Volkswagen emissions scandal
Volkswagen was among several automotive manufacturers who deliberately programmed their emission control systems to only work with full effectiveness when the car detected that a regulatory emissions test is being performed. The cars only fulfilled emissions standards in a lab environment.[1][2]
Background
[edit | edit source]In 2003, for the 2004 model year, the US Environmental Protection Agency (EPA) decreased the allowed amount of nitrogen oxide (NOₓ) which vehicles could emit from 1.25 grams per mile to 0.07 grams per mile.[3]
Volkswagen's engineers could not find a solution to these tightened regulations within the company's "time frame and budget", leading them to cheat on diesel emissions tests instead.[3]
Volkswagen adding software to their vehicles to control emissions only during regulatory testing
[edit | edit source]In 2008 (starting with the 2009 model year), Volkswagen began adding software to their vehicles (known as a "defeat device") to detect when the vehicle was in an emissions test, and only control emissions under those circumstances, leading consumers to believe their vehicles polluted less and were better for the environment than they actually were.[4] The Environmental Protection Agency (EPA) has known practices for testing vehicles, such as, in many cases, putting vehicles on rollers (also known as a "rolling road").[4] The Volkswagen vehicles' central computers would detect these conditions, and control emissions accordingly. The International Council on Clean Transportation (ICCT) later performed independent on-road tests, on Volkswagen's Passat and Jetta vehicles, as well as a BMW X5. The performance of the Volkswagen cars was much worse than the ICCT's expectations, leading them to run further tests on a dynamometer. In this scenario, the Volkswagen cars passed with great success. This lead the ICCT to contact the EPA.[4] NOₓ emissions can cause health issues, such as inflammation of the airways, which worsens breathing.[4] NOₓ can also react with other compounds, causing more health issues, such as more serious respiratory conditions, as well as aggravated heart problems.
Volkswagen's response
[edit | edit source]Volkswagen's then-current CEO Martin Winterkorn said:
I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group.
As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group. I am doing this in the interests of the company even though I am not aware of any wrong doing on my part.
Volkswagen needs a fresh start – also in terms of personnel. I am clearing the way for this fresh start with my resignation.
I have always been driven by my desire to serve this company, especially our customers and employees. Volkswagen has been, is and will always be my life.
The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis.[5]
Winterkorn resigned as CEO on 23 September 2015.[6]
Volkswagen Group of America CEO Michael Horn said "We've totally screwed up",[7] and added "Our company was dishonest with the EPA, and the California Air Resources Board and with all of you."[8]
Lawsuit
[edit | edit source]In September 2016, the Australian Competition and Consumer Commission (ACCC) took Volkswagen to court over its defeat devices.[2]
Claims
[edit | edit source]The ACCC alleged that between 2011 and 2015, Volkswagen engaged in misleading conduct by adding software to their vehicles to cheat emissions tests, without disclosing the existence and operation of this software, and by giving the representation that their vehicles complied with Australian and European regulatory standards and were environmentally friendly.[2]
Rebuttal
[edit | edit source]Volkswagen said the court action was "unnecessary" and would not help consumers.[2]
Outcome
[edit | edit source]In December 2019, the Federal Court ordered Volkswagen to pay $125 million in penalties.[9]
Consumer response
[edit | edit source]A poll conducted for Bild showed that despite the scandal, 55% of Germans still have "great faith" in Volkswagen, with more than three-quarters believing that other car manufacturers are equally guilty of manipulation.[10] Similarly, in a poll conducted by the management consultancy Prophet, 65% of respondents said they thought the scandal was exaggerated, and that Volkswagen still made "excellent cars".[11] A survey by Kellogg School of Management at Northwestern University, Brand Imperatives and Survata found that nearly 50% of consumers still had positive impressions of Volkswagen, with only 7.5% having a "very negative" impression.[12] Another US survey by the market researcher AutoPacific found that 64% of respondents did not trust Volkswagen, while only 25% had a positive impression.[13]
References
[edit | edit source]- ↑ Parloff, Roger (2018-02-06). "How VW Paid $25 Billion for 'Dieselgate' — and Got Off Easy". Fortune. Archived from the original on 2025-06-11. Retrieved 2025-06-11.
- ↑ 2.0 2.1 2.2 2.3 Cormack, Lucy; Hatch, Patrick (2016-09-01). "ACCC takes Volkswagen to court over diesel emission claims". The Sydney Morning Herald. Archived from the original on 2025-06-11. Retrieved 2025-06-11.
- ↑ 3.0 3.1 Goodman, Leah McGrath (2015-12-15). "Why Volkswagen Cheated". Newsweek. Archived from the original on 2026-08-19. Retrieved 2026-08-19.
- ↑ 4.0 4.1 4.2 4.3 Topham, Gwyn; Clarke, Sean; Levett, Cath; Scruton, Paul; Fidler, Matt (2015-09-23). "The Volkswagen emissions scandal explained". The Guardian. Archived from the original on 2026-07-29. Retrieved 2026-08-18.
- ↑ "Volkswagen Group Statement by Prof. Dr. Winterkorn". Volkswagen Group. Archived from the original on 2015-09-25. Retrieved 2026-08-16.
- ↑ Farrell, Sean (2015-09-23). "Volkswagen CEO Martin Winterkorn quits over diesel emissions scandal". The Guardian. Archived from the original on 2026-08-12. Retrieved 2026-08-16.
- ↑ "Volkswagen admits it 'totally screwed up' as emissions rigging scandal spreads". Euronews. 22 September 2015. Archived from the original on 2026-01-20. Retrieved 2026-08-16.
- ↑ Fleming, Charles (2015-09-22). "Volkswagen diesel scandal threatens to ruin its credibility and value". Los Angeles Times. Archived from the original on 2026-08-13. Retrieved 2026-08-15.
- ↑ "Court orders Volkswagen to pay record $125 million in penalties". ACCC. 2019-12-20. Archived from the original on 2026-10-13. Retrieved 2026-10-13.
- ↑ Kollewe, Julia (2015-09-27). "VW urged to come clean over which UK diesel vehicles are affected". The Guardian. Archived from the original on 2025-09-10. Retrieved 2026-08-17.
- ↑ Löhr, Julia (2015-10-20). "Two-thirds of Germans still trust Volkswagen after emissions scandal". The Guardian. Archived from the original on 2024-12-26. Retrieved 2026-08-17.
- ↑ Hennessy, Julie; Cianciolo, Bethany (2015-10-09). "VW messed up, but the emissions scandal won't turn off customers". Fortune. Archived from the original on 2025-09-12. Retrieved 2026-08-17.
- ↑ Grieb, Deborah (2015-10-01). "Volkswagen's Reputation Takes Big Hit with Vehicle Owners; AutoPacific Predicts Tough Road Ahead". AutoPacific. Archived from the original on 2015-10-18. Retrieved 2026-08-17.