the protracted dispute between Volkswagen and the US authorities started already in the summer of 2014, when it was discovered the strange high NOx emissions. Volkswagen had no good explanation and finally saw the authorities no choice but to withdraw approval of VW’s four-cylinder diesel models.
It was in September 2015 that “diesel gate” exploded and Volkswagen admitted that it used illegal software the engine management system to almost eleven million diesel cars. The motor control could determine if the car was driven on the road or standing still for a (supposedly) emission test. During the test cycle improved exhaust gas values to the approved level, but at highway driving increased NOx emissions to 15-35 times above the permitted maximum value.
In the US it is about about half a million diesel cars that have the exhaust cheating in their motor control. In Europe, emissions control to change with updated software but the stricter emission regulations in the United States means that the measures are not as simple.
Volkswagen has proposed measures to the US authorities but they have so far been regarded as “insufficient”. The deadlock seems to have been difficult to break, and between the lines, one can understand that the US authorities have been moderately impressed by a cheating large companies, which is not favored discussion climate.
The deadlock seems be broken. US news agencies reported on Wednesday evening that Volkswagen will present a package of measures for car owners today, Thursday, April 21. The offer applies to the four-cylinder models from Volkswagen and Audi, not the V6 models.
The hitherto unconfirmed information says that Volkswagen will offer to buy back the current cars, if the car owners so wish. The offer shall be valid for two years. Volkswagen will also compensate car owners with $ 5,000 (per car), with the current exchange rate 40,600 crowns. The compensation to be paid to both those who choose to sell back their car, and those who keep their car and get antipollution modified. Spread over half a million cars this means an expenditure of Volkswagen of approximately SEK 20 billion.
What will happen with cars like Volkswagen buys back is not known. Something similar offer, or compensation to the owners of diesel models in Europe, Volkswagen has not offered.
Volkswagen’s offer to the American car owners will be an expensive affair. But the costs do not stop there, but the VW Group can also be fined for the exhaust cheat and be required to pay even more in the civil lawsuits received from car owners.
In addition, requirements on compensation from shareholders who believe they have been deceived and had to accept a fall in value – something that can be extremely expensive for Volkswagen.
Seems like a reasonable deal.
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