firings/Layoffs Audi Porsche Volkswagen Emissions Diesel Vehicles vw diesel scandal vw diesel ulrich hackenberg michael horn wolfgang hatz

Daimler boss says VW scandal dings 'Made in Germany' brand

"Made in X." "A product of X." "From X with pride." Virtually every country on the globe attaches some kind of moniker to the products it sells, and they generally carry a lot of weight. A Swiss-made watch is better than one made in China, and an Italian suit is better than something from Vietnam. For cars, the "Made In" label is a bit trickier, and is certainly open to opinions. That doesn't mean there isn't some nationalistic pride in play. With the Volkswagen diesel emissions scandal, there's real concern among at least one German that Wolfsburg has caused serious damage to the "Made In Germany" label. Daimler-Benz boss Dr. Dieter Zetsche called VW's use of emissions-cheating devices "a blow to our industry." "I think a strength of 'Made in Germany' and of the German auto industry is a perception that these are reliable brands and you can trust them," Zetsche said at a meeting of the Economic Club of Washington, The Detroit News reports. "It's up to us to rebuild that trust because we haven't done anything wrong." Zetsche also took the opportunity to reaffirm that Mercedes-Benz has never and will never use defeat devices in its vehicles. The exec also said he doesn't think the company has lost any sales from VW's cheating.