• by Tanya Gazdik , Staff Writer, January 12, 2017

Volkswagen continued to set tongues wagging at the North American International Auto Show this week.

The good: Judging by the buzz about it among the media, VW needs to finally build the microbus concept vehicle of which they have shown iterations at other shows. It’s cute as, dare I say, a Bug. This year’s version, the I.D Buzz, is self-driving and electric. It includes a whimsical miniature troll on the dashboard. You have to give the company credit for having a sense of humor.

The bad: The fallout from the “Dieselgate” emissions scandal just doesn’t seem to end. This week, the feds charged six executives and employees — including Oliver Schmidt, who was in charge of Volkswagen's environmental and engineering office in Michigan — for their roles in the long-running scandal. 

The government contends Schmidt knew emissions testing software was rigged to meet higher U.S. standards, but conspired with (unnamed) others between 2006 and 2016 to mislead federal regulators and customers about the true emissions of the affected V6 diesel engines.
Schmidt was arrested on Saturday night in Miami. At least there were no arrests on the show floor during the media days at NAIAS in Detroit, so VW can count their blessings for dodging that bullet, I suppose. But folks do like to gossip, and there was buzz about it among the media and other auto executives on Sunday and Monday.

If that’s not enough bad news for one week, on Wednesday, VW agreed to pay $4.3 billion in Dieselgate-related civil and criminal fines. Volkswagen will plead guilty to three felony criminal charges: conspiracy to commit fraud, obstruction of justice and entry of goods by false statement. Although the automaker will be formally sentenced, VW agreed in documents filed in U.S. District Court in Detroit to pay a $1.5 billion civil fine and a $2.8 billion criminal fine.

As part of the settlement, VW agreed to oversight by an independent monitor for three years and other reforms, and said it would fire six employees, suspend eight and discipline three others for their roles in the coverup.

Besides the microbus, it’s no surprise the automaker was relatively quiet at the Detroit show this year. The company did reveal a stretched version of the Tiguan crossover vehicle. It’s a smart move since 2016 sales numbers clearly demonstrate that consumers love crossovers and SUVs. While overall VW brand sales were down 7.6% in 2016, Tiguan sales rose 11.6% to 47,861.

"I truly believe that this auto show marks a real turning point for Volkswagen in the United States, based on an upcoming strong product momentum with vehicles that are truly tailored to what American buyers want," VW North America CEO Hinrich J. Woebcken said at a press conference.

Whether it makes consumers forget about the emissions scandal remains to be seen. Analysts like Brian Moody, executive editor for Autotrader, have hope for the company.

“VW’s issue will be over and forgotten by this time next year,” Moody says. “Autotrader’s just-released 2017 Car Tech Study shows that younger drivers, specifically Millennials, care less and less about brand and more about getting the right technology. Unlike slightly older drivers, younger drivers are more interested in their specific vehicle and less about ‘brand messaging.’”