482,000 VW TDIs Produce 5 to 35Xs the NOx Beyond Federal Emissions Requirements

Discussion in 'Volkswagen' started by priusCpilot, Sep 18, 2015.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Monday, January 4th, 2016 - U.S. EPA Files the Lawsuit against VW

    On January 4th, 2016, the EPA issued the following:

    United States Files Complaint Against Volkswagen, Audi and Porsche for Alleged Clean Air Act Violations

    WASHINGTON – The U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency, today filed a civil complaint in federal court in Detroit, Michigan against Volkswagen AG, Audi AG, Volkswagen Group of America, Inc., Volkswagen Group of America Chattanooga Operations, LLC, Porsche AG, and Porsche Cars North America, Inc. (collectively referred to as Volkswagen). The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution. The complaint further alleges that Volkswagen violated the Clean Air Act by selling, introducing into commerce, or importing into the United States motor vehicles that are designed differently from what Volkswagen had stated in applications for certification to EPA and the California Air Resources Board (CARB).

    Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA:
    Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division:
    CARB Chair Mary D. Nichols:
    Consistent with EPA’s Notices of Violation, issued on September 18, 2015 for 2.0L engines, and November 2, 2015 for certain 3.0L engines, the complaint alleges that the defeat devices cause emissions to exceed EPA’s standards during normal driving conditions. The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution. Motor vehicles equipped with illegal defeat devices cannot be certified.

    The complaint alleges that Volkswagen equipped certain 2.0L vehicles with software that detects when the car is being tested for compliance with EPA emissions standards and turns on full emissions controls only during that testing process. During normal driving situations the effectiveness of the emissions control devices is greatly reduced. This results in cars that meet emissions standards in the laboratory and at the test site, but during normal on-road driving emit oxides of nitrogen (NOx) at levels up to 40 times the EPA compliance level. In total, the complaint covers approximately 499,000 2.0L diesel vehicles sold in the United States since the 2009 model year.

    The complaint further alleges that Volkswagen also equipped certain 3.0L vehicles with software that senses when the vehicle is undergoing federal emissions testing. When the vehicle senses the test procedure, it operates in a “temperature conditioning” mode and meets emissions standards. At all other times, including during normal vehicle operation, the vehicles operate in a “normal mode” that permits NOx emissions of up to nine times the federal standard. In total, the complaint covers approximately 85,000 3.0L diesel vehicles sold in the United States since the 2009 model year.

    NOx pollution contributes to harmful ground-level ozone and fine particulate matter. These pollutants are linked with asthma and other serious respiratory illnesses. Exposure to ozone and particulate matter is also associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants. Recent studies indicate that the direct health effects of NOx are worse than previously understood, including respiratory problems, damage to lung tissue, and premature death.

    Today’s filing of a civil complaint under Sections 204 and 205 of the Clean Air Act seeks injunctive relief and the assessment of civil penalties. A civil complaint does not preclude the government from seeking other legal remedies. The United States will seek to transfer its case and fully participate in the pretrial proceedings now initiated in the related multi-district litigation in the Northern District of California. The United States’ investigation is ongoing, in close coordination with CARB. EPA and CARB have been in active discussion with Volkswagen about potential remedies and recalls to address the noncompliance, and those discussions are ongoing.

    Affected 2.0L diesel models and model years include:
    • Jetta (2009-2015)
    • Jetta Sportwagen (2009-2014)
    • Beetle (2013-2015)
    • Beetle Convertible (2013-2015)
    • Audi A3 (2010-2015)
    • Golf (2010-2015)
    • Golf Sportwagen (2015)
    • Passat (2012-2015)
    Affected 3.0L diesel models and model years include:
    • Volkswagen Touareg (2009-2016)
    • Porsche Cayenne (2013-2016)
    • Audi A6 Quattro (2014-2016)
    • Audi A7 Quattro (2014-2016)
    • Audi A8 (2014 – 2016)
    • Audi A8L (2014-2016)
    • Audi Q5 (2014-2016)
    • Audi Q7 (2009-2015)
    For information about the complaint: UNITED STATES OF AMERICA, Plaintiff v. Volkswagen AG, Audi AG, Volkswagen Group of America, Inc., Volkswagen Group of America Chattanooga Operations, LLC, Dr. Ing. H.c. F. Porsche AG, and Porsche Cars North America, Inc.
     
  2. seftonm

    seftonm Veteran Staff Member

    Oh snap. VW's proposal was rejected.

    http://www.arb.ca.gov/newsrel/newsrelease.php?id=780

    The rejection of VW’s submitted recall plans details the specific areas that are required under California law in order for a recall plan to be formally approved. VW’s recall plan fell short in several areas, including:
    • The proposed plans contain gaps and lack sufficient detail.
    • The descriptions of proposed repairs lack enough information for a technical evaluation; and
    • The proposals do not adequately address overall impacts on vehicle performance, emissions and safety

    This rejection only applies to VW’s diesel 2.0L vehicles, not 3.0L vehicles. The submission of the recall plan for 3.0L vehicles is due to CARB on February 2, 2016.
     
  3. wxman

    wxman Well-Known Member

    What's ironic is that according to the most recent evaluation of marginal damages to public health and the environment, NOx is actually the least damaging per unit mass of any of the other conventional pollutant in California (https://sites.google.com/site/nickmullershomepage/home/ap2-apeep-model-2). In fact, one county (Orange?) gets a net benefit from NOx emissions.

    I know CARB will never give up its obsession with NOx emissions, but it would be easier to just fine VW for the non-conformity and let the offending TDI population decrease through attrition.
     
  4. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    'We Didn't Lie,' Volkswagen CEO Says Of Emissions Scandal

    In a prepared statement, Mueller said of the emissions-cheat scandal, "We all know that we have let down customers, authorities, regulators and the general public here in America, too." He added, "We are — I am — truly sorry for that. And I would like to apologize once again for what went wrong with Volkswagen."

    Following his remarks, Mueller spoke briefly with NPR. He said Volkswagen did not lie to U.S. regulators about emissions problems with its diesel engines but chalked it up to a misunderstanding of U.S. law.

    This was not a good reply and probably ticked off EPA and CARB even more. :(

    Wayne
     
  5. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    To a German , this might seem like a pretty accurate answer. Americans don't necessarily want an accurate answer. They want their ass kissed. That says you're REALLY sorry.

    I hope this gets resolved soon.
     
    xcel likes this.
  6. seftonm

    seftonm Veteran Staff Member

    LOL VW asked for a do-over of the interview. His arrogance in the NPR interview is disappointing.

    NPR: You said this was a technical problem, but the American people feel this is not a technical problem, this is an ethical problem that's deep inside the company. How do you change that perception in the U.S.?

    Matthias Mueller: Frankly spoken, it was a technical problem. We made a default, we had a ... not the right interpretation of the American law. And we had some targets for our technical engineers, and they solved this problem and reached targets with some software solutions which haven't been compatible to the American law. That is the thing. And the other question you mentioned — it was an ethical problem? I cannot understand why you say that.

    NPR: Because Volkswagen, in the U.S., intentionally lied to EPA regulators when they asked them about the problem before it came to light.

    Mueller: We didn't lie. We didn't understand the question first. And then we worked since 2014 to solve the problem. And we did it together and it was a default of VW that it needed such a long time.

    Then in the redo...

    Mueller: I have to apologize for yesterday evening because the situation was a little bit difficult for me to handle in front of all these colleagues of yours and everybody shouting. OK. Thank you very much for coming again and giving me the opportunity to say some words.

    NPR: When we talked yesterday, the key line seemed to be that this was a technical error. Which sounds to us in English, like, "Oops." When it wasn't an oops. It was more than a technical error. It seemed to be intentional.

    Mueller: Yeah, the situation is, first of all we fully accept the violation. There is no doubt about it. Second, we have to apologize on behalf of Volkswagen for that situation we have created in front of customers, in front of dealers and, of course, to the authorities. ...
     
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  7. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Tuesday, January 12, 2016 - Air Resources Board rejects VW 2-liter diesel recall plan and issues Notice of Violation

    Recall plan deemed incomplete; specific violations of California air quality laws detailed

    The California Air Resources Board (CARB) today notified Volkswagen Group of America, Inc. that it is rejecting VW’s submitted recall plan for 2-liter diesel passenger vehicles sold in California between 2009 and 2015. It also notified VW of violations of California air quality regulations associated with the company’s use of a “defeat device” in those cars.

    CARB Chair Mary D. Nichols:
    CARB made public today three separate official documents related to its actions: A transmittal letter signed by Executive Officer Richard W. Corey; the rejection of VW’s submitted recall plan; and the formal Notice of Violation. These documents and a Frequently Asked Questions document are posted here.

    Today’s actions do not preclude a recall, but allow for a broader array of potential remedies. CARB will continue its investigation and technical evaluations with EPA to return the vehicles to legally required emission levels, determine mitigation for past and future environmental harm, and assess penalties.

    Background

    Volkswagen officials admitted the existence of the defeat device to CARB and United States Environmental Protection Agency officials in early September. On September 18, 2015, CARB issued an In-use Compliance Letter to the company listing violations and giving them 45 business days to submit a proposal to recall and repair the affected vehicles. U.S. EPA issued a Notice of Violation to the company on the same day. The defeat devices were installed on VW’s 2.0L diesel vehicles manufactured for model year (MY) 2009 through MY 2015 to circumvent CARB and EPA emission test procedures. This made it possible for VW to obtain Executive Orders from CARB and Certificates of Conformity from EPA for these vehicles so the vehicles could be sold in California. As a result, the certifications were illegally obtained. The consequences of VW’s actions are significant and must be addressed expeditiously.

    Recall Plan Rejection

    The rejection of VW’s submitted recall plans details the specific areas that are required under California law in order for a recall plan to be formally approved. VW’s recall plan fell short in several areas, including:
    • The proposed plans contain gaps and lack sufficient detail.
    • The descriptions of proposed repairs lack enough information for a technical evaluation; and
    • The proposals do not adequately address overall impacts on vehicle performance, emissions and safety
    This rejection only applies to VW’s diesel 2.0L vehicles, not 3.0L vehicles. The submission of the recall plan for 3.0L vehicles is due to CARB on February 2, 2016.

    Notice of Violation

    The NOV details 13 specific violations of California regulations, including failure to comply with the emission standards or test procedures; invalid certification applications; the use of Defeat Devices; the importation, delivery, purchase, acquisition, or receipt of uncertified vehicles; the sale of vehicles that do not meet emission standards; and failure to comply with onboard diagnostic (OBD) system requirements.

    CARB will continue its investigation. The NOV may be supplemented or amended, as needed.

    Environmental Harm

    The defeat devices on VW’s diesel vehicles have caused substantial excess, illegal, and ongoing emissions of nitrogen oxides (NOx) from the vehicles. NOx emissions in California are the most important contributor to ambient ozone and a key contributor to fine particulate matter pollution, which is associated with premature death, increased hospitalizations, emergency room visits due to exacerbation of chronic heart and lung diseases, and other serious health impacts. California is home to both the highest ozone levels (South Coast) and ambient particulate matter levels (San Joaquin Valley) measured in the United States. Twelve million Californians live in communities that exceed the federal ozone and particulate matter ambient air quality standards that were put in place to protect public health. VW must mitigate the harm that these vehicles have already caused and continue to cause.

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  8. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Tuesday, January 12, 2016VW 2.0L TD rejection letter detail

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  9. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Sunday, January 10, 2016

    CEO of the VW Group Matthias Müller:
    The VW Group is firmly standing by its commitment and investment plans in the US.

    Müller also expressed his regret about the events relating to the emissions issue.
    While the technical solutions for Europe are ready and their implementation is to begin this month, Volkswagen is working intensively on solutions for its US customers. Müller emphasized that the Group is in an ongoing constructive dialog with the responsible authorities, namely the United States Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Concepts for solutions would be presented as soon as these are fully approved by the authorities.

    Against the backdrop of the most recent turmoil, the CEO was pleased with the past year's delivery figures. Müller said that 9.93 million cars delivered to customers worldwide was a solid sales performance. In the US, the 2015 delivery figures even rose slightly too around 600,000 vehicles. The CEO expressly thanked customers in the US for their loyalty in this difficult phase.

    For its part, Volkswagen is firmly standing by the plans already announced to expand its business in North America. In addition to the previous investments of more than $1 billion at its plant in Chattanooga, Tennessee, Volkswagen is planning to invest a further $900 million in the production of a new mid-size SUV, which is scheduled to begin by the end of this year. Volkswagen will thus be creating approximately 2,000 new jobs in the US.

    Production of the Audi Q5 in San José, Mexico, will also commence this spring as planned. Porsche Cars North America already opened its new US headquarters and Customer Experience Center in Atlanta, Georgia, last year, with the sports car manufacturer investing $100 million. Another element of the Group's North American strategy is the long version of the new Tiguan, which is slated to roll off the assembly line at the plant in Puebla, Mexico, starting in 2017. However, Müller admitted that
    Ultimately, the new development center in Chattanooga is intended to help accomplish this objective.

    Müller identified the Volkswagen Group's most important task in 2016 as winning back trust. He said this not only involved technical solutions for the vehicles affected by the emissions issue, but also reestablishing credibility, especially by uncovering the full truth of what happened. In addition, Müller reiterated that the Volkswagen Group will undergo fundamental realignment in terms of its structure and culture, as well as its future strategy, which is to be presented in the middle of 2016 and will provide answers to the central challenges facing the industry. The Volkswagen Group's objective is to help shape the future of mobility with courage and determination. This will be assisted by a Group-wide digitalization initiative, among other things. The Group will also roll out a total of 20 more electric vehicles and plug-in hybrids by 2020.

    Summing up, Müller said:
     
  10. priusCpilot

    priusCpilot George

    I wish VW was gone once and for all!!!

    They need to really rape their future customers even more then they have histrionically in order to recoup these losses.

    Lots of planned obsolescence coming to future suckers!

    Im near 80k miles now on my C and other then fluid changes and a set of tires I have done NOTHING!

    I'll report back at 200k and willing to bet it will be the same!
     
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  11. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    I don't think you become the largest automaker in the world by raping your customers. But it's true that North American VW dealerships have a bad reputation. People love the cars enough to tolerate poor dealership service.
     
    xcel likes this.
  12. BillLin

    BillLin PV solar, geothermal HVAC, hybrids and electrics

    Bill wrote: And those reasonably sized tires aren't that expensive either. I hate the trend toward (expensive) wide, low profile tires and bigger wheels.

    // unintentionally merged note //

    priusCpilot wrote: I'm running 22" wheels on my C and nice fat 295/30/22

    HEHE J/K!

    I do have the optional wider 16" though that Toyota made for the C. It was only avalible on Trim 4 as an additional option. 195/I FORGOT/16
     
    Last edited: Feb 7, 2016
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  13. priusCpilot

    priusCpilot George

    VW & Bill Cosby are one in the same. You don't even know you have been raped until years later!
     
    JonNC likes this.
  14. BillLin

    BillLin PV solar, geothermal HVAC, hybrids and electrics

    temporary note (delete at will!)

    The tail end of this thread is looking a bit jumbled (around post #492), wherein the reply number doesn't quite match up and it seems like a couple of responses were merged. (viewed from an older IE, but also with Chrome on Android (marshmallow))

    Thanks,
    Bill

    p.s. I edited "my" note, but priusCpilot's note is marked at the end of the note.
     
    Last edited: Feb 7, 2016
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  15. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Tuesday, February 2, 2016

    Hi All:

    VW’s European emissions control fixes are being implemented. Only after the KBA – German Automotive Regulatory concern – has confirmed the proposed measures are effective, European consumers affected will be contacted and informed about the recall. In a second letter the vehicle owners will be requested to arrange an appointment with a Volkswagen partner. In terms of time, the implementation of the measure will extend across the whole of 2016.


    A software update is planned for the 1.2L, 1.6L and 2.0L EA189 engines. The labor time for this will be less than half an hour. For the 1.6L, a flow rectifier will be fitted in the intake duct with expected labor time, inclusive of software update, of just under 45 minutes.

    The recall has now begun with the 2.0L TDI engine in the Volkswagen Amarok. The installation of this new engine control software means that the Amarok now meets the limits required to comply with the EU5 emissions standard.

    The Passat with the affected 2.0L TDI will be next. Modification of the 1.2L engines affected is scheduled for the end of the second quarter. Completing the recall, the measures for vehicles with a 1.6L engine will be carried out beginning in the third quarter of 2016.

    At the same time the implementation of the technical measures will commence in other European countries in agreement with the responsible authorities and in accordance with the national requirements.

    Wayne
     
    BillLin likes this.
  16. brick

    brick Answers to "that guy."

    I read yesterday that VW has begun to buy-back "certified preowned" LNT-equipped TDIs sitting on US dealer lots. I have to wonder what they'll do with them? And is a consumer buy-back next? This development coming on the heels of delays to the US "fix" isn't encouraging.
     
  17. priusCpilot

    priusCpilot George

    Oh yea what the heck??? My post is mixed with yours??
     
  18. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Bill and George:

    Can you edit in your responses and take out what was not yours? I have no idea which of you said what as there was no merge of posts that I know about?

    Wayne
     
  19. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Wednesday, March 2, 2016

    Volkswagen considers shareholder lawsuit to be without merit

    Volkswagen AG announced that the Company has submitted a statement of defense to the Braunschweig District Court (Landgericht Braunschweig) in connection with the allegation of a violation of disclosure obligations under capital markets law. After careful examination by internal and external legal experts, the Company confirms its belief that its Management Board duly fulfilled its disclosure obligation under German capital markets law. The Company emphasizes that this examination does not replace the independent investigation for the complete clarification of the diesel matter which is being conducted by the law firm Jones Day and is ongoing. The Company is making this public announcement to correct the selective and incomplete publication of documents in the media about the diesel matter and to avoid having partial excerpts of its statement of defense published in the media. Notwithstanding this, Volkswagen deeply regrets the incidents related to the diesel issue.

    Volkswagen considers the German shareholder lawsuits to be without merit, since any ad hoc disclosure obligation requires that the persons responsible for the fulfillment of this obligation obtain knowledge of facts relevant for the stock price and can assess the economic effects of those facts. With respect to the diesel matter, stock price relevance occurred only as of 18 September 2015 when the violation of U.S. environmental regulations was announced. Until then, there were no indications whatsoever of information with relevance for the stock price, since up until that point in time it was expected that a manageable number of vehicles (approx. 500,000) would be affected by the diesel matter and that fines in a two-digit or lower three-digit million amount would be imposed, as had been the case in the past in the U.S. in comparable cases involving passenger vehicles. Additionally, to the best knowledge, the diesel matter appeared to be an issue that could be contained by measures that were common in such cases, including effective technical solutions, and, thus, appeared to be neutral with regard to the Company's stock price. The potential maximum fine of USD 18 billion that was publicly discussed after 18 September 2015 had never been fully applied in other cases to any extent. Once an initial reliable data basis regarding the global risks had been established after the "Notice of Violation", the Company promptly published its ad-hoc announcement on 22 September 2015. The comprehensive investigation commissioned by the Supervisory Board of Volkswagen with regard to the events and responsibilities related to the diesel matter is continuing.

    The Jones Day investigators are sifting through enormous amounts of data: 102 terabytes of data have been secured; this amount is the equivalent of about 50 million books. As previously announced, Volkswagen will report preliminary results of the investigation in the second half of April.

    Background on the legal point of view expounded in the statement of defense

    The starting point of the diesel matter was, in hindsight, the strategic decision by Volkswagen in 2005 to start a major diesel campaign in the United States and to facilitate a breakthrough for this technology which at the time was already very popular in Europe. For this purpose, the Company decided to develop a new diesel powertrain unit with the EA 189 type diesel engine that features high performance and cost-efficient production.

    The U.S. emissions limits for emissions of pollutants are strict. Under the strictest standard in the U.S. at the time, only 31 mg/km of nitrogen oxides (NOx) were allowed to be emitted, about six times less than under the EU5 standard applicable in Europe at that time. When designing modern diesel engines, technicians and engineers face the challenge that any measure to reduce nitrogen oxides has a knock-on effect with regard to other parameters (e.g. CO2).

    In the ensuing period, in order to resolve this conflicting objective satisfactorily within the timeframe and budget of the EA189 project, according to the current state of knowledge, a group of persons – whose identity is still being determined – at levels below the Group's Management Board in the powertrain development division, decided to modify the engine management software. With this software modification, emissions values were generated in bench testing that differed substantially from those under real driving conditions.

    This software modification required a selective but significant modification of the existing engine management software that Volkswagen expressly regrets. This modification could be implemented with relatively small changes and within the budget that was available for the development of the engine management software and without the need to involve superior levels. Only a small number of an approximate total 15,000 individual algorithms were changed. The Californian environmental agency California Air Resources Board (CARB) received indications of irregularities from a study published by the International Council on Clean Transportation (ICCT) in May 2014.

    According to this study, nitrogen oxide values for two Volkswagen diesel vehicles reportedly deviated significantly between bench testing and road operation than would be expected under normal circumstances. CARB then requested an explanation from Volkswagen Group of America (VW GoA). Internal verification tests were conducted at Volkswagen over the following months. During a meeting with CARB on 2 December 2014, VW GoA offered to recalibrate the first and second generation EA 189 type diesel engines in the course of regular service work that was already scheduled in the North American market for December 2014.

    On 23 May 2014, a memo about the ICCT study was prepared for Martin Winterkorn, then-Chairman of the Management Board of Volkswagen AG. This memo was included in his extensive weekend mail. Whether and to which extent Mr. Winterkorn took notice of this memo at that time is not documented. On 14 November 2014, Mr. Winterkorn received another memo that reported, amongst other things, on several then current product defect cases and referred to a cost framework of approx. EUR 20 million for the diesel issue in North America.

    According to current knowledge, the diesel matter, as it was treated as one of many product issues facing the Company, did not initially receive particular attention at the management levels of Volkswagen. Accordingly, the "Committee for Product Safety" (APS) was responsible for this matter at Volkswagen. Emission deviations between test bench and road operation exist at all automobile manufacturers and are by no means automatically attributable to violations of regulations. For global automobile manufacturers, service measures and recall campaigns are nothing out of the ordinary. Volkswagen expressly regrets that, looking back, the situation is different.

    After subsequent tests conducted by CARB, it became apparent that improvements in the voluntary service measure for the affected engines in the North American market were not sufficient to reduce the nitrogen oxide emissions to an acceptable level. In summer 2015, the APS established a diesel task force of its own. Additionally, the U.S. law firm Kirkland & Ellis was retained to advise Volkswagen with regard to questions related to the American emissions law.

    According to current knowledge, on 27 July 2015, individual Volkswagen employees discussed the diesel issue on the periphery of a regular meeting about damage and product issues, in the presence of Martin Winterkorn and Herbert Diess. Concrete details of this meeting have not yet been reconstructed. In particular, it is not clear whether the participants understood already at this point in time that the change in the software violated U.S. environmental regulations. Mr. Winterkorn asked for further clarification of the issue.

    At the end of August 2015, Volkswagen technicians gave a full explanation of the technical causes for the irregularities discovered regarding the emission of nitrogen oxides in the U.S. to lawyers from the Volkswagen Legal Department as well as to the U.S. attorneys from Kirkland & Ellis. These detailed explanations led to the Management Board member's realization that the modification of the engine management software constituted a prohibited defeat device under U.S. law. It was then decided to communicate this information transparently to CARB and EPA. This occurred during a meeting with the U.S. authorities on 3 September 2015. Mr. Winterkorn was informed accordingly in a note dated 4 September 2015.

    Volkswagen was advised that in the past, defeat device violations under U.S. environmental law by other car manufacturers had been sanctioned with settlement payments that were not especially high for a company the size of Volkswagen. Even the highest U.S. fine by then, which amounted to USD 100 million and was imposed in 2014, was at the lower end of the statutory range of fines. This case affected about 1.1 million vehicles, which corresponded to a fine of not more than approximately USD 91 per passenger vehicle.

    In light of this recommendation, it was expected that the diesel matter could be resolved with the U.S. authorities by disclosing the software modification, agreeing on appropriate measures to restore vehicle compliance with the law and the payments of potential fines in line with prior U.S. settlements.

    As of early September 2015, the effect of the diesel issue still appeared to be limited to the United States. Directly after the publication of the Notice of Violation on 18 September 2015 – which was unexpected, because of the course of the discussions with the U.S. authorities until then – and the resulting publicity effect, a specific task force comprising Group Internal Audit was established and directed to pursue an urgent investigation of the facts. The assessment of the concrete global risks resulting from this matter required several days and was promptly disclosed on 22 September 2015 by way of an ad hoc announcement when a first reasonably reliable, but still preliminary, factual basis had been determined.
     
  20. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Tuesday, March 8, 2016

    Works meeting at the main plant in Wolfsburg: "Safeguarding the future of Volkswagen together"
    • Group CEO Müller: "We are laying the foundation for the renewal of the Group in 2016."
    • Brand CEO Diess: "We want to make Volkswagen Passenger Cars the sparkling core brand of the Group again."
    • Works Council Chairman Osterloh: "Relentless clarification and the necessary consequences must follow."
    A concerted effort for the future: with a joint presentation, the Works Council, politicians, the Group and the brand all appealed for support for a unified path out of the Volkswagen crisis. "Despite the different views which people will of course have within a company, we know that we can only do it together," said Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, at the works meeting in Wolfsburg. He encouraged the workforce to see the resulting transformation "not as a threat but as an opportunity". Speaking to an audience of more than 20,000 employees in Hall 11 at the Wolfsburg plant, Müller said:
    Bernd Osterloh, Chairman of the Group Works Council:
     

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