VW Impacting Motorcycling!

[bigoltool]

In another thread (Dear ZUK) on here I posted about the potential influence (on Suzuki’s business model) of the arbitration ruling ordering Volkswagen to sell off all of their shares (19.9%) in Suzuki. Now it seems that VW could be affecting yet another motorcycle brand with their questionable business practices. Volkswagen is now in full melt down mode (Stock fell over 29% in one day) over the Diesel Cheating Software scandal that affects nearly 11 million of their vaunted 2.0L TDI powered vehicles sold since 2009. In the US alone VW could be facing fines of over 18 billion dollars, which is aside the potential class action suit(s) that will surely arise from it. This is just the US! The rest of the world will surely account for much more! VW CEO Martin Winterkorn resigned yesterday over this scandal, and there may be more head chopping to come.

Ducati is now owned wholly by VW!

 

[jellyrug]

What is weird, is the fact that this was detected in 2013, all the research was done by a small 5 man Engineering team and the results were made public. And they allowed them to continue and only act now?????

 

[TallTom]

I think it will ripple even further than this. VW is a major economic engine in Germany. Much like GM in the U.S. I haven't looked at their financials, but they may not be liquid enough to endure this and then it will ripple further into the European economy.

And part of says......if they did it, the other manufacturers know about it and probably have something similar they employ. Nobody will let a company make that much of a leap in clean diesel, without figuring out how they did it, and copy it.

Kind of like steroid use in sports. If that is what you need to do be competitive..........

I think this is just a beginning.

 

[bigoltool]

For me it is interesting that GM is on the hook for ~$900, 000, 000 for their ignition switch debacle, which has killed several people. And VW is now facing exponentially more penalties for its part in destroying our environment.

 

[bigoltool]

Wow now even BMW is getting ensnared in this.

VW diesel scandal spreads to Audi, Porsche ? and possibly even BMW | ExtremeTech

 

[TallTom]

Well this comes as no surprise. Remember VW owned or still owns Porsche and Audi. It used to all be one company back 40 years ago. It was VW/Porsche/Audi. They shared many of the same parts for a long while.

 

[bigoltool]

Well this comes as no surprise. Remember VW owned or still owns Porsche and Audi. It used to all be one company back 40 years ago. It was VW/Porsche/Audi. They shared many of the same parts for a long while.

BMW is the outlier here though. They have nothing to do with VW. VW owns so many brands now it is ridiculous. VW, Audi, Porsche, Bugatti, Lamborghini, Ducati and more. This is going to be catastrophic to their brand, no 2 ways to slice it.

 

[TallTom]

And P.S. I think your comment about the disparaging difference in fines is a DIRECT result of one being an American Company and the other being a foreign company making money here in the U.S. Effectively trying to eliminate a foreign competitor by whacking them so hard with fines they pull out of our market, thus enhancing GM's and the other U.S makers position.

 

[bigoltool]

And P.S. I think your comment about the disparaging difference in fines is a DIRECT result of one being an American Company and the other being a foreign company making money here in the U.S. Effectively trying to eliminate a foreign competitor by whacking them so hard with fines they pull out of our market, thus enhancing GM's and the other U.S makers position.

I don't disagree, but the ramifications are far reaching. The VW group likely employs tens of thousands of workers in the US and North America (primarily Mexico!). Them leaving the market entirely would be bad news in that respect.

 

[jellyrug]

Ironic if I may say so. The first thing to happen on most new bikes is the owner ditching the cats and replacing with new pipes.

 

[mjl3truck]

A little light reading about the fines and resolution that Caterpillar had to pay for the same thing back in 2000.
http://www2.epa.gov/sites/production/files/2013-09/documents/caterpillall-cd.pdf
When we retrofitted the government mandated software it caused about a 10% drop in fuel mileage.
What VW did was nothing new.

 

[dadofthree]

 

[bigoltool]

A little light reading about the fines and resolution that Caterpillar had to pay for the same thing back in 2000.
http://www2.epa.gov/sites/production/files/2013-09/documents/caterpillall-cd.pdf
When we retrofitted the government mandated software it caused about a 10% drop in fuel mileage.
What VW did was nothing new.

It appears that CAT got off with a slap on the wrist for ~923 units sold in violation of EPA and CARB regs. In comparison VW sold ~11 million vehicles globally.

 

[mjl3truck]

If you look at the fine as fine per unit sold it was pretty stiff. Cummins and Detroit also had to pay fines to the EPA for similar software.
I was working on the shop floor at the time and when a truck came in the shop be it for an oil change or an overhaul the shop was required to load new software.
When the owner got the truck back the fuel mileage dropped and the performance was different. The ill will caused was probably worse than the fine. 25 million dollars to CAT is just folding money.

 

[GNBRETT]

their the biggest car manufacture in the world. they will bounce back from this in a very short time. ppl panic like they do every time they hear shiit like this and sell off like retards! this will mean nothn to VW in the long run.

 

[TallTom]

I don't disagree, but the ramifications are far reaching. The VW group likely employs tens of thousands of workers in the US and North America (primarily Mexico!). Them leaving the market entirely would be bad news in that respect.

Yes they do all that you say. However the profits go overseas to the motherland.

 

[bigoltool]

Yes they do all that you say. However the profits go overseas to the motherland.

Not anymore!

 

[jellyrug]

Yes they do all that you say. However the profits go overseas to the motherland.

The percentage of net profit after tax and interest will always be small, compared to cost of sales and expenses. The major portion of the latter two is part of the US economy, in jobs, materials, buildings, land, etc.

 

[TallTom]

The percentage of net profit after tax and interest will always be small, compared to cost of sales and expenses. The major portion of the latter two is part of the US economy, in jobs, materials, buildings, land, etc.

Just like GM, Ford, etc. Not at all saying there isn't jobs etc at stake. But if we cut out a foreign competitor, that leaves a hole for those cars to be filled by our makers. And the same jobs etc would be held.

Not saying I agree with us eliminating competition, but the domestic car makers and in bed with our leaders I'm sure.

 

[Adam G]

It would be interesting to see actual economic benefit to the US Economy for say a GM vehicle sold here versus a VW. I have no idea but being parts are being manufactured all over the world for most vehicles and things like import taxes on the VW, I wonder how big a difference it would be between the two?