Volkswagen emissions scandal: A timeline

CNN Business

12 Jan 201703:29

Summary

TLDRVolkswagen, once the world's leading automaker, admitted to rigging 11 million vehicles globally to cheat on emissions tests, leading to a significant scandal. Scientists at West Virginia University discovered software that detected test conditions and altered engine performance to appear cleaner. Emissions were found to be up to 40 times the legal limit. The company faced lawsuits, CEO resignations, and a massive $18 billion set aside to address the crisis, including buybacks and fixes for affected US vehicles. The scandal resulted in the arrest of an executive for fraud and Clean Air Act violations.

Takeaways

🚗 Volkswagen, once the world's top automaker, fell to number two due to a major scandal involving emissions test cheating.
🔍 Scientists at West Virginia University discovered that Volkswagen used software to cheat on clean air tests, making emissions appear cleaner than they actually were.
🌟 The emissions were found to be up to 40 times higher than legal limits during normal driving conditions.
🇺🇸 The US Environmental Protection Agency (EPA) announced that Volkswagen manipulated its diesel cars to perform better on emissions tests.
🌐 Volkswagen admitted to rigging 11 million vehicles worldwide, not just in the US, indicating a global scale of the problem.
🛑 Amid the scandal, Volkswagen halted the sale of diesel cars in the US and CEO Martin Winterkorn resigned, later replaced by Matthias Müller.
💸 Volkswagen faced endless lawsuits from customers whose cars lost value due to the cheating software.
👮‍♂️ German police raided Volkswagen's headquarters, and later French and Italian offices, in search of incriminating documents as part of the investigation.
💼 Nine managers were suspended by Volkswagen for their suspected involvement in the scandal.
💵 Volkswagen agreed to pay up to $14.7 billion to settle the issue, a record amount for an automaker, which included compensation for vehicle owners and measures to buy back or fix the affected cars.
🚨 A Volkswagen executive was arrested by US federal prosecutors for allegedly conspiring to defraud customers and violate the Clean Air Act.

Q & A

What was the primary reason for Volkswagen's fall from being the world's top automaker?
-Volkswagen fell from being the world's top automaker due to a scandal where they admitted to rigging 11 million vehicles worldwide to cheat on emissions tests.
Which group of scientists initially discovered Volkswagen's emissions test cheating?
-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 cheat on emissions tests?
-The software detected when the car was being tested and made the engine run differently, making emissions seem cleaner than they ordinarily were.
What were the legal implications of the emissions levels found in Volkswagen's diesel cars?
-The emissions were found to be up to 40 times higher than legal limits.
How did the US Environmental Protection Agency (EPA) respond to the discovery of Volkswagen's cheating?
-The US EPA announced that Volkswagen was manipulating its diesel cars to score better on emissions tests.
What actions did Volkswagen take after admitting to the rigging of vehicles?
-Volkswagen admitted to rigging half a million cars in the US and halted the sale of diesel cars. CEO Martin Winterkorn apologized and resigned.
Who replaced Martin Winterkorn as CEO after his resignation?
-Matthias Müller, the head of VW's Porsche brand, replaced Martin Winterkorn as CEO.
What financial measures did Volkswagen set up to compensate affected vehicle owners?
-Volkswagen set up a fund to compensate owners and tapped mediator Kenneth Feinberg to decide how much each owner should receive.
How much did Volkswagen agree to pay to settle the emissions scandal?
-Volkswagen agreed to pay up to $14.7 billion to settle the issue, which is much more than any other automaker has paid for wrongdoing.
What was the role of the 'defeat device' in the emissions scandal?
-The 'defeat device' was the software used by Volkswagen to cheat on emissions tests by detecting when the car was being tested and altering the engine's performance accordingly.
What legal actions were taken against Volkswagen executives in relation to the emissions scandal?
-US prosecutors alleged that Volkswagen executives knew about the defeat device in July 2015 but chose to keep regulators in the dark. One executive was arrested for allegedly conspiring to defraud customers, impede regulators, and violate the Clean Air Act.

Outlines

00:00

🚗 Volkswagen Emissions Scandal

Volkswagen, once the world's leading automaker, admitted to rigging 11 million vehicles globally to cheat on emissions tests. The scandal began when scientists at West Virginia University discovered that Volkswagen diesel cars used software to detect when the car was being tested, altering the engine performance to make emissions appear cleaner. The actual emissions were found to be up to 40 times higher than legal limits. Despite initial denials, the US Environmental Protection Agency (EPA) confirmed the manipulation, leading to Volkswagen admitting to the rigging in the US and later globally. The company faced a halt in diesel car sales, a CEO resignation, and endless lawsuits from customers. The scandal also led to raids at Volkswagen's headquarters and offices in France and Italy by authorities seeking incriminating documents.

Mindmap

Keywords

💡Volkswagen

Volkswagen, once the world's top automaker, is the central subject of the video. The company is implicated in a major scandal involving the manipulation of emissions tests. The keyword is crucial as it sets the stage for understanding the corporate actions and their consequences, which are the main themes of the video.

💡Emissions tests

Emissions tests are regulatory assessments that measure the level of pollutants emitted by vehicles. In the context of the video, these tests are the focus of Volkswagen's fraudulent activities, as they rigged their vehicles to perform differently during testing to appear more environmentally friendly than they actually were.

💡Rigging

Rigging refers to the act of manipulating a system or process to achieve a desired outcome, often dishonestly. In the video, Volkswagen is accused of rigging 11 million vehicles to cheat on emissions tests, which is the core of the scandal and a key term for understanding the company's wrongdoing.

💡Defeat device

A defeat device is a software or hardware that is designed to bypass, modify, or render inoperative the emission control system of a vehicle to pass emissions tests. The video mentions that Volkswagen used such a device, which is a critical term for understanding the technical nature of the fraud.

💡West Virginia University

West Virginia University is where a group of scientists discovered the cheating software in Volkswagen's diesel cars. This keyword is significant as it identifies the institution responsible for uncovering the scandal, which is a pivotal moment in the narrative of the video.

💡US Environmental Protection Agency (EPA)

The EPA is a federal agency that announced Volkswagen's manipulation of diesel cars for better emissions test scores. This keyword is important as it represents the regulatory body that exposed the company's actions, which led to widespread repercussions.

💡Martin Winterkorn

Martin Winterkorn was the CEO of Volkswagen who resigned amidst the scandal. His resignation is a key event in the video, illustrating the high-level impact of the scandal on the company's leadership.

💡Lawsuits

Lawsuits are legal actions taken against an individual or organization. In the video, Volkswagen faces endless lawsuits from customers whose cars lost value due to the scandal. This keyword is central to understanding the financial and legal consequences of the company's actions.

💡Compensation

Compensation in this context refers to the financial remedy provided to those affected by the scandal. Volkswagen sets up a fund to compensate car owners, which is a key term for understanding the company's response to the crisis and the efforts to rectify the situation.

💡Michael Horn

Michael Horn is the head of Volkswagen in the US who testifies to US lawmakers, blaming the scandal on a few engineers. His role and testimony are significant as they represent the company's stance and the attempt to limit the scope of responsibility within the organization.

💡Clean Air Act

The Clean Air Act is a law that regulates air emissions from stationary and mobile sources. The video mentions that Volkswagen violated this act, which is a key term for understanding the legal framework within which the company's actions were deemed illegal.

Highlights

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

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

The software detected when cars were being tested, altering engine performance to appear cleaner.

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

Volkswagen initially denied the claims to US officials.

The US Environmental Protection Agency announced Volkswagen's manipulation of diesel cars for better emissions test scores.

Volkswagen admitted to rigging 11 million vehicles worldwide to bypass emission laws.

CEO Martin Winterkorn resigned, replaced by Porsche brand head Matias Müller.

Volkswagen halted the sale of diesel cars in the US and faced endless lawsuits from customers.

German headquarters were raided by police searching for incriminating documents.

Volkswagen set up a fund to compensate owners, mediated by Kenneth Feinberg.

Nine managers were suspended for their suspected involvement in the scandal.

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 scandal's costs.

Volkswagen agreed to pay up to $14.7 billion to settle the issue, more than any other automaker for wrongdoing.

US prosecutors alleged that Volkswagen Executives knew about the defeat device in July 2015 but concealed it from regulators.

An executive was arrested for allegedly conspiring to defraud customers and violate the Clean Air Act.