Volkswagen Emissions Crisis: Resources

Anderson Economic Group is uniquely qualified to assist parties affected by the Volkswagen crisis. We have worked with those in the automotive industry and their attorneys across the U.S., including those representing virtually all major automotive brands. We are also active members of the National Association of Dealer Counsel (NADC).

Background on the Volkswagen Crisis

In fall of 2015, Volkswagen Group admitted to equipping certain diesel-engine vehicles with a “defeat device,” which cheats government mandated emissions tests and shows compliance for otherwise non-compliant NOx vehicle emissions. About 11 million vehicles worldwide—nearly 500,000 in the U.S., alone—are equipped with the device. News that the U.S. Environmental Protection Agency (EPA) issued two Notices of Violation of the Clean Air Act to Volkswagen Group shocked the automobile industry. Civil lawsuits against the company have been numerous (over 500) and have been consolidated to be heard in the Northern District of California in San Francisco. The U.S. Department of Justice is pursuing a civil lawsuit as well as a criminal investigation against Volkswagen.

In early March, Michael Horn, Volkswagen’s U.S. CEO, left the company. Mr. Horn is reported to have been an effective advocate for U.S. dealers, and his departure may not be taken well by them. As of September 14, 2016, VW and U.S. authorities reached an agreement concerning its affected 2.0L diesel vehicles. This agreement received court approval in October 2016, and includes offering affected customers multiple compensatory options, including VW buying back the vehicle, canceling a lease, or fixing the vehicle. The deal also includes further monetary compensation to affected owners and establishes a fund to help offset the environmental damage caused by the affected vehicles. VW’s deal does not apply to affected 3.0L diesel vehicles, or resolve any criminal probes into this matter.

Based on our extensive experience in the automotive industry, we believe that, in addition to Volkswagen Group, this scandal will also significantly affect Volkswagen dealerships; Volkswagen customers; other manufacturers, including those who do business with Volkswagen and those that do not; and regulatory authorities, particularly the EPA.

AEG Advice to Affected Parties

  1. Do not jump to conclusions yet about the scope of the scandal, the remedy for the affected parties, or the way in which affected parties might be treated by Volkswagen Group.
  2. Attorneys should closely watch a handful of significant cases where damages were awarded to franchisees and consumers.
  3. Dealerships should start keeping records regarding any “stop sale” vehicles; floor plan, storage, and related costs; and any reimbursement or payments from Volkswagen.
  4. Dealerships should also continue to well represent the brand and the products and services their local customers desire, consistent with laws and their franchise agreements.

For additional information see: Auto Dealers and the VW Emissions Crisis: Some Early Advice from a Damages Expert

AEG Expertise

The attributes we believe are essential in analyzing this topic include the following:

  • A deep knowledge of automotive and manufacturing sectors.
  • Extensive work with companies and trade associations in the advanced automotive and manufacturing supply sectors operating in multiple countries.
  • Ability to identify the characteristics of the regional market for specific consumer segments, and expert knowledge and technological expertise in evaluating specific market areas using GIS technology.
  • A track record of assessing economic performance and the effectiveness of organizational policies in an incisive manner. 

Examples of results yeilded from our work include the following:

Resources

Notices

Volkswagen Group Resources

The Volkswagen Diesel Website includes information on a goodwill package for customers, FAQs, statements from Volkswagen Group management and board.

Relevant News Articles

Volkswagan's $14.7 Billion Buyback Deal on Emissions Scandal Approved, October 25, 2016

Bosch had key role in VW emissions fraud, lawyers claim, August 18, 2016

U.S Said to Uncover Evidence of Criminal Acts in VW Probe, August 15, 2016

U.S. finds unapproved emissions software in VW Group 3.0-liter diesel engine, report says, August 7, 2016

VW emissions-rigging claims reach back further, July 20, 2016

VW's dirty diesels won't meet U.S. air standards even after recall, July 19, 2016

VW owners to get buyback price plus at least $5,100 in U.S. deal, June 28, 2016

VW diesel emissions settlement deadline extended by U.S. judge, June 15, 2016

Volkswagen to Boost Electric Vehicles, Pursue Self-Driving Cars, June 15, 2016

Volkwagen, U.S. make substantial progress toward final deal: judge, May 24, 2016

Volkswagen Posts Deep Loss After Taking $18.28 Billion Hit on Emissions Scandal, April 22, 2016

VW and U.S. government reach agreement in principle to settle diesel violations, April 21, 2016

VW brand sales fell 5% globally in February, March 11, 2016

VW to cut 3,000 office jobs in Germany, report says, March 11, 2016

VW's U.S. Chief exits in wake of emissions cheating scandal, March 9, 2016

Bosch investigates itself in VW diesel crisis, January 27, 2016

VW expands Goodwill Package to 3.0-liter Touareg TDI owners, January 13, 2016

VW may buy back 115,000 U.S. cars, report says, January 7, 2016

VW sued by U.S. for environmental violations, January 4, 2016

VW discloses origin of diesel deception: Meeting U.S. NOx rules was initially 'impossible', December 10, 2015

VW diesel civil suits to be heard in California, December 8, 2015

Frustration flares for VW Dealers as sales nosedive, December 7, 2015

Guide to the Volkswagen Emissions Recall, November 30, 2015

Audi, Porsche, VW ordered by CARB to recall, repair emissions software, November 25, 2015

German Prosecutors, California Open Fresh Investigations Into VW Cheating, November 25, 2015

VW investigated for tax evasion on false CO2 levels, November 24, 2015

Volkswagen Faces Tax-Evasion Investigation in Germany, November 24, 2015

Volkswagen Plans $1 Billion Cut in Next Year’s Capital Spending, November 20, 2015

VW Giving $1,000 to Car Owners in Emissions Cheating Scandal, November 9, 2015

VW crisis widens to fuel consumption figures, November 4, 2015

Impact of the Volkswagen emissions control defeat device on US public health, October 29, 2015

Volkswagen’s Advertising of Rigged Diesels Probed by FTC, October 14, 2015

Volkswagen Scandal Puts Spotlight on Europe’s Dirty Air, October 13, 2015

VW will cut spending by $1.1 billion, launch all-electric Phaeton in EV push, October 13, 2015

VW to Switch to a Costlier Diesel Technology, October 13, 2015

VW seeks $3.4 billion in savings from suppliers, report says, October 12, 2015

VW’s 2016 diesel sales "months" away, October 8, 2015

Volkswagen to Launch Diesel-Car Recall in January, October 7, 2015

U.S. senators probe tax credit related to VW "clean burning" cars, October 7, 2015

Kelley Blue Book: Volkswagen Diesel Car Values Decline 13%, October 6, 2015

EPA: Post-VW emissions scrutiny the new normal, October 2, 2015

Bosch warned Volkswagen about illegal software use, Septebmer 28, 2015

Why VW needed to cheat on emissions, September 28, 2015

VW scandal exposes cozy ties between industry and Berlin, September 26, 2015

As Volkswagen Pushed to Be No. 1, Ambitions Fueled a Scandal, September 26, 2015

U.S. EPA Toughens Emission Oversight After VW Cheating, September 25, 2015

Volkswagen Cars in Europe Affected by Tainted Software, September 24, 2015

At least 29 U.S. state attorneys general to probe, subpoena Volkswagen, September 24, 2015

West Virginia engineer presented VW emissions findings a year ago, September 23, 2015

Diesel scandal at VW threatens "Made in Germany" image, September 22, 2015

Volkswagen brand takes image hit as perception scores plummet, September 22, 2015

Volkswagen offers U.S. dealers financial assistance, September 22, 2015

As CEO Apologizes For Emissions Cheating, VW Halts Sales of Some Diesels In U.S., September 20, 2015

VW accused of using "defeat device" software in 482,000 diesels to skirt U.S. clean-air rules, September 18, 2015

Don’t Breath Here: Tackling air pollution from vehicles, September 10, 2015