Here is the downside, and it could be huge. If the repair changes the power or mileage significantly, or makes the engine noisier as some have reported with the 2.0Ls, the resale value could drop significantly. This drop could exceed the amount of the compensation, or make our cars hard to sell. The language in this settlement is very favorable to VW, since the minimum standard is not even defined. All they have to do is pay you an extra $500 for anything below Reduced Performance. This is poor protection for the consumer. Any noticeable performance decrease will be unacceptable to me. And VW has the ability under this agreement to reduce performance significantly. In fact, VW has every financial incentive to meet the emissions certification without regard to performance so they don't have to buy the Gen 2 cars back.
7.5. Reduced Performance. Defendants represent that the Emissions Compliant
Repair shall not result in “Reduced Performance.” In the event that the Emissions Compliant
Repair causes Reduced Performance of the Eligible Vehicle, Volkswagen shall make an
additional payment of $500 for each affected Eligible Vehicle. For purposes of this section,
Reduced Performance means a change in any of the following performance attributes: (1) a
reduction in calculated fuel economy using the EPA formula of more than 3 MPG; (2) a decrease
of greater than 5% in peak horsepower; or (3) a decrease of greater than 5% in peak torque. The
performance impacts shall be measured by Volkswagen pursuant to industry standards in
connection with its submission of an Emissions Modification Proposal to the EPA and CARB,
and, upon final approval of such Emissions Modification Proposal, Defendants shall disclose any
impact to these performance attributes in the VW Class Update pursuant to paragraph 2.96 of the
3.0-liter Class Action Settlement. In the event that the Emissions Compliant Repair causes a
substantial, material adverse degradation above and beyond the Reduced Performance levels
specified above, Plaintiffs reserve their right to seek, and Defendants reserve their right to oppose,
additional remedies through motion to the Court.