30th March 2018 by Steve Hanley
When Volkswagen dropped its pants in the diesel fraud scandal that broke out in September 2015, it took $ 25 billion alone. Part of this figure is for fines imposed by various federal and federal agencies, and part of that is the cost of repurchasing a large number of the more than 500,000 diesel vehicles sold in America after 2008.
According to Reuters VW has paid $ 7.4 billion to US customers to buy back their cars. The buyback program will continue until the end of next year. A lawsuit tells the company that it has sent 437,273 letters to US customers offering nearly $ 8 billion in compensation and repurchases. To date, it has bought back more than 300,000 vehicles.
And what does Volkswagen do with all these cars after the purchase? you back? It saves her. And where do you store 300,000 vehicles? Wherever you can, apparently. The company holds them in 37 so-called "secure storage facilities" that are scattered around the country, including a former football stadium outside of Detroit, a disused paper mill in Minnesota and a deserted airport in Victorville, California, which also stores decommissioned aircraft. Last week, Volkswagen spokeswoman Jeannine Ginivan told the press in a statement that the California site was one of many "to ensure the responsible storage of vehicles that are being repurchased as part of Volkswagen's diesel settlements." These vehicles are stored intermittently and routinely maintained to ensure their long-term viability and quality so that they can be returned to retail or exported as US regulators approve emission changes, "she said. Volkswagen wants to take all these cars and then What does that tell you about the heart of the company in this process? Does it make any difference whether the toxic stew from the exhaust pipes of all these cars invades the atmosphere in Brazil or Australia, rather than in the atmosphere USA? US officials are steadfastly pushing for a plan to re-export the cars until emissions abuses are resolved. That's good news for the environment.
Volkswagen may choose to disassemble the cars and include the parts as remanufactured parts in its worldwide inventory. Seats, instrument cluster, suspension, exterior trim, glass and thousands of other components are interchangeable between gasoline and diesel vehicles. But taking the cars apart and shipping all those parts around the world costs more than the value of the parts when all is said and done.
In the meantime, the cars are sitting and sucking up time and money, which can be used more productively. And despite all the revelations about how Volkswagen tried to trick regulators around the world into believing that its diesel cars were wonders of German technology, people still buy V Dubs from the boatload. After the sales after the scandal around the Diesel fraud fell strongly, the enterprise is again after sales the world largest automobile company. It would be interesting to see how many people who sold their cars to Volkswagen went out and bought another VW-marked car.
Hats hint: Dan Allard