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Angry diesel owners joining lawsuits against Volkswagen [w/video]

Livid at the prospect of losing thousands of dollars from the value of their cars and performance from their diesel engines, many owners of Volkswagens are headed to court. A law firm with a track record of suing automakers has already filed three class-action lawsuits against the German automaker related to its emissions-cheating scandal and says a fourth one is on the way. The lawsuits, filed by national firm Hagens Berman, accuse Volkswagen Group of America of fraudulent concealment, false advertising, and violations of federal and state laws. Plaintiffs in all 50 states have joined the class-action suits, according to the firm. A spokesperson says there has been "an unprecedented response" since the first lawsuit was filed within hours of an announcement from federal regulators last Friday. The lawsuits accuse Volkswagen Group of America of fraudulent concealment, false advertising, and violations of federal and state laws. Diesel owners paid thousands more for their vehicles instead of their gasoline-powered counterparts because Volkswagen's diesel engines ostensibly offered both torque and fuel economy. Now affected car owners are faced with a double-whammy – the value of their cars has diminished with the news and the purported software fix that brings the cars in emissions compliance will likely lower their performance and gas mileage. "Hundreds of thousands of consumers put their trust in VW when they looked to its 'Clean Diesel' line for an efficient, environmentally conscious diesel option," said Steve Berman, managing partner. "But for years, VW cheated the system. Its TDI line of fast but 'good-for-the-environment' cars seemed too good to be true, and they were." In its latest court filing, Hagens Berman lawyers said that car owners believed their vehicles were in compliance with Environmental Protection Agency standards and that the cars would retain their operating characteristics throughout their useful lives. Another firm, Girard Gibbs, has also filed a lawsuit over the diesel deception. "These Volkswagen vehicles should never have been sold, and certainly should not have spent the past six years on American roads polluting our air," said Eric Gibbs, the lead attorney. "Not only does this kind of fraud harm consumers and the environment, it negatively impacts competition, which is what drives our free-market system.

West Virginia researcher describes how Volkswagen got caught

The cheating scandal engulfing the world's largest automaker started with a road trip. In the spring of 2014, researchers from West Virginia were evaluating the tailpipe emissions of diesel cars made for the American market by European manufacturers, something never before studied in the academic realm. Excited by the prospect of breaking new ground, the team of two professors and two students wanted to gather as much data as possible. "And being academics, we went a little overboard," said Arvind Thiruvengadam, one of the students. "Being academics, we went a little overboard." Overboard included driving the cars for more miles than they needed to test and verify results. Drivers put about 1,500 miles on each of the first two cars in the study, a Volkswagen Jetta and BMW X5, along California roadways. For their final car, a Volkswagen Passat, they wanted even more mileage. So they took the car on a road trip from Los Angeles to Seattle and back again, collecting data from more than 2,000 miles of testing. The road trip was Volkswagen's undoing. When the West Virginia team returned to Los Angeles, they were befuddled by the test results. In theory, the Passat should have spewed the lowest levels of pollutants among the three cars. Equipped with the more modern selective catalytic reduction technology, the team expected to find minimal levels of nitrogen oxide. But the car, which had been certified at a California Air Resources Board facility prior to the start of the road trip, had elevated levels of NOx that were 20 times the baseline levels established beforehand. The researchers, comprised of professors Gregory Thompson and Dan Carder and students Marc Besch and Thiruvengadam, knew their on-board equipment functioned properly because, early in their research, they had double-checked its accuracy after recording sky-high NOx readings from the Jetta that showed 30 times the level of its baseline testing at the CARB facility. It was particularly noteworthy because the Jetta contained the first-generation Lean NOx Trap technology, not the more efficient SCR, yet both produced large discrepancies. The BMW, on the other hand, performed as expected. Today, Thiruvengadam is careful to say the research team never suspected Volkswagen of cheating on emissions testing, nor did the researchers report such a finding. They merely reported their findings to CARB officials who then further investigated.

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.

Volkswagen CEO Martin Winterkorn resigns amid diesel scandal

Volkswagen CEO Martin Winterkorn is stepping down amid charges the company manipulated its diesel-powered cars to meet emissions regulations around the world, the automaker announced Wednesday. No successor was immediately announced, though recommendations will be made at VW's board meeting Friday. Winterkorn, 68, has led VW since 2007 and oversaw the German automaker's staggering growth around the world. His departure comes less than a week after the EPA alleged the company has been cheating on diesel emissions testing for years, and that its cars might emit 40 times more pollution than legally allowed. The EPA says about 482,000 vehicles are affected in the United States, and VW estimates at least 11 million vehicles globally might have the software that allows the vehicles to cheat emissions regulations. "As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group," Winterkorn said in a statement. "I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part. "Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation." Winterkorn stepped down after an executive committee meeting of the VW Supervisory Board Wednesday. The committee agreed Winterkorn had no knowledge of wrongdoing. "The executive committee has tremendous respect for his willingness to nevertheless assume responsibility and, in so doing, to send a strong signal both internally and externally," VW said in a statement. Volkswagen is conducting an internal review and expects more "personnel consequences" in the coming days. It also will voluntarily submit a complaint to the state prosecutor's office in Brunswick, Germany, and cooperate with the expected criminal investigation. Winterkorn's departure is the latest development in VW's burgeoning diesel emissions scandal. It came to light last week after the work of researchers at West Virginia University detailed the software manipulation designed to skirt EPA tests, and it has resounded as governments around the world examine Volkswagen's diesel vehicles. The company set aside $7.3 billion to deal with the fallout and has retained the law firm that defended BP during its oil spill.

More German automakers may be afoul of US emission standards

Volkswagen has plenty of smoke to share, and that may mean fire for other German automakers that make diesel vehicles, says Automotive News. Earlier this month, European Federation for Transport and Environment said that BMW, Daimler's Mercedes-Benz and General Motor's Opel division are among other automakers that may have equipped their vehicles' diesel engines with similar software as VW's. That software was found to reduce emissions while a car is being tested for emissions and shuts down emissions-control systems during normal use. The European environmental group used data from the International Council on Clean Transportation. Automotive News notes that the European environmental group put out its own report earlier this month, before the VW scandal broke loose, but the report was pretty much overlooked. Now, VW is under fire after it was discovered that 2.0-liter diesel engines in the VW Jetta and Golf, and Audi A3, may be programmed to game the emissions system. VW sold almost a half-million diesel vehicles in the US during the past six years. Both BMW and Mercedes-Benz told Automotive News that the issue that befell VW doesn't apply to their diesel vehicles. Earlier this week, Volkswagen admitted its car ran the sneaky software, while the US Environmental Protection Agency (EPA) has started a probe on the company. VW is setting aside more than $7 billion to pay for the alleged violations. Meanwhile, US taxpayers may have spent as much as $51 million a year to pay for subsidies related to VW's diesel vehicle sales in 2009 alone, according to the Los Angeles Times.

VW diesel scandal: South Korea could be next

To no one's surprise, there are constant new developments in the VW diesel scandal. We hit the main points in a number of posts recently, but there were other, smaller developments that we didn't put into their own post. Instead, we've collected them here. For our complete coverage of this issue, click here. There's a lot to digest, so here goes. To try and keep dealers happy, VW announced that it guarantee bonus payments to its US dealers this month worth $300 for every new car sold ($600 for each Passat). The automaker is also going to guarantee payments from the company's customer experience bonus program. A memo from VW's US chief Michael Horn said, "We understand the pressure these recent events have put your business under and we are committed to providing you support," according to Automotive News. You can see Horn speaking at an event Monday night above. There will be at least one more official investigation into just how widespread this issue. South Korea has now said it will look into the emissions numbers for around 4,000-5,000 cars there. The affected TDI engines can be found in two VW and one Audi models (Jetta, Golf and A3) in South Korea. In the US, there could be another investigation as well, since Senator John Thune, (R-SD), the chairman of the Commerce, Science and Transportation Committee, has asked the Federal Trade Commission to take a closer look. A scandal this big is not only going to affect VW. To get ahead of any possible criticism, Bosch has issued a statement saying that yes, it does make parts for the 2-liter, 4-cylinder TDI engine that is at the heart of the problem. But, in a statement emailed to Reuters, said, "We produce the components after specification of Volkswagen. The responsibility for application and integration of the components lies with Volkswagen." Looking ahead, VW said in a new statement (available below) that its new EU 6 diesel engines do, " comply with legal requirements and environmental standards." That means that, supposedly, there's no "defeat device" needed to make these engines clean enough to pass strict environmental regulations. That'll be important if VW wants to keep marketing diesel as a clean fuel. For now, the tide seems to be turning against the automaker. Volkswagen AG has issued the following information: Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines.

Daily Driver: 2015 Volkswagen CC

Daily Driver videos are micro-reviews of vehicles in the Autoblog press fleet, reviewed by the staffers that drive them every day. Today's Daily Driver features the 2015 Volkswagen CC Executive, reviewed by Seyth Miersma. You can watch the video above or read a transcript below. And don't forget to watch more Autoblog videos at /videos. Show full video transcript text [00:00:00] Hi, guys. This is Seyth with Autoblog, and I'm driving the 2015 Volkswagen CC. The version of the car I'm in is the VR6 4motion car, so it's got a six-cylinder engine and all-wheel drive. This six-cylinder is actually a little bit of an odd duck at this point for the class. It's a 3.6 liter V6. It makes 280 horsepower, 265 pound-feet of torque. It's really living in a world that's been [00:00:30] overtaken by potent, two-liter turbos. I think something that's particularly difficult, especially in light of what I know about the Volkswagen family, the new engines getting great fuel economy. The 1.8T and obviously the TDI are real champs in that regard. Unfortunately, this VR6 is really sucking down the premium. These days, a 20 MPG combined rating is not particularly good. This definitely isn't a sports car. If you throw it hard into a corner, it leans a little bit, you can feel some roll [00:01:00] through the suspension. Handling is tidy, but it's not particularly precise. Of course, it's not really meant to be. This is a car that's meant to be great on the highway, great cruiser, look pretty stylish, and with a good powertrain, it can be exciting enough. Because you're not getting anything else that's very sports car-like about this car, other than the power delivery, and even there it's not quite on-pace with some of the sporty sedans that you can buy for right around the same money. It just makes for an interesting mix; something that's a little bit fast, [00:01:30] not very fuel-efficient, not a great handler, not a premium badge. Let's cut down right to it. This car is $44,400 and some change. Again, the VR6 4motion Executive Trim level, which means it pretty much gets everything you can get in a CC. We've got leather seats; they are heated. They have a massaging seat on the driver's side. I've got some 18-inch wheels that look pretty good. Big head unit with touch-screen and [00:02:00] navigation, satellite radio, better sound system. Just in general, the car feels very well-appointed. It feels like an entry-level luxury car.

Taxpayers wasted $51 million on VW diesel credits

The scope of Volkswagen's diesel emission rules evasion continues to widen with 11 million vehicles now potentially affected around the world, and the company is setting aside over $7 billion to start paying for it all. However, the costs could go even deeper. In a piece that's well worth a read, an analysis by The LA Times finds that the government distributed as much as $51 million in green car subsidies to buyers of these models in 2009 – the first year of the dishonest engine management software. The short-term effects of this scandal on VW are already quite dire. On September 21, the company's stock fell over 20 percent at one point on the German exchange, ended down 17.8 percent that day, and have continued to tank. In addition, the Environmental Protection Agency has forced a stop-sale on 2015 and 2016 diesel models with the 2.0 TDI, and the agency has begun analyzing the 3.0-liter V6 TDI in the Audi A6, A7, A8, Q5, Q7, and Porsche Cayenne to look for similar issues. The Justice Department has also started a criminal investigation, and the automaker has instituted its own external probe, as well. The emissions irregularities were first discovered by researchers at West Virginia University and the International Council on Clean Transportation. The EPA and California Air Resources Board were eventually made aware and launched their own investigations.

Volkswagen's emissions deception brings more scrutiny to entire industry

Volkswagen's emissions deceptions have hurt the entire auto industry's credibility with federal regulators. Days after the world's largest automaker confessed to installing software that circumvents emissions standards on approximately a half-million diesel vehicles in the United States, a top federal safety official says the company's dishonesty will force government officials to view the entire auto industry with heightened skepticism. "Your first question has to be, 'How extensive is it through the whole industry?' You don't know if it's a unique case or if other people are doing it," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "The unfortunate part is you're not going to worry about one person. It's extended to the entire industry. If they did it, someone else could do it." "They tell you one thing, you question it." - Mark Rosekind Rosekind's agency doesn't bear responsibility in investigating the emissions cheating. That falls to the Environmental Protection Agency, which served Volkswagen with a Notice of Violation on Friday that alleged the company's diesel vehicle equipped with 2.0-liter engines contained a defeat device that allowed the cars to detect when emissions testing was taking place. In normal driving situations, the cars spewed pollution at as much as 40 times allowable thresholds. But because of the emissions cheating, NHTSA wonders if the German automaker has been cutting corners on safety standards or disingenuous on safety-related discussions. Speaking at an auto-industry event in Novi, MI, on Tuesday, Rosekind indicated no information can now be taken at face value. He used the phrase "Question assumptions" several times in discussing the case. "Of course, question assumptions means, 'Is there some other safety element there that we're now going to have to investigate?" he said. As it did in the General Motors ignition-switch probe, the Department of Justice has initiated an investigation of Volkswagen and the House Committee on Energy and Commerce announced it will hold hearings on the cheating. For NHTSA, criminal cases complicate matters. The agency core function is to regulate safety, not conduct criminal investigations. But in the early going, their investigators may be the first ones to spot wrongdoing.

VW CEO Winterkorn issues video apology for diesel scandal

Amid rumors that he might step down from the automaker, Volkswagen CEO Martin Winterkorn has issued a video statement publicly apologizing for the company's diesel emissions scandal. The boss claims that he doesn't have the answers to all of the questions yet but promises a thorough investigation to makes things right. Multiple times in the speech, he asks forgiveness from customers all over the world and asks people not to blame all of the company's 600,000 employees for this lapse. At no point does Winterkorn mention resigning, though. You can watch the whole clip above, but it's in German, so turn on the subtitles. However, Winterkorn's future with VW isn't assured, and works council boss Bernd Osterloh appears ready to make some changes. "I can assure you that we will do everything possible in the supervisory board meetings this week to ensure the matter is cleared up quickly and that personnel consequences are drawn. And that will not just affect the rank and file, I can assure you," he said in a letter to Bild, according to Reuters. Earlier today, the automaker admitted that the same engine management software is in vehicles from other VW group brands, but it claims that the Type EA 189 engine is the only one with a deviation between test results and real-world numbers. That mill is installed in 11 million vehicles across the globe. As a start, VW is earmarking 6.5 billion euros ($7.3 billion at current rates) to service them. The actual costs could go much higher, though.