It Seems Volkswagen May Move Forward With Electric Car Production In U.S.

1 year ago by Mark Kane 14

Volkswagen Cross Coupe GTE

Volkswagen Cross Coupe GTE

Volkswagen Budd-e

Volkswagen Budd-e

Volkswagen is headed for a major turn in the U.S. after the Dieselgate, which shook the German manufacturer’s former resolve for conventional propulsion.

According to a recent Handelsblatt article, technical solutions for cars affect in the scandal that were intentionally equipped with software hiding excessive emissions is not an easy solution, and would be very expensive remediate.

As such, Volkswagen could take few other actions:

  • buy back manipulated diesel cars
  • pay for emission rights
  • build new plant for electric cars in the U.S.

Naturally, the last option is most interesting for us, because any new EV plans would mean actual production (and business model) of something emission free in the future.

“Given the scale of the difficulties, VW’s executive board member responsible for procurement, Francisco Garcia Sanz, hasn’t even been discussing technical details of the recall plan in talks with the EPA in the past few days but has instead been trying to arrive at a “a big solution,” WirtschaftsWoche learned from people familiar with the talks.

This option would involve the construction of a new factory to manufacture electric vehicles, buying back and scrapping affected diesel cars and purchasing nitrogen emissions rights. This would be a payment for thousands of tonnes of nitrogen oxide the diesel cars emitted above their allowed limits.

The amount of excess nitrogen oxide that was emitted and the sum to be paid are still to be determined.

Company sources said the only thing that was certain was: “It will be really expensive.””

source: Handelsblatt

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14 responses to "It Seems Volkswagen May Move Forward With Electric Car Production In U.S."

  1. Ian says:

    Canadians are victims too. How about a factory in Ontario…

    1. Ken says:

      Unfortunately both Transport Canada and Environment Canada have been missing in action on this problem as usual. I can’t recall when they’ve ever enforced emissions regulations and gone after a polluter.

      Transport Canada requires auto manufacturers to self-report fleet average emissions. The most recent values supplied by every VW group brand were all identical and exactly the legal limit to 6 decimal places. If that isn’t obviously a case of bogus numbers they should be in the business of buying lottery tickets.

      1. Djoni says:

        The last decade in Canada was solely bases on fossil fuel and avoiding anything that could stop their exploitation.
        And having a government in power that did cut funding to many scientists.
        How strange it went bad.

  2. Bob Wilson says:

    The “pay for emissions rights” suggests VW really does not understand us. So let’s do a deal:

    OK VW, you can pay an annual fine equal to the purchase price of every cheat diesel still registered in the USA.

    Bob Wilson, Huntsville, AL

  3. ffbj says:

    How the Mighty have Fallen.

  4. Pushmi-Pullyu says:

    “…buying back and scrapping affected diesel cars…”

    While it would be wonderful to think Volkswagen would actually do this, no auto maker has sufficiently deep pockets to be able to do so; not for this many vehicles. Trying to force VW to buy back all those cars at a fair market price would put them out of business. I suppose some think that would be appropriate, but let’s not forget that most of VW’s employees were not part of the conspiracy to commit this fraud.

    Yes, VW needs to be punished, and the punishment needs to be severe enough that they’ll be very unlikely to commit that sort of crime again. But I think the death penalty for the company is not warranted.

    1. Dan says:

      Most of the impacted cars are quite old and probably highly depreciated. Buy back was always the cheaper option compared to fixing a bunch of clunkers.

    2. pat b says:

      it’s not the death penalty but it’s about half their enterprise value.

      Far better to have VW front for a buttload of Electric cars for the public sector and a bunch of chargers for the public sector.

      If they paid for Level 2 and level 3 chargers for state/county/federal facilities and agreed to make at cost 50,000 or 100,000 EV cars that would become utility vehicles for cities, i’d call that fair.

  5. Pushmi-Pullyu says:

    “…build new plant for electric cars in the U.S.”

    Gosh, what a novel concept. [/snark]

    Hey, VW! You’re gonna have to do this sooner or later, assuming you want to continue selling cars in the USA. How about using some long-term planning here, and start building the factory now, instead of waiting until you’ve been left behind as the EV revolution progresses?

    It’s short-term thinking that got you into this mess. Maybe you should start thinking ahead.

  6. Joeski1 says:

    I never once ever believed a “clean diesel ” was anything but a lie..I’ve written time and time again for at least 10 years that these diesel were BS and not working properly.. I truly believe there is no such thing as a clean diesel..and I will state further that home heating oil is exactly the same as diesel fuel and it burns no differently in a home heating system than it burns in a car.. if you heat your home with oil.. you are polluting yourself.. that’s why you have soot on your intakes inside and outside your home.. it is a no good fuel.. to be avoided at all costs.. remove immediately for methane , geo thermal or electric hybrid offset with solar.. diesel fuel is garbage no matter whether it is burnt on the street or at home.. a quick fix is to obtain bio-diesel for the short term.. but I personally recommend it be removed.. click twice on my name to find my site page online @ gasbuddy ..I use the site… but very little of the fuel.. best j1

    1. Mister G says:

      Clean diesel and clean coal are lies.

  7. Bill Howland says:

    Other companies complied with the EPA’s regulations.

    VW is complaining it doesn’t know how to play ‘fair and square’?

  8. John says:

    There is no action VW can take, short of a full buyback of cars who cannot be retrofitted to comply, that will suffice. Having VW build electric cars in the US to offset the pollution caused by the TDi’s does NOT remedy the value owners have lost in their cars due to the scandal. Owners need reimbursement for the difference in price of their car, pre-scandal, to now (mileage adjusted) at a MINIMUM!

  9. Phr3d says:

    1) build factory
    2) build the Buddy in One configuration – 200mi EPA range, $50k max price delivered for a vehicle that they can be Proud to offer.
    3) Offer diesel-owners the full price of their vehicles deducted from said Buddy’s delivered price.
    4) build one QC point for every Buddy delivered, location chosen by the new owner (business zone, within reason).

    The VW bug (microbus) returns! and owners and VW are better off.

    /podium