2012 Volkswagon Touareg Tdi Lux on 2040-cars

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VW will delay projects to cope with diesel scandal

Volkswagen's diesel emissions scandal will require the sacrifice of far more than just executives and money. It's also going to result in the cancellation of various projects, a process that new CEO Matthias Mueller said "won't be painless." "We will review all planned investments, and what isn't absolutely vital will be canceled or delayed," Mueller said while addressing the embattled company's employees. The former Porsche boss also said the money set aside by the German giant – about $7.29 billion – won't be enough to cover recall expenses, fines from governments in affected countries, and the expected deluge of lawsuits from disgruntled TDI owners. According to Bloomberg, that figure probably won't even be enough to match the fines Uncle Sam is likely charge, pegged to be around $7.4 billion, according to one analyst. It's expected that VW could delay a further push for share in the North American market, which would include a $1-billion investment in its Puebla, Mexico, factory. But it will take more than cancellations and delays, analysts claim. "It's going to be tough to find projects they could chop that will actually move the needle," JPMorgan Chase's Jose Asumendi told Bloomberg. "What they really need to do is get costs under control." That, according to Bloomberg, is already setting up a showdown between management and labor. The latter wants a reduction in VW's $17.4-billion research-and-development budget – the world's largest and more than what Ford and General Motors spend combined – while the former wants to slash personnel costs. Bloomberg also spoke to analysts who claimed the company should look into reductions in purchasing costs as well as trimming sponsorships. It's impossible to know just how extreme Volkswagen will need to get with cancellations, delays, and cost-cutting, but it's becoming increasingly clear that the effects of this scandal will likely be felt far longer than the controversies that surrounded other automakers like General Motors and Toyota. Related Video: News Source: BloombergImage Credit: John Macdougall / AFP / Getty Images Earnings/Financials Green Plants/Manufacturing Recalls Volkswagen Diesel Vehicles vw diesel scandal matthias mueller

Someone is leaving anti-diesel flyers on Volkswagen TDIs in Portland

As if some Volkswagen TDI owners don't already feel bad enough, given the recent diesel scandal, someone is further shaming them. Flyers full of bad information are being left on TDI cars in eco-friendly Portland, OR. Portland-based sandwich joint Lardo posted a picture of the flyer to their Instagram account yesterday morning. Along with annoying font color changes, the flyer incorrectly states that the diesel car spews two to four times more pollutants than a Chevy Suburban. The author of the flyer also throws a Nazi mention in there for good measure, though they get the history wrong, too. Volkswagen wasn't founded by Nazis, though the Nazi government did create a nationalized car industry to build the 'People's Car', originally designed by Ferdinand Porsche. The factory ended up making war machines instead. Volkswagens weren't really produced until after the fall of the Nazis at the end of World War II. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Volkswagen outfitted their "clean" diesel cars with a device that would only limit emissions during testing. Once on the road, the car spewed 40 times more pollutants than it claimed. The automaker plans to 'refit' 11 million faulty vehicles. Today, the automaker launched a website dedicated to consumers unlucky enough to own the bum vehicles. Eco-warriors aren't the only ones leaving judgmental, passive-aggressive notes on cars. Like this incident in Portland, these notes often fall flat, like when this paralyzed man in Michigan parked in a handicap spot and was accused of stealing the spot simply because he drove his BMW to the gym.

European car sales up 8% in February

Three weeks ago an analyst increased projections for European car sales this year, expecting them to climb three percent compared to last year instead of 2.7 percent. That number is a postive sign after years of hard times but it turns out February was especially good, overall European sales climbing eight percent on a wave of southern European recovery and discounts - and this comes after five months of gains including January's 7.2-percent jump over the year before.
The only country of Europe's five largest markets to post a decline was France, just as it did in January, Germany, the UK and Italy posting solid double-digit numbers, Spain rocking the charts with an 18-percent increase because of a government program to encourage trade-ins.
The only brand to miss the wave was Volkswagen, dropping 0.8 percent as it watched the double-digit growth at sister brands Audi, Seat and Skoda lift the Volkswagen Group sales up by seven-percent. Peugeot overcame flat sales at Citroën to improve the group by 3.5 percent, BMW and the Mercedes-Benz/Smart combo rose by four percent, the Fiat group jumped 5.8 percent, Ford was up 11 percent, the Renault Group 11.5 percent, General Motors 12 percent and the Toyota clan by 14 percent.