pikes peak international raceway€¦ · • 2009 - 2015 2.0 & 3.0 tdi diesel engines •...
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Pikes Peak International Raceway15 miles south of Colorado Springs
Last NASCAR major race in 2005
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VW Emissions Scandal
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Volkswagon - 2012
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Volkswagon - Scandal
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DieselgateVolkswagon - Scandal
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DieselgateHoaxwagon
Volkswagon - Scandal
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DieselgateHoaxwagon
Volkswagon - Scandal
Hard NOx
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VW - Scandal
• 2005 - VW wanted to enter the American Market of High Efficiency Vehicles - High MPG was the Goal
• US added Emission Requirements • VW could not achieve requirements • Modified computer systems to detect (in progress)
emissions testing • Modified gas/oxygen ratios to reduce NOx during
the testing • Actual operating NOx emissions were 40 times the
test and emission requirements
Detected in Europe and verified by Univ of West Virginia state emissions center after 5 years of deception
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Cheat Mode (aka Defeat Mode)
• Most cars have an “On Road” mode and a “Dyno” or “Test” mode
• Emissions Test are performed on a stationary dynamometer. (Front wheels rotate, rear wheels strapped, steering wheel is unmoving)
• “Traction Control" and “Stability Control” see Dyno mode as an unsafe driving condition and must be turned off to perform a Dyno test.
• The VW ECU was programmed to alter the cars fuel ratios during this configuration
• Fuel was actually increased during the test to optimize the NOx trap efficiency
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How many vehicles?
• 2009 - 2015 2.0 & 3.0 TDI Diesel Engines
• Volkswagen was caught rigging its emissions testing on about 500,000 2.0-liter four-cylinder diesel models in the U.S. and an estimated 11 million worldwide.
• The EPA since cited approximately 85,000 2009-2016 models fitted with 3.0-liter V6 diesel engines from Audi, Porsche, and Volkswagen, all owned by Volkswagen
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Legal Settlements
VW admitted guilt when the EPA stated that VW would not be able to sell ANY new vehicles starting in 2016
US Class Action Settlement VW to pay $14 Billion as part of US Settlement
$10.03B to Owners $4.7B to Environmental Remediation
Worldwide Settlement is $30 Billion
Comparison
• BP - Gulf of Mex Oil Spill $56B • US Banks - 2006 Market Collapse $20B
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Settlement Options
Option 1 - Buy Back or Early Lease Termination • Surrender vehicle • Settlement Offer
Option 2 - Approved Emissions Modification (if approved)
• Free Modifications on their vehicle • Reduced Settlement Offer
Claims Deadline is Sept 1st - 2018
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Model Year Model and Trim Buyback Approved Emissions Modification
Option 1:Sell your car back to VW plus a cash payment for a combined total of:
Option 2:Keep your car, get a free modification to reduce emissions plus a cash payment of:
2009 VW Jetta Sedan TDI $12,475 – $14,025 $5,100 – $5,100
VW Jetta SportWagen TDI $13,600 – $15,125 $5,100 – $5,100
2010 VW Golf Hatchback 2D TDI $15,025 – $16,877 $5,100 – $5,302
VW Golf Hatchback 4D TDI $15,500 – $17,447 $5,100 – $5,397
VW Jetta Sedan TDI $13,675 – $15,350 $5,100 – $5,100
VW Jetta Sedan TDI Cup Street Edition
$15,625 – $17,087 $5,100 – $5,337
VW Jetta SportWagen TDI $14,775 – $16,607 $5,100 – $5,257
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Approved Emissions Modifications
• Must be approved by EPA and Courts
• Timeline must be adhered to or BuyBack was mandatory
• 98% of vehicles now have an approved modification, although late
• VW can now modify the vehicles and re-sell them. As of Jan 2017 - 360,000 vehicles were bought back under Option 1 in the US
Note: A small percentage of owners of modified cars say their performance is greatly effected by the modifications
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Sr. Management is “Not” to blame! Say it was a “Series of Errors”
• Misconduct - VW wanted to get into the Diesel US Market but couldn’t achieve US Emissions Requirements
• Process Failures - Solutions to Emission issues were developed but not implemented
• Rule Breaking Mindset - Achieve the corporate goals at all costs
• 9 Managers Suspended (Initially)
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Accountability United States • Volkswagen has agreed to pay $4.3 billion to settle US civil
and criminal allegations
• Six high-level executives have also been indicted by a federal grand jury in Michigan in connection to the conspiracy to defraud the United States,
• Five executives are German nationals in Germany• One of the executives indicted, Oliver Schmidt, was arrested
in Miami.
Worldwide • We may not see criminal prosecutions in Germany. There’s no
criminal liability for corporations, for starters. There’s no statute barring a criminal conspiracy, no relevant criminal clean air law, and no law against lying to regulators or investigators.
• VW Chairman (CFO) arrested and CEO of Audi arrested for supplying false documents
• Offices of Audi & Porsche raided in April 2018
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Europe
• Investigations have shown that “Defeat Devices” are installed by every major manufacturer and have been for years. (BMW, MB, VW, Audi, Porsche…)
• While Europe has a set of standards for emissions, each country is obligated to enforce them.
• European Countries do not enforce them • European Cities are some of the most polluted in the world
(smog, ozone, NOx)
United States
• The White House recently withdraw the US from the Paris Climate Accord
• The states will have to enforce their requirements and goals with reduced support of the Federal government
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References
• The EPA Settlement is available on-line• www.epa.gov/vw
• Consumer Reports On-Line• Netflix - Dirty Money Series (S1- E1)
Note:5 Year Timeline makes the research conflicting