Second FTC settlement with VW challenges green claims for 3.0 liter diesels

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Sometimes a sequel can be just as compelling as the original and we think a just-announced settlement that makes owners of 3.0 liter VW, Audi, and Porsche diesels eligible for more than $1 billion in payments fits that description.

In June 2016, the FTC’s record-setting $10 billion settlement with VW alleged that the company pitched its 2.0 liter “clean diesel” vehicles as an attractive option for environmentally conscious consumers. But according to the complaint, VW secretly installed a “defeat device” to falsify the scores on emissions testing.

The next chapter in the VW story alleges that the company engaged in similar conduct with its 3.0 liter diesel engines. The new proposed settlement affects more than 77,000 vehicles – cars that weren’t covered by the initial announcement. They’re divided into two different “generations,” based on their make, model and year, and it will be important for owners to know how their car is categorized.

Owners or lessees of Generation 1 cars will have a choice: VW will buy back the car (or terminate the lease) and give owners or lessees an additional payment or VW will modify the car’s emission system, if approved by regulators, and give them a payment. The modification will improve the car’s emissions, but will not make it fully comply with the original certified standards.

For Generation 2 cars, VW is expected to get regulatory approval for a certified emissions repair that will make the cars fully compliant with the originally certified standards. If there is a certified repair, VW will make those repairs and give owners or lessees a payment. (VW will buy back or terminate leases for Generation 2 cars only if a certified emissions repair is not available.)

If you own one of the covered cars, we’ve posted a fact sheet and detailed tables with estimated payment ranges for various makes, models, and trims. Soon owners be able to go to VWCourtSettlement.com to see if their car qualifies. (We also have a post on the FTC’s Consumer Blog that shares important information about the program.)

The 3.0 liter settlement is big news for consumers, but it also says a lot about companies’ obligations to live up to the promises they make to their customers – and the potentially serious consequences if they don’t.

 

Comments

The statements above are misleading. As an owner of a Generation 1-3.0 TDI, I have an "option" of a buyback or modification to a whatsome improved emissions status. The modification must be approved by EPA / CARB, yet it has been well documented the VW cannot repair Generation 1 vehicles to full original emissions standards at a reasonable expense. Therefore, as an owner, I do not have a choice. A buyback is the only offered remedy. With that understanding, I will not accept a pro-rated offer. If VW wants to purchase my vehicle, the price is full MSRP. I suggest all Generation 1 owners opt for a modification, which VW will certainly not fulfill, and expose the false option for what it is.

They have already acknowledged that the gen 1's can not be fixed to be in full EPA compliance for the standards of their year of manufacture. However, the 'fix' proposed in the settlement documents FOR THE GEN 1's is listed as a 'Reduced Emissions Modification' (not an 'Emissions Complaint Repair'), which it is pretty sure will get approved, since they already all agreed that it can't/won't be a fully 'Emissions Compliant Repair' (just one that reduces the emissions). Where the water gets muddied, and what you might be referring to is on the Gen 2 cars. They are shooting for a fully 'Emissions Compliant Repair', and if that is not available and approved in a 'reasonable timeframe', then they will offer a 'Reduced Emissions Modification' (just like the gen 1's), and additional compensation. Anywho, the Gen 1 emissions modification is almost guaranteed to get approved, in my opinion, as all of the parties involved have already acknowledged that a fully compliant repair is impossible, so they are going to shoot for the best they can and call it good.

As the owner of an A8L, the $7k-10k doesn't even cover the loss in value from the scandal. The value dropped $15k overnight when this came to light. Not to mention, this $100k car has been worthless since September 2015 because no one would touch one with the stop sell order, so we couldn't sell it either... what about the 18 months of payments I was stuck making because I couldn't sell it. This is a complete and total joke. We have been a Porsche, Audi, VW house for decades and I'm furious about this whole situation. BUY MY CAR BACK you a-holes. I'm perfectly happy with the potential buyback number for generation 2 vehicles, but anything short of that is not acceptable. Is anyone else in a situation where the value plummeted more than the "compensation"?

Also an owner of 15' A8L TDI. Stuck like Stacy. I likewise believe they should buy back ASAP.

Gen 2 owners are being forced to accept a modification that can alter the performance of the car. The settlement only requires an Emission Compliant Repair and provides, at section 7.5, that it can reduce the performance of the vehicle reducing fuel economy by 3 mpg and horsepower and torque by 5%. For my 2014 Q7 a 3 MPG reduction represents a 14% reduction in the stated fuel economy on the window sticker, how is this not material? To make matters worse, if the software modifications exceeds the specified limitation there is still no buy back but just a statement that says the Plaintiffs reserve their rights. No buy back.

Why should Gen2 owners be forced to accept a modification that reduces the performance of their vehicle? If VW can not fix without affecting the consumer negatively we should have the option to force the buy back.

Am an owner of 2013 Porsche cayenne diesel .Volkswagen lied and cheated on emissions in these diesel cars .they screwed up and i should not be punished for it .I should have the RIGHT to chose the buyback or the fix like they did with the 2.0L TDI customers .Im getting a lawyer ,see You in Court Volkswagen

Gen 2 Touareg owner here. Can't get rid of the car fast enough but stuck waiting. VW absolutely sucks. They keep saying that a 3.0 liter settlement has been reached which is totally false. Perhaps for Gen 1 owners but not Gen 2. We're left hanging with no clear path forward.

VW as a corporation and the individual mangers directly responsible for this scam cannot be made to financially suffer enough. If not, other companies will follow suit and continue to cheat consumers.

I've got a 14 Touareg R-line that other than a driveline vibe we've been quite happy with. The primary selling points to us were fuel economy and the torque and engine life a diesel offers. After paying nearly $60k for it you would think VW would step up and attempt to make this happen asap to keep the high-end customer base alive. Hasn't happened. Unfortunately we're now stuck with a vehicle we couldn't sell even if we wanted to because a Kia will trade better than this vehicle will now. The ONLY was I'd ever buy another VW will be if they come around and pay off my vehicle or buy it back outright. Never again.

My 2015 Porsche Cayenne has been sitting in my garage for the last 18 months.
My wife refuses to drive a filthy POS.
Buy it back VW.

As a Gen 2 owner I also want a buyback. What can we do as consumers to make our voices heard? Complaining here gets us nothing, who do we actually need to reach out to?

My problem is like a catch 22 I have a 2013 Porsche Cayenne Diesel with 70,000+ miles which I want to trade in for a new car and cannot since no dealer will touch it. I need to know what is the ultimate date when the fix will be available or they have to buy the cars back? This could go on for a very long time. They need to make us whole as they did for Generation 1 owners.

I also have a 2013 Cayenne (with 35K miles) and I want it gone so badly. I talked to an Audi dealership and they will accept it as a trade in. However, I had an online chat with the vw-settlement folks and they said if I did that, the cash compensation that I would receive would actually go to the dealer and applied towards my new car. That doesn't put the consumer in a good place for negotiating the new car. I've really been struggling with what to do with this car. If the FTC's estimates are right in a potential buy back for the Cayenne (https://www.ftc.gov/system/files/documents/cases/x160039_volkswagen_ftc_statement_in_support_exhibit_a.pdf) then I guess I should hold on to the car and hope the EPA doesn't approve the compliance fix.

Anyone have better ideas?

I leased a 2015 Touareg TDI Executive (2nd generation 3.0 engine) and last week I went to trade it into an Audi dealership for a new SQ5 lease. The dealership appraised the tdi Touareg and turns out I had 2k in equity so of course I was like perfect where do I sign. Turns out VW Credit will not release the title to anyone but me thus I cannot trade the vehicle in without taking possession of the title from VW. If I purchase the vehicle I'm responsible for paying tax and transfer which is close to 5k so of course I'm not doing that. My car is not eligible for an early termination through the VW CLAIM ( because they are "planning" on fixing my car with an update ) and I cannot trade it in so what a wonderful situation. Anyone have any recommendations? I've called VW credit and they're treating it like a typical lease termination. BTW This is my fifth VW lease LOL they have a funny way of showing their appreciation to loyal clients not to mention I'm trying to get into an Audi lease.

I am just looking forward to getting a new car. But I will need to trade in my 2014 Porsche. I have 85,000 miles and will hit 100,000 in a few months. I trade when the warrantee is up at 100,000 miles. When will this thing be done already!!!? Hey VW or FTC: How about a real update with timeline! They keep talking about a timely manor. Whos time?

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