Volkswagen, at the cost of $1.2 Billion settles part of the diesel scandal on its 3.0 litre engined cars.

VOLKSWAGEN REACHES SETTLEMENT AGREEMENTS WITH PRIVATE PLAINTIFFS AND U.S. FEDERAL TRADE COMMISSION ON 3.0L TDI V6 VEHICLES IN THE UNITED STATES

• Program, if approved, would include provisions to recall and repair most affected vehicles.
• Options for older affected vehicles include buybacks or trade-in credits, or lease termination.
• All eligible owners and lessees of affected vehicles will receive cash payments.

Volkswagen AG and Volkswagen Group of America, Inc. (together, Volkswagen) announced today that they have reached proposed agreements to resolve outstanding civil claims regarding approximately 78,000 affected 3.0L TDI V6 diesel engine vehicles in the United States.

Two agreements have been submitted to the Court for approval: (1) a proposed class settlement with private plaintiffs represented by a Court-appointed Plaintiffs’ Steering Committee (PSC) on behalf of a nationwide class of current and certain former owners and lessees of eligible 3.0L TDI V6 vehicles; and (2) a proposed Consent Order submitted by the U.S. Federal Trade Commission (FTC).

“With the Court-approved 2.0L TDI program well under way and now this proposed 3.0L TDI program, all of our customers with affected vehicles in the United States will have a resolution available to them. We will continue to work to earn back the trust of all our stakeholders and thank our customers and dealers for their continued patience as this process moves forward,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc.

Proposed 3.0L TDI Settlement Program

Under the 3.0L TDI settlement program, Volkswagen has agreed, among other terms, to provide cash payments to all eligible members of the class, and take the following specific actions:

• Recall and repair, free of charge to the customer, approximately 58,000 affected 2013-2016 Model Year Volkswagen, Audi and Porsche 3.0L TDI V6 vehicles (so-called Generation 2 vehicles) to bring them into compliance with the emissions standards to which they were originally certified, if an appropriate Emissions Compliant Repair is approved by U.S. regulators.
• Buy back or offer trade-in credit of equal value for, or terminate the leases of, approximately 20,000 eligible 2009-2012 Model Year Volkswagen and Audi 3.0L TDI V6 vehicles (so-called Generation 1 vehicles) or, if approved by U.S. regulators, modify the vehicles to substantially reduce their nitrogen oxide (NO_x) emissions so as to allow eligible owners and lessees to keep them.

Volkswagen has agreed to pay up to approximately $1.2 billion in benefits for the 3.0L TDI settlement program, assuming 100% participation in the program, a 100% buyback of all eligible Generation 1 vehicles and availability of an Emissions Compliant Repair for Generation 2 vehicles. Volkswagen expects to be able to bring affected Generation 2 vehicles to the same emissions standards to which the vehicles were originally certified.

Volkswagen will begin the 3.0L TDI settlement program as soon as the Court grants final approval to the settlement agreements. At the earliest, approval will occur in May 2017. 

Potential claimants under the class settlement do not need to take any action at this time. Individual class members will receive extensive notification of their rights and options (including the option to “opt out” of the settlement agreement) if the Court grants preliminary approval of the proposed class settlement at a hearing scheduled to take place on February 14, 2017. More information about the proposed 3.0L TDI settlement program can be found at www.VWCourtSettlement.com.

The proposed settlement applies to all 3.0L TDI V6 diesel engine vehicles that Volkswagen, Audi, or Porsche marketed or sold in the United States for Model Years 2009 through 2016. The vehicles are divided into two generations, as follows:

Generation 1 Vehicles

Model		Model Years
Volkswagen Touareg		2009-2012
Audi Q7		2009-2012

Generation 2 Vehicles

Model		Model Years
Volkswagen Touareg		2013-2016
Audi Q7		2013-2015
Audi A6, A7, A8, A8L, Q5		2014-2016
Porsche Cayenne Diesel		2013-2016

If Volkswagen is unable to obtain a timely approved Emissions Compliant Repair for eligible Generation 2 vehicles, it will offer to buy back or provide trade-in credit of equal value for, or terminate the leases of, eligible Generation 2 vehicles and may also seek approval by U.S. regulators to offer customers a modification to substantially reduce their NO_x emissions.

The 3.0L TDI settlement program also includes a proposed Consent Decree reached with the U.S. Department of Justice (DOJ) on behalf of the Environmental Protection Agency (EPA) and a proposed agreement with the State of Califonia by and through the California Air Resources Board (CARB) and the California Attorney General on December 20, 2016. 

The program is subject to the approval of Judge Charles R. Breyer of the United States District Court for the Northern District of California, who presides over federal Multi-District Litigation (MDL) proceedings related to the diesel matter.

As announced previously, under its proposed Consent Decree with the DOJ, Volkswagen will contribute $225 million to the environmental remediation trust that is being established under Volkswagen’s 2.0L TDI settlement program in the United States to fully mitigate the excess, lifetime NO_x emissions of the affected 3.0L TDI V6 vehicles. 

As part of its agreement with the State of California, Volkswagen will also pay $25 million to CARB to support the use of zero emissions vehicles (ZEVs) in the State. 

By their terms, the proposed agreements announced today are not intended to apply to or affect Volkswagen’s obligations under the laws or regulations of any jurisdiction outside the United States. 

Regulations governing NO_x emissions limits for vehicles in the United States are much stricter than those in other parts of the world and the engine variants also differ significantly. This makes the development of technical solutions in the United States more challenging than in Europe and other parts of the world.

Volkswagen in the United States

Volkswagen Group of America (VWGoA), a wholly owned subsidiary of Volkswagen AG, employs more than 6,000 people in the United States and supports more than 1,000 dealer locations in all 50 states. 

Volkswagen has more than 60 years of history in the United States, where VWGoA maintains more than 30 U.S. locations including a LEED Platinum-certified manufacturing facility in Chattanooga, Tennessee.

The Chattanooga facility employs more than 2,500 people and supports suppliers who provide some 9,200 jobs. The facility produces the Volkswagen Passat and has recently expanded to accommodate production of a new, seven-passenger midsize SUV, the Volkswagen Atlas. 

Volkswagen is investing $900 million to expand its U.S. manufacturing footprint through production of the new SUV as part of Volkswagen AG’s plan to invest more than $7 billion in North America from 2015 through 2019.

USA RECALL - TOYOTA - The brand is recalling 73,000 Tundra models from 2016-2017.

Toyota Motor North America, Inc, Announced that it is conducting a safety recall of approximately 73,000 Model Year, 2016 and 2017 Toyota Tundra vehicles in the U.S.

The involved vehicles are equipped with resin rear step bumpers and resin reinforcement brackets at each corner.  In the event of an impact to the corner of the bumper, the resin bracket may become damaged but not be noticed.  If a person steps on the corner of the bumper that is damaged, a portion of it may break away, increasing the risk of injury.

Toyota dealers will replace the resin reinforcement brackets with new ones that are made of steel at no cost to customers.  In addition, the rear bumper tread covers will be replaced as part of the remedy.

All known owners of the involved vehicles will receive a notification by first class mail starting in the middle of February.

Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time.  For the most up-to-date Safety Recall information on Lexus, Toyota and Scion customers should check their vehicle’s status by visiting http://www.toyota.com/recall and entering the Vehicle Identification Number (VIN).  Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin.  For any additional questions, customer support is also available by calling Toyota Customer Service at 1-800-331-4331 or Lexus Customer Service at 1-800-255-3987.

USA RECALL - Ford issues two separate recalls on the Focus, C-Max and the F-150

Ford Motor Company is issuing one safety recall and one safety compliance recall in North America. Details are as follows:

Ford issues safety recall for certain 2016 Ford Focus and C-MAX vehicles to inspect and repair left-hand body apron joints located on the floor pan

Ford is issuing a safety recall for 18 2016 Ford Focus and C-MAX vehicles to inspect and repair left-hand body apron joints located on the floor pan. In the affected vehicles, improper left-hand body apron joints may have reduced front-end structural integrity, potentially increasing the risk of injury in a frontal crash.

Ford is not aware of any fires, accidents or injuries associated with this issue.

Affected vehicles include certain 2016 Ford Focus vehicles built at Michigan Assembly Plant, Oct. 26, 2016 to Oct. 27, 2016 and 2016 Ford C-MAX vehicles built at Michigan Assembly Plant, Oct. 26, 2016.

There are approximately 17 vehicles located in the United States and one in Canada. The Ford reference number for this recall is 17S03.

Dealers will inspect and repair left-hand body apron joints as required at no cost to the customer.

Ford issues safety compliance recall for certain 2017 Ford F-150 vehicles to reprogram instrument cluster display

Ford is issuing a safety compliance recall for approximately 8,000 2017 Ford F-150 vehicles to reprogram instrument cluster displays that may experience a loss of functionality immediately after startup in cold ambient temperatures.

In the affected vehicles, the transmission shift position indicator located in the instrument panel cluster may not illuminate and display the selected transmission gear position. 

This may increase the risk of injury or crash from unintended vehicle movement. In addition, an inoperative instrument panel cluster display may prevent activation of certain warning chimes, messages and warning lights.

Ford is not aware of any fires, accidents or injuries associated with this issue.

Affected vehicles include certain 2017 Ford F-150 vehicles built at Dearborn Assembly Plant and Kansas City Assembly Plant, Oct. 4, 2016 to Nov. 23, 2016.

There are approximately 7,974 vehicles located in North America, including 6,792 in the United States and federalized territories, 1,057 in Canada and 125 in Mexico. The Ford reference number for this recall is 17C01.

Dealers will reprogram the instrument cluster display at no cost to the customer.

USA RECALL 2 - Toyota expands the Takata airbag failures by another 540,000 Units

Toyota Motor North America, Inc. today announced that, based on recent information from Takata as required by the National Highway Traffic Safety Administration, it is expanding its recall involving Takata front passenger air bag inflators. 

The involved vehicles are equipped with a particular type of Takata inflator.  According to Takata, a safety defect may arise in front passenger air bag inflators in the involved vehicles due to inflator propellant degradation occurring after prolonged exposure to high absolute humidity, high temperatures, and high temperature cycling.  

This may result in an inflator rupture when the air bag deploys.

This expansion involves approximately 543,000 additional vehicles in the U.S.  The following models are included:

• 2008 – 2009 and 2012 Model Year Scion xB
• 2009 and 2012 Model Year Toyota Corolla
• 2009 and 2012 Model Year Toyota Corolla Matrix
• 2007 – 2009 and 2012 Model Year Toyota Yaris
• 2012 Model Year Toyota 4Runner
• 2012 Model Year Toyota Sienna
• 2006 – 2009 and 2012 Model Year Lexus IS250/350
• 2012 Model Year Lexus IS250C/350C
• 2008 – 2009 and 2012 Model Year Lexus IS-F
• 2007 – 2009 and 2012 Model Year Lexus ES350
• 2012 Model Year Lexus GX460
• 2012 Model Year Lexus LFA 

All known owners of the involved Toyota, Scion, and Lexus vehicles will be notified by first class mail starting in February.  Depending on the vehicle model, dealers will replace either the front passenger air bag inflator or air bag assembly at no cost.   

Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time.  For the most up-do-date Safety Recall information on Toyota, Lexus or Scion vehicles, customers should check their vehicle’s status by visiting toyota.com/recall and entering the Vehicle Identification Number (VIN).  Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin.  Additional details regarding Takata recalls can be found at safercar.gov/rs/takata.

For any additional questions, customer support is also available by calling Toyota Customer Service

at 1-800-331-4331, or Lexus Customer Service at 1-800-255-3987.

USA RECALL 1 - Ford expands the Takata Airbag failures by another 810,000 units.

As part of the planned expansion of vehicles included in the Takata inflator recalls described in National Highway Traffic Safety Administration’s Takata Coordinated Remedy Order, Ford is expanding its safety recall on vehicles with certain passenger frontal airbag inflators after Takata declared those inflators defective. 

This action represents primarily a planned expansion of previously recalled vehicles to new geographic regions. Vehicles affected include approximately 816,000 Ford, Lincoln and Mercury vehicles built in North America:

2005-09 and 2012 Ford Mustang

2005-06 Ford GT

2006-09 and 2012 Ford Fusion

2007-09 Ford Ranger

2007-09 Ford Edge

2006-09 and 2012 Lincoln Zephyr and Lincoln MKZ

2007-09 Lincoln MKX

2006-09 Mercury Milan

Ford is not aware of any injuries associated with the passenger side frontal inflators included in this safety recall.

A total of 816,309 vehicles have been added globally to this expansion, including 654,695 in the United States and federalized territories, and 161,174 in Canada. Dealers will replace the passenger frontal airbag inflator at no cost to the customer. The Ford reference number for this recall is 17S01.

Customers who want to know if their vehicle is included in this recall can visit www.ford.com, click on safety recalls at the bottom of the page and enter their Vehicle Identification Number (VIN).