What Tucson Arizona car owners need to know about the Volkswagen scandal.

What Tucson Arizona car owners need to know about the Volkswagen scandal.

Volkswagen s in deep trouble after admitting this week that the willfully cheated on federal emissions testing by placing software in their car that will only turn on emissions programming when the car is being tested, and then turned off when the car is in regular driving mode.

The scandal has escalated so quickly that the company’s CEO resigned and has left the prospect of an expensive recall looming.

Volkswagen has admitted that it rigged U.S. emissions tests to make it look as if its diesel-powered cars were emitting fewer nitrogen oxides, which can contribute to respiratory illness.

American regulators have identified some 482,000 cars in the U.S. that are involved. The company said 11 million vehicles worldwide were fitted with the cheating software.

Company CEO Martin Winterkorn denied any wrongdoing but resigned Wednesday. Meanwhile Volkswagen has set aside $7.2 billion to cover the anticipated costs of resolving the issue, and its stock has plunged.

The issue involves four-cylinder engines in Volkswagen or Audi cars from 2009 to 2015, according to the Environmental Protection Agency. The company has ordered those models not be sold.

Tucson Arizona Volkswagen diesel owners are left to wonder whether their cars will no longer perform well after having a recall repair, or worse; the scandal could destroy the cars’ resale value. Many VW owners feel cheated by Volkswagen.

VW stock shares dropped immensely after the scandal broke and have remained low. The losses are bigger than BP suffered in the days after the Deepwater Horizon disaster.

This is a corporate catastrophe, and the ripples will begin to hit Tucson Arizona diesel owners in time. VW, the largest car manufacturer in the world, is now in mortal danger. It can almost certainly manage the immediate financial hit; whether it can recover from the reputational damage, it has suffered remains to be seen.

The bigger question now is if other car makers performed a similar cheat. There is no evidence of that yet. But all will now face tougher scrutiny.

As the resale value for VW diesel drops, this will increase the rate at which cars are totaled in Tucson. In order for a car to be totaled, the cost of the repairs has to exceed only 70% of the value of the car. If the car’s value drops significantly, not only will your diesel Volkswagen get totaled, but the check you receive from the insurance company will be much smaller. This could be a big problem if you owe money on the car.

Another issue could be parts availability for collision repairs. Some of the crash parts are diesel car specific, and the car maker could look to cut costs by shutting off some of the replacement parts.

For now all we can o is wait and see what the fallout ultimately brings for diesel powered VW owners.

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