Volkswagen diesel owners have much to consider
If you’re driving a diesel-powered, four-cylinder Volkswagen, you’re stuck with a fun-to-drive machine that’s belching unhealthy pollutants from its tailpipe.
Until the company figures out how to fix its bogus emissions controls, there isn’t much you can do about your dirty diesel.
Following disclosures that Volkswagen developed software for its 2-liter diesel engine that could better control pollutants during testing than in real-world driving, there there’s a lot up in the air for owners of Jettas, Golfs, Passats and Beetles and Audi’s A3.
Here are some things to consider if you’re thinking of suing, selling or are unsure of what to do next.
The problem
VW’s software turned on pollution controls for government tests, which are done on a treadmill device called a dynamometer. When the software deduced that the cars were back on the street, the controls went off and the cars polluted too much. About 500,000 of the cars were sold in the U.S.
VW hasn’t said how it will fix the problem. Owners worry the repairs will cut fuel economy and performance — the reasons they bought the “clean” diesels in the first place.
The Environmental Protection Agency has told VW to fix the cars so they comply with pollution regulations, but there’s no word from the company on how or when that will be done. The EPA says it could take a year.
A recall fix may be coming soon for 2015 and 2016 models, neither of which can be sold until repairs are made. Mike Jackson, CEO of AutoNation, the country’s largest auto dealership chain, said he was told by VW officials that a software change will bring the last two model years into compliance.
But it’s a mystery how the company will fix models from 2009 through 2014, including whether software and equipment changes will be needed, he says.
Did my car lose value?
Worried about their cars losing value, some owners might rush to put the car up for sale.
Eric Ibara, senior analyst for Kelley Blue Book, is encouraging owners to hang on to their VWs, at least until the company comes up with a fix.
Ibara says the impact on VW’s resale values may not be known for two or three weeks. The price that dealers agree to pay for vehicles being auctioned this week will be the first indication.
VW diesels traditionally have higher resale values than gasoline counterparts, but the scandal might erode that premium, Ibara says, especially if the fix cuts mileage or impacts their sporty performance.
If repairs are made, history shows there might not be a lasting impact. General Motors’ residual values weren’t affected by ignition switch recalls, and Toyota’s car values returned to normal within a year of an unintended acceleration crisis.
Some owners are hoping for rebates, while a consumer group called on VW to buy back the diesels.
Legal action?
Joining a lawsuit against VW is one option for owners, although it likely will take years to get any relief.
A growing number of lawsuits have been filed this week nationwide, including several in the Kansas City area. Most of the suits are seeking class-action status.
The suits generally say the cars’ value will fall because of the company’s deceit. They also say VW falsely promoted the cars as offering low emissions.
The Independence law firm of Humphrey, Farrington & McClain filed a suit Wednesday on behalf of Zachary Gall of Independence. The suit, which named Volkswagen AG and Volkswagen Group of America Inc. as defendants, said Gall had purchased a 2011 Volkswagen Jetta from a dealership in Iowa City, Iowa.
“We are investigating claims nationwide,” Kevin Stanley, a partner in the law firm said in a statement. “This is a fraud that has been committed against these owners.”
Jerry Reisman, a litigation expert at Reisman, Peirez, Reisman and Capobianco in Garden City, N.Y., said suits could be filed in all 50 states, and he believes VW executives should face criminal prosecution.
“It was damaging, it was contrary to the belief of purchasers who didn’t get what they expected, and they should have significant recourse,” Reisman said.
Volkswagen spokesman John Schilling said this week that the company does not respond to questions on pending litigation.
Consumers could have some success in the courtroom. In 2012, for example, Toyota agreed to pay more than $1 billion to resolve hundreds of lawsuits filed by owners who said their vehicles lost value after the company’s unintended acceleration problems.
Also, politicians are calling on the Federal Trade Commission to investigate because VW often advertised the cleanliness of the vehicles. The FTC, which monitors advertising claims, can seek remedies for all of the car owners.
The Star’s staff contributed to this story.
This story was originally published September 25, 2015 at 3:37 PM with the headline "Volkswagen diesel owners have much to consider."