Volkswagen emissions scandal

[JokerD]

http://www.reuters.com/article/2015/...11R0TU20150921

Long story short, Volkswagen has admitted to rigging it's diesel cars to detect emissions tests and make it's cars run cleaner during that time. In real world, it would emit 40 times the level of pollutants allowed under clean air rules.

Cars affected are:
Jetta (MY 2009 – 2015)
Jetta Sportwagen (MY 2009-2014)
Beetle (MY 2013 – 2015)
Beetle Convertible (MY 2013-2015)
Audi A3 (MY 2010 – 2015)
Golf (MY 2010 – 2015)
Golf Sportwagen (MY 2015)
Passat (MY 2012-2015)

Violation notice from EPA: http://www3.epa.gov/otaq/cert/violations.htm

This is a real surprise, didn't expect something like this from Volkswagen. Violation fines will be per vehicle so the final fine should be astronomical...

[Dextro]

Here's a decently thorough run-down by Ars Technica

As a European, I'm personally hopping that this has some massive blow back in Diesel adoption on this side of the Atlantic as well. The growing adoption rate of Diesel these last couple of years has turned our streets into Noisy Dirty avenues and severely crippled the adoption rates of other less harmful technologies like Hybrid and even Electric cars. That and it sucked all the fun out of the consumer car market.

[SaintessHeart]

I am thinking of buying their stock in October. Anyone thinking in the same line as me?

[Dextro]

Originally Posted by SaintessHeart

I am thinking of buying their stock in October. Anyone thinking in the same line as me?

That was actually one the first thoughts that came to my mind. Just wait for it to get near the bottom and snag some cheap Deutsch stocks

[Bri]

Originally Posted by SaintessHeart

I am thinking of buying their stock in October. Anyone thinking in the same line as me?

Yup, Toyota had to call back far more cars and they recovered in no time. Car makers are like teflon, nothing sticks. VW should bounce back fairly soon. Probably shortly after they sack the current chairmen.

[SaintessHeart]

Reminds me of a joke my mentor once said : You trade crude all the way up, then go to the pump to refill your car, and rage at the price of petrol you have to pay.

Similarly, you trade the price of VW up, then when you go outside, and curse at the carbon heavy smog enveloping the surroundings.

[Dextro]

And... the CEO is out. Took less time than I expected really.

[JokerD]

I just wonder if anyone will get criminally charged in this case.

From what I read, the scandal is about the NOx output, standards are more lax in Europe compared to US, which gave raise to the incentive for the cheating in the test results

[Dextro]

OOPS! Looks like VW might not be alone in this:

BMW Drops on Report That X3 Diesel's Emission Exceeded EU Limit

[Domonkazu]

diesel can never be "green" without sacrificing efficiency.

[abc0716]

VW here are doing this promotion. Wonder is this the attempt they try to get rid older stocks which might violated the regulation (even the promotion held a while already)?

I'm seldom to follow automobile news, but what Volkswagen did does quite surprising...

Perhaps this scandal played a bit factor caused Wolfsburg's 5-1 lost against Bayern Munich on Bundesliga, just perhaps...

[JokerD]

Originally Posted by abc0716

VW here are doing this promotion. Wonder is this the attempt they try to get rid older stocks which might violated the regulation (even the promotion held a while already)?

I'm seldom to follow automobile news, but what Volkswagen did does quite surprising...

Perhaps this scandal played a bit factor caused Wolfsburg's 5-1 lost against Bayern Munich on Bundesliga, just perhaps...

Aren't those cars petrol? This scandal is for the diesel TDI cars

[abc0716]

Originally Posted by JokerD

Aren't those cars petrol? This scandal is for the diesel TDI cars

Really? Sorry my bad. Didn't saw the full detail of the page...

[SeijiSensei]

I haven't read all the details today, but has anyone seen a good explanation for why VW felt the need to expand the number of diesel cars it sold in the US? Or in Europe for that matter? What was wrong with gasoline-powered vehicles like my Passat?

I've seen plenty of comments that the desire to expand the number diesel cars in the US was the primary motivation for the fraud, but little about why they were so interested in expanding diesel sales. Are the diesel cars more profitable than the equivalent gasoline-fueled vehicles?

[Dextro]

Originally Posted by SeijiSensei

I haven't read all the details today, but has anyone seen a good explanation for why VW felt the need to expand the number of diesel cars it sold in the US? Or in Europe for that matter? What was wrong with gasoline-powered vehicles like my Passat?

I've seen plenty of comments that the desire to expand the number diesel cars in the US was the primary motivation for the fraud, but little about why they were so interested in expanding diesel sales. Are the diesel cars more profitable than the equivalent gasoline-fueled vehicles?

It's an ideological thing. Plenty of people really truly believe that Diesel is a better engine technology than Petrol and the Volkswagen Group, along with its German brethrens at BMW and Mercedes, has long been one of the big pushers for Diesel cars. Audi in particular does a lot of research on Diesel engines even fielding Diesel cars in Le Mans.

If you want to go all conspiracy theory on this you could say that the increased maintenance needed on a Diesel engine compared to a Gas engine and the higher initial cost of the vehicles would mean increased revenue for the company but that would be wrong in too many ways. Don't attribute to malice what could adequately be explained by stupidity. Not that I'm saying Diesel engines are stupid, just that there was no malice involved in trying to sell them as a better option.

And by the way, just to be fair, I'm a strong opponent of Diesel engines. I find them to be more expensive to purchase and maintain that equally performing gasoline engines due to the increased complexity needed to maintain higher temperatures and pressures, they are more polluting than Gasoline engines and (this is more a matter of opinion) I find they sound like crap

[Bri]

Originally Posted by SeijiSensei

I haven't read all the details today, but has anyone seen a good explanation for why VW felt the need to expand the number of diesel cars it sold in the US? Or in Europe for that matter? What was wrong with gasoline-powered vehicles like my Passat?

I've seen plenty of comments that the desire to expand the number diesel cars in the US was the primary motivation for the fraud, but little about why they were so interested in expanding diesel sales. Are the diesel cars more profitable than the equivalent gasoline-fueled vehicles?

Diesel engines have greater fuel economy, exert more torque and have a longer lifespan than comparable gasoline engines.

If a company like VW can convince the public that the drawbacks can be overcome (maintenance, production cost and pollution) they will have a competitive edge over rival companies without these engines.

When the fuel prices eventually go up again, diesels are in a good position to take a sizable chunk of the entire car market market as other fuel efficient technologies like hybrids and electric cars are still in their infancy.

[JokerD]

Also, there's a cash for clunkers scheme during that time. If VW could convince the gov to include their cars in that scheme, it would get subsidized and make it cheaper