Volkswagen Das Scandal: A Case of ‘Diesel Dupe’
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ABOUT VOLKSWAGEN: The foundation for Volkswagen was laid in 1937 by the government of Germany–then under the control of Adolf Hitler of the National Socialist (Nazi) Party, which formed a new state-owned automobile company, then known as Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH, which was operated by the German Labour front, a Nazi organization. Later that year, it was renamed simply Volkswagenwerk, or ‘The People’s Car Company’. The car was displayed for the first time at the Berlin Motor Show in 1939. In 1945, after World War II ended, the new era for the Volkswagen Plant started when the British commissioned the plant to produce 20,000 cars. In 1950, Volkswagen joined the international market by which time half of all passenger cars produced in West Germany were being built by Volkswagen. In 1950, Volkswagen produced its one millionth car. |
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VOLKSWAGEN CLEAN DIESEL CARS: In 2008, Volkswagen announced a new line of cars labeled as ‘Clean Diesel’ cars. These cars used TDI engines which were designed by the company. The Volkswagen Group started using TDI diesel engines in contrast to widely prevalent and commonly used Common Rail Direct Injection (CRDI) engines, which led to better fuel efficiency and lower emissions. Volkswagen described its engines as being clean as or cleaner than US and Californian requirements, while not reducing performance.
TESTS ON CLEAN DIESEL CARS: In 2014, the International Council on Clean Transportation (ICCT) asked West Virginia University Centre for Alternative Fuel Engines and Emissions (WVU CAFEE) to help demonstrate the benefit of US diesel technology..
DIESEL DUPE: In an official statement issued on September 22, 2015, Volkswagen stated that it had set aside US$7.3 billion (€6.5 billion) to cover the liabilities and other expenses incurred as a result of this scandal which had spread worldwide..
PRE- AND POST-SCANDAL SITUATION: The pre-scandal economic, financial, and market conditions for Volkswagen, were the envy of other leading car manufacturers..
FINANCIAL IMPACT: Soon after the scandal, Winterkorn said his company had “broken the trust of our customers and the public”. He then resigned and was replaced by Müeller, the former boss of Porsche.
SITUATION IN THE USA: The Justice Department indicated that the Volkswagen Group in the United States might be subjected to environmental crimes..
SITUATION IN INDIA: India was one of the primary markets for Volkswagen in the Asian continent after China. After the emission scandal, the Volkswagen Group in India met officials of the Government of India and agreed to submit a report regarding the scandal by the end of November 2015..
EXHIBITS:
Exhibit I: EU4 & EU5 Emission Standard.
Exhibit III: Average Emissions of NOx in On-road Testing.
Exhibit IV: List of Cars Affected.
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