Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
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Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#2Does this mean these cars will be recalled or will the environmental laws be weakened to make them road legal?
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#3Does this mean these cars will be recalled or will the environmental laws be weakened to make them road legal?
As far as we know, all other manufactures complied with environmental regulations. Cars will have to be recalled and it will be a huge hit for VW.
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#4What would happen if all the affected consumers demanded the full purchase price returned to them and returned their used cars? It seems clear that they would win, because they were fraudulent sales. But that would bankrupt VW, right?
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#5I wonder if this will have an effect on Europe's appetite for diesel cars in general going forward. I know they're much more popular over there than here in the US.
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#6What would happen if all the affected consumers demanded the full purchase price returned to them and returned their used cars? It seems clear that they would win, because they were fraudulent sales. But that would bankrupt VW, right?
I don't think it's clear that they would win. The cars will be reprogrammed to meet EPA rules, and then they will have less power and use more fuel. The will be worth X on the resale market. Two weeks ago they were worth Y, where X < Y. The damages owners might be entitled to are probably Y-X, not Y.
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#7What would happen if all the affected consumers demanded the full purchase price returned to them and returned their used cars? It seems clear that they would win, because they were fraudulent sales. But that would bankrupt VW, right?
It would instantly bankrupt VW, in almost any way you cut it.
I have no idea what the intricacies of German bankruptcy laws are, but I imagine they could cut a deal with car owners, and then emerge back out of bankruptcy in whatever German equivalent manner that would occur. That scenario will never happen though, there won't be enough global coordination between vehicle owners. The only way that type of outcome occurs, is if the US Government nudges it that direction (US car owners doing that would be enough to bankrupt VW).
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#8I wonder if this will have an effect on Europe's appetite for diesel cars in general going forward. I know they're much more popular over there than here in the US.
Europe has been trying to move people away from diesel for a while now.
The high pollution in some city centres (eg London) and the associated death rates are driving change.
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#9I wonder if this will have an effect on Europe's appetite for diesel cars in general going forward. I know they're much more popular over there than here in the US.
The economist has an interesting article out right now, about how the discussion over diesel cars is almost moot with the rapid rise of the electric car globally over the next few years:
http://www.economist.com/news/leaders/21666226-volkswagens-f...
Re: Volkswagen rigged tests on 2.8M cars in Germany, Berlin says
#10What would happen if all the affected consumers demanded the full purchase price returned to them and returned their used cars? It seems clear that they would win, because they were fraudulent sales. But that would bankrupt VW, right?
I don't think it's clear that they would win. The cars will be reprogrammed to meet EPA rules, and then they will have less power and use more fuel. The will be worth X on the resale market. Two weeks ago they were worth Y, where X < Y. The damages owners might be entitled to are probably Y-X, not Y.
They should clearly win because they were sold a fraudulent product. If I sold you a gold watch that didn't turn out to be gold I don't just owe you the difference, I owe you back all the money and I go to jail.
The good news for VW is that the cars aren't worthless, so they can buy them back and sell them. For people who want to keep their car there will probably also be a cash offer.