US says VW intentionally violates clean air standards

[55Jay]

I think the big problem for VW is that this was done intentionally. That is fraudulent.

I honestly think that the vast majority have tweaks like this. Just this one was leaked OR another manufacturer has spent time finding any loopholes in VW's specifications.

NYT indicates a research group called International Council on Clean Transportation found the VW anomaly while testing diesel engine emissions. Notified EPA. EPA found the defeat device.

http://www.nytimes.com/2015/09/19/business/volkswagen-is-ordered-to-recall-nearly-500000-vehicles-over-emissions-software.html?_r=0

[Maestro]

Volkswagen Shares Decline After U.S. Recall

By JACK EWINGSEPT. 21, 2015

FRANKFURT — Shares in Volkswagen fell 13 percent in early trading in Frankfurt on Monday, after the German automaker said it would halt sales of cars in the United States with the types of motors that had led regulators to accuse it of illegally installing software to evade standards for reducing smog.

It was the biggest drop in the company’s shares in almost six years.

Confirmation of the stoppage in sales came on the same day that Martin Winterkorn, the chief executive of Volkswagen, apologized for conduct that prompted the Environmental Protection Agency to order the automaker to recall nearly half a million vehicles.

Read more: http://www.nytimes.com/2015/09/22/business/international/volkswagen-shares-recall.html?_r=0

[Maestro]

Sharp drop in the price of Volkswagen shares when the market opened in Frankfurt this morning, at very high volume.

The intraday chart so far today, and the downward slide continues.

[55Jay]

Buy!

[copa8]

On the bright side, think of how busy the EPA will be when China starts making cars in the US.

Or when India and Nigeria does.

[DeepInTheForest]

The fine equates to roughly the retail cost of each vehicle.....ouch.

Do you think if it were GM the punishment would have been so server...

VW $18 Billion

GM $0.9 Billion for cover up of faulty switch that have been attributed to over 100 deaths...

http://www.bbc.co.uk/news/business-34276419

18 billion dollars....I think they may consider appealing for the next 20 years instead. Has to be cheaper. And by that time, none of the cars will still be around.

VW has a HUGE assembly plant in Mexico that has been there 40-50 years

very few of the VWs on the showroom floor are German made ,

I will say that if VW figured this out , that there is a good chance that other Auto companies are also doing the same thing.

18 Billion is a crazy number , it will give the courts something to do for the few years !

$18 billion? If only.

You are all assuming the fine has been assessed. Not sure that's the case. As I read the OP, the figure quoted is the maximum possible allowed. A reasonable assumption would be that when the fine is announced and finalized, it will be nowhere near the $18 billion quoted.

Makes for a good headline, though.

Edited September 21, 2015 by DeepInTheForest