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Volkswagen recalls 20k Routans to replace ignition switch

Volkswagen is recalling 20,676 examples of the 2009-2010 Routan minivan to replace their key fobs and ignition switches. This new campaign is linked to one from FCA in March. In these vehicles, it's possible that if the switch is jarred, the key can be jostled out of the Run position. If this happens, then the engine shuts off, and the airbags, power steering and power brakes are all deactivated, which is a safety problem. The campaign to fix this issue began last year when FCA recalled 700,000 minivans, and the Routan was also affected because of its shared platform. However, in March 2015 FCA updated its recall to replace the whole ignition switch with an improved design, rather than the original plan of just a new detent ring. With this latest update, the VWs are getting the same fix. Until the minivans are repaired, VW says that drivers should remove all items from their key ring, including the fob. The recall is expected to begin in April for owners of the 2009 Routan and in August for the 2010 models, according to documents submitted to the National Highway Traffic Safety Administration (available here as a PDF). Some vehicles already have a new detent ring under the earlier recall, but they still need to be fixed again to get the ignition switch. Related Video: RECALL Subject : Ignition Switch may Turn Off Report Receipt Date: APR 01, 2015 NHTSA Campaign Number: 15V194000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 20,676 All Products Associated with this Recall Vehicle Make Model Model Year(s) VOLKSWAGEN ROUTAN 2009-2010 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2009 Routan vehicles manufactured June 25, 2008, to June 10, 2009, and 2010 Routan vehicles manufactured October 1, 2009, to August 11, 2010. This defect can affect the safe operation of the airbag system. Until this recall is performed, customers should remove all items from their key rings, leaving only the ignition key. The key fob (if applicable), should also be removed from the key ring. Road conditions or some other jarring event may cause the ignition switch to move out of the run position, turning off the engine. CONSEQUENCE: If the ignition key inadvertently moves into the OFF or ACCESSORY position, the engine will turn off, which will then depower various key safety systems including, but not limited to, air bags, power steering, and power braking.

VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

Audi to keep hiring workers despite VW diesel scandal

Even while Volkswagen contemplates delaying or canceling projects to pay for costs related to the massive diesel emissions scandal, its stablemate Audi is hiring, according to Reuters. Audi certainly isn't immune to the diesel scandal, with around 2.1 million affected vehicles worldwide including 13,000-14,000 in the US, but the scandal so far isn't affecting staffing levels. "We are sticking with plans for strategic growth and are continuing to hire new employees as planned," Audi board member for human resources Thomas Sigi said in a German newspaper, according to Reuters. Sigi even suggested paying a "respectable" bonus to workers next year. Audi has some big projects on the horizon, too. Among them, the company intends to launch a production version of the E-Tron Quattro Concept in 2018, and for performance fans a new TT RS appears to be on the way. The new A4 should be a big contributor to global volume when its worldwide rollout is complete. Rather than allowing the diesel scandal to hurt all of its divisions, the VW Group instead wants to concentrate the fallout (and costs) on the VW brand, according to Reuters. Those expenses could be huge. Volkswagen is budgeting around $7.3 billion just to repair the 11 million emissions-cheating vehicles. Worldwide, maximum estimates put the whole mess at $87 billion. Related Video: