Dear Cherubs, imagine buying a supposedly environmentally friendly diesel car, only to discover that its computer had been playing an elaborate game of hide-and-seek with emissions inspectors. Welcome to Dieselgate, one of the automotive industry’s most spectacular corporate fails.

Back in 2015, Volkswagen was caught using sophisticated software designed to recognise when certain diesel vehicles were undergoing official emissions tests. When the software detected testing conditions, it activated stronger emissions controls. Out on the road, however, those controls operated differently, allowing nitrogen oxide (NOx) emissions to rise dramatically.

Essentially, the cars knew when they were being watched. If only the same technology worked on corporate boardrooms.

How the cheating actually worked

According to the US Environmental Protection Agency (EPA), the software installed in affected vehicles could detect testing conditions and adjust the engine’s emissions-control systems accordingly.

During laboratory testing, the vehicles appeared to comply with emissions regulations. During normal driving, the software reduced the effectiveness of those controls, resulting in significantly higher pollution.

The EPA reported that certain affected vehicles produced nitrogen oxide emissions up to 40 times the permitted US standard under normal driving conditions.

NOx isn’t just another technical abbreviation to worry about. These pollutants contribute to respiratory problems, aggravate asthma and contribute to the formation of harmful ground-level ozone.

The trick wasn’t discovered because somebody at Volkswagen suddenly developed a conscience. Independent researchers at West Virginia University, working on a study commissioned by the International Council on Clean Transportation, identified unusually high real-world emissions from two diesel vehicles. Their findings helped trigger the investigation.

The scale was enormous.

Volkswagen subsequently announced that approximately 11 million vehicles worldwide equipped with its EA189 diesel engines were affected. That figure included vehicles across several Volkswagen Group brands, including Audi, SEAT and Škoda.

In the UK alone, approximately 1.19 million affected vehicles were reported, according to the House of Commons Library.

The bill for a very expensive lie

The consequences were substantial. Volkswagen faced investigations, recalls, compensation claims, lawsuits and criminal proceedings in the United States.

The US Department of Justice announced a settlement worth up to $14.7 billion in 2016 relating to the 2.0-litre diesel vehicles, including customer compensation, environmental mitigation and investment in cleaner technology.

In 2017, Volkswagen AG pleaded guilty in the United States to conspiracy, obstruction of justice and importing goods by false statements. The company agreed to pay a $2.8 billion criminal penalty.

The EPA also secured settlements covering approximately 590,000 affected diesel vehicles in the US.

And the irony? Volkswagen had spent years marketing its diesel technology as a cleaner, environmentally responsible alternative. The very technology intended to demonstrate its environmental credentials became evidence of the deception.

Dieselgate remains a reminder that sophisticated technology doesn’t automatically mean sophisticated ethics.

A car can pass an emissions test, a company can produce impressive marketing campaigns, and everything can look wonderfully green on paper.

Until somebody checks what happens when the laboratory doors close.

For more entertaining investigations into corporate fails, questionable decisions and stories worth questioning, visit thisclaimer.com and the Thisclaimer YouTube channel.

Sources

• US Environmental Protection Agency — Volkswagen Clean Air Act Civil Settlement: https://www.epa.gov/enforcement/volkswagen-clean-air-act-civil-settlement
• US Environmental Protection Agency — Learn About Volkswagen Violations: https://www.epa.gov/vw/learn-about-volkswagen-violations
• US Department of Justice — Volkswagen $14.7 Billion Settlement: https://www.justice.gov/archives/opa/pr/volkswagen-spend-147-billion-settle-allegations-cheating-emissions-tests-and-deceiving
• US Department of Justice — United States v. Volkswagen: https://www.justice.gov/criminal/criminal-vns/case/united-states-v-volkswagen
• UK House of Commons Library — VW and Vehicle Emissions Testing: https://commonslibrary.parliament.uk/research-briefings/cbp-7316/
• Thisclaimer — Further reading: https://thisclaimer.com
• Thisclaimer YouTube — Further commentary: https://www.youtube.com/@thisclaimer?sub_confirmation=1