Volkswagen Group Faces Another Huge Fine Over Dieselgate

Volkswagen will pay out $1.2 billion to affected owners of 3.0-liter V6 TDI models.

Slowly but surely, Volkswagen is trying to recover from the damage caused by the disastrous Dieselgate scandal. In the midst of facing lawsuits and prosecution, the manufacturer has been reaching settlements to compensate affected owners. The last settlement saw VW agree to pay out $15 billion to owners of 2.0-liter diesel models. Now, owners of 3.0-liter V6 TDI models are being compensated in another costly settlement.

VW has agreed to pay out $1.2 billion for a program inviting affected owners of 3.0-liter V6 TDI models to either have their vehicles fixed or bought back. Around 78,000 affected vehicles are eligible, including the VW Touareg, Audi A6, A7, A8, A8L, Q5 and Q7, and the Porsche Cayenne. If the fix is approved, owners could receive compensation of between $7,000 and $16,000, plus another $500 if the fix affects the car’s performance. If, however, you request a buyback, you will receive an extra $7,500 on top of the value of the car. These costs could seriously mount up for VW if US regulators don’t approve fixes for affected vehicles, however.

According to AutoNews, the manufacturer could end up paying $4.04 billion if this happens – and that’s without taking the individual owner’s compensation into account. VW also agreed to pay $225 million to offset the extra pollution emitted from the 3.0-liter models on top of the $2.7 billion it’s already paying out for pollution caused by 2.0-liter models. Will VW ever recover from Dieselgate? Well, despite all the controversy VW outsold Toyota last year - though it’s worth noting that this includes all brands under the VW Group such as Audi, Skoda, Seat, Porsche.

Forget Dieselgate: Audi SQ8 Coming With A 429-HP Diesel V8?

A new Audi with an oil burner? Are they serious?

Now that the Audi Q8 has debuted, we’re already bracing for the more performance oriented SQ8 variant. Slated to be unveiled potentially as soon as this October at Paris, the SQ8 could be offered with two different powertrains, depending on the market. According to Autocar, one of those powertrains will be a 4.0-liter V8 diesel, the very same engine found in the SQ7 and Bentley Bentayga Diesel, where it produces 429 hp and 664 lb-ft of torque.

Interestingly, this engine would replace the previously planned hybrid V6 powertrain Audi had been hinting. But why on earth is Audi about to offer a diesel instead of a hybrid gasoline engine following the whole Dieselgate fiasco? Because demand is apparently still strong in certain markets for high-powered diesels. Also, as this engine is already good to go in other VW Group vehicles, it’s relatively easy to drop it under the new SQ8’s hood. But what about the US where diesel was never especially popular? We’ll instead receive a 3.0-liter TFSI V6-powered version. So as it stands, the SQ8 won’t be offered in hybrid form, though that could change at a later date.

However, an even more potent RS Q8 is slated to happen and it’ll supposedly come powered by the same electrified V8 currently in use in the Porsche Panamera Turbo S E-Hybrid. It’s expected to produce somewhere around 670 hp and will go up against the likes of the BMW X6 M and Mercedes-AMG GLE 63 Coupe. As far as the upcoming SQ8 goes, we doubt there’ll be much controversy surrounding its diesel V8. Why not? Because no one is complaining about the Bentley Bentayga Diesel. In fact, it’s been selling very well, hence the decision to drop the SQ8’s hybrid V6. Meanwhile, Audi CEO Rupert Stadler continues to sit in jail for his alleged role in the Dieselgate cover up. There’s an irony to that.

Audi e-tron Reveal Delayed Because Of Dieselgate

The reveal event was supposed to take place in Brussels in August but will now be held in the US at a later date.

August 30 was supposed to be the reveal day of Audi’s first ever EV, the e-tron, but the event has been delayed after company CEO Rupert Stadler’s arrest last week. The electric crossover was originally going to be revealed at a prestigious full-day event in Brussels where the e-tron will be built, but Audi has confirmed to Automotive News the event will now take place in the US at an unspecified date and location. In a statement, Audi said the delay was due to "organizational reasons."

Consequently, the delay probably means that Audi’s chief rival Mercedes-Benz will be the first German automaker to unveil a mass-produced Tesla-fighter, the EQC that will make its world debut in Stockholm on September 4. Despite delaying the crossover's debut, Audi told Automotive News the e-tron’s sales launch hasn’t been affected. The e-tron will have its market launch at the end of the year. Nothing has changed," an Audi spokeswoman said. The delay comes after Audi’s CEO was arrested and imprisoned last week without bail in Germany on suspicion he was interfering with their investigation into the ongoing diesel scandal.

Stadler is one of 20 former or current Audi employees currently under investigation. The e-tron will mark a major milestone for Audi as the company starts its all-electric onslaught. By 2025, Audi aims to deliver 800,000 electrified cars every year. To achieve this lofty goal, Audi will offer an electrified version of every vehicle in its lineup by 2025, most of which will be fully electric.

Volkswagen CEO Claims Dieselgate Is Nearly Over And Done With Forever

Three years after being exposed, is the worst behind VW?

It’s been three years since Volkswagen admitted it cheated on diesel emissions. Just look at how much has changed since. Diesel, once a popular option, especially in Europe, carries a negative stigma and it’s unlikely to ever recover. VW paid dearly for its actions, both financially and legally. Audi’s now-former CEO was in the slammer for months until his recent release. Instead of diesel, VW has turned its full attention to electric-powertrains (though diesels will continue for light and commercial trucks). So much has changed and hopefully for the better.

That’s exactly how VW CEO Herbert Diess feels. According to Automotive News Europe, Diess believes “most” of the diesel scandal is in the past where he hopes it’ll stay.

“We basically bought back and fixed close to 90 percent of the cars” globally, Diess said recently. “I think most of the things we have overcome” he said. “We still have legal issues worldwide, in Germany - you're aware of that - and it will take years to solve everything. We just settled with Audi, with the state attorneys in Germany. There are still legal issues, but technically, we overcame most of the issues.” Diess also added the legal problems VW faced in the US were the most severe globally.

“Legally, we had here really a situation which was much more severe (compared) to the rest of the world, because our cars, when we launched the cars, would not comply with legislation.”

In Europe, by contrast, “the fix was relatively easy; it was a software update for about 10 million cars, which is also through. We have fixed 90 percent of the cars, but it was not a real severe technical issue. The situation here in America was, by far, the most critical one worldwide. And it has to do with the emission regulation here in the United States, which is much tougher than in the rest of the world.”

Above all, Diess sure sounds like he’s doing his best to make things right with global governments and the buying public. Will we still be talking about Dieselgate in, say, another three years from now? Impossible to predict, but by that time VW will have launched more than one of its all-electric I.D. models.

Porsche Wants Audi Fork Over $234 Million For Dieselgate Damages

A little domestic dispute in the VW Group is brewing.

As the VW Group pays out settlements with the hope of putting the Dieselgate fiasco behind it once and for all, there’s now trouble brewing from within. According to Reuters and Germany’s Bild newspaper, Porsche wants fellow VW Group brand Audi to pay it 220 million euros, or $234 million, in damages over costs related to diesel engines. Remember, it was Audi that admitted in November 2015 that its 3.0-liter diesel V6 engines were fitted with defeat devices, software that could sense when the car was undergoing emissions testing.

It then activated equipment that reduced emissions, only to turn it down during regular driving which put emissions above the legal limit. Not only did Audi outfit its cars with this engine, but so did VW and Porsche, specifically in the Cayenne SUV. When the truth came out, Porsche had no choice but to recall every single last one of those Cayenne diesels and make the necessary software changes. That wasn’t a cheap recall to do and, needless to say, it was outright embarrassing and reputation damaging. Now, Porsche officially wants compensation from Audi for the costs of retrofits, legal counseling and other customer care services.

Porsche told Reuters this is an internal VW Group issue and it won’t discuss details publically, but someone obviously leaked what’s going on over there in Germany. Not surprisingly, Audi also refused comment and referred all questions back to Porsche. So now it’s up to VW Group’s own lawyers to settle this internal financial dispute, but Porsche, based on its claims, appears to have every right to seek compensation from Audi. After all, it was Audi’s engine to begin with.

Forget Dieselgate: Volkswagen Beat Toyota As World's Largest Automaker

Diesel is dead, at least for VW.

The Dieselgate scandal that plagued Volkswagen not so long ago is now nearly a thing of the past. According to Reuters and Bild am Sonntag, the German automotive giant achieved a combined group sales of around 10.7 million cars last year. Thanks to its Audi and Porsche luxury brands, total revenue is expected to surpass 220 billion euros ($264 billion). Even 2016’s revenue wasn’t too shabby with 217 billion earned. That year’s revenue is significant because 2016 was the first full year post-Dieselgate.

You know, that whole emissions test cheating thing that forced VW to pay out a $14.7 billion settlement in the US alone. The automaker was also forced to buy back diesel-powered vehicles for customers who were deceived into buying them. But thanks to new leadership in both Europe and the US, Volkswagen has literally become a new company. Diesel is nearly gone and electric mobility is in. While these technological advances are taking place, VW Group brands have consistently launched new and relevant product that, evidently, people across the world are happily buying. What’s pretty amazing about VW’s stellar 2017 is that it beat Toyota, the largest auto company in the world for 2016.

The Japanese automaker sold around 10.35 million cars in 2017, which is actually up by 2 percent from the previous year. Aside from solid sales figures from Audi and Porsche especially, what else contributed to Volkswagen’s great year? China. Last year saw a double-digit increase in China as well as gains in Europe. Yep. Dieselgate is now officially a mere memory.

Audi Takes A Billion-Dollar Hit In Dieselgate Penalty

That's about a fifth of its profits from last year.

Think Audis have big price tags? Well they do: even a base A3 will cost you upwards of $30k, and the latest limited-edition R8 with the Competition package will set you back a good $240k. But those purchase prices are nothing compared to what their manufacturer has to pay as a result of the latest ruling in the so-called Dieselgate scandal.

Public prosecutors in Munich have handed the German automaker a massive fine of €800 million for producing six- and eight-cylinder diesel engines that pollute more than they're supposed to. That works out to over $920 million at current exchange rates.

The fine breaks down to €795 million for “disgorgement of economic benefits” and another €5 million for “negligent regulatory offenses,” Audi said in statement released last week.

In accepting the fine, Audi admits culpability for its role in the scandal that resulted from it (and other members of the Volkswagen Group of which it is part) implementing a “cheat device” that would mislead regulators about how much carbon its diesel engines were emitting. While this could spell the end of the affair for Audi, there could be more to come for its sister companies.

Suffice it to say, the penalty will have a substantial effect on Ingoldstadt's bottom line. “Considering these special items,” said the automaker, “the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.”

Last year, the Audi Group (which also includes Lamborghini and Ducati) recorded pre-tax net profits of €4.78 billion, of which the fine would represent roughly 20 percent. Audi will continue manufacturing diesel engines and the vehicles they power, but has been putting an increased emphasis on electrification, epitomized by the launch of the all-electric E-Tron crossover.

Audi Takes A Billion-Dollar Hit In Dieselgate Penalty

That's about a fifth of its profits from last year.

Think Audis have big price tags? Well they do: even a base A3 will cost you upwards of $30k, and the latest limited-edition R8 with the Competition package will set you back a good $240k. But those purchase prices are nothing compared to what their manufacturer has to pay as a result of the latest ruling in the so-called Dieselgate scandal.

Public prosecutors in Munich have handed the German automaker a massive fine of €800 million for producing six- and eight-cylinder diesel engines that pollute more than they're supposed to. That works out to over $920 million at current exchange rates.

The fine breaks down to €795 million for “disgorgement of economic benefits” and another €5 million for “negligent regulatory offenses,” Audi said in statement released last week.

In accepting the fine, Audi admits culpability for its role in the scandal that resulted from it (and other members of the Volkswagen Group of which it is part) implementing a “cheat device” that would mislead regulators about how much carbon its diesel engines were emitting. While this could spell the end of the affair for Audi, there could be more to come for its sister companies.

Suffice it to say, the penalty will have a substantial effect on Ingoldstadt's bottom line. “Considering these special items,” said the automaker, “the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.”

Last year, the Audi Group (which also includes Lamborghini and Ducati) recorded pre-tax net profits of €4.78 billion, of which the fine would represent roughly 20 percent. Audi will continue manufacturing diesel engines and the vehicles they power, but has been putting an increased emphasis on electrification, epitomized by the launch of the all-electric E-Tron crossover.

Audi Takes A Billion-Dollar Hit In Dieselgate Penalty

That's about a fifth of its profits from last year.

Think Audis have big price tags? Well they do: even a base A3 will cost you upwards of $30k, and the latest limited-edition R8 with the Competition package will set you back a good $240k. But those purchase prices are nothing compared to what their manufacturer has to pay as a result of the latest ruling in the so-called Dieselgate scandal.

Public prosecutors in Munich have handed the German automaker a massive fine of €800 million for producing six- and eight-cylinder diesel engines that pollute more than they're supposed to. That works out to over $920 million at current exchange rates.

The fine breaks down to €795 million for “disgorgement of economic benefits” and another €5 million for “negligent regulatory offenses,” Audi said in statement released last week.

In accepting the fine, Audi admits culpability for its role in the scandal that resulted from it (and other members of the Volkswagen Group of which it is part) implementing a “cheat device” that would mislead regulators about how much carbon its diesel engines were emitting. While this could spell the end of the affair for Audi, there could be more to come for its sister companies.

Suffice it to say, the penalty will have a substantial effect on Ingoldstadt's bottom line. “Considering these special items,” said the automaker, “the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.”

Last year, the Audi Group (which also includes Lamborghini and Ducati) recorded pre-tax net profits of €4.78 billion, of which the fine would represent roughly 20 percent. Audi will continue manufacturing diesel engines and the vehicles they power, but has been putting an increased emphasis on electrification, epitomized by the launch of the all-electric E-Tron crossover.

Audi Takes A Billion-Dollar Hit In Dieselgate Penalty

That's about a fifth of its profits from last year.

Think Audis have big price tags? Well they do: even a base A3 will cost you upwards of $30k, and the latest limited-edition R8 with the Competition package will set you back a good $240k. But those purchase prices are nothing compared to what their manufacturer has to pay as a result of the latest ruling in the so-called Dieselgate scandal.

Public prosecutors in Munich have handed the German automaker a massive fine of €800 million for producing six- and eight-cylinder diesel engines that pollute more than they're supposed to. That works out to over $920 million at current exchange rates.

The fine breaks down to €795 million for “disgorgement of economic benefits” and another €5 million for “negligent regulatory offenses,” Audi said in statement released last week.

In accepting the fine, Audi admits culpability for its role in the scandal that resulted from it (and other members of the Volkswagen Group of which it is part) implementing a “cheat device” that would mislead regulators about how much carbon its diesel engines were emitting. While this could spell the end of the affair for Audi, there could be more to come for its sister companies.

Suffice it to say, the penalty will have a substantial effect on Ingoldstadt's bottom line. “Considering these special items,” said the automaker, “the Audi Group will significantly undercut major financial key performance indicators forecasted for the fiscal year 2018.”

Last year, the Audi Group (which also includes Lamborghini and Ducati) recorded pre-tax net profits of €4.78 billion, of which the fine would represent roughly 20 percent. Audi will continue manufacturing diesel engines and the vehicles they power, but has been putting an increased emphasis on electrification, epitomized by the launch of the all-electric E-Tron crossover.