When it comes to the US manufacturing sector which as a result of the oil sector collapse recently entered a recession, for years it was the US auto industry which was presented as a shining example of how "things can go right" and how US manufacturing workers have benefited when year after year domestic auto production rose and recently hit a record high annualized production rate.

In fact, as we showed recently, used-car-prices are plunging at a pace comparable toas a result of what is a record glut of used cars sitting on dealer lots, unable to find a willing buyer. It all culminated with a recent RBC research report in which it asked if this is "the card that brings the whole house down" because, it added, "the reason for concern is lower used vehicle prices have a potential spillover effect to many other industry factors.

If we think about volume, price, mix, credit — all have been incredibly positive and supportive of the recovery. But much more important than VOW's financial results, was that as part of the company's settlement in the U. Specifically, Volkswagen has pledged to give drivers of about2-liter diesel vehicles the option of selling the cars back to Volkswagen, or having them modified to meet emissions standards, the judge said.

Those with a lease can cancel it and return the vehicle to Volkswagen. He made it clear last month that if no solution was offered by this week, he would consider a request by the plaintiffs to set a summer trial the WSJ reported. Needless to say, given the option of a hassle-free buyback leading to cash in hand, or waste weeks in some dealership, everyone will pick the former. Because the immediate result of Volkswagen's settlement to placate buyers following its emissions-testing scandal, could send a shock wave across the US auto industry.

As Market Talk correctly notes, offering hundreds of thousands of buyers a chance to sell back their old VW or end their lease early in lieu of fixing the car will almost certainly flood the used-car market that is already on pace to hit record inventory levels in Once the German auto maker fixes the emissions problems on those cars, it will put them back into circulation, and the the availability of repaired models will add even further pricing pressure on used-car prices "that are sagging amid a glut of gently-used vehicles being turned in after leases or as trade-ins for new car purchases.

Following Wednesday's emissions rigging scandal at Japan's automaker Mitsubishi - because if Volkswagen was abusing its emission standards tests, everyone else was too - the Japanese Transport Minister Keiichi Ishii said on Friday he wanted Mitsubishi Motors Corp to respond "with integrity" after revelations that it cheated on test to measure fuel economy, including by possibly buying back the cars in question, Kyodo news reported.

In other words, even more buybacks, even more fixes and even more used cars about to push the record used-car glut to never before seen levels. How long until car dealers, stick with hundreds of thousands of used cars, are forced to start dumping. RBC may have been premature with its observation of the " card that brings the whole house down ", but what happens when there is suddenly a whole lot of cards?

I also heard a dude who was warning them as he thought they were doing this inventory gig to increase profits but it's a scam which just leaves them at peak of market w extra inventory to come at a loss later.

He had a name for it forgot what he called it. Not pumping I didn't think but anyway. This won't help either. When it rains it pours. Be on the lookout for a rash of dealership used car lot fires. Insurance claims help move inventory Installing parts made in Mexico and China and Viet Nam and Korea is not manufacturing anything except bullshit.

GM Annual Income Statement - General Motors Co. Annual Financials

Fixing older cars makes no economic sense. The ones turned in will probably be junked. I don't see how this will have much impact on used car prices. It's model years that are affected. Taking the middle of that, a model year - are you saying this is too old to fix and that it should just go to the junkyard? That kind of car will go for k right now. What kind of business would choose to throw away that kind of money by sending the cars to the junkyard? I'll be first in line to buy a diesel Golf on the cheap as long as it's able to be flashed back to it's "original" software Here's what I plan on doing.

No emissions testing where I live. By the way, what a bunch of 20 watts at the EPA. Let's cut the mpg in half so the owners will now have to burn twice the amount of fuel they used to. Yea, that'll cut down on greenhouse gases. It is amazing how many people have not figured out that the fix will make the cars use more fuel.

It sort of points out that the goal is not conservation. But there is a couple of mpg lost to the improvement. They will reflash the computers to make the vehicles get the mileage they were supposed to get originally.

When they do that the vehicle will get better MPG less fuelbut will perform much worse. Meaning they will not accelerate as fast as they used to. Do they actually have to fix them? Aren't there other countries with lesser emmissions standard where they can resell the cars? I ain't gonna give up our Jetta wagon 6-speed, turbo-diesel. Only a couple years old, drives like a tight racecar, very good pep, over 45 mpg on the highway! I might apply a chinese stock market crash chart if it doesn't affect performance too much, but then again I might not It is a great car.

I traded in my '13 TDI Sportwagen about 6 months before the scandal broke for a van after the second kid, plus our dogs. The torque on that VW was simply amazing. I believe you will have trouble licensing the vehicle if you choose not to play. Likely they will track the fixed ones via the VIN and if yours isn't on the list, no tags learn how to trade stocks in singapore you.

You are right though - those TDIs are great cars - a far cry from the smoky diesels of old. It's not just used cars sitting around waiting for a buyer.

How about brand new cars, abandoned in stock market manipulation amazon, never to be sold. The article doesn't make sense. The people who sell back their VWs to Volkswagen or end their leases early will have to go out and buy or lease another car, so assuming VW puts the "repaired" VWs back on the market as used cars, everything should equalize out.

And VW is not going to allow their unhappy customers to go quietly to another dealer. They will break their own balls doing everything they can to keep those customers. No one will see it. Well I guess my plan to sell lift kitspropane Injection, big stove pipe with smoke to stick rpg 2 best way to get money VW guys just went out the window.

Now what am I going to do with all those bull balls I just ordered. It is more likely that the used car market will have short supply and values increase other than VW after a large buy back program. Don't expect these cars to get fixed and return to the market. Cuba could use a few newer cars?

Remember the governments "cash for clunkers" program? It dried up the supply of low cost used cars for quite a while and drove used car prices upward. They will have to be sold in 3rd markets They will be 'fixed' then sold wherever the market will allow. So VOW takes a nice profit hit to save on taxes and sells them in Africa for whatever they can get for them. If you had one and the company bought it back, what would you do?

Probably buy a new Honda. Anyway, my neighbour is a used car guy esl stock market lesson plan in Toronto and he tells me the biggest determinate of used car prices is the exchange rate. With the CDN low, most used cars are being bought by US dealers. So VOW has a big asset to sell, therefore look to the markets where the exchange rates are most favourable and dump, dump, dump.

Look to where you can gain on a strong exchange rate because that's where the margin is. I don't think it will affect the US market at all.

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If anything this will reduce the number of used cars since some of those VW's would have become used cars in the next year or two and should increase sales of new cars. What will they do with so many 24option binary options bonus cars that are one ,two or three yars old?

Export to markets where diesel fuel is cheap or with lower emission standardsSouth America, ME, Russia. Transport cost may be prohibitive, however stock market losses 2016 vs 2016.5 are now low. Offer a free car to migrant families returning to Syria paid for by Merkel or EU. I own a jetta tdi. The dealer told me that VW's lawyers have stated that the carmaker could face even greater liability from cars that have undergone emission repairs.

It was his understanding that these cars are going to be CRUSHED period. Send em to Mars. Then once we get the jews off the planet and sent their, they can drive around in the People's Auto. A fitting end to a f'ed up tribe. Obviously VW will only be able to sell "legal" used cars, i. This won't be cheap in the U. However, VW might take these cars and try to resell them elsewhere. Good luck with that, VW. How many states actually do emissions testing? If I'm a VW diesel driver in a state that doesn't do emissions testing, why would I sell back my car to VW, assuming I'm happy with it, as I won't have any emissions liability?

Clearly it appears that VW will only have to buy back cars in states where there is ongoing diesel emissions testing. Once VW buys these cars back, they will obviously re-program the emissions software and then--to be safe-- only resell the car into non-emissions-testing states Because my understanding is, it's pretty easy to reprogram a VW diesel's emissions and performance profile simply by swapping out a chip.

Here in Nevada, they do emissions testing on diesels, which is expensive. Turns forex courses in uk, however, that the emissions testing is ridiculous, and doesn't come anywhere near measuring the NOx emissions in dispute. They stick an optical sensor up the tailpipe, run it to speed on a treadmill, and look for visible opacity i.

Our Jetta read zero to several decimal places. They guy running the test thought it was hilarious, said nobody flunked except the occasion 20 year old truck. In the land of excess people live by expiry dates, emission laws and other regimental ideas which makes no sense.

Can we quantify the damage that so called emission test failed VW diesels have caused before we even disband them from the highway. Yes they did this. There has to be a better way of dealing with stuff like this. I personally think that many, many African states will suddenly find GREAT deals on slightly used VW diesels in the near future That shifter does look lame. How hard can this really be? That is an automatic transmission shifter. How that basic design gets fucked up after all of these years is beyond me.

People aren't interested in buying their cars after renting them for 3, 4 or 5 years. This is the problem with auto sales. When manufactures tout the millions of new cars sold, they should clarify that they will gain some rents but will eventually have to take many of those cars back to try and resell as used. Here's our Cookie Policy. How to report offensive comments. Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. Apr 22, 5: Printer-friendly version Apr 22, 5: Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded.

Date - newest first Date - oldest first. Select your preferred way to display the comments and click "Save settings" to activate your changes. GoldenGoosed Apr 22, 5: Cognitive Dissonance knukles Apr 22, 5: The guru who comes up with the flash to reset the fix should make some good bank.

Umh pickupthatcan Apr 22, 7: Limbs Akimbo Umh Apr 22, 7: Actually, it is about air quality not so much about fuel conservation. Umh Apr 22, 8: Taylor not verified gattaca Apr 23, 9: Trump Got It Right Again.

This Is the Undeniable Proof However the mainstream media isn't saying a word about it! What are they really trying to cover up? Automatic Choke neidermeyer Apr 22, 7: Almost Solvent Automatic Choke Apr 22, 7: Richard Chesler Apr 22, 5: Fuck you very much AGW criminals!

Baronneke Apr 22, 5: You will be stunned. Isn't there a good chance they will just have a mass burial at a New Mexico landfill? Thunderbox bada boom Apr 22, 5: Hey it worked for Atari and you see how well that company did. TheEndIsNear Apr 22, 5: It's what capitalism is all about. Atomizer Apr 22, 5: Obviously, some have forgotten about this story. Osmium Apr 22, 5: Canoe in the Desert Apr 22, 5: The premise that VW will put these cars back into the market is ill conceived.

Winston Canoe in the Desert Apr 22, Would love to work on that project - seriously exciting work. Fleet sales to Corporate customers, governments or military. Offer a free car to migrant families returning to Syria paid for by Merkel or EU Any other ideas? F em all but 6 Apr 22, 5: Infinite QE Apr 22, 6: Stick in the Mud Apr 22, 6: Buckaroo Banzai Apr 22, 6: Automatic Choke Buckaroo Banzai Apr 22, 7: Limbs Akimbo Apr 22, 7: Dumb conclusion to that article.

There is a HUGE marke for used cars FROM the U. Stormtrooper Apr 22, 9: Can I run used McDonald's french fryer oil in those VW diesels?

DaBard51 Apr 22, Paul John Smith yellowsub Apr 23, 2: Manipuflation Apr 23, Hard to say who is the full retard on this one.

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