Volkswagen gets busted.

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Royal

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It's certainly hurting their stockholders. VW stock dropped over 20% again today.
 

Royal

Connoisseur of Exotic Pictures
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Lol at people thinking the US government is gonna go VW is too big to fail. You realize that in the US the size of a company is determined by the size of its political contributions, right?

VW aint gonna have many friends in america when it comes to this. They absolutely are going to take a gigantic kick to the balls.
It's gonna be more than just the feds standing in line to take a swing at the jewels. States like California are gonna be sporting their steel-toed boots.
 

Siddar

Bronze Baronet of the Realm
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It's gonna be more than just the feds standing in line to take a swing at the jewels. States like California are gonna be sporting their steel-toed boots.
There are a awful lot of southern Europeans who want to inflict economic pain on Germany as well.

The reaction in europe seems much larger then the reaction in US.
 

TJT

Mr. Poopybutthole
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It will certainly take them 5 years to even remotely recover from this. That they admitted to setting aside $7BN just to deal with fallout from this issue also might fuck them. Although its unclear if that article meant they just now did it, or had done it some time ago.
 

Running Dog_sl

shitlord
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A silver lining?

There is a good chance that the scandal could even wreak damage to the long-running negotiations between the European Union and the US on the Transatlantic Trade and Investment Partnership (TTIP). This bilateral agreement aims to create a US-EU free trade area by eliminating tariffs and, this is the key point, fostering regulatory compatibility in nine sectors, of which cars is one of the most important.

The talks have been hugely controversial across the political spectrum. Many dislike the potential introduction of so-called Investor-State Dispute Settlements, which theoretically allow companies to sue governments if their profits are hurt by policies. This, it has been argued by campaigners, places the rights of corporations above those of sovereign nations.

Others argue that "regulatory harmonisation" could lead to a reduction in labour standards and trade union rights, which tend to be stronger in Europe than in the US. This is a particular bugbear in Germany, where companies and unions enjoy amicable and co-operative relations. Up until now politicians have been able to argue that the trade agreement will be a net positive because it could further open the vast US market to German exports. And the main items that they're hoping to ship across the Atlantic? Why, cars, of course.

The chairman of the European Parliament's trade committee and one of the main TTIP negotiators on the European side is a German MEP called Bernd Lange. It just so happens that the Social Democrat represents Lower Saxony, home to VW's Wolfsburg headquarters, the largest car plant in the world.

The European car industry has been one of the most vocal advocates for TTIP. But, now it looks like selling German cars in the US will be somewhat tougher, there may soon come a point when the potential positives of TTIP no longer outweigh the potential negatives - especially for the average German car worker, Herr Lange's constituents.
VW is now in mortal danger, but its not the only one - Telegraph
 

Heian

Molten Core Raider
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VW could pass auto peers in payout hall of shame | Considered View | Breakingviews

The article claim that VW as 21 billions euro in net cash with more coming form planned divestments.


there are rumor that they might give 2 options to current owner. Take the software update, accept that your car will perform less but will give a you a big compensation or you return your old car and they will gives you a huge rebate on a new one.

I would personally take the second option. My coworker own a 2010 TDI and she would happily switch for a new one.
 

Tuco

I got Tuco'd!
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VW could pass auto peers in payout hall of shame | Considered View | Breakingviews

The article claim that VW as 21 billions euro in net cash with more coming form planned divestments.


there are rumor that they might give 2 options to current owner. Take the software update, accept that your car will perform less but will give a you a big compensation or you return your old car and they will gives you a huge rebate on a new one.

I would personally take the second option. My coworker own a 2010 TDI and she would happily switch for a new one.
That's pretty much what they have to do if they want to keep up their reputation. That and find out who is truly responsible and crucify them.
 

TJT

Mr. Poopybutthole
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I really hope they don't go with the Lone Gunman explanation. Because the public would probably buy it. CEO has no way out of this and will certainly resign, but if he was unaware (likely so) fingering some random senior engineer who "did all of it" just seems so implausible. I just can't see this not being on the radar for all kinds of engineering teams designing/testing engines. Without the software they wouldn't beat the testing that was a known requirement in the USA. There is no way this wouldn't have been obvious in the lab.

Did some managers and their "top engineering talent" just tell them they've found a solution to this through engineering magic and nobody asked how it worked?
 

Heian

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He already resigned and or got fired a few days ago. The manager of VW is now the manager of Porsche.

The chip is manufactured by Bosch. From what I can ready there are no crazy algorithm that know when to cheat or not. The car's normal mode does whatever it does but when they put the car into test mode the emission/HP are reduced.

That make me think about it. VW as been known to underrate their engine for a while now.

The GTI is rated 210 HP and it get 261 on a dyno and the TDI get similar results.

Dyno run hints VW GTI power might be significantly underrated

Could it be related? We always wondered why they underrated their own engine so much. Could it be that when they do their own test they also put in in that test mode. The GTI is 210 HP and when people does their own dyno test they don't use that mode and suddenly the car is more powerful than what it is announced.

The issue here is about what the diesel emit but could they run the same basic software?

I'm no car specialist but I wonder if it could be related.

* sorry for error english isn't my main language.
 

Hekotat

FoH nuclear response team
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He already resigned and or got fired a few days ago. The manager of VW is now the manager of Porsche.

The chip is manufactured by Bosch. From what I can ready there are no crazy algorithm that know when to cheat or not. The car's normal mode does whatever it does but when they put the car into test mode the emission/HP are reduced.

That make me think about it. VW as been known to underrate their engine for a while now.

The GTI is rated 210 HP and it get 261 on a dyno and the TDI get similar results.

Dyno run hints VW GTI power might be significantly underrated

Could it be related? We always wondered why they underrated their own engine so much. Could it be that when they do their own test they also put in in that test mode. The GTI is 210 HP and when people does their own dyno test they don't use that mode and suddenly the car is more powerful than what it is announced.

The issue here is about what the diesel emit but could they run the same basic software?

I'm no car specialist but I wonder if it could be related.

* sorry for error english isn't my main language.
Many companies have done this in the past though, not just VW.

Hell, my SRT-4 had 50 more horsepower than was advertised. Turns out almost all of them were this way, and it became even more comical when none of them would pass emission in California. There were a lot of pissed off people with brand new cars that couldn't drive them, lol.
 

Borzak

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Nothing new, of course in the "old" days they listed a lower hp for insurance purposes. The '67-'69 Z28 302 had an advertised HP of 290, with the dual 4 barrel cross ram induction it was closer to 500 the day it rolled off the show room.
 

AngryGerbil

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Business/Law types would know; Are there any laws or regulations in place that can or do identify cases of willful ignorance? Like, I am willing to believe this CEO didn't really know exactly what what going on, but I am also willing to believe that he didn't want to know and probably made peopleawarethat he didn't want to know. Is creating a purposeful bubble of plausible deniability a crime, or just really slimy?

I'm not exactly accusing the VW guy of this necessarily, I'm wondering if it would even be a possible charge he could face? Or is that not even a crime?
 

Palum

what Suineg set it to
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Yes, especially in civil cases involving regulatory bodies. Who knows if there could be criminal charges in the future for some of these clowns, they just found the peanut CEO guilty and sentenced him to 28 years in jail, but that was medical (ie caused deaths) and they had evidence he specifically told people to ignore salmonella test results that came back positive and ship product anyway.
 

Eomer

Trakanon Raider
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It will certainly take them 5 years to even remotely recover from this. That they admitted to setting aside $7BN just to deal with fallout from this issue also might fuck them. Although its unclear if that article meant they just now did it, or had done it some time ago.
They just now did it, and from what I read, that's only to deal with recalls/repairs. It is not for fines or lawsuits, because at this point they have no way of even guessing at how big the bill for that is going to be.
 

Brad2770

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Not a VW fan, so this doesn't really affect me, but I am curious what the ripple affect will be for other auto makers? How will this affect the general consumer in the long run?
 

Palum

what Suineg set it to
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Well I guess we'll see how much "oh shit" goes on. I think it won't be as bad though, most other manufacturers have gone hybrid or FI instead of trying to cheat diesel.
 

Eomer

Trakanon Raider
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I think it'll likely change the way cars are tested for emissions, requiring more "real world" data, and that could certainly impact other manufacturers. I'm sure they're all gaming the tests to one extent or another.
 

Palum

what Suineg set it to
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That much is true, I suppose. The problem is those metrics have always been based on grandma driving vs Redneck running coal. It could be a very uncomfortable shift in the thick of CAFE compliance woes.
 

Itzena_sl

shitlord
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The next set of Euro emissions tests were already scheduled to be amended to be more realistic and less of a "test cycle" thing - I suspect this is going to let Strasbourg really turn the screws now, though. I'd imagine that longer term a lot of manufacturers are going to go back to offering a token diesel or two (with a whole bunch of petrol turbo + petrol hybrids) rather than having the bulk of their ranges as oilburners.
 

Cad

scientia potentia est
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Would be nice if people would buy a lot more simple electric cars like the leaf. Then we could go with renewable or at least non-CO2/NOx polluting electricity like nuclear/wind/solar/hydro. I'm considering picking up a used Leaf. I drive like 3 miles to work, who gives a fuck.