Volkswagen was the largest carmaker in Europe but became embroiled in an emissions scandal when tests in 2014 found that their diesel vehicles emitted nitrogen oxide at levels up to 35 times higher than EPA standards. To pass emissions tests, Volkswagen had developed software that could detect test scenarios and turn on full emissions controls only during testing. The scandal led to billions in fines for Volkswagen, a criminal investigation, and the resignation of Martin Winterkorn as CEO.

2.  World’s leading automobile manufacturers and the largest carmaker in Europe.
 The Group comprises twelve brands from seven European countries.
 Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel
engines for marine and stationary applications etc. Volkswagen Group offers a wide range
of financial services.
 Group’s goal: to offer safe and environmentally sound vehicles which can compete in an
increasingly tough market and set world standards in their respective class.
 “BUT WHAT HAPPENED THAT CHANGED THE WHOLE SCENARIO”
Volkswagen

3. “HOW DID IT HAPPEN”
“WHY IT DID HAPPEN”
“WHEN IT DID HAPPEN”

4. VW ANTI POLLUTION SYSTEM
2005:Parts of Volkswagen intended to purchase Mercedes but other parts rejected.
2009:Volkswagen Group began migrating its light-duty passenger
vehicle turbocharged direct injection (TDI) diesel engines to a common-rail fuel
injection system.
Allows for higher precision of fuel delivery using fuel injectors
Further due to some unsuccessful inventions, the system failed to combine good fuel
economy with compliant emissions
As of 2014, VW is registered with a Corporate Average Fuel Economy (CAFE) of 34-38
mpg.

5. EARLY WARNINGS:
In 2011 European commission published a report which says that the vehicle emits more
than limits i.e. exceeding the criteria.
European discrepancies:
The independent body International Council on Clean Transportation (ICCT) commissioned
a study in 2014 and obtained data on 15 vehicles from three sources.
 The ICCT expected the cars to pass, and thought they would be able to use the results to
demonstrate to Europeans that it was possible to run diesels with cleaner emissions
The study found emissions discrepancies in the diesel VW Passat and VW Jetta, and no
discrepancies in a BMW X5. They wanted to test a Mercedes as well, but could not get
one.

6. Volkswagen Emission Scam - A Corporate
Catastrophe
EA 189 TDI 2.0 Ltr
Diesel Engine

7. What Unfolded One of the Biggest Frauds in the
History of Automobiles.
PC: Hindustan Times
Dr. Arvind Thiruvengadam and Dr. Marc Besch
tested a rented Volkswagen Passat on a 2400 mile
round trip from Los Angeles to Seattle in March
2013.
The NOx (mono nitrogen oxide) emission level of
the Passat was five to 20 times higher than the
European standards.
These test were repeated with Volkswagen Jetta
too. It showed 15 to 35 times higher emissions
than EPA standards, while a BMW X5 did fine.

8. Why would VW Cheat on Emission Tests ???
Another reason was to
avoid the cost of
additional hardware
required to meet the US
emission norms.

9. VW Emission Scam - Repercussions
Martin Winterkorn resigned as CEO, currently
Matthias Müller is holding the position.
VW’s stocks down by 20% after the news.
Volkswagen has to face a penalty of 18 Billion USD.
It has to recall 11mn vehicles affected by the
emissions violations in order to fix them which can
take 2 or 3 years.
Martin Winterkorn, Former CEO VW
Contd…

10. VW has set aside 7.3 Billion USD as a preliminary
estimate for repairs.
This scandal wiped out 25 Billion euros of market
capitalization.
The 2009 Volkswagen Jetta Diesel Sedan was
chosen Green Car of the Year. The award was
rescinded in early October 2015.
VW scandal caused nearly 1m tonnes of extra
pollution, analysis shows.
Matthias Müller, CEO VW

11. Reaction of Media, Public and Political Figures
It received a lot of negative media exposure.
Reuters said that the it will have adverse impact on
German economy.
German Chancellor Angela Merkel stated she hoped
that all facts in the matter would be made known
promptly, urging “complete transparency”.
French Finance Minister, called for an investigation of
diesel-powered cars in the entire continent.
When it comes to public:
50% have a positive or very positive impression of
Volkswagen.
Whereas 7.5% have a very negative impression.

12. “Our company was dishonest, with the EPA and with all of you, we
have totally screwed up. We have to make things right, with the
government, the public, our customers, our employees and also very
important, our dealers. We are committed to do what must be done,
and to begin to restore your trust”
- Michael Horn
(CEO, Volkswagen Group of America)