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When it comes to its diesel fuel emissions scandal, Volkswagen finds more than bad news and a new bottom every month. The most electric current: VW group chairman Hans Dieter Poetsch is existence associated directly with the situation from his days earlier this decade equally VW's CFO. High german prosecutors now say they have enough evidence to declare Poetsch as a third doubtable in the was-VW-quick-enough-to-tell-the-market place flap.

And there's more mixed news: Both German and US publications say there may be Audis running around the US with unauthorized software that reports Audi diesel fuel and gasoline vehicles are compliant with CO2 emissions standards (when they're not). Audi is a Volkswagen Group subsidiary.

2016 IMPA Test Days, Monticello (NY Motor Club, October 2016 (photo Bill Howard bill@billhoward.com)

Market manipulation?

There are two Volkswagen story lines active. Ane is what happens to the half-million VW owners here, and more abroad, who take diesel VWs (also Audis and Porsches): Will their cars be fixed and how before long, and will VW'due south payments embrace the lost value and hassles of going to and from the dealer. The large story this week is who knew how much most VW coming clean in a timely manner. Investigators are investigating whether VW was slow to tell all information technology knew, perchance out of fear of causing even more than damage to VW'due south stock price.

Mon, German prosecutors confirmed they are investigating current supervisory board chairman Poetsch. A day earlier, a VW argument had said the probe now included Poetsch, too equally (announced back in June) sometime CEO Martin Winterkorn, all in connection with Volkswagen 2015 news and financial statements, specifically: Did VW delay the news to keep the stock toll propped a little while longer.

On the one paw, the news was going to come out sooner or after. On the other, investors who bought VW stock without knowing more about VW's situation might exist bellyaching (read: potentially litigious). Plus, companies are supposed to study, correct away, news that affects investors and regulators. In 2015, Poetsch was VW Group's CFO, pregnant someone involved in compiling information that would affect VW and VW investors. The New York Times reported his potential transgression is "failing to notify shareholders quickly enough of the financial risks of the diesel fuel emissions cheating scandal," thus violating securities laws.

Poetsch has been at VW since 2003; previously he was at parts supplier Duerr AG and at BMW AG (equally controller). He had a reputation for being calmer and more in the background than some other VW executives, which may have helped him become CEO. According to Automotive News, "1 of the terminal survivors of an inner circle that included Winterkorn and onetime Chairman Ferdinand Piech, Poetsch was seen as a safe bet to guide the company through turbulent times given his skills as a behind-the-scenes conciliator."

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Possible issues with 3-liter V6 cars

VW's main problem is with its 2.0-liter diesel fuel engines, 475,000 in the US alone. VW acknowledges they're programmed to bypass emissions controls except when the engine computer believes the machine is being emissions-tested. In the US, VW and the government have agreed on fixes and penalties: $x billion to repair and/or back the vehicles plus payments for lost value, and $5 billion in fines or mitigation payments. Some 800,000 vehicles in Europe are affected, besides.

A similar problem exists with V6 diesels used in Audis, Porsches and VWs. There are carve up negotiations on possibles repairs or buyback. A federal district judge gave VW until Nov 30 to come upwards with a plan to repair or purchase back some 80,000 affected vehicles.

The newest news involves reports that Audi vehicles are running software that allows carbon dioxide emissions to be higher than allowed limits except when the auto is being tested for emissions. What'due south worse is that the software defeat routine may be installed on gasoline as well as diesel fuel Audis.

The Wall Street reported that technicians at the California Air Resources Board (CARB) were able to go an Audi on a test bed to misbehave — run at a high emissions level — simply by turning the steering wheel dorsum and forth, making the automobile believe it was on the open route. Reportedly the defeat device was in Audis made through May 2016, some nine months subsequently the four-cylinder emissions tricks surfaced.

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2017 VW Atlas SUV

Where VW Grouping and owners stand now

VW Group stock is lagging. The company is on the claw, from the diesel fuel scandals, for payouts amounting to at least a quarter of the company'southward cyberspace work (market cap). Dealers are unhappy that they accept unsold cars on their lots and incertitude what they can do with them, since they can't be sold until they're fixed. Owners are cranky because their cars take reduced resale value.

On the other hand, VW is forging ahead with new models, particularly the United states of america-axial Atlas, a iii-row SUV about the size of the best-selling Ford Explorer. VW has a cadre of loyalists who like that Volkswagens handle like low-cost BMWs. Cranky as VW diesel owners are, they'll probably come up out alee: They'll get their cars fixed (eventually) and they'll get a nice "restitution" payout for the inconvenience: $v,100-$9,800. They tin accept Volkswagen buy their cars back for the blue book value of the car in the month before the emissions scandal went public. If they already sold their cars privately, seller and buyer split the oops-sorry payouts. The simply owners who won't be satisfied are the ones who wish they got back the original purchase toll. That won't happen.

Some older VW TDI cars tin't be fixed and VW won't offer to set them. Those owners will accept to have the buyout although they can await a year or and then; the cars won't be taken away from them. People who leased tin can plough the cars in at any time with no punishment.

Meanwhile, those with diesel VWs withal on the route are looking at high mpg, affordable long range driving. Some VWs will travel 700 miles on a single tank of diesel. They just won't leave the air equally clean every bit information technology should exist.