'Why the VW scandal will snowball'

Dieselgate scandal to widen? Volkswagen refutes fresh allegations - IOL

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The scandal surrounding illegally manipulated exhaust emissions in Volkswagen's diesel cars is widening, German public broadcaster SWR reported on Thursday.

According to SWR, Volkswagen also manipulated the emission thresholds of the EA 288 diesel engine, which is the successor to the EA 189 engine which was subject to the initial diesel scandal in 2015.

SWR reported that Volkswagen had installed a so-called 'defeat device' in the EA 288 engine, which detects if the car is being tested for its exhaust emissions.

Volkswagen Internal reports would show how such a "cycle recognition" worked, according to the German public broadcaster.

Until now, only the manipulation of engines with older emission standards than Euro 6 had come to light in the course of the diesel scandal.

The EA 288 engine is widely used not only in Volkswagen cars, but also in cars of its subsidiaries like Audi, Seat and Skoda.

According to SWR, "hundreds of thousands of diesel vehicles" had been equipped with this engine since its introduction in 2012.


A Volkswagen spokesperson denied the accusations, however, and told SWR that "vehicles with the EA 288 diesel engine, in accordance with the currently valid exhaust emission standard EU6 in EU 28, do not contain cycle recognition".

However, SWR reported that Volkswagen's internal documents would describe the "use and recognition" of the New European Driving Cycle (NEDC) "in order to trigger the switch-over of the raw emission data" depending on the stretch the vehicles is driving.

Axel Friedrich, exhaust gas emissions expert and consultant for the German parliamentary investigation committee on the diesel scandal, told SWR that "the vehicle recognises whether it is on a test bench" and only then a sufficient amount of the diesel exhaust fluid AdBlue would be injected.

Under normal driving conditions on the road, however, "much less" of the fluid, which lowers the concentration of nitrogen oxides in the exhaust gas of diesel engines, would be used, added exhaust expert Friedrich.

All inquiries by the SWR to the Germany's Federal Motor Transport Authority (KBA) as well as to the German ministry of transport relating to the EA 288 engine had not been answered at the time of writing.

 
https://www.bbc.com/news/world-europe-49811501
Three current and former Volkswagen executives have been criminally charged with market manipulation in connection with a diesel emissions scandal.

CEO Herbert Diess, chairman Hans Dieter Poetsch and ex-CEO Martin Winterkorn did not inform investors early enough about the financial fallout, German prosecutors said.

Local link has more details (via Bloomberg). See: https://www.fin24.com/Companies/Ind...-with-market-manipulation-in-germany-20190924
 
Volkswagen faces first mass diesel lawsuit on home turf - Wheels24

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Car behemoth Volkswagen will face a German court Monday, as hundreds of thousands of owners of manipulated diesel cars demand compensation four years after the country's largest post-war industrial scandal erupted.

The first hearing in what is likely to be a grinding, years-long trial opens at 10 am (0800 GMT) in Brunswick, around 30 kilometres (19 miles) from VW headquarters in the northern city of Wolfsburg.

Around 450,000 people have joined a first-of-its-kind grouped proceeding, introduced by lawmakers after the "dieselgate" emissions cheating scandal broke in 2015.

Consumer rights group VZBV, representing the plaintiffs, says the German carmaker deliberately harmed buyers by installing motor control software that allowed vehicles to pollute far more on the road than under lab conditions.

The trial is Germany's largest so far in the tentacular diesel scandal, which last week saw VW chief executive Herbert Diess charged with market manipulation over his role.

Read the full article at the link below:

 
MASS ENGLISH LAWSUIT OVER VW 'DIESELGATE' REACHES COURT - EWN

Volkswagen faced its first mass lawsuit in the English courts on Monday over the "dieselgate" emissions scandal, with around 90,000 drivers demanding compensation from the German auto giant.

In what could be the largest case of its kind in England, the High Court will decide whether software installed in VW, Audi, Seat and Skoda diesel vehicles was designed to cheat clean air laws.

In 2015, Volkswagen admitted to manipulating 11 million vehicles worldwide to fool emissions tests, including almost 1.2 million in Britain.

The scandal has already cost the group more than $33 billion in fines, compensation and legal costs, mostly in the United States.

Tom de la Mare, the lawyer representing the claimants, told the London court that VW engines were "optimised to minimise the amount of pollutants" in emissions tests.

This meant the vehicles operated in a "completely different way in the street to how it operated in the test".

He added: "It is difficult to think of a more obvious cheat than the one VW used."

Over the next two weeks, the court will hear submissions to determine whether VW's software was a "defeat device" under EU regulations and also, whether the court is bound by the German regulator's previous finding that it was.

Further hearings would be required to establish any damages that might be due, according to law firm Slater and Gordon, which represents 70,000 claimants.

In a statement before Monday's hearing, a VW spokeswoman said: "Volkswagen Group continues to defend robustly its position in the High Court in London.

"It remains Volkswagen Group's case that the claimants did not suffer any loss at all and that the affected vehicles did not contain a prohibited defeat device."

 
Watch the Netflix series dirty money. Episode 1. Pretty good on this subject.
 
Volkswagen in 'dieselgate' talks with motorists - BBC News

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Volkswagen has said it is in talks with a group of German drivers who are suing the car giant over excessive emissions from its diesel cars.

The motorists say they were affected when VW "cheated" emissions rules by installing unlawful "defeat devices" in its diesel cars.

The carmaker and the Federal Association of Consumers (VZBV) said the talks were at an early stage.

There was "no guarantee" of a settlement, they said.

"The common goal of VZBV and Volkswagen is a pragmatic solution for the benefit of the customer," they declared, adding that they had agreed to keep the talks confidential.

The class action case is among the first of its kind in Germany.

Because of a new draft law in 2018, consumer rights groups became able to represent customers taking companies to court - and to bear their costs.

VZBV, an umbrella group of consumer associations, is state-financed and represents a wide range of members, from building owners to workers to the German cycling federation.

Read the full report here:

 
Dieselgate: Volkswagen to pay €830 million settlement to German consumers - DW
Five years after the Volkswagen emissions scandal began, the automaker has reached a settlement with Germany's consumer federation. The amount is a fraction of what the company was ordered to pay American consumers.

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Volkswagen reached a "comprehensive agreement" with the German consumer federation VZBV regarding a compensation settlement over the company's 2015 emission's scandal, a court in the central German city of Braunschweig announced on Friday.

Some 260,000 German customers who were affected by the affair will receive between €1,350 and €6,257 ($1,484 and $6,879), depending on the model and age of the car.

VW plans to pay a total of €830 million in compensation — significantly less than the $15.3 billion a United States judge ordered the company to pay American consumers.

The consumers can then decide to either accept the settlement or continue to fight for more money in individual lawsuits. People who bought their cars after December 31, 2015 — months after the scandal began — will not be compensated.

In addition, Volkswagen will take on the full costs for the settlement and the legal advisers for the consumers. An ombudsman office will be set up to settle possible disputes.

The VZBV, who filed the class action lawsuit against VW in September, said after the settlement was announced that its action for declaratory judgment will now be terminated.

"The VZBV has argued for more. But in the context of the difficult negotiations, the result is the maximum achievable," said VZBV board member Klaus Müller.

Read the full article here:

 
VW loses infamous 'dieselgate' lawsuit in UK - News24

Volkswagen faces the threat of a hefty "dieselgate" payout in Britain after a court Monday ruled in favour of more than 90 000 drivers whose vehicles cheated emissions tests.

Following adverse rulings and compensation payouts elsewhere, the High Court in London ruled that the German auto giant was liable in Britain, too.

The ruling adds pressure on Volkswagen just after the carmaker said last month it was preparing to shutter most of its European plants, joining a slew of other carmakers as the coronavirus pandemic disrupts supply chains and sends demand plummeting.

The British judgement concerned "defeat devices" installed in about 1.2 million Volkswagen, Audi, Seat and Skoda diesel vehicles in Britain, which artificially lowered emissions.

Pollutants

The court found the devices were a "fundamental subversion" of European Union tests designed to limit noxious pollutants, and will rule later on compensation to the owners.

VW admitted in 2015 to fitting 11 million vehicles worldwide with software to make engines appear less polluting in regulatory tests than in real driving conditions.

So far the legal fallout has cost VW more than 30 billion euros globally in costs, fines and compensation, most of it in the United States and Germany.

Gareth Pope, head of group litigation at Slater and Gordon, which represents around 70 000 of the British claimants, welcomed the "damning judgement".

He said it "exposes VW's disregard for EU emissions regulations and public health in pursuit of profit and market dominance".

Pope demanded VW end the "shameful episode" and settle with the plaintiffs. The company, however, said it would consider grounds for appeal.

"While Volkswagen is disappointed that the outcome was not in our favour, the judgement relates only to preliminary issues," it said in a statement.

It was still to be determined if the vehicle owners had suffered actual losses, the company insisted, adding: "We will continue to defend our position robustly."

 
VW settles emissions class action in Germany with three-quarters of claimants - Autoblog

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has reached settlements with 200,000 of the 260,000 claimants participating in a class action lawsuit brought by German consumer group VZBV over the carmaker's rigging of diesel emissions tests, the carmaker said on Monday.

A further 21,000 cases were still being reviewed for possible payouts of 1,350 - 6,250 euros ($1,464.35 - $6,779.38) per car and the deadline for participating in the settlement has been extended to April 30, VW added.

The exact amount depends on the age and model of the owner's car.

Volkswagen will pay out a total of 620 million euros. It had set aside 830 million euros to cover the costs of settlements with all participants of in the VZBV class action.

The deal marks a further step in the German carmaker's efforts to make amends after it admitted in 2015 to using illegal software to cheat U.S. diesel engine tests.

The effort has cost Volkswagen more than $30 billion in vehicle refits, fines and provisions.

Nearly all U.S. owners of affected cars agreed to take part in a $25 billion settlement in 2016 in the United States, but VW has said there was no legal basis for consumers in Germany to seek compensation due to differences in law.

 
Germany's highest civil court has ruled that Volkswagen must pay compensation to a motorist who had bought one of its diesel minivans fitted with emissions-cheating software.

The ruling sets a benchmark for about 60,000 other cases in Germany.

The plaintiff, Herbert Gilbert, will be partially reimbursed for his vehicle, with depreciation taken into account.
 
VW'S FORMER CEO TO STAND TRIAL OVER 'DIESELGATE' - EWN

Volkswagen's former chief executive Martin Winterkorn will stand trial over the car giant's massive "dieselgate" scam, a German court said Wednesday, five years after the scandal rocked the automobile industry.

"The chamber has determined that there is sufficient suspicion, that is, an overwhelming possibility of conviction, of the accused Professor Doctor Winterkorn for commercial and organised fraud," said the court in Brunswick in a statement.

Winterkorn, 73, will stand trial with four other former colleagues, who are also accused of fraud, as well as serious tax evasion and fraudulent advertising.

Volkswagen sank into a tangle of legal problems over its stunning revelation in September 2015 that it had installed devices in 11 million diesel vehicles worldwide to make them seem less polluting in lab tests than they actually were on the road.

Winterkorn resigned days after the revelations while denying any personal wrongdoing.

Read the full article at the link below:

 
Ex-Volkswagen boss Martin Winterkorn to stand trial over diesel scandal | Auto Expert John Cadogan

The albatross around Volkswagen’s neck, which we know and love as ‘Dieselgate’, is certainly not flying away any time soon. The latest uplifting development there is in this report.

 

EU SLAPS VW, BMW WITH €875-MN ANTITRUST FINE - EWN​

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The EU's antitrust authority on Thursday fined German auto giants Volkswagen and BMW €875 million for colluding on the development of anti-pollution technology for diesel cars.

Launched after anti-cartel raids in 2017, the case marked yet another blow against the German auto-making sector, which was rocked by the devastating "Dieselgate" emissions cheating scandal that broke in 2015.

The case found that while the car giants had not formed a formal cartel, they had made illegal agreements to limit the introduction of "AdBlue" or urea to diesel engine exhaust gases, reducing its effectiveness as a way to produce cleaner emissions.

Daimler, which alerted the European Commission to the issue, was spared a fine.

"Today's case is about how legitimate cooperation has gone wrong. Carmakers had developed a very good technology, but decided not to compete to exploit it to its full potential," EU competition chief Margrethe Vestager told reporters.

"Instead, they decided to collude by indicating to each other that none of them would aim at cleaning above the minimum standards required by law," Vestager added.

Volkswagen's admission to manipulating 11 million vehicles worldwide to appear less polluting unleashed a wave of anger at the auto industry, and Brussels launched an in-depth cartel investigation into the three companies.

In a statement, BMW stressed that the EU had dropped earlier allegations that the auto giants colluded on putting off cleaner particulate filters for petrol cars.

It also accused the European Commission of entering "uncharted territory for antitrust law" with its decision as it had failed to prove the existence of a price-fixing cartel, but inflicted fines in any case.

The commission's biggest-ever fine of €2.93 billion was handed to Europe's top truck makers - including Daimler - in 2016 for colluding over 14 years to fix prices and dodge the costs of stricter pollution rules.

 

VW Software Conveniently Helps Drivers Cheat Emissions Tests, Again - ExtremeTech​

European Union legal advisors have determined software that’s currently present in Volkswagen and Porsche vehicles once again constitutes a “defeat device” that cheats emission tests.

The software, which is said to lower the pollutants leaving a car’s exhaust pipe at certain temperatures and altitudes, allegedly exists to protect engines—but in reality, it’s tricking emissions checks into thinking the vehicle is coughing out as little as one-fifteenth the amount of nitrogen oxide (NOx) it really is.

When asked about the legitimacy and environmental risks associated with the software, the European Court of Justice stated VW’s software could detect when a vehicle was being subjected to testing, then distort the vehicle’s temperature reading to alter its NOx emissions.

The software is designed to reduce the level of pollutants exhausted when driving in temperatures below 59 degrees Fahrenheit or over 91 degrees, or when driving at an altitude of 3,280 feet or more, which VW claims is intended to extend the life of the vehicle’s engine.

But given the cold and mountainous topography in Germany and Austria, these parameters aren’t realistic, leading the courts to dismiss VW’s excuse and deem the software illegal.

The software, according to the European Court of Justice’s Advocate General Athanasios Rantos, “reduces the effectiveness of the emission control system in normal vehicle operation and use, with the result that it constitutes a ‘defeat device.’”

Sound like a familiar story? That’s because as regular ExtremeTech readers know, VW was found guilty of doing almost the exact same thing back in 2015.

In that case, the United States Environmental Protection Agency found the manufacturer responsible for installing similar cheating mechanisms, even as VW diesel-powered vehicles emitted 38 times the amount of NOx per kilometre permitted.

Dieselgate,” as the scandal was called, has cost VW $36 billion over the last several years as it’s had to fix and buy back its vehicles, as well as compensate drivers for the dupe.

It’s almost certain Volkswagen knew what they were doing when they implemented the software.

When VW did this the first time, it was a by-product of an effort to increase mileage and torque, and the software served as the manufacturer’s attempt at hiding the consequences.

Still, VW clearly hasn’t learned its lesson from its first go-around, and it’s bound to pay the price.

 

Mercedes May Have Been Caught Using Defeat Devices Again - Jalopnik​

A 2016 E-Class model was allegedly fitted with eight emissions defeat devices

After reaching a ten-figure settlement with the U.S. federal government last year, Mercedes-Benz is now facing new allegations of skirting diesel emissions regulations. Deutsche Umwelthilfe (Environmental Action Germany), a German environmental and consumer protection non-profit organization, published a report claiming that a diesel-powered 2016 Mercedes-Benz E-Class model is fitted with eight emissions defeat devices that were not previously known about.

The report claimed when tested, the model in question emitted nitrogen oxide at levels 500% over the legal limit, according to Engine + Powertrain Technology International.

Six of the eight alleged defeat devices are related to the vehicle’s selective catalytic reduction (SCR) system. The SCR system, marketed under the name BlueTEC, is meant to reduce emissions by converting nitrogen oxide to lower its total concentration that leaves the exhaust.

Felix Domke, an automotive software expert who helped assemble the report, stated that one of the defeat devices “significantly reduces the amount of AdBlue injected, which is urgently needed to neutralize the nitrogen oxides in the SCR catalytic converter.”

AdBlue is a diesel exhaust fluid that dissolves in the hot temperatures of the exhaust gasses to convert the gasses’ composition.

In September 2020, the parent company of Mercedes-Benz, Daimler AG reached a $1.5 billion settlement with the U.S. Environmental Protection Agency, the U.S. Department of Justice and the California Air Resources Board over similar allegations also involving BlueTEC diesel engines. Mercedes also agreed to recall over 250,000 vehicles.

After the settlement, the German automaker denied the allegations and pointed out that no determination was made on the existence of defeat devices in their vehicles.

The company’s stance on the claims made about the legality of their cars hasn’t changed over the past year.

This will most likely be the start of another round of lawsuits filed against Mercedes-Benz, alongside more thorough examinations of their cars currently on the road.

 
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