PORSCHE WANTS $234 MILLION IN DIESEL COMPENSATION FROM AUDIDate: 2017-10-10
Porsche is seeking to recover 200 million euros (approximately $234 million) from their sibling automaker, Audi, for the costs of the diesel scandal, according to the German Daily Bild.
Reportedly, Porsche managers delivered the claim in writing to the top management at Audi. The automaker seeks compensation for the costs of retrofits to its diesel models that share engines with Audi and VW models, on top of related customer compensation and legal services.
Despite the toll taken by stop-sale order in the US for its 2014-2016 model year Cayenne Diesel, after the Environmental Protection Agency issued a Notice of Violation for the 3.0-liter TDI engine shared with Audi and Volkswagen models, Porsche emerged relatively unscathed from the 2-year diesel crisis.
The stop-sale order was eventually lifted which allowed Porsche dealers to sell the Cayenne Diesel after a software update, but the procedure and the delay still came with a cost to Porsche dealers.
The situation in Europe, however, is quite different. In July this year, the German Transport Ministry ordered a recall of the Cayenne Diesel, alleging additional software that used a "defence strategy" that is not used by the vehicle in real-world conditions, as explained by transport minister Alexander Dobrindt.
Porsche admitted that it had discovered additional emissions software in the Cayenne Diesel during its internal probe and agreed to the recall.
The news of Porsche's demand for compensation from its Audi comes amid still-mounting costs for the diesel scandal itself. At the end of September, VW announced that it will have to allocate an additional $3 billion to deal with the diesel recall and retrofit efforts in the US. This brings the total bill for the diesel crisis to around $30 billion.
"The reason is an increase in provisions relating to the buyback/retrofit program for 2.0-liter TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time-consuming," said the company in a statement.
Porsche's demand for compensation also comes on the heels of the alleged arrest of former Porsche R&D chief Wolfgang Hatz by prosecutors in Munich, according to an Automotive News Europe report. Hatz's allege arrest late last month (details of which have not been made public by prosecutors) makes him the highest-ranking VW executive to be taken into custody in connection with the diesel investigations in Germany and the US.