Report: Taxpayers Paid $20.7 Million For ‘Clunker’ Volkswagen Diesels

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By on September 25, 2015

&quotVehicles are piled on top of each other in rows as they wait to be pulverized and shredded for recycling at Rifkin Scrap Iron and Metal Co. on North Niagara in Saginaw , Mich. on Friday, July 31, 2009. Far more drivers signed up for the &quotcash for clunkers&quot program than anyone thought, overwhelming showrooms, blowing through the initial $ 1 billion set aside by Congress and leaving dealers panicked over when or if the government would make good on the hefty rebates.&quot (AP Photo/The Saginaw News, Chris Fryer)

Justin Hyde at Yahoo Autos has fine, fine reporting that U.S. taxpayers paid far more than $ 20 million in incentives for Volkswagen diesel models under the “Cash for Clunkers” system.

According to the report, four,599 VW Jetta and Jetta Sportwagen diesel vehicles certified for the maximum $ four,500 incentive beneath the program. These automobiles have been equipped with a two-liter turbocharged diesel engine that the Environmental Protection Agency said utilized an illegal defeat device to cheat emissions.

The Yahoo report follows a report by the L.A. Occasions that shows that far more than $ 51 million was paid to Volkswagen by the U.S. for now-bogus “green” claims.

The 2009 “Cash for Clunkers” program, which offered $ three billion in incentives for new, a lot more fuel-effective automobiles, has consistently been under fire as critics have attacked the program’s efficacy and necessity to pull the economy out of its recession.

If substantiated, Volkswagen could be on the hook for some, all or far more of that $ 70 million in total incentives simply because it’s clear that the feds are really mad this time.

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Report: Matthias Müller to Take Over Volkswagen


According to the Wall Street Journal, Porsche CEO Matthias Müller will take more than as CEO at Volkswagen following Martin Winterkorn’s resignation Wednesday.

Müller, who is 62 years old, took over as CEO of Porsche in 2010, where he expanded the sports auto-maker’s lineup to include more crossover automobiles. Müller is a Volkswagen AG lifer: before becoming CEO of Porsche, Müller was in charge of all Audi and Lamborghini product lines, and had been at Audi since 1977.

On Monday, German newspaper Der Tagesspiegel reported that Müller would replace Winterkorn by the finish of this week.

According to the report, Müller will be noticed as a compromise CEO who is friendly to rank-and-file VW workers.

The Truth About Automobiles » Auto Testimonials

Report: Piech Essentially Nonetheless Running Volkswagen Anyway


Reports out of Germany indicate that ousted chairman and existing majority owner of Volkswagen’s parent group, Ferdinand Piech, might have tampered with the board nomination to replace him.

Piech may possibly have prevented current VW CEO Martin Winterkorn from becoming chairman soon after the two’s public feud eventually resulted with Piech’s abrupt resignation in April, Reuters reported.

If true, the backroom dealings would indicate that while Piech could not be overseeing VW anymore, he still wields substantial influence on its operations and leadership.

Final week, Volkswagen announced that Winterkorn would continue on as CEO until 2018, which efficiently ended his bid to become chairman. Two days later, VW’s board announced it would nominate its chief financial officer Hans Dieter Poetsch as its next chairman in November.

According to Reuters — which cites German magazine Spiegel and newspaper FAS — Poetsch was Piech’s decision following hearing the board would nominate Winterkorn for the best spot.

Piech is the 78-year-old grandson of Ferdinand Porsche.

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