that is extended to the greater of either 11 years or 162,000 miles from new, or five years or 60,000 miles from the date of the recall service. Volkswagen needs some manufacturing lead time, so the second phase of the recall won’t start until early 2018. But in late March, Volkswagen got the go-ahead for its dealers to resume selling 2015 TDIs equipped with the new software, including some br<strong>and</strong>-new leftovers. Shortly thereafter, we conducted our testing—with VW’s blessing—seeking to determine whether the fix carried any downsides or performance penalties that might be felt by owners of repaired cars. up waste gases with catalytic converters, particulate filters, <strong>and</strong> diesel exhaust fluid (DEF), it is among the first batch eligible for a fix—in this case, a software update to both its engine <strong>and</strong> transmission computers. This is per the emissions-modification proposal that CARB <strong>and</strong> the EPA approved Heavy Metal Parking Lot: Rows of Volkswagen diesels parked at the ab<strong>and</strong>oned Silverdome led the city of Pontiac to sue the owners of the property. on January 6, which also covers 2015 Beetles, Golfs, Jettas, <strong>and</strong> Audi A3s with 2.0-liter TDI engines, some 67,000 total vehicles. A second phase of the third-gen recall will involve dealers fitting replacements for the entire emissions system, including a new diesel-particulate filter, diesel-oxidation catalyst, <strong>and</strong> selective catalytic-reduction converter. A second NO x sensor downstream of the catalyst also will be added, allowing the emissions system to operate in an improved, closed-loop mode thanks to another forthcoming software update. These new parts should ensure that the system functions correctly for at least 150,000 miles, <strong>and</strong> it will be monitored by the EPA <strong>and</strong> CARB through further testing over the next five years, an extension of the one year VW would normally be required to conduct an In-Use Verification Program of spotchecks of r<strong>and</strong>omly selected customer vehicles. Owners will benefit from a transferable emissions warranty > STOPWATCH SAYS Since Volkswagen is legally prohibited from allowing any of these TDI buybacks back on the road until their software has been reflashed, our Passat was delivered with the new software. Subjective driving detected no anomalies in its operation—not that we anticipated finding any. VW is telling owners to expect few to no driving differences outside of improved accelerator response <strong>and</strong> slightly different shifting behavior on automatic vehicles. Neither fuel economy nor performance should be affected. However, owners are warned of the possibility of up to 14 percent higher consumption of DEF, depending on driving style. That’s the most appreciable change brought about by the software, which will also have been stripped of the defeat device code that triggered different emissions calibrations for dyno emissions testing <strong>and</strong> on-road driving. “For the most part, it’s the dosing strategy for DEF” that allows cars with the new software to reduce emissions, says VW senior manager of regulatory affairs, Rob Sutschek. No changes were made to other engine operating parameters, he says, specifically naming boost pressure, exhaust-gas recirculation scheduling, fuel-rail pressure, <strong>and</strong> injection timing. Which would indicate that at least for the third-generation diesels, the main benefit VW gained by cheating was merely stretching the DEF refill interval to coincide with a 10,000-mile oil change. It’s worth noting that the fixed gen-three cars will not, in fact, be certified to the same emissions st<strong>and</strong>ards (federal Tier 2 Bin 5 TDI PROFITEERING HOW SOME SAVVY WHEELER-DEALERS CASHED IN ON DIESELGATE. As get-rich schemes go, this one was fairly foolproof. All it took was a close reading of the Volkswagen settlement <strong>and</strong> some capital for a few astute individuals— <strong>and</strong>, rumor has it, a h<strong>and</strong>ful of non-VW dealerships—to cash in on the TDI buyback program, creating a homegrown VW diesel trade that fattened a few pockets. Several months ago, you too could have picked up a used diesel-powered VW for well below book value, then sat on it for a bit before turning it in to VW for the buyback money. Sometimes the payoff would be only a few thous<strong>and</strong> dollars, but one buyer who got the system wired, <strong>and</strong> who talked to us only on the condition of anonymity, claims to have made around $20,000 on some vehicles. The $10 billion buyback <strong>and</strong> restitution program kicked off in November 2016, part of Volkswagen’s larger $15 billion TDI settlement that also includes fines <strong>and</strong> environmental remediation. The buyback is meant to put cash in the pockets of aggrieved VW customers. However, it also requires those owners to read <strong>and</strong> comprehend a fairly arcane system that calculates how much VW will pay for the car plus a second compensation payment, both varying based on model, year, <strong>and</strong> mileage. This has translated into opportunities for those paying attention, as the amounts work out to well above what these cars would fetch on the open market under normal circumstances. Our anonymous source, whom we found through a Reddit thread, says he bought sc<strong>and</strong>al-affected VWs <strong>and</strong> Audis from all over the country, mostly from dealers <strong>and</strong> auctions, collecting 27 vehicles. “I was the original owner of a 2011 2.0, <strong>and</strong> that’s what turned me on to it,” he says. “In June of last year, I started reading about the buyback <strong>and</strong> it looked like a good opportunity, so I borrowed whatever money I could get my h<strong>and</strong>s on <strong>and</strong> started buying the cars. “I have more than $400,000 invested, <strong>and</strong> the profits are variable, but my overall profit margin is going to be between 45 <strong>and</strong> 50 percent,” he says. As shady as this might sound, it’s legal according to the Federal Trade Commission. Unless, of course, the buyer lies to the seller about the details of the buyback program to get a lower price. That’s fraud. Our source says he checked with his state’s department of motor vehicles to make sure he is aboveboard with state regulations. Because he’s treating diesel trading like any other investment, a CPA ensures his tax compliance. Before you cash in your 401(k) to become a TDI flipper, underst<strong>and</strong> that if you’re just learning about this now, you’re too late. Although it’s still possible to buy a TDI <strong>and</strong> submit a buyback claim before the September 1, 2018, cutoff, the cheap cars are gone, <strong>and</strong> the money-making days are well over. —Benjamin Preston 052 . FEATURE . CAR AND DRIVER . JUL/<strong>2017</strong>
LONG LIVE PERFORMANCE When you create a New Sportscar eXperience, you don’t chase the competition—you chase your dreams. You build a facility that manufactures one thing: performance. You assemble the world’s best designers <strong>and</strong> engineers. You throw in a couple of troublemakers. And you get to work. You start with the driver. You reject benchmarks. You stay true to the feeling. You do it your way. You deliver PRECISION CRAFTED PERFORMANCE. You don’t just tell the world what you’ve created. You find a racetrack. And you show them. Build your NSX at nsx.acura.com/build NSX GT3 Race <strong>Car</strong> shown. ©<strong>2017</strong> Acura. Acura, NSX, <strong>and</strong> the stylized “A” logo are registered trademarks of Honda Motor Co., Ltd
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