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Volkswagen, Bosch reach diesel settlement worth $1.6 billion

Volkswagen Group of America and automotive parts maker Bosch reached a settlement in which the two companies will pay a combined $1.6 billion because of their roles in the automaker's diesel-emissions scandal. VW, Europe's largest automaker, will pay about $1.2 billion to either repair or buy back vehicles. Bosch said separately that it will pay more than $300 million to owners of diesel-powered Volkswagens, Audis, and Porsches. The settlement stems from emissions issues related to about 78,000 VW-made cars and SUVs with 3.0-liter V6 diesel engines that were sold in North America. VW will recall and repair about 58,000 vehicles made for the 2013-through-2016 model years. The company will also buy back, offer a trade-in credit, or terminate the leases for about 20,000 cars for the model years 2009 through 2012. The older impacted models are the Volkswagen Touareg and Audi Q7, while the newer ones are the Touareg and Q7 as well as Audi's A6, A7, A8, A8L, and Q5 models, and finally the Porsche Cayenne Diesel. Previous reports estimated the payout at closer to $1 billion. The US settlement follows one reached last year between VW and US regulators in regards to VW's 2.0-liter diesel engines. That settlement was estimated to cost VW about $15 billion and impacted owners of about 500,000 vehicles. VW has had a stop-sale on its diesel vehicles in the US since late 2015 after it was discovered that VW installed software in its diesels that allowed those vehicles to cheat emissions-testing systems. VW on Wednesday also reiterated that it would contribute $225 million towards environmental-remediation efforts in the US. Volkswagen of America CEO Hinrich J. Woebcken, in Wednesday's statement, said that "we will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward." Related Video: News Source: Volkswagen via Automotive News-sub.req.Image Credit: Shannon Stapleton / Reuters Government/Legal Green Audi Porsche Volkswagen AutoblogGreen Exclusive Emissions Diesel Vehicles vw diesel scandal scandal settlement

Audi A4 TDI plans scrapped for the US

It comes as no great surprise, but Audi of America president Scott Keogh told Automotive News that the automaker has ditched plans to offer the 2.0-liter TDI-powered A4 here in the US. Despite what you may be thinking, Keogh claims the decision isn't based on the ongoing talks between parent company Volkswagen and US regulators regarding the diesel emissions scandal. (Currently, Audi and Volkswagen are awaiting EPA certification for their diesel engines in the US.) The reason, he says, is that the demand for diesel sedans is low here, particularly when compared to the company's lineup of crossovers. "The marketplace speaks, we listen to the marketplace, and the marketplace told us, 'Go with SUVs,'" says Keogh, presumably in his usual straightforward, assuring manner. That's not to say, though, that one doesn't have an effect on the other. We've already seen that the scandal has had an impact on sales. Now, in a country where many were already under the assumption that diesel engines were dirty and noisy, it's no revelation that automakers are less than enthusiastic about expanding their grease-burning offerings. While the news is a bit of a bummer for those of us who have long hoped for more widespread diesel options here in the States (and for whom the whole Dieselgate debacle is downright depressing), there's still plenty to look forward to in terms of greener, cleaner Audis. At the A3 E-Tron event late last year, Keogh was bullish on EVs, promising that it was just the first step in a "substantial commitment." Audi's plan is, in Keogh's words, to "start with the plugs, come in with the full BEVs and then keep rolling from there." He repeated these assurances at the LA Auto show, saying that he expects 20 to 25 percent of Audi's sales to be plug-in vehicles by 2025. Plus, despite the whole diesel thing (which, to be fair, affects far fewer Audi cars than Volkswagens), Audi has been killing it lately. February sales marked a streak of 62 consecutive months of record sales in the US. For an automaker that is repeatedly saying that it believes the future is in electrification, this bodes well for us. Related Video:

Audi to show hydrogen Q6 in Detroit

Audi is allegedly bringing a hydrogen-powered concept to the Motor City next month. The report comes from Autocar, which cites German media in claiming the new concept, tipped to be called the Q6 H-Tron, will ride on the same MLB architecture as the E-Tron Quattro Concept, shown at Frankfurt earlier this year. In fact, it sounds like the Detroit concept will look more or less like the Frankfurt concept, just with low-mounted hydrogen fuel cells instead of battery packs. That said, Audi didn't come right out and tell Autocar that the Q6 H-Tron was coming to Detroit. Instead, a company spokesman told the website that "a concept car with new drive technology" will be shown at next month's show. But this seems like a safe bet. As Audi continues to cope with the fallout of its diesel emissions scandal, shifting focus to an even more alternative fuel source would be a sound strategy, even if it is just a PR move. Whatever Audi ends up showing in Detroit, we'll be live at the show to report on all of it. Look for more in mid January.