Volkswagen's Lawbreaking: What Really Happened?

In 2015, Volkswagen was found to have cheated on emissions tests for its diesel cars in the US. The company had installed a defeat device in the form of computer software that could detect when the car was being tested and adjusted its performance to improve results. This meant that Volkswagen's cars emitted nitrogen oxide pollutants up to 40 times above the legal limit. The scandal, known as Dieselgate, led to the resignation of Volkswagen's CEO, Martin Winterkorn, and the company faced significant financial and legal repercussions, including fines, penalties, and compensation for affected consumers.

Volkswagen violated the Clean Air Act by selling cars with defeat devices

In 2015, Volkswagen was found to have violated the Clean Air Act by installing "defeat devices" in their cars. These devices were designed to detect when the car was undergoing emissions testing and would only turn on full emissions controls during the test. This meant that during normal driving, the cars emitted nitrogen oxides at levels up to 40 times the standard.

The Clean Air Act prohibits the manufacture, selling, or installation of any device that intentionally bypasses or renders inoperative a required element of the vehicle's emissions control system. It also prohibits the sale of motor vehicles or engines that are not covered by valid certificates of conformity.

As a result of these violations, the Environmental Protection Agency (EPA) issued a Notice of Violation to Volkswagen, and regulators in multiple countries began investigating the automaker. The company's stock price fell by a third in the days following the news, and several high-level executives resigned or were suspended.

Volkswagen ultimately agreed to a multi-billion-dollar settlement to partially resolve the Clean Air Act violations. They also agreed to recall and repair the affected vehicles, which totaled approximately 590,000 model year 2009-2016 diesel motor vehicles in the United States. The settlement included buybacks, lease terminations, and modifications to affected vehicles, as well as compensation for consumers and investments in green vehicle technology.

The EPA has the power to fine Volkswagen up to $37,500 per vehicle

In 2015, Volkswagen was found to have cheated on emissions tests in the US. The company had installed a "defeat device" in the form of computer software in its diesel engines, which could detect when the vehicle was being tested and adjust its performance to improve results. This device allowed Volkswagen to sell diesel vehicles that emitted nitrogen oxide pollutants up to 40 times above the legal limit in the US.

As a result of these actions, Volkswagen was subject to legal consequences, including fines and penalties. The Environmental Protection Agency (EPA) had the authority to impose civil penalties on Volkswagen for violations of the Clean Air Act. Specifically, the EPA could fine Volkswagen up to $37,500 per vehicle that breached emissions standards. With Volkswagen selling over 500,000 vehicles with the defeat device in the US alone, the potential financial impact was significant.

The EPA took action and, in 2016, Volkswagen entered into a multi-billion-dollar settlement to partially resolve the alleged Clean Air Act violations. This settlement was a result of the sale of 2.0-liter diesel engines equipped with the defeat device. In December 2016, Volkswagen agreed to a second settlement, this time regarding the sale of 3.0-liter diesel engines with the same issue.

On January 11, 2017, Volkswagen agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty. This was in addition to $1.5 billion in civil resolutions of environmental, customs, and financial claims. The total financial impact of the scandal, including fines, penalties, and settlements, reached $33.3 billion as of June 2020.

The Volkswagen emissions scandal, also known as "Dieselgate", had far-reaching consequences. It damaged the company's reputation and led to a loss of trust from customers and the public. The company's CEO, Martin Winterkorn, resigned, and Volkswagen initiated an internal inquiry to address the issue. The scandal also sparked investigations in multiple countries, including the UK, Italy, France, and Germany, and raised questions about the legitimacy of emissions testing in the automotive industry.

Volkswagen's CEO Martin Winterkorn resigned as a direct result of the scandal

In 2015, Volkswagen was found to have installed software in its diesel cars that allowed them to pass emissions tests by reducing emissions when the vehicle detected it was being tested. The company admitted that it had been rigging emissions tests since 2009, and that as many as 11 million vehicles worldwide could have been fitted with so-called "cheat switches". This resulted in an extra 1 million tons of pollution being released into the atmosphere.

Martin Winterkorn, the then-CEO of Volkswagen, resigned on September 23, 2015, as a direct result of the scandal coming to light. In his resignation statement, Winterkorn said he was "shocked" by the events of the past few days and that he was ""stunned that misconduct on such a scale was possible" in the company. He also stated that he was taking responsibility for the scandal, but that he was "not aware of any wrongdoing on [his] part".

Winterkorn had already issued multiple apologies for the scandal before his resignation. He blamed "the terrible mistakes of a few people", whom he did not name, and confirmed that Volkswagen could face fines of up to $18 billion. Following his departure, Volkswagen's share price rose by 8%.

Winterkorn was later indicted in the United States and Germany on charges of fraud and conspiracy related to the emissions cheating scandal. He is a fugitive in the United States and is wanted by the Environmental Protection Agency. He has denied any wrongdoing and is awaiting trial in Germany.

Volkswagen's internal inquiry found irregularities in tests to measure carbon dioxide emissions levels

In November 2015, Volkswagen's internal inquiry found irregularities in tests to measure carbon dioxide emissions levels, which could have affected about 800,000 cars in Europe, including petrol vehicles. However, the following month, the company revised this estimate, stating that only around 36,000 of the cars it produced annually were affected.

The German carmaker admitted to “unexplained inconsistencies” in carbon dioxide readings, with engineers doctoring emissions tests in several ways. This included using artificially high tyre pressures and adding diesel fuel to the engine oil mixture, which led to improved fuel economy numbers.

According to German newspaper Bild am Sonntag, engineers were unable to match former CEO Martin Winterkorn's promise in 2012 that, by 2015, carbon dioxide emissions from the company's vehicles would be 30% lower than in 2006. Employees, fearing the results of undershooting expectations, decided to manipulate the emissions tests instead.

The latest scandal came to light after a VW engineer decided to inform executives about the practice. Following the company's confirmation of the false readings, new CEO Matthias Müller and other executives travelled to Berlin to deliver the news to German Chancellor Angela Merkel in person.

The models affected by the false readings included the VW Golf, Passat, and Polo, as well as the Audi A1 and A3. Specifically, those equipped with EA 288 engines in 1.4-, 1.6-, and 2-litre varieties were found to have misreported emissions. A smaller number of gasoline models were also affected.

The company announced it would write off an additional 2 billion euros to account for the vehicles, on top of the tens of billions already saved to deal with the cheating software installed on other cars.

The scandal has increased scrutiny on combustion engines and their emissions

The Volkswagen emissions scandal, also known as "Dieselgate", brought increased scrutiny on combustion engines and their emissions. The scandal revealed that Volkswagen had installed "defeat devices" in their diesel engines, which were designed to detect when the vehicle was undergoing emissions testing and adjust emissions controls to pass the test. This resulted in the vehicles emitting up to 40 times more nitrogen oxides (NOx) during real-world driving than allowed by emission limits.

The scandal sparked a discussion on the use of software-controlled machinery in emissions testing and the potential for fraud. It was suggested that one way to address this issue was to make the software programs available for public inspection. The scandal also led to investigations into other diesel emissions issues, with studies showing that other car manufacturers, including Volvo, Renault, Jeep, Hyundai, Citroën, and Fiat, had vehicles that exceeded legal emission limits.

The Volkswagen scandal brought attention to the higher levels of pollution emitted by diesel-powered vehicles from a wide range of car makers. A French government report in 2016 found that about one-fifth of the cars investigated did not comply with emission laws, with one car emitting 17 times more pollutants than allowed. Other tests conducted by ADAC showed that a majority of diesel cars from various manufacturers exceeded legal European emission limits for nitrogen oxide (NOx).

The scrutiny on combustion engines and emissions resulted in increased public awareness of the issue. There were calls for stricter emissions testing and regulations, with some arguing for the implementation of a UN-sanctioned test called Worldwide Harmonized Light Vehicles Test Procedures that better reflects real-life driving conditions. The scandal also led to a decline in the sales of diesel vehicles and a push for the development of electric vehicles.

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