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VW “Tip of the Iceberg” in Diesel Emissions Scandal | Autoblog Minute

Some are calling Volkswagen just the tip of the iceberg in the diesel emissions scandal. Autoblog's Adam Morath reports on this edition of Autoblog Minute. Volkswagen Autoblog Minute Videos Original Video emissions scandal

VW exec calls US ops a 'disaster'

Today in the Tell Us How You Really Feel file we have Bernd Osterloh, head of Volkswagen AG's Group Works Councils and member of the company's supervisory board, labeling the company's US operations "a disaster." Why? Because Osterloh believes VW of America doesn't have the models it needs to be competitive here, hasn't been decisive enough about its plans and German higher-ups still don't understand the US market.
In truth, the top labor rep at the German conglomerate is echoing sentiments we've heard from VWoA executives for years, and there's been the same commentary from dealers: Germany doesn't pay enough attention to what the US market really wants. Even ex-VWoA CEO Stefan Jacoby, who preceded the recently departed Jonathan Browning, said early in his tenure that one of his tasks was to get his German bosses to start delivering what the US market demanded. New CEO Michael Horn is saying much the same thing seven years later, telling Sky News that it has to increase "the speed at which we bring new models to the market and innovation to the market."
Osterloh wants to get "more models" here, including a pickup truck, but we'd wonder if the economics have changed from when Jacoby said they'd need to sell 100,000 per year to make money. Osterloh also wants a decision on where the CrossBlue will be built. Although it looked as if the Chatanooga, TN plant would get the call, the Puebla, Mexico plant is still in the running because of lower operating costs. No matter what happens right now, Osterloh thinks the situation won't get better for another two years when revamped models arrive, but at least the company can start taking the steps for a better US future.

Recharge Wrap-up: Smart Fortwo engine fires, Tesla finalist for Extole Advocacy and Customer Experience award

NHTSA has launched a preliminary investigation into complaints of Smart Fortwo engine fires. So far, the agency has received eight complaints about the rear engine compartment catching fire in model year 2008 and 2009 Fortwos and quickly engulfing the car. Six of the fires occurred while driving and were preceded by a check engine light. "The safety of our customers is our primary concern, and we are cooperating with NHTSA in its inquiry," says parent company Mercedes-Benz. "We are not aware of any injuries related to this inquiry." Read more from Automotive News. Volkswagen will pay $1.6 billion (US) in Canada as part of a settlement of its diesel emissions scandal. The funds will be used to fix or buy back some 105,000 affected cars, compensate owners between $3,815 and $4,451 above the buyback price, and pay a $11.2 million civil fine. So far, VW has agreed to spend over $18 billion in North America in connection with its diesel emissions cheating, and is expected to settle on a resolution of its 3.0-liter diesel vehicles in the US soon. Read more at Hybrid Cars, or from Automotive News. Tesla is one of three finalists for the Extole Advocacy and Customer Experience Award. The award recognizes companies that turn customers into brand advocates through referral programs. In Tesla's current program, customers who buy a car using a referral link get $1,000 off the price of their car, while referring owners are awarded prizes including a signed Powerwall 2 and invitations to unveiling events. Referring owners are also entered into a drawing to win a Model S or Model X. "With a disdain for paid advertising, Tesla Motors is leading the trend of reaching new customers through existing ones," says Extole. The other finalists are Hanna Andersson and Ulta Beauty. Read more at Teslarati. Related Gallery Review: 2009 Smart ForTwo View 20 Photos News Source: Automotive News, Hybrid Cars, Automotive News, TeslaratiImage Credit: Copyright 2016 Sebastian Blanco / AOL Government/Legal Green smart Tesla Volkswagen Green Automakers Safety Diesel Vehicles Electric recharge wrapup