Volkswagen-green washing

Adapted from “Guide to the Volkswagen Emissions Recall “ By Jeff S. Bartlett, Michelle Naranjo, and Jeff Plungis, last updated January 06, 2017 https://www.consumerreports.org/cro/cars/guide-to-the-volkswagen-dieselgate-emissions-recall- What happened?

Volkswagen has admitted to circumventing the emissions control system in about 550,000 vehicles sold in the United

States since 2008 with the 2.0-liter diesel engine. As many as 11 million vehicles worldwide may be affected. This has

resulted in a $14.7 billion settlement to compensate car owners and address environmental harm. Reflecting the

severity of the emissions deception, this agreement is massive in breadth and scope.

The deal is tough, strong, and consumer-oriented. It is significantly bigger than the civil penalties paid by other

automakers, namely the more than $2 billion General Motors has paid so far over faulty ignition switches and the $1.4

billion Toyota paid over acceleration issues, according to the New York Times.

In mid-September, 2015, the EPA issued a notice of violation to Volkswagen AG, Audi AG, and Volkswagen Group of

America (collectively VW) for failure to comply with Clean Air Act regulations. In November, the EPA notified the

automaker about violations found with its 3.0-liter V6 diesel engine, as well. In doing so, the agency determined that

certain Audi, Porsche, and Volkswagen models have been emitting more pollutants than legally acceptable, leaving in

their wake potential environmental and health implications.

Consumer Reports provided a historical diesel fuel-economy analysis to the EPA to help its ongoing investigation. By the

end of November, Volkswagen told the EPA that the issues with the 3.0-liter V6 diesel engine impacts model years 2009

through 2016 and counts about 85,000 vehicles.

Since the initial announcement, investigators have worked to learn how the illegal strategy came about, while the EPA

has sought to close loopholes and ferret out any other potential cheaters.

On the corporate side, executives have been terminated and shuffled, stock values have roller coastered, and hands

were wrung. And finally, details are emerging about the tactical decision to willingly cheat the government, customers,

and the environment, thanks in part to a multistate lawsuit.

Still, consumers have been left with many unanswered questions. This fluid situation promises ongoing drama and

eventual recalls.

What Is the Concern About Volkswagen Emissions?

Federal clean-air standards are configured to become increasingly stringent over time, with clear steps when new,

tighter requirements must be achieved for legal new-car sales.

The rules are in place to improve air quality for both long-term environmental and health benefits. Although the cited

Volkswagen models can meet the standards in a laboratory test, thanks to a sophisticated software algorithm that

distinguishes testing from real-world driving, these vehicles were found to emit nitrogen oxides (NOx) at up to 40 times

the standard when driven normally.

NOx contributes to ground-level ozone and fine particulate matter. According to the EPA, “Exposure to these pollutants

has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses

that can be serious enough to send people to the hospital. Exposure to ozone and particulate matter have also been

associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and

people with pre-existing respiratory disease are particularly at risk for health effects of these pollutants.”

How Dirty Are the Volkswagen Cars?

The EPA estimated that the cheating VW diesels polluted at up to 40 times the emissions standards for nitrogen

oxides—a pollutant connected with respiratory and cardiovascular symptoms and diseases.

However, that estimate was measured under maximum vehicle load and throttle. Under normal operating conditions,

the emissions were more in the range of 10 to 20 times over the federal limit.

Wasn't That False Advertising?

The Federal Trade Commission thought so. The FTC’s part of the federal case against Volkswagen Group of America,

sought compensation for consumers who were deceived by the automaker’s “Clean Diesel” advertising as it cheated on

government emissions tests. VW marketed the 550,000 diesel vehicles sold in the U.S. as environmentally friendly and

placed a premium price on them.

Much of the $10 billion VW is paying to settle the case is being used to buy back cars from consumers who feel they

were misled, as well as cash compensation on top of the fair market value of the cars.

The crux of the FTC enforcement action stated that, because of the emissions-defeat device, VW claims about low

emissions, nitrogen oxides reductions, emissions compliance, eco-consciousness, and comparative resale value were

false or deceptive. As a result, consumers didn't get the benefit of the environmentally friendly car they thought they

were purchasing, and resale values likely will fall.

What Is 'Cheat Mode'?

One key factor in the emissions scandal is that the vehicles in question operate in two different modes: “on road” and

“dyno.” But merely having two different modes isn’t a problem; many cars offer driver-selectable modes to enhance fuel

efficiency or performance.

The Volkswagen and Audi diesel vehicles in question in the U.S. use an Engine Control Unit, or ECU, designed by Robert

Bosch GmbH, a German multinational engineering and electronics company. In addition to the ECU, Bosch supplies other

key components, such as the computers that control the braking and electronic stability control systems. This is where

the dyno mode—also referred to as a test mode—comes into play. Volkswagen admitted to putting the cars in a special

mode just for government emissions testing, then switching to an alternative programming for driving in the real world.

Emissions system and fuel economy testing is conducted while a vehicle is placed on a dynamometer—think of it as a

two big rollers or a treadmill—rather than driving on the road. The vehicle has only its driving wheels rolling (the front

ones, in the case of VW vehicles). But the rear tires are stationary.

The vehicle could otherwise interpret the test procedure as a dangerous situation or malfunction, activating traction

control or stability control. By enabling a test mode, the vehicle will be able to operate during the test process. Once the

test is complete and the car is restarted, the car reverts to its normal function.

The Bosch system (EDC 17) used by these models has the capability to run different algorithms to manage engine

performance onboard and could alternate between those seamlessly. Other companies using similar hardware have

employed this ability to enable the driver to adjust the car's dynamic personality. But VW used this mode for other

purposes.

When Will There Be a Recall?

There’s a schedule for rolling out the fixes for vehicles broken down into four different groups. The settlement gives VW

a Nov. 11 preliminary deadline to propose a fix for the largest group, known as Generation 1. That fix must be final by

January 27. All buybacks, payments, and modifications must be completed by June 30, 2019.

It was announced on January 6, 2017, that Volkswagen has received approval for a two-phase emissions modification for

affected 2.0L TDI vehicles with Generation 3 engines. The company will begin notifying customers.

According to the EPA, "The Generation 3 vehicle models covered by the approved emissions remedy are the model year

2015 diesel Volkswagen Beetle, Beetle Convertible, Golf, Golf SportWagen, Jetta, and Passat, and the model year 2015

diesel Audi A3."

In a statement, VW said that it "continues to work closely with EPA and CARB to reach an agreement on approved

emissions modifications for other affected 2.0L TDI vehicles as quickly as possible."

Consumer Reports has three VW diesels in our test fleet, and once the recalls are performed, we will re-evaluate their

fuel efficiency and performance.

What is the Fix?

According to an Associated Press news report, the expected fix for the 2.0L engines communicated to dealers includes a

computer software update and larger catalytic converter. Previous proposals for correcting 2.0L and 3.0L diesel engines

were rejected.

What Will the EPA Do Now?

The EPA announced it will conduct sample tests on all diesel passenger car models to be sold for the new model year.

Plus, the agency will add new tests to detect so-called "defeat devices" that can bend the rules in an automaker’s favor,

and has notified all manufacturers of the general changes to its test program.

The agency is actively collecting diesel cars from consumers and rental fleets to augment models culled from

manufacturers. These cars will be put through a battery of tests.

The EPA says the investigation into Volkswagen’s actions is ongoing.

The EPA and the Department of Justice filed a civil complaint against Volkswagen (including Audi and Porsche) on

January 4, 2016, that "alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair

their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution."

Are States Pursuing Action Against VW?

Yes. The punishment for Volkswagen’s violation of emissions regulations continues, with new civil lawsuits filed by

attorneys general for the states of New York, Massachusetts, and Maryland—collectively seeking more than $1 billion in

damages. The allegations claim that responsibility for the scandal rises to the highest levels of VW’s leadership. This

action should not affect the California case, which involved the Department of Justice, consumer-rights plaintiffs and

regulatory agencies seeking restitution for consumers and the environment.

What Else is VW Doing to Settle the Case?

The government requires that 85 percent of the nearly 475,000 affected TDIs to be fixed or removed from the road by

June 30, 2019.

To make up for the environmental damage caused by the dirty diesels, VW is paying $2.7 billion to fund efforts to reduce

nitrogen oxide emissions in areas with severe smog. It has also agreed to invest $2 billion in manufacturing, promoting

and building infrastructure for electric vehicles.

The plan does not include the V6 diesels. In fact, California has rejected VW's plan to fix the emissions-cheating 3.0L

diesel vehicles. The federal and state investigations into the larger engines are ongoing. These vehicles are expected to

be easier to fix, and it’s less likely that VW would agree to buy them back, given the number of high-priced luxury

models in the group.