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Because he didn't know. Who's going to be the Oliver North in that scandal?
Stock is down 30%+ in two days on revelations that they actively deceived US regulators.
Software turned on emission controls during tests, then turned it off for regular driving. Whoops.
http://news.yahoo.com/vw-cooperating...--finance.html
BERLIN (AP) — Volkswagen AG's emissions scandal crisis escalated Tuesday as the company issued a profit warning, set aside billions to cover the fallout and saw its shares take another battering. The CEO of the world's top-selling carmaker declared he was "endlessly sorry" that the company had squandered worldwide trust in its brand.
The rapid-fire developments followed the stunning admission that some 11 million of the German carmaker's diesel vehicles worldwide were fitted with software that evaded U.S. emissions controls.
As its share price sunk for a second straight day, Volkswagen said it was setting aside around 6.5 billion euros ($7.3 billion) to cover the fallout. CEO Martin Winterkorn apologized for his company's deception and pledged a fast and thorough investigation, but gave no indication that he was considering leaving.
Because he didn't know. Who's going to be the Oliver North in that scandal?
Have a '13 Passat & '14 Q7 TDI; To this point the Audi is in the clear; I've seen mixed signals on the Passat (mine has the AdBlue).
On my watch list...long way from being a Buy though.
can't find it now, but ex EPA guy says US mfrs have always been cheating, trying to cheat, not cooperating, and getting caught. Japanese cars pass EPA regs without cheating.
found it:
When I worked at the EPA, finding these defeat devices was “part of the job.” We never had any trouble with the Japanese, but all the other manufacturers were doing highly suspect things. With microprocessor engine controls in every car, it is very hard to find what is going on.
Once, a VW was in the middle of failing a 100,000-mile driving test (pollution devices had to work for 100,000 miles) and suddenly caught fire, so the test had to be restarted. EPA engineers joked they were sure they saw a broken “Molotov tail” on the road next to the car. There were some other VW shenanigans, but they were too complicated to explain. I owned a VW at the time, but it was falling apart constantly so I had no sympathy whatever for VW.
Chrysler got caught doing something like VW, but was caught in testing, so it paid a smaller fine.
Ford lied like crazy and the EPA director had a big photo over his desk of the million $ check for a fine they had to pay. They were also ordered to “behave cooperatively” as opposed to the snarling obnoxious behavior they had formerly exhibited.
I also caught Ford in a defeat device and had to write a memo to them asking for written info instead of the lying (but sooo friendly) PR guys they sent out. They never answered, so my letter was used in court as proof that we had tried but they hadn’t cooperated.
GM was no better, but they were cleverer so we couldn’t catch them in testing. Enforcement division out in the field got them.
Honestly, it was just an “EPA doesn’t tell US what to do” at ude — it would have been cheaper for them if they had followed the Japanese example and just made clean cars to begin with.
http://cleantechnica.com/2015/09/22/...auto-industry/
They'll take a hit and I'm sure the media will be all over them, however they'll be fine. Look, GM had cars that actually killed people and people continue to buy them. It will take a lot more then emission issues to sink a brand. Time will tell though.
Yeah they will be fine. They've already set aside 7 billion to pay off the govt and fired the CEO. Only question is where will the stock bottom out.
USA TDI owners are suing, maybe a class action suit. $7B may not be nearly enough. $18B was a number kicked around, just to pay the govt fines.
18B would mean the end of the company tbh so I don't see it BUT
In this amount it is not included the cost of the recall... 500,000 veicles to be recalled is freaking huge. Another side effect is now European authorities are gonna test the cars, it would be surprising they only cheated in US. VW is in deep deep . Other GMs of other cars manufacturers are probably ting their pants too
That's not really about emission issues but more about lying and implementing devices to cheat the rules...
Where ever that is, buy it.
Btw, you'll be fine in Texas. They don't test diesel emissions.
No it's about emissions. If the cars won't pass emissions tests, recalls aren't going to do . DEF and EGRs are , so if they have to redesign all that to meet some ty standard, they are going to be ed, at least the diesel line. Happened to Ford as well, but not as severe. They took an international workhorse and Navstar'd the out of it, killed it, and disowned it.
I was quoting a post where emission issues is what could cause or not brand to sink... Brand won't sink because of that but they get caught lying and cheating.. Kinda hard to become again a trust worthy brand after that. Diesel is peanuts in U.S.but in Europe it's kind of a big deal.
then I don't get your ty standard... In what this standard is ty ? Even if considered ty, topic is also about lying to an official authority
VW had $12B in profit last year. Like BP, the payment will not be in one lump sum. $18B won't kill VW, and Euro govts won't let it die.
Car manufacturers have to meet California emissions standards. Most other states don't even test for diesel emissions. One state creates this global fest where companies have to kow tow in order to import their cars. There's like 9 states that test diesel emissions, but NY and California are the heavy hitters in the auto industry.
many countries have "technical barriers to imports", and not only for cars.
Yeah, I read an article from a guy saying there will be some steals on VW diesels especially used ones.
HITLERMOBILE will survive no doubt. They are a huge company that can sustain up to 25 billion in losses. Plus the German government will bail them out if needed.
Too big to fail
buy stock?
Btw is anyone surprised at this coming from a company founded by Hitler?
VW owns Porsche, right? That's scary, but I don't think this would possibly affect the Porsches I would consider buying (non-diesel).
VW, Porsche, Audi
1 in 6 Germans works in the auto industry
Wow, I didn't realize that. But I'm looking at it more from a selfish car buyers perspective, LOL.
Volkswagen CEO just resigned.
http://www.nytimes.com/2015/09/24/bu...=top-news&_r=0
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