Vw Diesel Scandal: Polluting The Planet, Deceiving The People

In 2015, the Volkswagen (VW) emissions scandal, also known as Dieselgate, revealed that VW had installed defeat devices in their diesel-powered vehicles to cheat on emissions tests. This resulted in the vehicles emitting up to 40 times more nitrogen oxide (NOx) pollutants than allowed by US standards. The scandal caused a wave of lawsuits and investigations worldwide, with VW facing billions of dollars in fines and settlements. It also raised awareness about the higher levels of pollution emitted by all diesel-powered vehicles, which exceeded legal emission limits under real-world driving conditions. This article will explore the pollutants caused by the VW diesel scam and its impact on the automotive industry and environmental regulations.

Nitrogen oxide emissions

Nitrogen oxides (NOx) are a group of harmful air pollutants that are produced when fossil fuels such as coal, oil, gas, or diesel are burned at high temperatures. They are a major concern in the context of the Volkswagen (VW) diesel scandal, as the cars involved emitted up to 40 times more NOx than allowed.

NOx emissions have several negative effects on the environment and human health. They react with other chemicals in the air to form particulate matter and ozone, both of which are harmful when inhaled due to their impacts on the respiratory system. In fact, NOx emissions are associated with an increased risk of asthma, heart and lung problems, adverse pregnancy and birth outcomes, and potentially kidney and neurological harm, autoimmune disorders, and cancer.

Additionally, NOx emissions contribute to the formation of acid rain, which harms sensitive ecosystems such as lakes and forests. They also interact with other chemicals in the atmosphere to form smog, creating the characteristic brown haze often observed over cities, particularly during the summer months. This haze reduces visibility and affects the aesthetic enjoyment of natural landscapes.

Furthermore, NOx emissions contribute to nutrient pollution in coastal waters. While nitrogen is a natural and essential nutrient for aquatic ecosystems, excess nitrogen from human activities, such as vehicle emissions, can lead to nutrient over-enrichment in coastal waters. This, in turn, can result in harmful algal blooms, oxygen depletion, and other ecological disruptions.

The VW diesel scandal brought to light the high levels of NOx emissions from diesel-powered vehicles, which had previously been marketed as environmentally friendly alternatives to hybrid cars. As a result, there is now increased awareness of the pollution associated with diesel engines, and efforts are being made to reduce NOx emissions and improve air quality.

Defeat devices

The Volkswagen emissions scandal, also known as "Dieselgate", involved the company equipping some of its diesel vehicles with "defeat devices". These defeat devices were in the form of computer software designed to cheat on federal emissions tests. The software could detect when the vehicle was undergoing emissions testing and would turn on full emissions controls only during the test. While this mode likely delivered higher mileage and power, it also allowed nitrogen oxide (NOx) emissions that were up to 40 times higher than the federal limit when the vehicle was being driven normally. NOx is a smog-forming pollutant linked to lung cancer.

The scandal was first uncovered in September 2015 when the US Environmental Protection Agency (EPA) issued a Notice of Violation to Volkswagen. The EPA found that Volkswagen had installed the defeat device in its model year 2009-2015 2.0-liter diesel cars, affecting about 482,000 cars in the US and 11 million cars worldwide. The EPA's findings led to a wave of investigations and lawsuits against Volkswagen in the US and other countries, including Germany, the UK, Italy, France, South Korea, and Canada.

The defeat devices worked by switching to a separate mode when the vehicle was being driven normally, which significantly changed the fuel pressure, injection timing, and exhaust-gas recirculation. This separate mode allowed the vehicles to achieve higher mileage and power but at the cost of increased NOx emissions.

As a result of the scandal, Volkswagen has faced significant financial and legal repercussions. In the US alone, the company has paid billions of dollars in fines, penalties, and settlements. Volkswagen has also had to recall millions of cars worldwide and set aside billions of euros to cover the costs. The scandal has also led to a push for tighter air quality standards and increased enforcement to reduce air pollution, especially in large cities.

To restore its brand image, Volkswagen has had to embrace zero-emission vehicles and enshrine ethical practices across its workforce. The company has made a large decarbonization commitment of 50 billion euros to launch a comprehensive electrification initiative. This shift towards electrification and e-mobility has become a corporate priority for Volkswagen, with the new CEO driving a rapid expansion of its e-mobility capacity.

False advertising

The Volkswagen emissions scandal, also known as "Dieselgate", involved the company falsely advertising its diesel-powered vehicles as environmentally friendly. Volkswagen was sued by the United States Federal Trade Commission (FTC) for false advertising due to fraudulent claims made in the promotion of the affected models. The company touted the "environmental and economic advantages" of diesel engines and made claims of low emissions output. These claims were proven false when it was revealed that Volkswagen had installed '"defeat devices" in their diesel-powered vehicles, allowing them to cheat on emissions tests.

The scandal was a result of Volkswagen's push to sell diesel cars in the United States, backed by a huge marketing campaign that highlighted the low emissions of their vehicles. The false advertising claims made by Volkswagen contributed to the company's downfall in the scandal. As a result of the false advertising and the emissions scandal, Volkswagen has faced significant financial and legal repercussions, including fines, penalties, and settlements.

The false advertising claims made by Volkswagen were not limited to the United States. The company's marketing campaigns in other countries also emphasized the environmental benefits and low emissions of their diesel-powered vehicles. For example, in Germany, Volkswagen promoted its "Clean Diesel" technology as an alternative to hybrid and electric vehicles. This misleading marketing led to a loss of trust from consumers and regulators, who questioned the legitimacy of Volkswagen's emissions testing and the company's commitment to environmental sustainability.

The false advertising allegations against Volkswagen were not the sole focus of the legal actions taken against the company. Volkswagen was also accused of breach of contract, fraudulent concealment, and violations of federal and state laws. Class-action lawsuits were filed by car owners and shareholders, seeking compensation for the diminished value of their vehicles and the drop in stock value due to the emissions scandal. The scandal also led to investigations and legal actions in multiple countries, including Norway, South Korea, Canada, and Germany.

To restore its brand image and regain trust, Volkswagen had to undergo a significant cultural shift. The company had to embrace more ethical practices, become an advocate for ambitious standards that reduce pollution, and prioritize e-mobility and decarbonization. Volkswagen's new leadership committed to breaking away from its diesel-centric strategy and enshrine ethical practices across its workforce. This included a €50 billion electrification initiative and a focus on zero-emission vehicles.

Clean Air Act violations

In 2015, the Environmental Protection Agency (EPA) discovered that many VW cars sold in America were equipped with a "'defeat device'" in the form of computer software designed to cheat on federal emissions tests. This device could detect when the vehicle was undergoing emissions testing and would adjust the performance to improve results. As a result, these vehicles emitted up to 40 times more nitrogen oxide (NOx) than allowed by emissions standards. NOx is a smog-forming pollutant linked to lung cancer.

On September 18, 2015, the EPA issued a Notice of Violation of the Clean Air Act to Volkswagen AG, Audi AG, and Volkswagen Group of America, Inc. (collectively referred to as "Volkswagen"). The notice alleged that Volkswagen installed software in its model year 2009-2015 2.0-liter diesel cars that circumvented EPA emissions standards.

On November 2, 2015, the EPA issued another Notice of Violation of the Clean Air Act to Volkswagen, Audi, and Porsche for producing and selling certain model year 2014-2016 3.0-liter diesel cars and SUVs equipped with a similar defeat device. These vehicles emit up to nine times more pollution than allowed.

On January 4, 2016, the Department of Justice filed a complaint on behalf of the EPA against Volkswagen and its associated entities for alleged violations of the Clean Air Act. On June 28, 2016, Volkswagen agreed to a multi-billion-dollar settlement to partially resolve the alleged Clean Air Act violations related to the sale of 2.0-liter diesel engines with defeat devices.

On December 20, 2016, Volkswagen entered into a second settlement to address alleged Clean Air Act violations concerning the sale of 3.0-liter diesel engines with defeat devices. On January 11, 2017, Volkswagen agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty. In addition, VW agreed to pay $1.5 billion in separate civil resolutions to cover the EPA's civil penalties and customs fraud claims.

Financial impact

The financial impact of the Volkswagen emissions scandal has been significant, with the company incurring substantial costs and facing a decline in its business performance.

Firstly, VW has had to bear the cost of recalling millions of cars worldwide, with the company setting aside €6.7 billion (£4.8 billion) for this purpose. This led to the company posting a quarterly loss of €2.5 billion in October 2015. The recall and emissions scandal also caused a drop in the resale value of VW cars, with a decline of 5-16% reported in the US.

Secondly, VW has faced hefty fines and penalties for its emissions violations. In the US alone, VW was ordered to pay a $2.8 billion criminal fine, and by June 2020, the company had expended $33.3 billion in settlements, fines, penalties, and buyback costs. The EPA also has the power to fine VW up to $37,500 per vehicle that breaches standards, potentially resulting in a maximum fine of about $18 billion.

Thirdly, VW has been subjected to numerous lawsuits and legal actions by car owners, shareholders, and government entities. By September 2015, at least 34 class-action lawsuits had been filed in the US and Canada, and this number continued to grow. VW has also faced legal action in other countries, including Germany, Norway, and South Korea. The costs of these legal actions are difficult to estimate but are expected to be substantial.

The emissions scandal has also had a broader impact on VW's business and the diesel car market as a whole. There has been a sharp fall in demand for diesel engine cars, and VW's sales and market share have been affected. The company's shares have fallen by about a third since the scandal broke, and VW has lost significant consumer trust and confidence.

In response to the scandal, VW has also had to commit to significant changes in its business practices and product offerings. The company has pledged to improve its emissions testing procedures and has shifted its focus towards electric vehicles, potentially discontinuing the sale of diesel models in certain markets.

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