This will give you pause....
#21
I agree that it would be highly unlikely that VAG would consider pulling Audi from the U.S. Unlike VW with sales down over 14% YTD, Audi is still growing (modestly) despite dieselgate and the sales hold on TDI models.
The point I was trying to make is that if VAG pulled VW from the U.S., there would likely be internal business impacts on the other brands within the corporation in various ways, i.e. R&D, marketing, manf. cost cutting, etc. VAG is undoubtedly in the process of cutting costs across the board to help offset some of the huge payouts that are on the horizon.
The point I was trying to make is that if VAG pulled VW from the U.S., there would likely be internal business impacts on the other brands within the corporation in various ways, i.e. R&D, marketing, manf. cost cutting, etc. VAG is undoubtedly in the process of cutting costs across the board to help offset some of the huge payouts that are on the horizon.
VW has got to up its game in terms of reliability, repair costs and fuel economy.
#22
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Time will tell
I suspect this is mostly angry puffing by one guy who is probably feeling the pressure. It was incredibly short sighted to make a statement like that and I am sure he is going to hear it from the Board. Internally I think VAG has always considered themselves better than Toyota, Honda, etc. but they had to "dumb down" their fleet to make it affordable for the masses. I doubt that everyone agreed with that marketing shift and a statement like this is almost certainly a product of that dissension. I personally preferred the boutique VWs, as well, but I also bought a diesel 2012 VW Passat after Motor Trend made it the car of the year. I kept it less than a year, however, because the seats were awful and it lacked the sex appeal of my Audis.
I think VAG can weather this storm much as Toyota survived their crisis, but they will need to present a united front; statements like this paint a picture of a house divided and, to me at least, that is much more alarming for the future of the brand.
I think VAG can weather this storm much as Toyota survived their crisis, but they will need to present a united front; statements like this paint a picture of a house divided and, to me at least, that is much more alarming for the future of the brand.
#23
Gotta say this whole thing is getting a little stupid. Leave it to 'Murica to bitch and moan like never before on something really trivial when compared to what other car brands have covered up involving deaths, safety violations. It MIGHT be even a little ok if the country even cared about the environment like the rest of the adult world. Just so much whiny contradictions and irony its ridiculous.
#24
Gotta say this whole thing is getting a little stupid. Leave it to 'Murica to bitch and moan like never before on something really trivial when compared to what other car brands have covered up involving deaths, safety violations. It MIGHT be even a little ok if the country even cared about the environment like the rest of the adult world. Just so much whiny contradictions and irony its ridiculous.
#26
AudiWorld Member
Gotta say this whole thing is getting a little stupid. Leave it to 'Murica to bitch and moan like never before on something really trivial when compared to what other car brands have covered up involving deaths, safety violations. It MIGHT be even a little ok if the country even cared about the environment like the rest of the adult world. Just so much whiny contradictions and irony its ridiculous.
The bottom line is VW shouldn't have signed on the certification line when it came to their diesels. 'merica didn't hold a gun to their head saying "you must bring diesel". If you can meet the standards, welcome. If you cannot, don't bring the cars here. Comparing this to death and safety violations is a false premise argument.
This is not a time for VW to renegotiate emissions standards they evidently had no desire to meet initially. This is not bitching and whining, its the law. If you don't like it, then lobby your representatives to change it.
#27
AudiWorld Member
Respectfully, I think some are missing the point. If VW had reported emissions non-compliance of equal magnitude from a component failure, normal service campaign/recall actions would have ensued with little additional fuss. The assessment of this event is not the degree of harm. Comparing an emissions variance to loss of life from other manufacturer's design shortcomings is not the proper analogy. The issue here is, in modern automotive industry history, this is the most egregious conspiracy by a manufacturer to intentionally commit fraud and violate government regulations. When a company undertakes to engage in that kind of blatantly illegal action, whether for emissions or safety, the rule of law may be expected to react with severity.
Last edited by Sportstick; 03-16-2016 at 06:35 AM.
#28
Defeat devices have been used by numerous auto producers many times over the years. This one was simply more sophisticated. It is true that it is clearly a violation but it is not the same as when one of the "big 3" decided it was calculated to be less expensive to pay for lawsuits from accident fatalities rather than pay too re-engineer a poorly designed safety related car part to prevent the fatalities. The ironic part is that this recent event will be orders of magnitude more costly to VW than the fines paid for the previously described event.
#29
AudiWorld Member
If the proper solution added $5K per car and VW has sold half a million cars, that's $2.5B.
Reason for cheating == cheaper car == more sales/higher margins. VW stated they thought the fine was going to be ~$100M
Lets say they clear $12K per car (20% GM likely low), that means their profit was $6B. If they would have passed the $5K on, how many less would they have sold? (1/2?) $3B profit. That's $2.9B up for grabs after token fine. Tough to argue against cheating, amiright?
If the fines aren't setup to not only destroy the additional sales lost + some punitive stuffs, I don't know how you give the emissions standards teeth to prevent it happening again. $100M fine almost encourages it.
#30
The initial fine estimates were in the $37K per ( violating) car range.
Volkswagen won't pay the US $18 billion in fines for cheating on emissions tests - Business Insider
Volkswagen won't pay the US $18 billion in fines for cheating on emissions tests - Business Insider
Last edited by Fahrer; 03-17-2016 at 01:16 AM.