Volkswagen's US division on Friday introduced a new six-year/72,000-mile warranty on most new VW vehicles sold in the United States. So the brands lose a champion on that front, while other high-ranking VW Group executives with suspected ties to the diesel scandal likely won't be sleeping well for the foreseeable future.
Three months ago, the U.S. Environmental Protection Agency approved planned fixes to Volkswagen's 2-liter engine diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle Convertible and Audi A3 models.
The diesel cars in the USA affected by scandal only represent a small part of the 11 million rigged cars globally. Two Volkswagen employees have also faced charges in the US, with one sentenced to just over three years in prison.
Volkswagen said on September 29 it was increasing provisions related to its Dieselgate scandal by 2.5 billion euros.
Every company runs into unexpected costs, but a surprise $3 billion (yes, billion) hit isn't something you see every day.
The company is scheduled to present third-quarter financial results late next month. According to a recent Automotive News report from the US, Audi has said it has no knowledge of the arrest but that it is continuing to cooperate with authorities. Still, the investment vehicle for the descendants of the VW Beetle's creator stuck to a forecast for net income of at least 2.1 billion euros this year. While VW has worked to fix these cars, it's rejected paying compensation to roughly 8 million European owners.
Analysts estimate that diesel scrappage in Germany could cost Volkswagen up to another EUR1.2 billion.
Earlier this year former Volkswagen Group engineer James Liang was sentenced to 40 months prison in the USA for his role in the emissions-dodging scandal, while former Volkswagen executive Oliver Schmidt will be sentenced in the USA on December 6.