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Texas sues VW over consumer protection, clean air violations

Texas has filed two suits against Volkswagen, charging that the automaker's emissions rigging violated state consumer protection laws and clean air standards. The lawsuit is part of a probe into the German automaker's diesel scandal being undertaken by 45 states and the District of Columbia. There are also over 250 class action suits that have been filed in US federal courts. Texas Attorney General Ken Paxton said Thursday that his state would seek restitution for consumers, and an injunction and civil penalties to prohibit future violations. Paxton, who himself has been indicted for securities fraud, said in a statement, "When companies willfully violate the public's trust, a penalty must be paid." Paxton said Texans purchased around 32,000 affected vehicles. There are about 49 authorized VW dealerships statewide. The Texas suit is asking for pollution fines of somewhere between $50 and $25,000 per vehicle (quite a spread, we know) for each day the vehicles were in use in the state. Volkswagen admitted in the middle of September that it installed devices designed to defeat government emissions tests on many Volkswagen and Audi diesel cars dating to model year 2009. Globally, 11 million VW group vehicles are affected. The automaker declined to comment to Bloomberg on the Texas lawsuit. Last month, Harris County, which includes Houston, filed a multimillion dollar lawsuit against VW, alleging the automaker contributed to air quality problems. You can find PDFs of the two state lawsuits here (the deceptive-practices case) and here (the environmental case). The AP contributed to this report. News Source: Bloomberg Government/Legal Green Volkswagen Diesel Vehicles vw diesel scandal lawsuit

VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,

Porsche 911 with VW turbodiesel prepares for LeMons assault

LeMons racing is a wonderful example that setting limits can actually breed creativity. The series mandates that all entries must cost $500, not counting safety equipment, and that cap forces teams to be ingenious in how they build a racecar. Take for example this diesel-powered Porsche 911, which its creators have dubbed Ferkel the Nein-11, that will be racing in the Sears Pointless race this weekend in Sonoma, California.
This Frankenstein combines a 911 chassis that was originally bought just for its European powertrain and a Volkswagen TDI diesel engine mounted in the rear. After deciding the shell could still be of some use, the team decided to go racing. "We began brainstorming what replacement drivetrain to use for maximum offense and there was really only one answer: a diesel," said Philipp von Weitershausen, one of the team captains, to Jalopnik. They bought a 1998 Jetta TDI on the cheap and started figuring out a way to hack the engine into the bay. To pay respect to the donor, the VW's trunk was highly modified (and drilled) and grafted onto the back of Ferkel.
This team isn't a newcomer to LeMons. Its last car was a classic VW Beetle with a Subaru engine and dual controls, named Ferdinand the Bug, which could be driven from the left or right side. It's quite a sight.