EPA: Defeat Device Present On More Volkswagen Vehicles

We have an update to a story we’ve been covering for about a month: The Volkswagen diesel emissions crisis. Volkswagen recently announced their intention to buy back select vehicles. It also appears the number of vehicles impacted by the crisis is growing.

Volkswagen is planning to buy back select VW vehicles they cannot sell, according to Automotive News. The plan is for the automaker to purchase 2.0 liter VW or Audi diesel vehicles which have sat on a dealership lots unsold for at least 60 days. The automaker will buy the vehicles back at prices, which predate the emissions crisis (September 18).

The goal is to help protect the automaker and dealers from rapidly falling prices for select 2.0 diesel vehicles. Automotive News reported auction value for 2.0 diesels dropped 16 percent and auction value has dropped 25 percent since news of the emissions issue broke.

News that VW is working to buy back TDI vehicles from dealers comes as news just broke that the Volkswagen emissions crisis may be growing. On November 2, the Environmental Protection Agency notified Volkswagen AG, Audi AG and Volkswagen North America of a second notice of violation (NOV) of the clean air act. This latest NOV alleges Volkswagen installed so-called “defeat devices” in the following vehicles:

2014 VW Touareg

2015 Porsche Cayenne

2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5

The NOV also states the 3.0-liter engines in those vehicles produce nitrous oxide at nine times the legal limit. The NOV against Volkswagen from the EPA also included a statement from the EPA indicating VW “maybe liable for civil penalties and injunctive relief for the violations alleged in the NOV.”

If the EPA is right and more VW vehicles have the so-called “defeat device” what impact could that have on Volkswagen dealers and certain used vehicle values? Finally, what has the impact of the VW crisis been like for your store in terms of either vehicle sales or trade-ins?