Volkswagen may buy back thousands of diesel vehicles installed with emissions cheating software, according to two unnamed sources. One person added the automaker may buy back 50,000 vehicles, although that number could grow as talks progress. Read more in this Week’s News You Can Use.
1. NEWS You Can Use
From the Walker Advertising Research Desk 1/20/16
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Courtesy news clipping service provided to clients of Walker Advertising. All material is copyrighted by respective
publications. For copies of complete articles, contact your sales rep or Walker Advertising at 1-800-4WALKER.
1. VW May Buy Back Diesel Cars
Adapted from L.A. Times, 1/9/16
Volkswagen (VW) may buy back thousands of diesel vehicles that cannot easily be repaired to comply
with U.S. emissions standards, according to two unnamed people with knowledge of the matter. The
buyback would be part of the automaker’s efforts to satisfy regulators’ demands after revelations that it
sold about 500,000 diesel vehicles in the U.S. with emissions cheating software. While VW and the U.S.
Environmental Protection Agency (EPA) are negotiating, no final decisions have been reached over how
to deal with the emissions issue. The sources said VW had concluded it would be cheaper to buy back
some vehicles rather than fix them. One person said the automaker might repurchase about 50,000
vehicles, although that figure may change as talks progress. EPA Administrator Gina McCarthy derided
the automaker’s efforts thus far to bring its vehicles into compliance as “inadequate.”
2. Mazda To Recall Vehicles Linked To Defective Airbags
Adapted from N.Y. Times, 1/9/16
On Jan. 8, Mazda announced plans to recalls 374,000 U.S. vehicles with potentially defective front
passenger-side airbags from Takata. The move was prompted by Takata’s announcement that testing
showed additional airbag inflators not originally thought to be at risk could also be prone to rupturing.
3. LA County Joins Porter Ranch Gas Leak Lawsuit; State of Emergency May Bolster Gas Leak Claims; Plan
Promises Relief for Porter Ranch Residents
Adapted from L.A. Daily Journal, 1/12/16; L.A. Daily Journal, 1/8/16; L.A. Times, 1/9/16
On January 11, officials announced Los Angeles County had joined the city attorney’s public nuisance
and unfair competition suit against both Southern California Gas Co. (SoCalGas) and its parent company
Sempra Energy. The suits relate to the ongoing methane leak at the Aliso Canyon natural gas storage
facility, which was first reported publicly in October. The county board of supervisors joined the suit
after examining state agency reports that reveal SoCalGas knew of corroding pipes and failing
infrastructure more than a year ago. According to the filing, SoCalGas also carries four insurance policies
that would be able to cover litigation costs “in excess of $1 billion.” Brian S. Kabateck of Kabateck
Brown Kellner LLP said Gov. Brown’s executive order to use state resources toward investigating the
leak could help residents’ legal case against SoCalGas. He noted some neighbors had allegedly
complained about gas smells months before the leak was officially announced, and there were rumors
that the company knew more than it was disclosing about the leak. Attorney R. Rex Parris, who
represented almost 1,000 Power Ranch families, said the governor’s action would bring in more health
officials to conduct testing, which should hopefully “increase the accuracy of litigation.” SoCalGas
expects to fix the methane leak by the end of March. In the interim, air quality regulations and SoCalGas
have agreed to a plan to capture and incinerate some of the gas from the leaking well. The plan calls for
SoCalGas to use pollution control equipment to capture the gas, which will piped to incineration
equipment some distance from the site in order to minimize fire risks.
2. NEWS You Can Use
From the Walker Advertising Research Desk 1/20/16
_______________________________________________________________
_______________________________________________________________
Courtesy news clipping service provided to clients of Walker Advertising. All material is copyrighted by respective
publications. For copies of complete articles, contact your sales rep or Walker Advertising at 1-800-4WALKER.
4. Michigan Governor Orders National Guard To Assist In Flint’s Water Crisis
Adapted from The Guardian (a British newspaper), 1/13/16
On January 12, Michigan Governor Rick Snyder mobilized the state’s national guard to help with
Flint’s lead-tainted water crisis, ordering them to help distribute supplies to Flint residents. Governor
Snyder also sought help from the Federal Emergency Management Agency (FEMA) to deal with the
issue. Flint’s water quality problems began in April 2014, when the city switched its water supply from
Detroit to a local river in order to save money. The governor has faced criticism for his slow response to
the crisis. Almost immediately after the switch, residents raised concerns about water quality. Even
though researchers and residents who personally tested the water found troublesome levels of lead,
both environmental officials and the governor’s spokespeople dismissed residents’ concerns and local
studies showing a link between elevated blood-lead levels in children and the river water. Local officials
declared the issue was a public health emergency in October, after which point the governor
acknowledged the situation was far graver than he had originally realized.
5. California Regulators Fine Uber $7.6 Million
Adapted from KQED News, 1/14/16
On Jan. 14, California regulators hit Uber with a $7.6 million fine after voting to affirm an earlier
ruling from an administrative judge. That ruling found the company in contempt for failing to adhere to
reporting requirements. The company must additionally pay a $1,000 civil fine for contempt. In 2014,
Uber allegedly failed to provide information concerning driver safety, disabled access, and how it served
neighborhoods by ZIP code. A spokesperson for Uber noted the company had now submitted all
required data and said the company plans to appeal the decision to the California Court of Appeals. She
further noted that, for now, the company would pay the fine and will continue working with the
commission.
6. Beck: Charge Officer In Fatal Venice Shooting
Adapted from L.A. Times, 1/12/16
In an extraordinary move, L.A. Police Chief Charlie Beck has recommended the district attorney’s
office file criminal charges against one of his own officers. This marks the first time Chief Beck has called
for charges following a fatal on-duty shooting. The case involves the May 5 fatal shooting of Brendon
Glenn, who investigators concluded was on his stomach and attempting to push himself up at the time
of the shooting. Officer Clifford Proctor fired twice, hitting the 29-year-old homeless man in the back.
Beck said investigators concluded Glenn was not attempting to take either Officer Proctor’s or his
partner’s gun at the time. Proctor said he though Glenn was trying to take his partner’s gun, but
Proctor’s partner testified he did not know why Proctor discharged his weapon. L.A. Country District
Attorney Jackie Lacey said prosecutors were still reviewing the incident.