VW in Hot Water for Violating Emissions Standards
For years, Volkswagen has promoted their “clean diesel” energy standards. This alternative to hybrid and electric cars has been wildly successful, with VW now taking 70-percent of the US diesel market, but researchers recently discovered that some of the company’s claims were falsified.
According to the EPA and the California Air Resources Board, VW installed “defeat devices” in their cars. These devices switched the cars between two distinct operating modes. In test modes, all cars would operate below federal emission standards. But when switched to operating modes, exhaust-gas recirculation, fuel pressure, and injection timing were significantly altered. This gave drivers a better driving experience (as they could achieve better fuel mileage and higher power) but created nitrogen-oxygen emissions up to 40 times over the federal limits.
Though there is no current recall, VW has admitted to violating federal emissions standards, which could mean that some states (including California) may refuse to re-register cars until a fix is produced. Additionally, VW is currently barred from selling new diesel vehicles except for certain 2015 models.
For current owners of impacted 2.0 liter vehicles, Volkswagen is offering a 10 billion dollar buyback program. Depending on model, age and trim, owners can sell their cars back to VW for a sum between $12,500 and $44,000. For those who prefer to keep their vehicles, VW is offering between $5100 and $10,000 to compensate for loss of value, plus a free emissions fix. Owners have until May 2018 to decide which option they’ll choose.
Additionally, Bosch–who developed the emissions software–is offering owners a $350 settlement, a portion of a larger $327.5 million settlement with the software manufacturer. Lessees are eligible to receive $200.
VW also has a separate settlement program for owners of 3.0 liter vehicles, which differs substantially from the 10 million dollar. Owners of 2009–2012 Audi Q7 and Volkswagen Touareg models with the Generation 1 engine are eligible for buybacks between $24,755 to $57,157. There is no option to repair the emissions system because the systems in these vehicles cannot be repaired.
In early 2017, the Justice Department arrested 6 VW executives who were implicated in the scandal and ordered a $14.7 billion settlement. VW will be monitored for 3 years as part of the conditions for its probation.
