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Volkswagen receives ‘Dieselgate’ lawsuit in Germany amid new EV plant announcements

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Auto titan Volkswagen is facing a class-action lawsuit from German customers who purchased diesel vehicles equipped with emissions-cheating defeat devices. The new suit was made possible by a new legislation that took effect on November 1, which was expedited to beat a year-end statute of limitations for claims against Volkswagen. 

Justice Minister Katarina Barley noted that an estimated two million Volkswagen owners could benefit from the new law. While the initial complaint against the German automaker is starting with just ten disgruntled Volkswagen drivers, the case, if deemed admissible by a judge, would be opened to other owners who wish to take part in the lawsuit as well. Thus, anyone who purchased a Volkswagen vehicle or one of the group’s Audi, Skoda, or Seat brands that are equipped with a diesel EA 189 engine from November 2008, would likely be qualified to file claims against the company.

Lawyer Ralf Stoll, part of the legal team coordinating the suit, called the case a legal “milestone,” while stating that “several tens of thousands” of VW owners could join the lawsuit, particularly since taking part in the complaint is free of charge. In a statement to the DPA News Agency, Klaus Müller of Germany’s VZBV consumer federation noted that November 1 would be a day that Volkswagen would remember.

“Volkswagen will remember this day as the moment the kid gloves of the politicians were replaced by the boxing gloves of consumer advocates,” he said.

Thousands of VW Diesels being Stored at Rivian Factory. [Credit: Jim Finch/Teslarati]

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Christian Saefken, who purchased his Skoda Oktavia without knowing that his vehicle was equipped with an emissions testing cheat device, is among the owners who might join the lawsuit if it does go through.

“They have played us for fools. I wish they had been more honest from the start,” he said.

Volkswagen’s high-profile dieselgate scandal has resulted in steep penalties for the legacy carmaker. Since admitting that it knowingly cheated emissions tests, Volkswagen had paid out more than $31.9 billion in dieselgate costs, a portion of which went to around half a million US drivers who were offered buybacks and up to $10,000 in compensation.

In Germany, the legacy carmaker has paid authorities $2 billion in fines, though customers have only been offered software upgrades. Despite this, Volkswagen appears to be preparing to fight the upcoming class-action lawsuit, stating that the complaints have “no legal basis” since the company had already complied with all recall requirements.

“All the cars are technically sound and roadworthy,” a statement from the company noted.

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Volkswagen’s new legal battle against diesel car owners comes amidst the company’s announcements for new electric car plants in Germany. According to a EuroNews report, the legacy carmaker is considering converting its plants in Emden and Hannover, Germany into pure-EV facilities. The German publication noted that the plans would be discussed in an upcoming strategy review on November 16.

Volkswagen CEO Herbert Diess recently expressed the company’s commitment to becoming a competitive player in the electric car market. The CEO even laid the gauntlet on first movers like Tesla, stating that by 2020, Volkswagen would be offering electric vehicles that match Tesla’s electric cars for half the price.

“We are coming on very strong now. We have invested 30 billion euros ($33.9 billion) in electromobility, we have already rededicated a plant in Zwickau, and we are building an electric vehicle plant in Shanghai. Truly highly attractive vehicles will begin arriving from Volkswagen as early as 2019. We will come in 2020 with vehicles that can do anything like Tesla and are cheaper by half,” he said.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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