The VW
brain trust is, right now, trying to work out a plan. What do they hope to
accomplish?
1. Minimize
the loss. They know they will be taking a huge loss – recalls, fines, and lawsuits.
2. Rehabilitate
their reputation. They are worried about a loss of trust. People will not buy
VWs.
What are
they going to do?
1. Scapegoat a
cadre of engineers. Obviously, not everyone in VW knew about the fraud.
Dealers, for instance, did not know. The new CEO will ferret out a group who
apparently perpetrated the fraud and they will be publicly dismissed. VW needs to admit mea culpa and show that they will be good boys and girls in the future.
2. Make an
offer to TDI owners. If you drive a VW TDI (clean diesel), VW wants to keep
you driving a VW. They will make an offer, of value, that will promote this. It
will be less than you might hope to receive in a class action but it will be
something of significant value. I see three possibilities.
First, a cash
offer – based upon the age and price of your car. The problem with this is that
it takes cash out VW’s coffers.
Second, extended
warranty – They will extend your warranty for several more years. The problem
with this is that is keeps you driving a car that you are now angry about.
Third, a trade in
offer – if you want to trade your TDI on a new value VW will offer a
significant premium on your existing car. It will make it hard to leave the VW
family. This is a likely solution. It costs VW nothing (except the profit on
the sale of the new one), it keeps you in a VW that hopefully you like.
More importantly, GOVERNMENT do? It is likely pretty easy for a tech savvy person who owns one of these to "adjust" the computer settings BACK to the testing specs in order to pass an emissions test, or pay someone to do so and then switch it back afterwards. So does the Government demand a more permanent adjustment? I think a LOT of what is being discussed viz recalls is overblown as this is NOT a safety issue. I think that VW WILL issue a slow recall that will allow them to adjust the settings in the computer so as to meet the specs that are claimed in their ads. Customers unhappy with the resulting loss of performance in the powertrain will be offered some sort of cash settlement, with a LARGER offer if they decide to trade their current vehicle in on a NEW VW.
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