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For Volkswagen, those invoices have recently been supersized, befitting the scope of the diesel cheating scandal that has engulfed the company and prompted the recall of approximately 590,000 vehicles in the United States.
Yet, its attorney bills and the costs of hiring extra PR staff must seem like little more than a few padded expense reports to the accountants in Wolfsburg. As the world’s largest car company bleeds, TDI money now begets its own economy [see “TDI Profiteering”].
This is per the emissions-modification proposal that CARB and the EPA approved on January 6, which also covers 2015 Beetles, Golfs, Jettas, and Audi A3s with 2.0-liter TDI engines, some 67,000 total vehicles.
A second phase of the third-gen recall will involve dealers fitting replacements for the entire emissions system, including a new diesel-particulate filter, diesel-oxidation catalyst, and selective catalytic-reduction converter.
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Since a group of West Virginia University scientists announced in May 2014 that they had found unexpectedly high emissions from VW’s TDI vehicles—which led to the uncovering of the company’s conspiracy to cheat government regulators and defraud consumers—Volkswagen has committed to spend at least billion in the U. VW even has had to create a subsidiary called Electrify America to ensure the spending of billion on brand-neutral electric-vehicle infrastructure.
Not coincidentally, Volkswagen says that it has quit the “clean diesel” business for good, at least in the U. Except that as of April, the company owns more than 237,000 used diesels acquired through its court-mandated buyback program.
And inventories are growing, with 15,000 more vehicles being turned in each week, according to reports.