Behind-the-scenes look at the Volkswagen emissions scandal

Summary

In 2015, Volkswagen was caught installing illegal software in 11 million diesel cars to cheat emissions tests. This scandal, which began with research by West Virginia University, exposed Volkswagen's attempt to meet U.S. standards by manipulating emissions during tests while allowing cars to emit pollutants far above legal limits during regular driving. Despite significant settlements and fines, the company continues to struggle with its reputation and sales. The scandal's motivation was driven by the need to regain market share in the U.S., but it led to severe environmental and public health consequences. The case highlights the risks of unrealistic corporate targets and harsh penalties.

Takeaways

• 😀 Volkswagen installed illegal software in 11 million cars to cheat emissions tests from 2008 to 2015.
• 😀 Researchers from West Virginia University uncovered the emissions scandal after testing diesel cars and finding unusually high pollution levels on the road.
• 😀 The software was designed to reduce emissions during tests but allowed cars to pollute more than long-haul diesel trucks in normal driving conditions.
• 😀 Volkswagen executives knew about the software manipulation, but the full extent of their involvement remains unclear.
• 😀 The scandal led to Volkswagen paying around $20 billion in settlements to American regulators and car owners.
• 😀 Volkswagen's reputation was severely damaged, and the company is still trying to regain market share, especially in the U.S.
• 😀 The excess emissions caused by Volkswagen's cars have been linked to thousands of premature deaths, with studies estimating up to 38,000 deaths worldwide.
• 😀 The primary motivation behind the scandal was Volkswagen's desire to maintain market share in the U.S. by promoting diesel as an environmentally friendly option, despite failing to meet emissions standards.
• 😀 Unlike other corporate scandals driven by financial gain, Volkswagen's scandal stemmed from a fear of losing market position and maintaining unrealistic targets set by management.
• 😀 The scandal highlights the dangerous consequences of a corporate culture driven by pressure and unrealistic expectations, which led to manipulation of technology and harmful health impacts.

Q & A

What major scandal did Volkswagen face in 2015?

Volkswagen was caught installing illegal software in 11 million diesel cars to cheat emissions tests, concealing higher levels of nitrogen oxide emissions during testing.

How did Volkswagen's software cheat the emissions tests?

The software was designed to recognize when the cars were being tested in a lab environment, and it activated pollution controls only during testing. At other times, the cars emitted much higher pollution levels.

Who were the key figures involved in exposing the Volkswagen scandal?

Dan Carter, a researcher at West Virginia University, and his team were instrumental in uncovering the scandal by testing diesel cars and finding unusually high emissions on the road compared to lab tests.

What were the environmental and health impacts of Volkswagen's actions?

The emissions from the affected cars contributed to 38,000 premature deaths worldwide due to excess nitrogen oxide emissions, which are harmful to human health.

What was Volkswagen's motivation behind using the illegal software?

Volkswagen was trying to defend its market share in the United States, where it struggled to meet strict emissions standards. The company sought to position diesel cars as environmentally friendly, but couldn't meet the U.S. requirements, leading to the decision to cheat on emissions tests.

How did the Volkswagen scandal differ from other corporate scandals like Enron or Wells Fargo?

Unlike scandals motivated by financial gain, such as Enron or Wells Fargo, the Volkswagen scandal was driven by the company's desperation to maintain market share and meet management's unrealistic expectations. The employees involved were primarily trying to keep their jobs.

What role did the U.S. Environmental Protection Agency (EPA) play in the Volkswagen scandal?

The EPA played a key role by issuing a notice of violation against Volkswagen, which led to the public revelation of the emissions cheating software and sparked investigations.

What were the financial consequences for Volkswagen after the scandal?

Volkswagen settled with American regulators and car owners for about $20 billion, significantly affecting its financial position. The company also faced damage to its reputation, which hindered its ability to recover sales, especially in the U.S.

What was the impact of the scandal on Volkswagen's market share?

Volkswagen's sales in the United States were negatively impacted, as the company struggled to regain consumer trust. Sales globally remained flat, and the scandal diverted resources that could have been used to develop new technologies.

What insights does Jack Ewing provide in his book, 'Faster, Higher, Farther'?

In his book, Jack Ewing offers a detailed behind-the-scenes look at the Volkswagen scandal, discussing the events that led up to it, the key individuals involved, and the broader impact of the crisis on the auto industry and the environment.