Pikes Peak International Raceway€¦ · • 2009 - 2015 2.0 & 3.0 TDI Diesel Engines •...
Transcript of Pikes Peak International Raceway€¦ · • 2009 - 2015 2.0 & 3.0 TDI Diesel Engines •...
Pikes Peak International Raceway15 miles south of Colorado Springs
Last NASCAR major race in 2005
VW Emissions Scandal
Volkswagon - 2012
Volkswagon - Scandal
DieselgateVolkswagon - Scandal
DieselgateHoaxwagon
Volkswagon - Scandal
DieselgateHoaxwagon
Volkswagon - Scandal
Hard NOx
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
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
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
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
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
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
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
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)
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
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
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