Volkswagen Recall Could Screw Their Customers

Steve Birr on October 8, 2015

The CEO of Volkswagen AG announced Wednesday that the company will be launching a recall of their diesel vehicles in January, following the emission scandal that affected up to 11 million of their cars. Unfortunately for VW owners, a recall will mean downward revisions in fuel economy and resale value for their vehicles.

It’s unclear how the company intends to modify their diesel vehicles to make them compliant with Environmental Protection Agency regulations. The recall is set for 2016 once German authorities approve the company’s repair plans, according to The Wall Street Journal.

Volkswagen’s U.S. CEO Michael Horn confirmed Thursday to Congress that discussions on how to fix the emission problems were ongoing, but said installing a urea injection system on the affected vehicles was a real possibility. Urea injection is standard in many diesel vehicles as a way to limit emissions, however Volkswagen previously avoided the technology because of its added cost to consumers.

Any changes that require new installation would be a huge blow to Volkswagen owners. “Volkswagen will not be able to comply with the EPA order to make the Affected Vehicles comply with emissions standards without substantially degrading their performance and fuel efficiency to a level below that advertised by Volkswagen,” said West Virginia Attorney General Patrick Morrisey in a complaint filed on October 2nd in the Circuit Court of Kanawha County.

The complaint adds that should the cars be fixed, the damage done to performance and fuel economy, “will cause a diminution in the value of every Affected Vehicle.” Michael Horn failed to address these concerns facing consumers at the hearing on Thursday, but promised that Volkswagen will develop a solution with their customer’s best interests in mind.

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