2009 Volkswagen Eos Lux 2dr Convertible on 2040-cars

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Volkswagen Diesels: Buy, sell, or hold?

Everyone who owns or has remotely considered a Volkswagen diesel over the past 45 days has tried to figure out the right formula. Is it worth buying after the recall? If I own one, should I sell it? How will it perform if I want to keep it? Questions create doubts, and doubts create a stunning lack of activity when it comes to the new and used car market. I seriously doubt Volkswagen will be rolling out its 2016 TDI models anytime soon. The company already failed to create a fix nearly a year ago and has spent an unusually long amount of time trying to get the formula right. There's also the fact that it rescinded its EPA application for 2016 models. I can't provide the ultimate oracle's guide on whether any recalled Volkswagen diesel will fall under the "good value" perceptions of car buyers. But I do believe four factors in particular will be largely independent of the outcome of that recall, and they're what you should pay particular attention to if you plan on buying any Volkswagen diesel – new or used. 1. Demand Creating Bad Supply There are a large number of car buyers who believe that they can zig while the marketplace tells them to zag. Unfortunately, those are the ones that get sent to the slaughter once articles like the one linked above proclaim, "resale values are down 13 percent." These heavily biased write-ups ignore the fact both the supply and demand of new and used recalled Volkswagen diesels are no longer operating in that free market. The supply side is obvious since the EPA has put a stop-sale on all Volkswagen diesels. However, on the demand side, those Volkswagen dealers who have exclusive access to off-lease vehicles and certified pre-owned programs for 2012 and newer VW diesels are now sitting on the sidelines with all those cars. When your best players no longer play, consumers don't come to the ballpark. What exists right now is a lot like a professional sports strike where the talent sits out until a collective agreement is reached. When your best players no longer play, consumers don't come to the ballpark. The marketplace only offers scabs that can play an inferior game. In the wholesale car business, the scabs are salvage vehicles that are wrecked or flood damaged, vehicles that can't be put under a CPO program due to frame damage and lemon law requirements, and the wholesale repossession market. All of these substandard vehicles make up the new supply, the collective underbelly of low-end quality in the used car marketplace.

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.

EPA upping its game amid Volkswagen probe

In the wake of the Volkswagen emissions-cheating scandal, the Environmental Protection Agency vowed to crack down on the auto industry with renewed vigor. That process has started. Janet McCabe, the agency's assistant administrator, said Tuesday that the EPA has already obtained a range of vehicles for testing purposes and that its enforcement staff is working as quickly as possible to determine whether other automakers are gaming emission results. "That's another detail we'd rather be obscure about, so that we can make sure people don't know what we're doing." For now, she said the agency is focused on diesel vehicles. But the scope of the new examinations could broaden to include gasoline-powered cars. The renewed efforts could include more light-duty vehicles or focus on heavy-duty trucks. The testing procedures could use dynamometers or portable emissions equipment. Right now, pretty much everything is a possibility. "We're going to become unpredictable, we're upping our game and we're going to use the whole range of technology that we have," she said. That technology now includes a heavy-duty truck chassis dynamometer at the EPA's national Vehicle and Fuel Emissions Laboratory in Ann Arbor, MI. Officials unveiled the $3 million piece of equipment Tuesday and hailed it as the first of its kind in North America. A Freightliner Super Truck, which boosted its fuel efficiency to 12 miles per gallon with the help of a $40 million federal grant, rolled onto the dynamometer in a ribbon-cutting ceremony Tuesday. McCabe said the new dynamometer will allow the EPA to assess the performance of the entire truck – not just its engine – and help engineers test 18-wheel tractor trailers measure, hydrocarbons, greenhouse gases, carbon monoxide and more. In the past, it took about a week for engineers to remove an engine from a truck and prep it for testing. With the new equipment, drivers can open a garage door and drive the rigs straight onto the dynamometer. A wealth of new, real-time data will be helpful as the EPA works with the National Highway Traffic Safety Administration in planning for the second phase of the government's greenhouse gas emission and fuel-efficiency standards for medium and heavy-duty engines and vehicles – a process now underway. While there's been a crush of attention on Volkswagen's scheming to circumvent emissions test, in the real world, it's these medium and heavy-duty trucks that are the bigger polluters.