Volkswagen Emission Scam Report

1. VOLKSWAGEN EMISSION
SCANDAL
SUBMITTED BY:
ALISHA SAMANTRAY
JAGADEESH KUMAR
NISHA AGARWAL
PRABHJOT KAUR
ROSHEN CHARLES
SUSHRITA MAHARANA
SHEETAL BHUDWAR
SATARUPA GANGULY

2. OVERVIEW
The company, which owns 70 percent of the U.S.
passenger-car diesel market, is in major trouble for
cheating on diesel-emissions tests. It's been dubbed the
"diesel dupe".

3. VOLKSWAGEN
•Established in 1946
•A German car manufacturer, headquartered in Wolfsburg, Lower
Saxony, Germany
•Top selling marquee of the Volkswagen group

4. INTRODUCTION
The company has falsified emissions data on its diesel vehicles, pretending
they were cleaner than they are.

5. By installing a piece of software into computers on its cars that recognize
when the car is being tested – a so-called "defeat device". This fine-tunes
the engine’s performance to limit nitrogen oxide emissions. When used
on the road, the emissions levels shoot back up.

6. • The U.S. has tougher diesel emissions standards than Europe.
• To meet these steeper requirements means to reduce fuel efficiency and
performance.
• Tougher for VW to advertise their diesel cars against more typical
vehicles in U.S.

7. As per the website of EPA (Environmental protection Agency) of the USA many
manufacturers has a pollution check facilities in their factory and a few among
the tested vehicles are selected randomly by the EPA to check the validity of the
tests and then certification is given to the entire lot.
If they had tampered the machine they would have been caught in the tests
conducted by the EPA.

8. •11m cars worldwide had the software installed; 1.2m of them were in the UK.
•Cars effected in the UK:
•Volkswagen passenger cars-508276
•Audi-393450
•SEAT-76773
•SKODA-131569
•Volkswagen commercial vehicles-79838
•Volkswagen stops sale of all Polo variants in India
•More than 300,000 Volkswagen cars under scrutiny in India

10. • Large fines
• Loss in customer trust
• Disenchantment
• Possible backlash from its investors.
• Maybe even criminal charges
• Decline of sales further in this year by over 20% approx $20 billion.

11. The allegations, which have been admitted by VW, cover the Jetta, Beetle, Audi
A3 and Golf models from 2009 to 2015 and the Passat in 2014 and 2015. Audi,
Seat and Skoda cars are also affected, as well as VW vans. Some diesel and petrol
vehicles also have "irregularities" around carbon dioxide emissions.
Models are:-
Volkswagen Jetta 2.0L TDI
Audi Q7 3.0L V-6 TDI
Volkswagen Touareg 3.0L V-6 TDI
Volkswagen Golf 2.0L TDI
Audi A3 2.0L TDI
Volkswagen Beetle 2.0L TDI
Volkswagen Passat 2.0L TDI
Porsche Cayenne Diesel 3.0L V-6
Audi A6 3.0L V-6 TDI
Audi A7 3.0L V-6 TDI
Audi A8/A8L 3.0L V-6 TDI
Audi Q5 3.0L V-6 TDI

12. • After the findings of EPA(Environmental Protection Agency) that
Volkswagen has manipulations in the software
• The diesel engine brands were first affected.
• The company confirmed that around 1.2 million customers were affected
in UK for the cause.
• 2.1 million complaints worldwide for SNEAKY SWITCH installed in Audi
and Volkswagen.
• Almost 1.42 Audi drivers affected in Europe along with Skoda 2.5 million
cars

13. • CAR TAX-Drivers pay more tax due to emission of more carbon dioxide.
• the fact drivers are paying more for fuel than they expected, extra repair
costs and a fall in the price for the vehicles.
• Audi model lines the A1, A3, A4, A5, A6, TT, Q3 and Q5 are affected.

14. • Lawyers have started writing to the organisation for settlement
schemes.
• Investigations have been started in Europe and UK.

15. •One-third of the company’s market cap has been wiped out with its nose-diving
stock price, and the company has abandoned its goal at becoming the world’s largest
automaker by 2018.
•The U.S. Department of Justice sued Volkswagen on behalf of the EPA, which can
technically fine Volkswagen up to $37,500 per car—a potential $18 billion punch.
• Internal audits inevitably will lead to firings, restructuring, and other corporate
changes.
•VW has offered to fix affected models and expects to start the recall in January
2016. It is facing investigations in over a dozen countries as well as lawsuits from
motorists.

16. • Environmental Regulatory Agencies focus on four types of engine
emission:
i. Carbon monoxide
ii. Hydrocarbons
iii. Nitrogen oxides
iv. Particulate matter

17. Regulators across the globe are conducting investigations, as are attorneys
general in all 50 states. The Justice Department on Jan. 4 filed a civil lawsuit
against the company over the deception. VW also faces lawsuits from
owners seeking compensation for the decreased resale value of their cars.

18. • Volkswagen AG lost almost a quarter of its market value after it admitted to
cheating on U.S. air pollution tests for years.
• Volkswagen’s chief executive also stepped down and the company suspended
several high-ranking executives.
• It also admitted that it had understated the output of carbon dioxide, a
greenhouse gas, in about 800,000 vehicles, which could mean an additional $2.2
billion in costs and penalties.
•Volkswagen plunged as much as 23 percent to 125.40 euros in Frankfurt, wiping
out about 15.6 billion Euros ($17.6 billion) in market value. The stock closed at
132.2 Euros.
•Sales of new Volkswagen-branded cars fell by 14% , Seat sales fell 25%, while
Skoda’s were down 2.4%. Audi sales, however, increased 1.4%.

20. Technical Solutions
• Volkswagen AG in Germany has submitted a technical solution for nitrous oxide
(NOx) emissions issue and it has been approved by the independent German
Federal Motor Transport Authority.
• The solution for 2.0 litre engines will involve a software update only and the
completion time will be around half an hour.
• The solution for the 1.6 litre engines involves a hardware update (a modified
engine air intake being fitted to the engine) and a software update which are
expected to take less than an hour
• The Volkswagen dealer network will ensure that the solution will be completed at
the owner’s convenience and with minimum disruption.

21. •As part of its “Customer Goodwill Package,” Volkswagen is handing out $1000 cash
to every owner of a VW TDI named in the EPA’s first violation notice (not the second
notice announced November 2).
•That means nearly 482,000 people can get a $500 prepaid Visa card to spend on
anything and another $500 cash card valid only at Volkswagen dealerships (to use
toward another car, service, or lots of VW hats).
• They also get free 24-hour roadside assistance for the next three years. Audi,
Porsche, and VW TDI owners who took delivery after November 8 are not eligible
(full rules here).
•Current owners of any VW model can get a $2000 cash rebate toward a new car.
• Dealers also have “discretionary” cash they can use to sweeten deals (and they’re
getting guaranteed kickbacks for some models).

22. THANK YOU.