F.B.I. Arrests Volkswagen Executive

[BenK]

About time corporate CEO's get held accountable for their management decisions and/or mandates !!!!!!


F.B.I. Arrests Volkswagen Executive on Conspiracy Charge in Emissions Scandal

NYTimes wrote:


The F.B.I. has arrested a Volkswagen executive in Florida, accusing him of playing a central role in a broad conspiracy to keep United States regulators from discovering that diesel vehicles made by the company were programmed to cheat on emissions tests.

The executive, Oliver Schmidt, a German who is the former top emissions compliance manager for Volkswagen in the United States, was arrested on Saturday by investigators in Florida on a charge of conspiracy to defraud the United States. He is expected to be arraigned on Monday.

The arrest of Mr. Schmidt is an escalation of the criminal investigation into emissions cheating by Volkswagen and comes amid talks between the company and the United States Justice Department about what penalties the carmaker should accept as part of a settlement.

After a study by West Virginia University first raised questions over Volkswagen’s diesel motors in early 2014, Mr. Schmidt played a central role in trying to convince regulators that excess emissions were caused by technical problems rather than by deliberate cheating, Ian Dinsmore, an F.B.I. agent, said in a sworn affidavit used as the basis for Mr. Schmidt’s arrest.

Mr. Schmidt deceived American regulators “by offering reasons for the discrepancy other than the fact that VW was intentionally cheating on U.S. emissions tests, in order to allow VW to continue to sell diesel vehicles in the United States,” the affidavit said.

Mr. Schmidt continued to represent Volkswagen after the company admitted in September that cars were programmed to dupe regulators. He appeared before a committee of the British Parliament in January, telling legislators that Volkswagen’s behavior was not illegal in Europe.



snip...

[Stefonius]

BillL1356 wrote:
We just turned in our 2012 Passat yesterday. Total shame, it was the best car I have ever owned. Plenty of power, torque, very reliable and the mileage was outstanding.

Despite VW's problems we liked the Passat enough that we bought the gas version to replace the TDI. The new Passat is also a very nice car.

If it was the best car you ever owned, why didn't you just keep it?

[gkainz]

so, some very happy people (above) with the cars that "cheated" ... really small data pool but I suspected as much - cheat the emissions check but burn less fuel over the life of the vehicle than another vehicle that passes emissions checks but burns more fuel in its lifetime.

[BillL1356]

We just turned in our 2012 Passat yesterday. Total shame, it was the best car I have ever owned. Plenty of power, torque, very reliable and the mileage was outstanding.

Despite VW's problems we liked the Passat enough that we bought the gas version to replace the TDI. The new Passat is also a very nice car.

[mich800]

bid_time wrote:

drsteve wrote:

rexlion wrote:
When Schmidt defended VW like a good soldier, and then VW admitted to cheating, in effect they threw their guy under the bus.

Good soldier? More like one of the generals.

As the former head emissions compliance manager for Volkswagen, Schmidt was not some obscure, low-on-the-food-chain underling following orders, he was a top executive. He's probably the guy who told the engineers to alter the software in order to fool the emissions tests.

You guys act like he is going to go to jail or something if he is convicted. He's not. He'll get a fine, which the company will pay. Big Deal.

But everyone here says you will go to jail and they will take your kids away if you remove the DPF. :B

[bid_time]

drsteve wrote:

rexlion wrote:
When Schmidt defended VW like a good soldier, and then VW admitted to cheating, in effect they threw their guy under the bus.

Good soldier? More like one of the generals.

As the former head emissions compliance manager for Volkswagen, Schmidt was not some obscure, low-on-the-food-chain underling following orders, he was a top executive. He's probably the guy who told the engineers to alter the software in order to fool the emissions tests.

You guys act like he is going to go to jail or something if he is convicted. He's not. He'll get a fine, which the company will pay. Big Deal.

[Stefonius]

This is all a great shame. I really want another TDI Beetle (my wife has a 2014), but we can't find one for sale anywhere. My state does not emissions test diesels.

[sky_free]

gkainz wrote:
What really baffles me is the fix should simply be a software update. They're destroying the hardware for a software issue. Unless the destroying hardware is punitive action?

A part of me somewhat cheered for VW when I heard initially about the emissions games - (yeah, will get bashed here for that, I'm sure). I'm not a fan of forced solutions for paper problems with CAFE, etc ...

The "software solution" was an early attempt by VW to downplay the problem. It has since been rejected by the EPA and CARB. Just turning up DEF injection doesn't work. The more DEF that is injected, the more ammonia is released (harmful) unless there is sufficient catalyst to turn it into water and nitrogen, which are harmless. The assumption with the Gen1 (2009-2012) engines is that they could not get the right chemistry without replacing too many systems (DEF, Catalytic converter, turbos, DPF, etc.).

This isn't about CAFE, it's about the EPA. NOx emissions are harmful to humans. Sure, the effect is minimal with so few vehicles emitting many times the allowed NOx levels, but VW is being made an example of to discourage this from happening again.

Whatever the buyback and compensation amount is, it is many times less than US law provides for. If you are sold something that is misrepresented by the manufacturer and not what you were promised (clean diesel!), you are entitled to 3X the original purchase price. That would be at least $150K per 3.0. In some ways VW is getting off easy, but that's the way the law usually works.

I think most people will be happy with the settlement. We get to move into a new vehicle for very little $, so it's good for us.

[gkainz]

What really baffles me is the fix should simply be a software update. They're destroying the hardware for a software issue. Unless the destroying hardware is punitive action?

A part of me somewhat cheered for VW when I heard initially about the emissions games - (yeah, will get bashed here for that, I'm sure). I'm not a fan of forced solutions for paper problems with CAFE, etc ...

[ACZL]

We are waiting for VW to let us know when they are taking our '13 Passat back. Right now it's in our garage w/ water leak (which VW doesn't care--just as long as engine runs at time of buyback). Dealer has our new car on lot. Stinks using just 1 vehicle as we are now cancelling app'ts cuz of it.

[BenK]

Talked to a lawyer right after the initial announcement, whose company deals with this type of litigation (defense, they handled many oil spills) and we both agreed to my thought that they would have been better served both financially and PR

Buy back every one and/or offer a new, non-offending version...then either destroy them all....or sell/give them away to a country without smog regulations...bet him it would have cost less back then...he now owes me a Costco Dog lunch...

Win/win...but they fought and continued in their position...until outed...but we have what they have now...

[Bedlam]

My pre-scandal TDI will probably be up for sale in 2018 with only around 100k miles by then. I can only hope its value will continue to climb as there is less availability of small diesels - I think the VW fraud really hurt the success of other manufacturers planning on bringing their small diesels to the US. I am already getting unsolicited questions from enthusiasts about my wagon and its future. What do they say: Everything is for sale for the right price?

[mike_kellie]

Dealers have also been hit hard by this. I was cashing in one of my rewards Visa at the dealership towards a service and got the questionnaire about my experience via email. I gave my service advisor huge words of encouragement (good scores) having to represent a company going through this. During this time, they have gone from 1 commissioned salesman to a different type of compensation, possibly salaried with perks?
However they also have a rented lot storing scores of diesel cars that can't be touched. I don't know the costs being floated but that is a lot of money in cars behind a locked gate.
I'm on step 3 of turning my car in-can't wait.

[wilber1]

I see Jaguar is aggressively pursuing its new diesels in spite of the controversy. The 4 cyl 2.0 L, 180 HP diesel is available in the F Pace crossover and the 3.0 V6 has been certified by the EPA to be used in the Range Rover to start. In the F Pace it could make quite a performer.

[sky_free]

Nothing is set in stone yet, but 2009-2012 3.0 TDI's will supposedly be bought back for clean retail as of November 2015 + taxes + $720. That is about 20,000 vehicles. This is part of an agreement that has been heard in court and made public. For me that is about $30K +- depending on how many more miles I put on my 2012 Touareg. The buy-backs should begin in a few months if it follows the same pattern as the 2.0 TDI's. The 2013+ 3.0 TDI's will get a fix. There is talk of "additional significant compensation", but the details of that won't be hashed out until at least Jan 31st. Rumor is about $12K.

This is obviously great news for us financially, but I'm having a very hard time finding a suitable replacement. Hate to see it go as it is the perfect light tow vehicle and all-around great SUV in just about every way. It's very sad to see how badly VW messed up here because it really reduced the availability of new TDI's in various brands.

[Bedlam]

One my neighbors has already completed the buy back and now has a Fiat 124 Spider in place of his VW Passat TDI.