Volkswagen to buy back 115,000 diesel cars in the US?

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A German newspaper has alleged that Volkswagen AG may have to buy back about 115,000 diesel cars in the US due to the emissions scandal. As reported by Reuters, German daily Sueddeutsche Zeitung said yesterday that Volkswagen would either refund 20% of the vehicle’s purchase price, or offer a replacement car at a significant discount.

On Tuesday, VW brand chief Herbert Diess expressed confidence an agreement would be reached with US authorities to bring nearly 500,000 diesel vehicles into compliance with emissions laws. In an interview, Diess said the older 2.0 litre diesel engines would be more difficult to bring into compliance. VW expects the vehicles will require major rectification, with significant parts costs and time off the road as components for the exhaust must be designed and approved.

Some US lawmakers have said VW may have to buy back older models. Diess did not confirm or deny the report, but said he was optimistic an agreement would be reached soon.

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The US Environmental Protection Agency on Wednesday said that “recall discussions with the company have not produced an acceptable way forward. EPA continues to insist that VW develops effective, appropriate remedies as expeditiously as possible.” On Monday, the US Justice Department sued Volkswagen for up to USD48 billion (RM210 billion) for allegedly violating environmental laws.

It was also reported that about 50 VW employees – including several division heads – have participated in an amnesty programme to help VW clear up the scandal.

VW has admitted it installed software in certain diesel models sold in the US that allowed the cars to pass government emissions tests. However, the engines then emit nearly 40 times the allowed levels of pollutants when driven. Diess said VW expected to be able to repair by the end of 2016 about 8.5 million diesel cars sold in Europe that did not comply with emissions standards.

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Mohan K Ramanujam

Coming with diverse and extensive experience in heavy engineering, Mohan enjoys making anything with wheels go fast, especially motorcycles. His weapon of choice is the Desmoquattro engine, and he has a penchant for anything with a dash of Italian design. Strangely enough, he insists he's a slow rider.

 

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