VW fraud could kill their buy out of Red Bull Racing


Today German publication Bild reported that Audi were to pull out of DTM and the WEC to join F1. The route into the sport would be to buy Red Bull Racing and enter the sport with an Audi engine in 2018.

The bad news for Christian Horner was that Bild claims Stefano Domenicali is lined up as team Principal for the team.

However, Audi responded this evening claiming the Bild report was “pure speculation which requires no further comment.”

Audi’s parent, VW, are implicated in what may turn out to be the global auto industry’s biggest scandal ever.

TJ13 reported last week that the US Environmental Protection Agency (EPA) has discovered VW have been deliberately cheating on emissions tests. This is estimated to affect 500,000 diesel cars sold in the US.

However, diesel is a niche fuel in America, and accounts for just 1% of cars sold. In Europe that number is 50%.

VW have developed emission control systems which are fitted and working on their luxury cars, however on certain cheaper models, they have fitted the systems but coded the engine management software to switch off these systems when the car is not being tested.

The car’s computer can detect when the car is in a test environment from throttle, acceleration and other car control inputs. The emissions control systems are then switched on, but switched off when the car returns to the road.

This means less expensive materials can be used in the exhaust systems, and fluids used in the catalytic emissions converter are only used should a car be tested. This saves the user from having to replenish these fluids.

The fine in the USA is estimated to be $18bn for the 500,000 cars affected. However, one auto industry expert suggested the number of VW cars affected in Europe could easily number 30 million. Fines due on this scale of “illegal” cars could cripple even a company of the financial might of VW.

Millions of customers have invested in cars that have fuel emissions that attract either a subsidy or reduction on car tax. These cars may now be re-rated.

The company performing the testing in the US says emissions exceed the claims by a factor of 10-30 times.

Martin Winterkorn who recently assumed control of the VW boardroom stated: “I personally am deeply sorry that we have broken the trust of our customers and the public.”

VW’s share price fell 18% yesterday and further falls are expected today as the scale of the crisis becomes fully understood. Germany’s stock market index, the DAX also fell 17%.

The German government has ordered an “extensive examination” of diesel cars and VW executives face criminal prosecutions.

The “cheat” software was fitted to the less expensive end of their car range, as the impact of the system fully operational on a permanent basis would have affected the price VW could offer the car to consumers.

The biggest previous recall of cars was performed by Toyota, following the malfunctioning equipment that caused the cars to accelerate without user input. This recall was for 9 million cars.

16 responses to “VW fraud could kill their buy out of Red Bull Racing

  1. just like every other too-large-to-fail misogynistic/narcissistic/corrupt/capitalistic corporation: “I am so sorry we got caught”!
    just like the complete mind control these scum hold over the share and product -buying minions who care nothing about due diligence so long as they think magical un-earned $$$ will appear in their pockets…
    haha. not to mention the IQ deficient politicos as empowered by the stupid who jumped on the subsidy bandwagon of an easily provable flawed premise/technology!!…
    hard to admit, but many of YOU, your relatives/neighbors/coworkers/bosses/teachers/preachers/friends have willingly and knowingly entitled/empowered/demanded this action and behavior for a few magical coins in the pocket!!!!!

    so, where is a good Worldwide Holocaust when one needs one???
    seems appropriate to me after the bull we have endured in ‘Murica-land!!

  2. What no comment from the hippo blasting VW? Imagine if this was Mercedes, he’d go in with both barrels.

    • considering the “did I miss something” so-called “race” ended almost 31 hours ago without even a minimal direct blog mention, I would not be too hard on Hippo or others. way bigger issues and a total lack of transparency and honesty going on IMHO. hope Express Mortgage has gotten a refund 🙂

      • You’re right, no actual report on the race, only a ‘rate the race’ and a ‘top driver’ poll. Curious.

  3. They should be stopped from buying everything. Their crooks.

    They’ve been dumping, non-epa related, defective cars on unsuspecting customers for years. Volkswagen of America cyber attacked a website with pictures of their defective cars to destroy the car pictures. Take a look below. All the IP evidence of their attacks to destroy the website are there. Totally illegal, but they’ve been getting away with it for years.

    They use their size and the justice system to get away with it, and then cover up their dirty work with billion dollar marketing campaigns.
    The website.

  4. How fitting a marriage.
    ‘As long as the wings don’t flex in the test, all is well’

    It Has been long known that tests are often faked, because it’s a certain way in which cars are tested.

    Audi just took it to another level.

    My comment Has nothing to do with the (susidized) car I drive.

  5. how dare you consider blasphemy toward Planet F1 as a source as you did about a half year ago to an unsuspecting newby back then. funny back then. appalling today…

  6. First the “push him out” incident involving Dr. Ullrich and now this. VW/Audi would fit in well with the politics and goings on in Formula 1. Hopefully, the new leadership is able to correct the issues and get the brand on the right track.

  7. “However, one auto industry expert suggested the number of VW cars affected in Europe could easily number 30 million.”

    Volkswagen apparently admitted to 11 million cars with the suspected software and has already reserved € 6,5 billion.

  8. Once 15B USD was erased off VW’s market capitalization within a blink of a eye, we can certainly assume that VW will put its F1 team and engine project on a back-burner. Red Bull better find out an alternative exit out of their recent conundrums.

  9. I would suggest replacing all the upper management, and a computer mod to mitigate the pollution. As an alternative to outright killing the company.. if that is even possible. Maybe a bancruptcy and buyout by the German government. Ironically it was stricter emission laws that prevented these “low tech” engines from qualifying , yet with biodiesel there was less CO2, less particulate, and NOx was only slightly higher

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