Report: Volkswagen To Buyback 115,000 Diesel Vehicles

We told you earlier this week Volkswagen is being sued by the U.S. Federal government potentially for billions of dollars, however the latest news surrounding the automaker is that of a buyback program.

Volkswagen is going to buy back 115,000 diesel vehicles in the U.S., according to a report from Reuters. The German-based automaker is expected to have to buyback one-fifth of vehicles impacted by the diesel emissions crisis, or else offer owners a new vehicle at a significant discount. The source for Reuters, a German newspaper indicated other vehicles impacted by the diesel emissions crisis would need, “…major refits, incurring significant costs for parts and a long stay at the garage as parts of the exhaust must be reconstructed and approved.”

VW brand chief, Herbert Diess, told Reuters this week he’s confident an agreement with U.S. regulators will be made to get nearly 500,000 VW vehicles emissions-complaint. The hope on the part of Diess comes as VW CEO Matthias Mueller is slated to meet with EPA chief Gina McCarthy in Washington D.C on Jan. 13.

The lawsuit, we reported on earlier this week involved the EPA suing VW for 600,000 non-compliant vehicles. The potential fine coming as part of that lawsuit is $48 billion. Widespread reports in late September indicate Volkswagen set aside $7.2 billion to pay for the entire emissions crisis, a number that looks as though it could fall very short of what’s needed to cover the costs of the crisis.

The big question for dealers is how VW buying back 115,000 vehicles could impact them? Does that mean 115,000 customers who won’t visit a VW store for recall repairs and potentially look into other options? Furthermore, how could a $48 billion fine impact a brand which during the first half 2015 had eclipsed Toyota as the largest automaker in the world?