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Volkswagen is crashing hard after Audi got dragged into the emissions scandal
Business Insider ^ | 09/28/2015 | Oscar Williams-Grut

Posted on 09/28/2015 8:55:52 AM PDT by SeekAndFind

The weekend break has not helped Volkswagen.

Shares in the troubled German carmaker are crashing again, down 8.5% at 12.50 a.m. BST (7.50 a.m. ET).
VW 12Google Finance

Volkswagen shares have been diving since it emerged that software in the company's cars was juicing the numbers on diesel emissions.

On Monday, news broke that the scandal was even worse than first thought — over 2 million Audi cars are fitted with the same emissions-cheating software as Volkswagen's cars. Audi is owned by Volkswagen and produces higher-end cars.

Bloomberg is also reporting that Volkswagen executives in Germany were directly involved in the faking of emissions, and former CEO Martin Winterkorn is facing an investigation by German prosecutors.

Earlier on Monday, the Financial Times warned the scandal could be "worse than Enron." Volkswagen named Porsche CEO Matthias Müller as its new boss late on Friday — he's got an unenviable job.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy
KEYWORDS: audi; diesel; fiatchrysler; ford; generalmotors; germany; stockmarket; volkswagen; volkswagenscandal; volkswagenstock
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To: rarestia

Most cars you pull off a small cover on the left side under the dashboard, and you plug in a special connector to interface with the car’s computer. It’s the same place you plug in a device if you have an insurance policy that bills you based on your driving style.


41 posted on 09/28/2015 9:56:59 AM PDT by PAR35
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To: pepsionice

Then VW goes bankrupt and nobody gets anything.


42 posted on 09/28/2015 9:57:40 AM PDT by Blood of Tyrants (There's a right to gay marriage in the Constitution but there is no right of an unborn baby to life.)
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To: bigdaddy45
There are no emissions tests where I live (Ohio)

True. But vehicle manufacturers selling cars in Ohio are still required to meet national standards set by the EPA. So the cars in Ohio are equally out of spec, so Volkswagen will still have to do something to get the cars in Ohio and everywhere else meeting the EPA requirements.

As stated elsewhere this will probably be mostly software update. As anyone who watches "Street Outlaws", the show about street drag racers, knows: there is almost infinite variability in how you program a cars electronic ignition and fuel injection.

The State of Ohio, if they wanted to be bastards, could require that an owner show proof of getting the recall repair prior to renewing tags.

I think states with emissions testing will certainly do this, otherwise they have no way to know if they are still getting BS readings or not.

It is an incredible mess, and it's unbelievable that many levels of people in the company were obviously aware of this fraud and permitted it.

43 posted on 09/28/2015 9:58:36 AM PDT by Jack Black ( Disarmament of a targeted group is one of the surest early warning signs of future genocide.)
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To: factoryrat

This isn’t only a US problem though. They cheated in Europe as well, apparently.


44 posted on 09/28/2015 9:58:38 AM PDT by Campion
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To: Leaning Right

Volkswagen is probably one of the greatest of “crony capitalism” stories in history.

Originally a brainchild of Adolf Hitler, using the talents of Ferdinand Porsche, the “People’s Car” was a marketing scheme to “put the German people” behind the wheel. In 1937, the year of its conception, less than 1 German in 50 possessed an automobile. Hitler graciously accepted a down payment for the purchase of one of the “KdF-Wagen” from thousands of German working families, but somehow, all this investment ended up in military development, with very few actually getting into the hands of German consumers.

The later history of Volkswagen was rather checkered, as its workforce during the Second World War was at times as much as 80% slave labor (from nearby concentration camps), and in 1946, there were only a few parts of the original factory still standing. The facilities were offered to a British manufacturer, who despised the vehicle as “Noisy, leaks, ugly and uncomfortable to ride in or drive”, and later to Henry Ford II, whose comptroller said, that even for free, it would be no bargain. Finally using Marshall Plan dollars, the company relaunched as a subsidiary of the German state of Lower Saxony, and gradually overcame its early shortcomings, gaining wide acceptance, and becoming one of the best selling of ANY model in history, even surpassing the Model T Ford, and penetrating virtually every market worldwide. Along the way, the company acquired Auto Union (the Audi) and NSU, vastly expanding their product line and eventually these models supplanted the older rear-mounted air-cooled engined vehicles and their various design modifications.


45 posted on 09/28/2015 10:02:11 AM PDT by alloysteel (If Stupidity got us into this mess, then why can't it get us out? - Will Rogers.)
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To: rarestia; TalonDJ; ctdonath2
Volkswagon's problem is with FedGov, not the states. Even in states without emissions testing the cars are in violation of Federal Law.

A Federal recall will be mandated, just as many others are done all the time for various problems in cars. People in Ohio will be given the opportunity to get the cars upgraded to run in spec. Probably the dealers will have to do it any time they service one. Still, if you live in a non-smog check state and you have it serviced by a third party you could probably keep running the car using the 'cheater' fuel injection mapping as long as you want to.

Very occasionally FedGov has taken a harder line on recalls. Honda was forced to offer every owner of their three-wheel ATV's a huge cash discount on a trade in for a new ATV, and to crush the ones acquired as they were found to be extremely unsafe.

46 posted on 09/28/2015 10:08:01 AM PDT by Jack Black ( Disarmament of a targeted group is one of the surest early warning signs of future genocide.)
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To: Flick Lives

GM made more than 10x VW in political donations, and got rewarded for it while VW is facing evisceration.
Looks more like political “total war”: pay up or die.

Might be interesting to monitor political donations from other car companies. I expect they’ll take a sudden interest and get out some very large checkbooks. In the meantime, I suspect an interesting prioritization of payments from VW right before bankruptcy is declared, selectively routing much of the big pile pile of fine-and-debt-destined cash prior to oddly not having any left.


47 posted on 09/28/2015 10:11:24 AM PDT by ctdonath2 (The world map will be quite different come 20 January 2017.)
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To: bigdaddy45

There are enough states requiring emissions tests (CA, NY, parts of GA, many others) that VW will be killed by retrofitting EPA-legal emission control systems, and the market for used VW diesels will be disrupted by buyer not knowing whether a given vehicle is either “fixed and under-powered” or “good performance and illegal to sell”. Remember, it’s illegal (correct me if wrong) to sell a vehicle which you know has a sub-par emissions system.

Sure, you might not have to fix yours, but you may have serious trouble disposing of it.


48 posted on 09/28/2015 10:16:25 AM PDT by ctdonath2 (The world map will be quite different come 20 January 2017.)
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To: Jack Black; rarestia; TalonDJ

See #48.


49 posted on 09/28/2015 10:18:26 AM PDT by ctdonath2 (The world map will be quite different come 20 January 2017.)
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To: Campion

The diesel engines of today are far cleaner and more efficient than any other internal combustion engine on the world market.

This has nothing to do emissions or enviromental quality.

Taxes on fuel (federal, state, sales, etc.) are the prime motivator for keeping fuel economy down, and fuel demand up. Fuel economy is the bain of the feds and oil industry’s existence.


50 posted on 09/28/2015 10:24:23 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: SeekAndFind
VW is being fined nearly $18 Billion ( that’s a B ) for software that tried to by-pass EPA emission standards.

Where did you get this number? Has any government agency taken any action against VW? A stock market reaction to disclosures is not a fine. A stock price plunge is a penalty for having a management team who is stupid and/or dishonest but not a fine. Unless there is an administrative action of which I'm unaware, using the term "fine" to describe a stock plunge is misleading.

51 posted on 09/28/2015 10:27:04 AM PDT by CommerceComet (Ignore the GOP-e. Cruz to victory in 2016.)
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To: Cen-Tejas

That is one way to better align punishment.
Right now it is just a FedGov money-grab that is hurting owners of VW/Audi/Porsche vehicles and investors.
When execs in the automobile industry see cohorts tossed into prison for a decade, they will ensure no "cheating" happening on the assembly line.

52 posted on 09/28/2015 10:27:53 AM PDT by Blue Jays (Rock Hard, Ride Free)
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To: SeekAndFind

In 1998 the EPA’s fine for the same type violation to the major diesel truck engine mfgs. was about $90 million.


53 posted on 09/28/2015 10:33:21 AM PDT by showme_the_Glory ((ILLEGAL: prohibited by law. ALIEN: Owing political allegiance to another country or government))
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To: SeekAndFind

Automakers have been cheating for decades. They inject air into the exhaust, and dilute the gases

https://en.wikipedia.org/wiki/Secondary_air_injection

Secondary air injection (commonly known as air injection, or colloquially smog pump or pollution pump) is a vehicle emissions control strategy introduced in 1966, wherein fresh air is injected into the exhaust stream to allow for a fuller combustion of exhaust gases.


54 posted on 09/28/2015 10:36:56 AM PDT by Steven Tyler
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To: SeekAndFind

Isn’t this all about ridiculous EPA emissions regs that are based on too much CO2? And of course that VW voted to have a non-union shop in the south. I bet that really irked Obama and the union thugs. Time for a shakedown of Europe. Surely this is the last thing the Germans need, on top of their jihadi invasion.


55 posted on 09/28/2015 10:38:04 AM PDT by bboop (does not suffer fools gladly)
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To: SeekAndFind

I am glad this company is crashing. I hope they go bankrupt. Volkswagen has for more than 40 years been a leading hard core advocate of the homosexual agenda. No Christian should ever, ever own a Volkswagen.


56 posted on 09/28/2015 10:39:42 AM PDT by Flavious_Maximus
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To: pepsionice

Bingo! Get you smart card here folks! Let us help you tweak
your engine to get maximum hp and mileage!! Only $49 plus
shipping and handling .


57 posted on 09/28/2015 10:40:36 AM PDT by OregonRancher (Some days, it's not even worth chewing through the restraints)
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To: Flavious_Maximus

Oh for goodness sake. Jeez.
So what is the pure vehicle you suggest?

58 posted on 09/28/2015 10:42:28 AM PDT by Blue Jays (Rock Hard, Ride Free)
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To: rarestia

Mere speculation but I am guessing there will be some kind of government mandated buy back. VW will take these cars and sell them in Mexico and other parts of the world. The govt penalties could be huge but one wonders if they will hold back in fear of breaking the company.


59 posted on 09/28/2015 10:44:52 AM PDT by cornfedcowboy
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To: Scrambler Bob
I thought European was much stricter.

LOL. ALL restrictions originate in California. From there it's just trickle-down to elsewhere.

60 posted on 09/28/2015 10:52:15 AM PDT by Moltke
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