Diesel emissions scandal

Diesel emissions scandal
Name	Diesel emissions scandal
Date	2015–present
Location	Global
Also known as	Dieselgate
Type	Emissions cheating scandal
Cause	Use of illegal defeat device software
Participants	Volkswagen Group, Robert Bosch GmbH, Fiat Chrysler Automobiles, Mercedes-Benz Group, others
Outcome	Massive fines, recalls, criminal charges, increased regulatory scrutiny

Diesel emissions scandal. The Diesel emissions scandal, often termed "Dieselgate," is a major global controversy involving the deliberate use of illegal software—known as defeat devices—in diesel-powered vehicles to cheat on official emissions tests. First exposed in 2015 by researchers at West Virginia University and the International Council on Clean Transportation, the scandal revealed that vehicles emitted far higher levels of nitrogen oxides (NOx) on the road than during laboratory certification. The ensuing investigations implicated numerous major automakers, leading to unprecedented legal penalties, massive vehicle recalls, and a profound crisis of trust in the automotive industry and regulatory bodies like the United States Environmental Protection Agency.

Background and discovery

The roots of the scandal lie in the push by automakers, particularly in Europe, to market diesel engines as a clean and efficient technology, aided by favorable tax policies in countries like Germany and France. Regulatory frameworks, including the Euro 5 and Euro 6 standards in the European Union and Tier 2 standards set by the United States Environmental Protection Agency, set strict limits on pollutants like nitrogen oxides. The pivotal discovery occurred in 2014 when a team from West Virginia University, funded by the International Council on Clean Transportation, conducted real-world driving tests on a Volkswagen Jetta and a Volkswagen Passat using a portable emissions measurement system. Their data, showing NOx emissions up to 40 times the legal limit, was presented to the California Air Resources Board and the EPA, which led to a confrontation with Volkswagen Group and the eventual admission of cheating in September 2015.

Affected companies and vehicles

While Volkswagen Group was the first and most prominent company implicated, admitting to installing defeat devices in approximately 11 million vehicles worldwide including models like the Volkswagen Golf and Audi A3, subsequent probes revealed a wider industry issue. Fiat Chrysler Automobiles faced allegations from the EPA regarding its Jeep Grand Cherokee and Dodge Ram models, leading to a settlement. Mercedes-Benz Group, then part of Daimler AG, was investigated by German authorities, resulting in recalls for models like the Mercedes-Benz C-Class. The Renault–Nissan–Mitsubishi Alliance, Opel, and Peugeot also faced scrutiny and raids by officials like those from the Kraftfahrt-Bundesamt. Investigations often centered on the role of supplier Robert Bosch GmbH, which provided the engine management software used by multiple manufacturers.

Defeat device technology

The core technology enabling the scandal was sophisticated software embedded in the electronic control unit that could detect when a vehicle was undergoing an official emissions test. During a test on a dynamometer, the software would activate full emissions control systems, making the engine comply with limits set by agencies like the EPA. Once the software sensed normal driving conditions through parameters like steering wheel position, duration of operation, and atmospheric pressure, it would deactivate or reduce the effectiveness of systems like selective catalytic reduction and exhaust gas recirculation. This deliberate circumvention of the Clean Air Act in the United States and analogous laws in the European Union allowed for better fuel economy and performance but resulted in illegal levels of pollution.

Legal and regulatory consequences

The legal fallout was immense and global. In the United States, Volkswagen Group agreed to a landmark settlement exceeding $20 billion, including buybacks, fines to the EPA, and payments to states like California. The U.S. Department of Justice secured guilty pleas from the company and charged executives, including Oliver Schmidt who was imprisoned. In Germany, prosecutors in Braunschweig investigated and fined Volkswagen Group, Daimler AG, and Audi AG, with former CEO Martin Winterkorn charged. The European Commission launched infringement proceedings against several member states for failing to enforce regulations. Regulatory bodies worldwide, including Transport Canada and South Korea's Ministry of Environment, imposed their own penalties and mandated recalls.

Environmental and health impacts

Independent studies, including those by the International Council on Clean Transportation and researchers at the Massachusetts Institute of Technology, quantified the excess pollution caused by the cheating vehicles. It is estimated that the affected Volkswagen vehicles alone emitted over a million tons of excess nitrogen oxides across Europe and North America, pollutants linked to respiratory diseases, cardiovascular problems, and premature mortality. Research published in journals like Environmental Research Letters suggested the excess emissions could be responsible for thousands of early deaths, particularly in densely populated regions. The scandal highlighted the significant public health cost of non-compliance with air quality standards set by organizations like the World Health Organization.

Industry and market reactions

The scandal triggered a seismic shift in the automotive industry. Consumer trust in diesel technology plummeted, leading to a sharp decline in diesel vehicle sales across Europe, accelerated by impending low-emission zones in cities like London and Paris. This decline benefited competitors like Toyota with its hybrid electric vehicle technology and spurred a massive strategic pivot toward battery electric vehicles. Companies like Volkswagen Group announced ambitious electrification plans under strategies like "Together 2025." The scandal also intensified scrutiny on real-world testing, leading to the adoption of the Worldwide Harmonised Light Vehicles Test Procedure in the European Union and increased funding for independent surveillance testing by organizations such as the International Council on Clean Transportation.

Category:Automotive industry scandals Category:Environmental scandals Category:2015 in the environment