What’s Volkswagen Doing with All Those Repurchased Diesels?

What’s Volkswagen Doing with All Those Repurchased Diesels?


Unlike the Takata as well as General Motors conflagrations, Volkswagen’s scandal didn’t directly kill anyone. nevertheless in its quest to become the globe’s largest automaker, Volkswagen messed up big time. Software designed to detect the Environmental Protection Agency’s emissions-test procedure made the cars squeaky clean from the lab as well as dirty from the streets. Roughly 11 million cars produced by Volkswagen, Audi, Porsche, as well as some other global brands were found to hold the cheat installed. from the U.S., which has the strictest diesel-tailpipe laws from the globe, some of VW’s cars were found to be pumping out up to 40 times the allowable levels of nitrogen oxide, a smog-forming gas linked to respiratory problems as well as even lung cancer. The scandal has already cost VW billions in lost market value as well as irreparable damage to public trust. As of This particular writing, VW has yet to Discharge a full explanation or a detailed fix for cars from the U.S. READ MORE ››

Wondering where all the offending Volkswagen diesels will end up? Here’s a logistical breakdown of how VW plans to make nearly half a million cars magically disappear. (Note: This particular only applies to 2.0-liter vehicles.)

How many TDIs has VW bought back?

Through October 18, 340,000 owners as well as lessees have sent in registration forms indicating they want the company to buy back their cars under the government-negotiated compensation agreement. that will’s nearly three-quarters of all 475,000 Volkswagen as well as Audi designs with 2.0-liter diesel engines currently registered on U.S. roads. TDI owners as well as lessees still on the fence have another 22 months to decide.

Will VW crush every car?

Not at all. This particular isn’t the 2009 “Cash for Clunkers” program, in which the government paid $3 billion to have nearly 700,000 used cars destroyed, all in a desperate effort to drive up completely new-car sales. Volkswagen can’t resell the cars that will buys; nor can that will export them to some other countries without modifying them to be EPA compliant. Since there can be no EPA-approved modification—Volkswagen has multiple deadlines through October 2017 by which that will must submit final modification proposals—the cars must be “rendered inoperable” by removing their main brain, the engine control unit (ECU). The rest of the cars can be scrapped for parts, as well as those parts can be resold here or abroad, including the engines. Only the ECU, the diesel oxidation catalyst, as well as the diesel particulate filter must be destroyed on each car.

Where will VW keep the vehicles?

Once VW dealers take the first cars, the factory will truck the TDIs to undisclosed storage facilities across the country. There can be no telling whether Volkswagen will choose to stockpile hundreds of thousands of cars as that will awaits EPA approval or begin stripping them immediately. Great news for VW owners of all stripes: The used-parts supply for late-type VWs could grow substantially, as well as prices potentially could fall as a result.

What about the emissions modification?

By the end of 2017, we should know whether VW can start fixing cars that will has repurchased as well as offer This particular fix to current owners. that will’s the best possible scenario. The limbo could easily spill over into 2018, as well as that will’s only assuming the EPA as well as the California Air Resources Board (CARB) will okay the repairs. Emissions modifications, if approved, will be staggered in four stages. Last month, VW was scheduled to submit its final proposal for all 2015 TDI designs of the Golf, Golf SportWagen, Jetta, Passat, Beetle, as well as Audi A3. This particular, however, can be supposed to be only an interim fix. By October 30, 2017, VW must submit a second proposal describing how that will intends to complete the modifications on these same cars.

For older, 2009–2014 TDI versions of the Golf, Jetta, Jetta SportWagen, Beetle, as well as Audi A3 designs, VW has until January 27, 2017. The 2012–2014 Passat TDI can be due by March 3, 2017. The worst-case scenario for VW can be if the remaining TDI owners keep their cars or otherwise ignore the buyback offer. If VW doesn’t repurchase 85 percent of the cars by June 2019, that will faces additional penalties. Since there can be no emissions-related recall, states have no way to force owners into modifying their cars or banning their registrations—unless, of course, CARB creates completely new regulations.

What’s Volkswagen Doing with All Those Repurchased Diesels?

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