Volkswagen emissions scandal: A timeline

Summary

Volkswagen, once the world's top automaker, fell to second place due to a massive scandal. The company was caught using software to cheat on emissions tests, affecting 11 million vehicles worldwide. Despite initial denials, VW eventually admitted to rigging cars, leading to global recalls, legal battles, and resignations, including the CEO. The scandal cost VW billions in fines and compensation, severely damaging its reputation. The company continues to face civil and criminal investigations as it attempts to recover from the fallout.

Takeaways

• 🚗 Volkswagen was once the world's top automaker but fell to number two due to the emissions scandal.
• 🔍 West Virginia University scientists discovered that Volkswagen used software to cheat on clean air tests, making emissions appear up to 40 times higher than legal limits.
• 🇺🇸 The US Environmental Protection Agency (EPA) announced that Volkswagen manipulated diesel cars to perform better on emissions tests.
• 🔄 Volkswagen admitted to rigging half a million cars in the U.S. and later acknowledged the issue affected 11 million vehicles globally.
• 🚫 Amid the scandal, Volkswagen halted the sale of diesel cars in the U.S.
• 🤝 CEO Martin Winterkorn apologized and resigned, replaced by Matthias Muller.
• 📉 Volkswagen faced lawsuits from customers whose vehicles lost value due to the software scandal.
• 🏢 German police raided Volkswagen's headquarters in search of incriminated documents as part of the investigation.
• 🔄 Plans were announced to recall 8.5 million affected cars in Europe, with fixes expected by the end of 2016.
• 💰 Volkswagen set aside about $18 billion to deal with the costs of the scandal, including compensation for customers and vehicle buybacks or fixes.
• 📉 The company lost its title of world's top automaker to Toyota.
• 📈 Volkswagen agreed to pay up to $14.7 billion to settle the issue, a record amount for an automaker for wrongdoing.

Q & A

What was the primary reason for Volkswagen's fall from being the world's top automaker?

Volkswagen fell to the second position due to the revelation that it had rigged 11 million vehicles worldwide to cheat on emissions tests.

Which group of scientists initially discovered Volkswagen's use of software to cheat on emissions tests?

A group of scientists at West Virginia University discovered that Volkswagen was using software in its diesel cars to cheat on clean air tests.

How did the software used by Volkswagen manipulate the emissions tests?

The software detected when the car was being tested and made the engine run differently, making the emissions seem cleaner than they actually were.

What was the extent of Volkswagen's emissions exceeding legal limits?

The emissions were found to be up to 40 times higher than the legal limits.

What action did the US Environmental Protection Agency (EPA) take after discovering the manipulation?

The US EPA announced that Volkswagen was manipulating its diesel cars to score better on emissions tests.

How many vehicles did Volkswagen initially admit to rigging in the U.S.?

Volkswagen initially admitted to rigging half a million cars in the U.S.

What was the global scale of the affected vehicles due to Volkswagen's emissions scandal?

The problem affected 11 million vehicles worldwide.

Who replaced Martin Winterkorn as the CEO of Volkswagen after his resignation?

Mattias Muller, the head of VW's Porsche brand, replaced Martin Winterkorn as the CEO.

What was the consequence for customers who had Volkswagen diesel cars affected by the software?

Customers faced a loss in the value of their cars, leading to endless lawsuits against Volkswagen.

What was the estimated cost for Volkswagen to deal with the emissions scandal?

Volkswagen set aside about eighteen billion dollars to deal with the cost of the scandal.

What was the final settlement amount Volkswagen agreed to pay to resolve the issue?

Volkswagen agreed to pay up to fourteen point seven billion dollars to settle the issue.

Outlines

00:00

🚗 Volkswagen Emissions Scandal Revealed

The script details the Volkswagen emissions scandal, starting with the discovery by West Virginia University scientists that Volkswagen diesel cars contained software designed to cheat on clean air tests, making emissions appear up to 40 times higher than legal limits during normal operation. Despite initial denials, the US Environmental Protection Agency (EPA) confirmed the manipulation, leading to Volkswagen admitting to rigging 11 million vehicles worldwide. This prompted a halt in diesel car sales in the US, the resignation of CEO Martin Winterkorn, and his replacement by Matthias Muller. The company faced a barrage of lawsuits and investigations, including a raid on its German headquarters.

📉 Fallout and Responses to the Scandal

Following the scandal's exposure, Volkswagen experienced a significant fallout. The company's stock title of world's top automaker was lost to Toyota. Michael Horn, head of Volkswagen in the US, testified to lawmakers, blaming a few engineers for the scandal while absolving senior management. In an attempt to mitigate damages, Volkswagen offered compensation to US car owners, amounting to $250 million, and set up a fund to compensate owners, mediated by Ken Feinberg. The company also faced demands for vehicle buybacks and further resignations within its management, including that of Michael Horn, CEO of Volkswagen Group of America.

💸 Financial Repercussions and Ongoing Investigations

Volkswagen's financial repercussions from the scandal were substantial, with the company setting aside about $18 billion to address the crisis, which included buybacks or fixes for the affected US cars. The total cost was double the original estimate. A deal was reached to buy back or fix half a million US cars involved in the emissions cheat, with the company agreeing to pay up to $14.7 billion to settle the issue. This settlement was the largest ever for an automaker, with most of the funds going towards compensation for vehicle owners and addressing the lost value of their cars. Despite these measures, Volkswagen continued to face both civil and criminal investigations.

Keywords

💡Volkswagen

Volkswagen is a German multinational automotive manufacturing company that was once the world's top automaker. In the context of the video, it is central to the theme as the company that admitted to rigging emissions tests, leading to what is known as the 'Dieselgate' scandal.

💡Emissions test

An emissions test is a procedure used to measure the amount of pollutants released by a vehicle's exhaust. In the video, it is revealed that Volkswagen cheated on these tests by using software to detect when the car was being tested and alter the engine performance accordingly.

💡Cheating software

The cheating software is a specific type of software used by Volkswagen in its diesel cars to deceive emissions tests. It detects when the car is undergoing testing and changes the engine's operation to produce lower emissions readings than in normal driving conditions.

💡West Virginia University

West Virginia University is where a group of scientists discovered the cheating software used by Volkswagen. Their findings are pivotal to the narrative of the video as they exposed the company's fraudulent activities.

💡Emissions

Emissions refer to the release of pollutants into the environment, particularly from vehicle exhausts. The video discusses how Volkswagen's diesel cars emitted pollutants up to 40 times higher than legal limits when not in test mode.

💡US Environmental Protection Agency (EPA)

The EPA is a US government agency responsible for protecting human health and the environment. In the video, the EPA is the entity that announced Volkswagen's manipulation of diesel cars to score better on emissions tests, highlighting its role in enforcing environmental regulations.

💡Recall

A recall in the automotive industry refers to the action taken by manufacturers to correct a defect in their vehicles. The video mentions that Volkswagen announced plans to recall 8.5 million affected cars across Europe to fix the emissions issue.

💡CEO resignation

The resignation of Volkswagen's CEO, Martin Winterkorn, is a significant event in the video as it marks the company's response to the scandal. His replacement by Matthias Muller signifies a change in leadership amidst the crisis.

💡Lawsuit

A lawsuit is a legal action taken against an individual or entity. In the video, Volkswagen faces endless lawsuits from customers whose cars have lost value due to the cheating software, indicating the legal repercussions of the scandal.

💡Compensation

Compensation in this context refers to the financial remedy provided to those affected by the scandal. The video mentions that Volkswagen set up a fund to compensate owners and paid out $500 each to owners of affected cars in the U.S., totaling $250 million.

💡Settlement

A settlement is a resolution between disputing parties, typically involving payment or other forms of compensation. The video discusses Volkswagen agreeing to pay up to $14.7 billion to settle the issue, which is a significant figure in the context of the automotive industry and the scandal.

Highlights

Volkswagen, once the world's top automaker, fell to number two due to the emissions test scandal.

Scientists at West Virginia University discovered Volkswagen's use of software to cheat on clean air tests.

The software allowed vehicles to emit up to 40 times more pollutants than legal limits during normal operation.

Volkswagen repeatedly denied the claims to US officials before admitting to the manipulation.

The US Environmental Protection Agency announced Volkswagen's diesel car emissions test manipulation.

Volkswagen admitted to rigging half a million cars in the US and 11 million worldwide to bypass emission laws.

The company halted the sale of diesel cars in the US and CEO Martin Winterkorn resigned.

Mattias Muller replaced Winterkorn as the new CEO of Volkswagen.

Volkswagen faced numerous lawsuits from customers due to the devaluation of their vehicles.

German police raided Volkswagen's headquarters in search of incriminated documents.

Volkswagen announced plans to recall 8.5 million affected cars across Europe with a fix by the end of 2016.

Volkswagen lost its title as the world's top automaker to Toyota.

Michael Horn, head of Volkswagen in the US, testified to US lawmakers, blaming a few engineers for the scandal.

Volkswagen agreed to pay $500 to each owner of affected cars in the US, costing the company $250 million.

Some customers demanded a buyback of the rigged vehicles, leading to further compensation discussions.

Nine managers suspected of involvement in the scandal were suspended by Volkswagen.

Volkswagen set up a compensation fund with mediator Ken Feinberg to decide the amount for each owner.

Michael Horn resigned as CEO of Volkswagen Group of America.

Volkswagen reached a deal to buy back or fix half a million US cars involved in the emissions cheat.

The company set aside about $18 billion to deal with the cost of the scandal, double its original estimate.

Volkswagen agreed to pay up to $14.7 billion to settle the issue, the largest amount ever paid by an automaker for wrongdoing.

The company still faces ongoing civil and criminal investigations related to the emissions scandal.

Transcripts

once the world's top automaker

Volkswagen has fallen to number two one

reason the company admits it rigged 11

million vehicles worldwide to treat on

emissions test here is a breakdown of

the scandal blow-by-blow a group of

scientists at West Virginia University

discover that Volkswagen was using

software in its diesel cars to cheat on

clean air tests the software detects

when the car is being tested the engine

then runs differently making a mission

seem cleaner than they ordinarily are

they find emissions are up to 40 times

higher than legal limits but the company

repeatedly denies the claims to US

officials the US Environmental

Protection Agency announces that

Volkswagen was manipulating its diesel

cars to score better on emissions tests

Volkswagen admits rigging half a million

cars in the u.s. to work around emission

laws but the company's problems are

bigger than that it admits the problem

is global in scale affecting 11 million

cars worldwide amid calls to fix the

affected vehicles VW halts the sale of

diesel cars in the u.s. CEO Martin

Winterkorn apologizes and resigns he is

replaced by Mattias Muller the head of

VW is Porsche brand meanwhile Volkswagen

is hit by endless lawsuits from

customers upset that their cars have

lost value because of the software

Volkswagens German headquarters are

raided by police in search of

incriminated documents as German

prosecutors investigating Volkswagen

says they are cooperating and anyone

involved will face the full consequences

days later the French and Italian

offices are also rated plans are

announced to start recalling the 8.5

million affected cars across Europe the

company says they will be fixed by the

end of 2016

VW seeds its recently won title of

world's top automaker - Toyota

Michael horn head of Volkswagen in the

US testifies to US lawmakers blaming the

scanned a lot of few engineers senior

management was not involved he says

after months of apologizing VW decides

it's time to pay up

the company Forks over 500 dollars each

to owners of affected cars in the u.s.

the gesture costs Volkswagen two hundred

and fifty million dollars but for some

customers it's no longer enough they

demand a buyback of the rigged vehicles

nine managers suspected of involvement

in the scandal are suspended by the

company Volkswagen says it will set up a

fund to compensate owners tapping

mediator Ken Feinberg to decide how much

each should get another exec is out this

time it's Michael horn CEO of Volkswagen

group of America he resigns Volkswagen

reaches a deal to buy back or fix half a

million u.s. car is involved in the

emissions cheat the company says the

price tag for the crisis is double its

original estimate it sets aside about

eighteen billion dollars to deal with

the cost of the scandal

BW agrees to pay up to fourteen point

seven billion dollars to settle the

issue that's much more than any other

automaker has paid for wrongdoing

most of that money will go to owners of

the affected vehicles in addition to

compensation for lost value volkswagen

will have to either buy back or fix the

cars but this isn't the end of the story

the company still faces civil and

criminal investigations