Scandal: VW Emissions Dieselgate Explained | Plainly Difficult Documentary

Summary

The video delves into the Volkswagen emissions scandal, tracing its origins back to 2014 when the International Council on Clean Transportation discovered discrepancies in VW's diesel vehicle emissions. Despite appearing to meet US regulations, VW had secretly used a defeat device to pass emissions tests. The resulting scandal cost the company billions, led to criminal charges, and exposed an industry-wide issue of deceptive practices. The video also touches on the evolution of diesel technology, the environmental impact of NOx emissions, and VW's pivot towards hybrid and electric vehicles post-scandal.

Takeaways

• 😀 Volkswagen's emissions scandal began in 2014 when emissions tests revealed their diesel cars were emitting far higher levels of NOx than expected.
• 😀 The emissions discrepancy was first uncovered by the International Council on Clean Transportation (ICCT), who were testing German vehicles built for the US market.
• 😀 Volkswagen used a 'defeat device' in their cars to pass emissions tests by detecting when the car was being tested and adjusting engine performance to meet regulations.
• 😀 Diesel engines, especially in the VW group, were initially popular for their cost-effectiveness, fuel economy, and reliability but contributed significantly to higher NOx emissions compared to gasoline engines.
• 😀 NOx gases, a byproduct of diesel combustion, contribute to smog and acid rain, causing severe environmental and health issues such as asthma, cancer, and respiratory diseases.
• 😀 In the late 2000s, stricter emissions regulations in the US, like the Tier 2 standards, forced manufacturers like VW to develop cleaner diesel technologies.
• 😀 VW's solution to meeting emissions standards was to create an in-house NOx reduction system, but it was only effective when cars were in emissions test mode, revealing the company's deceit.
• 😀 The scandal was uncovered after researchers from the ICCT found irregular emissions during real-world tests, leading to an investigation by the EPA and CARB.
• 😀 In September 2015, Volkswagen admitted to the deception, affecting 11 million cars worldwide, and faced massive legal and financial repercussions, including $29 billion in costs.
• 😀 The scandal led to the resignation of key executives, including VW's CEO Martin Winterkorn, who denied knowledge of the fraud despite evidence linking him to the wrongdoing.

Q & A

What was the initial purpose of the ICCT's 2014 emissions tests on German vehicles?

The ICCT's tests were aimed at comparing the real-world emissions of European vehicles built for the US market, with a focus on how well these cars met the stricter emissions standards in the USA compared to Europe.

How did the results of the emissions tests on the VW Passat and Jetta differ from expectations?

The emissions from the VW Passat and Jetta exceeded legal limits by up to 20 times, far higher than what was expected based on their certification at the California Air Resources Board facility.

What was the key technical issue that the researchers discovered during their tests?

The researchers discovered that the vehicles emitted far higher levels of nitrogen oxides (NOx) than expected, suggesting a hidden problem with the cars' emissions control systems.

What role did the defeat device play in the VW emissions scandal?

The defeat device allowed the VW vehicles to detect when they were undergoing emissions testing and temporarily adjusted the engine settings to reduce NOx emissions, enabling the cars to pass the tests while in normal use, the emissions levels were much higher.

How did the defeat device in the VW vehicles operate?

The defeat device worked by using sensors to detect when the car was being tested. During testing, the engine would enter a low-power mode to meet emissions standards, while in regular driving, it would operate at full performance, emitting higher levels of pollutants.

Why did Volkswagen choose to use a defeat device rather than comply with emissions standards?

Volkswagen chose to use a defeat device because it would allow their diesel vehicles to perform better and be more fuel-efficient in normal driving conditions, while still passing stringent emissions tests that their engine design could not meet without compromise.

How did the Volkswagen Group initially respond to the EPA's investigation into their emissions levels?

Volkswagen initially responded by attributing the discrepancies in emissions results to isolated technical glitches, but continued to face increasing pressure from the EPA and CARB, eventually leading to the revelation of the defeat device.

What impact did the VW emissions scandal have on the company's stock and reputation?

Following the revelation of the scandal, VW's stock dropped by 20% in one day, and another 17% after confirming a $7.3 billion expenditure. The scandal severely damaged their reputation, particularly in the US, leading to significant declines in sales.

What legal and financial consequences did Volkswagen face due to the emissions scandal?

Volkswagen faced significant legal and financial consequences, including a $4.3 billion penalty in 2016, the recall of 11 million vehicles, compensation offers to affected car owners, and the indictment of several executives, including the CEO at the time.

How did the scandal affect the future direction of Volkswagen's vehicle lineup?

Following the scandal, Volkswagen shifted its focus away from diesel technology towards hybrid and electric vehicles, marking a pivot in its approach to emissions and fuel efficiency.