Volkswagen Emissions Scandal

Volkswagen Dieselgate Scandal

 

Perhaps the most well-known case in diesel cheating anywhere in the world involves the Volkswagen ‘Dieselgate’ emissions case. The pollution scandal, impacting nearly 500,000 vehicle owners in the United States, and a staggering eleven million vehicles worldwide, shook up the auto industry and raised the public’s attention to the use of defeat devices and emissions cheating.

It is important to understand that auto manufacturers must certify their vehicles before selling them. The emissions and fuel economy of vehicles are largely self-regulated (or ‘self-policing’), with limited testing available to ensure that cars and trucks perform as claimed. In order to sell the vehicles at the center of the emissions scandal, Volkswagen had to first certify they met the emissions standards set by the United States and California’s environmental bodies. Emissions cheating, in this respect, involved deception concerning the testing and the legitimacy of the vehicle.

A History of the Volkswagen Emissions Scandal 

Volkswagen’s emissions cheating was initially discovered when researchers from West Virginia University drove a handful of diesel vehicles along the west coast. The project, commissioned and publicized by the International Council on Clean Transportation (ICCT) and California Air Resources Board (CARB) in 2013-14, was focused on utilizing unique testing efforts to better understand how vehicles perform and how they compare with manufacturer claims. Where emissions standards are usually tested for in sterile laboratories using massive, treadmill-like devices that allow cars and trucks to drive for thousands of miles in place, the tests by the WVU researchers involved attaching testing devices directly to the vehicles in order to test their emissions in real-world driving scenarios. The study served as a wake-up call on harsh realities surrounding diesel emissions and manufacturing in the auto industry.

The October 2014 results published by ICCT were surprising to automotive experts, researchers, and the public. On average, some the tested vehicles emitted Nitrogen Oxides at a level over forty times the Environmental Protection Agency (EPA)’s regulatory limits. The research, because it was carried out through extensive, long-term driving in rural and urban settings with varying speeds, elevation, etc., ensured that there were no anomalies or reasons for the discrepancy. Instead, it was clear that something within the vehicle’s programming was causing the excess in emissions that could not be explained by a glitch or testing error.

Volkswagen’s Emissions Cheating Fall-Out 

Before publication, the ICCT and CARB investigation via the West Virginia University researchers was made available to the EPA, allowing the governmental body to begin their own investigation into Volkswagen. The EPA began their investigation into Volkswagen, resulting in immediate steps against the manufacturer. Volkswagen was directed to recall 500,000 vehicles in the United States. Tests in 2015 of 32 vehicles demonstrated how far-reaching the issue of emissions cheating was in European vehicles. A subsequent test of 16 vehicles in 2016 provided an additional list of non-compliant passenger cars exceeding environmental standards. Months later Volkswagen admitted that “the diesel emissions scandal was the result of a collection of failures within the company, rather than just the act of rogue engineers.”

As a result, Volkswagen faced vehicle recalls and legal consequences worldwide. In the U.S., VW settled with the EPA, resolving its emissions violations in October of 2016.

The legal turmoil that unfolded in the Volkswagen emissions scandal occurred over a relatively short period of time due to the evidence readily available. Once crucial evidence was discovered, criminal complaints and technical research followed. The actual software code (defeat device) used by Volkswagen to allow their vehicles to evade emissions violations was later discovered in 2017, helping to make clear how intentional this cheating was, having been specifically encoded into the vehicles at the point of their manufacture.

Volkswagen openly admitted that their vehicles were outside of regulatory compliance. As a result, the class action case against the company proceeded more quickly than cases involving other manufacturers. The Volkswagen emissions class settlement, at an estimated value of $25 billion dollars, offered owners either a limited buyback of their vehicle or cash compensation for updating the emission system on their vehicle. The buyback offered relied upon the used car price of the vehicles before the emissions scandal became public. This pricing led to plenty of owners choosing to accept the class action settlement. Still, others opted out. Many of those who opted out of the class settlement were able to settle in the years that followed, though some cases have continued into 2020.  You can read more about the case and the claims of wrongdoing here.

The criminal and civil consequences for Volkswagen were far-reaching for the company and its executives. The former head of VW’s US environmental and engineering office, Oliver Schmidt, received the maximum prison sentence for his role in Dieselgate; the former head of VW, along with four other executives, face significant charges and jail time for their roles. Subsidiary Audi’s CEO was charged with fraud in the matter.  2019 articles highlight that VW’s former lead was alleged to have known of the emissions cheating years before he has previously claimed. The effect on vehicle owners has been significant as well.

The Effects of the Volkswagen Emissions Scandal

The Volkswagen matter was a significant case in raising awareness about emissions scandals. Several other manufacturers face lawsuits and governmental investigations over the emissions in their cars and trucks, opening the door to major penalties and billions of dollars in recalls, claims, and civil penalties. The lesson that can be learned from the Volkswagen matter is that even when a company admits responsibility for their actions, owners may not benefit from a class action settlement that follows.

We represent thousands of vehicle owners who choose to opt out of class actions because they do not adequately protect their rights and individual interests. If your vehicle is facing an emissions recall or you have received notice of a class action lawsuit, contact our firm today by calling (844) 808-7529 or fill out our online form to learn more about your legal options and remedies.