Timeline

It’s been 42 days since the Environmental Protection Agency accused Volkswagen of violating the federal Clean Air Act by installing “defeat devices” software on nearly 500,000 diesel-equipped vehicles sold in the U.S. The Sept. 18 accusation observed that VW’s engine management software was designed to trick pollution-testing devices by detecting when a vehicle was undergoing emission checks and turning on pollution controls. When not connected to a testing device, the emission controls would be switched off. As a result, affected TDI models could potentially emit 40 times the allowed amount of nitrogen oxides.

Affected Models

  • Audi A3 TDI (Model Years 2010-2013 & 2015)
  • VW Jetta TDI (Model Years 2009 – 2015)
  • VW Jetta SportWagen TDI (Model Years 2009-2014)
  • VW Golf TDI (Model Years 2010-2015)
  • VW Golf SportWagen TDI (Model Year 2015)
  • VW Beetle TDI and VW Beetle Convertible TDI (Model Years 2012 – 2015)
  • VW Passat TDI (Model Years 2012-2015)

*Audi, Porsche and VW each sell other diesel equipped models in the U.S. To date, they are not included in the EPA’s notice. These vehicles include the Audi A6 TDI, A7 TDI, A8 TDI, Q5 TDI, and Q7 TDI; Porsche Cayenne Diesel; and VW Touareg TDI.

The Fix

To-date, there is no remedy available from Volkswagen or Audi. According to www.vwdieselinfo.com, a website setup by VW to update consumers, the nameplate states, “We cannot offer a firm date now because we need to work on the remedy and review it with the government. We are proceeding as quickly as possible.” Audi has a similar message on its website http://www.audiusa.com/about/a3-tdi-information, which notes, “Audi is committed to finding a remedy as soon as possible. We are working to develop a remedy that will meet the expectations of the government agencies. We ask for your patience as we work to get this done right.”

Auction Prices

Regarding wholesale auction prices, not much has changed compared to last week. Gas-powered Jetta and Passat prices for model years 2011-2013 have fallen by amounts similar to those of their respective segment. In the five most recent weeks post-issue, 2011-2013 gas-powered Jetta prices declined by a range of 4.2% – 9.2%. During this same period compact car segment prices were down by an average of 3.2% – 3.9%. Similar to the Jetta, 2012 – 2013 gas-powered Passat prices have declined by 1.9% – 6.8%, whereas average midsize car prices declined by 3.1% – 3.8%.

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Diesel-powered VW models continue to exhibit more significant price erosion, however 2012 model year diesel-powered Jetta and Passat wholesale prices actually increased by 1.1% and 0.3% compared to the previous update. So far, 2011 – 2013 diesel-powered Jetta wholesale prices have declined by 11.1% – 13.1% compared to the four-week period prior to EPA’s notice of violation, which is significantly more than both its Jetta gas-powered counterparts and average compact car segment declines.  Similar to the diesel-powered Jetta’s declines, 2012 – 2013 diesel-powered Passat prices have slipped by 9.4% – 12.3%. This is also higher than Passat gas-powered variants and midsize car segment declines.