2012 Volkswagen Jetta Tdi on 2040-cars

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VW lawyers up with firm that defended BP

The string of bad news for Volkswagen shows no sign of slowing yet, especially with the recent resignation of CEO Martin Winterkorn. For aid in its legal defense in the US over its ongoing diesel emissions scandal, the automaker has now employed Kirkland & Ellis LLP, which was the same law firm BP used for the Deepwater Horizon oil spill, according to Automotive News. VW is surely hoping that things go easier for it than BP. After the massive oil spill, the company paid $4 billion to settle criminal allegations and another $18.7 billion for the other federal and state claims, Automotive News reports. We'll see. Based on fines for each of the 482,000 diesel vehicles with this evasive software in the US, VW could be on the hook for $18 billion from this lapse. In addition, 11 million units are potentially affected across the globe, and the company is already setting aside 6.5 billion euros ($7.25 billion) in expected costs. The automaker's stock on the German exchange is being hit hard by this scandal. The original discovery of high pollution levels in VW's 2.0-liter TDI engine began with researchers last summer, and the Environmental Protection Agency and the California Air Resources Board had been working on the problem for months before the EPA issued its notice of violation on September 18. A criminal investigation has now begun. The day before his resignation, Winterkorn issued a video where he apologized profusely for the scandal and promised to make things right.

Audi CVT suit settlement given green light, 64,000 cars covered

Audi drivers, listen up. If you bought or leased a 2002-06 model-year A4 or A6 with a factory-installed Continuously Variable Transmission (CVT) that failed, you may be entitled to reimbursement under a recently settled class-action lawsuit with corporate parent Volkswagen.
According to Automotive News, the settlement covers about 64,000 vehicles and alleges that "manufacturing and design problems caused the transmissions to fail and left owners stuck with repair costs." While the suit also argues Audi was aware of these issues (going so far as to hide that knowledge from consumers), the settlement stops short of acknowledging any wrongdoing by the German automaker.
Audi drivers are eligible for a cash reimbursement if their CVT repairs occurred within 10 years or 100,000 miles of the date they bought or leased the vehicle before June 19, 2013. To be eligible for compensation, drivers must submit a claim form (found here) with supporting documents by November 18.

Volkswagen Routan dead, pour out a sippy cup for your little homies

America's minivan wolfpack has just gotten smaller by one. According to Automotive News, Volkswagen officials have confirmed what we've suspected for some time - the Routan is dead. Essentially a lightly reworked version of the Dodge Grand Caravan, the Routan actually hasn't been rolling off of Chrysler's Windsor, Ontario production line at all this year, but VW had yet to confirm its discontinuation. However, Jonathan Browning, CEO of VW America, has reportedly admitted that the Routan is being axed, with remaining units expected to be funneled into corporate functions for "internal purposes."
The move isn't unexpected - the Routan has never been a big seller, with just 57,650 examples moved since sales began in 2008 - peak yearly sales totaled under 16,000 units, and that was back in 2010. And while many have talked of the minivan segment shrinking, Automotive News points out that the segment actually grew 14 percent last year to 597,118 units, though it should be noted that most segments have been on sales upticks as the US economy chugs out of its recession.
So, is volume-crazy Volkswagen prepared to pass on large family vehicle sales? Probably not - the German automaker has signaled that it plans to build a three-row crossover in North America soon, and we wouldn't be surprised if it looks an awful lot like the Crossblue Concept from January's Detroit Auto Show - minus the fancy plug-in diesel powertrain.