The Volkswagen emissions scandal, sometimes known as Dieselgate or Emissionsgate, began in September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group. The agency had found that Volkswagen had intentionally programmed turbocharged direct injection (TDI) to activate their Exhaust gas controls only during laboratory emissions testing, which caused the vehicles' output to meet US standards during regulatory testing. However, the vehicles emitted up to 40 times more in real-world driving. Volkswagen deployed this software in about 11 million cars worldwide, including 500,000 in the United States, in 2009 through 2015.
In September 2015, the EPA announced that Volkswagen had violated the Clean Air Act by installing unlawful software into their diesel vehicles. Regulators in multiple countries began to investigate the automaker, and its stock price fell in value by a third in the days immediately after the news. Volkswagen Group CEO Martin Winterkorn resigned, and the head of brand development Heinz-Jakob Neusser, Audi research and development head Ulrich Hackenberg, and Porsche research and development head Wolfgang Hatz were suspended.
Volkswagen announced plans in April 2016 to spend ( at April 2016 exchange rates) in relation to the scandal, and agreed in June 2016 to pay up to $14.7 billion to settle civil charges in the United States. In January 2017, Volkswagen pleaded guilty to criminal charges and signed an agreed Statement of Facts, which set out how the company's management asked engineers to develop the , because its diesel models could not pass US emissions tests without them, and deliberately sought to conceal their use. In April 2017, a US federal judge ordered Volkswagen to pay a $2.8 billion criminal fine for "rigging diesel-powered vehicles to cheat on government emissions tests".
Winterkorn was charged in the United States with fraud and conspiracy on 3 May 2018. , the scandal had cost VW $33.3 billion in fines, penalties, financial settlements and buyback costs. Government and civil actions were taken in the U.S. and the European Union, where most of the affected vehicles were located. While these vehicles remained legal to drive in both regions, consumer groups and governments sought to ensure that Volkswagen had compensated affected owners, as it had been required to do in the United States.
The scandal raised awareness over the higher levels of pollution emitted by all diesel-powered vehicles from a wide range of car makers, which under real-world driving conditions exceeded legal emission limits. A study conducted by ICCT and ADAC showed the biggest deviations from Volvo Cars, Renault, Jeep, Hyundai, Citroën and Fiat, resulting in investigations opening into other diesel emissions scandals. A discussion was sparked on the topic of software-controlled machinery being generally prone to cheating, and a way out would be to open source the software for public scrutiny.
To deal with this problem, in 2005 Volkswagen licensed Mercedes' urea-based selective catalytic reduction (SCR) system called BlueTec for future diesel engine development. While effective at reducing , an SCR system like Bluetec was expensive, high-maintenance and required more space than other methods, making it unsuitable for Volkswagen's compact cars such as Volkswagen Golf or Volkswagen Jetta. Some managers at Volkswagen rejected BlueTec, and preferred to develop their own inexpensive "NOx adsorber" system. In 2007, Volkswagen canceled the licensing deal for BlueTec and announced that it would use its own pollution control technology.
Volkswagen chose the "lean trap" system for its turbo-diesel Golf and Jetta models, but the solution did not work well as it required a fuel-rich exhaust gas in the purification process and fuel economy suffered as a result. Nonetheless, the company promoted the technological miracle of fast, cheap, and green diesel vehicles – but the impression projected to outsiders did not reflect the reality. In reality, the system failed to combine lower fuel consumption with compliant emissions, and Volkswagen chose around 2006 to program the Engine Control Unit (ECU) to switch from lower fuel consumption and high emissions to low-emission compliant mode when it detected an emissions test, particularly for the EA 189 engine. This caused the engine to emit levels above limits in daily operation, but comply with US standards when being tested, constituting a defeat device. In 2015 the news magazine Der Spiegel reported that at least 30 people at management level in Volkswagen knew about the deceit for years, which Volkswagen denied in 2015.
Starting in the 2009 model year, Volkswagen Group began migrating its light-duty passenger vehicle's turbocharged direct injection (TDI) diesel engines to a Common rail system. This system allows for higher-precision fuel delivery using electronically controlled fuel injectors and higher injection pressure, theoretically leading to better fuel Aerosol, better air/fuel ratio control, and by extension, better control of Exhaust gas.
Volkswagen described the diesel engines as being as clean as or cleaner than US and Californian requirements, while providing good fuel economy and performance. Due to the good fuel economy provided by its diesel fleet, in 2014 Volkswagen was registered with a Corporate Average Fuel Economy (CAFE) of . The low emissions levels of Volkswagen vehicles tested with the defeat device in operation enabled the company to receive green car subsidies and tax exemptions in the US.
This standard for nitrogen oxide emissions is among the most stringent in the world. For comparison, the contemporary European standards known as Euro 5 (2008 "EU5 compliant", 2009–2014 models) and Euro 6 (2015 models) only limit nitrogen oxide emissions to and respectively. Defeat devices are forbidden in the EU. FAQ – Air pollutant emissions standards European Commission, 25 September 2015. Quote: Article 5 (2) of Euro 6 Regulation 715/2007/EC prohibits the use of defeat devices. Article 3(10) defines defeat device as any element of design which senses temperature, vehicle speed, engine speed (RPM), transmission gear, manifold vacuum or any other parameter for the purpose of activating, modulating, delaying or deactivating the operation of any part of the emission control system, that reduces the effectiveness of the emission control system under conditions which may reasonably be expected to be encountered in normal vehicle operation and use. The use of a defeat device is subject to a penalty. Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007. Articles 3, 5, 13 on pages 5–9
Nature reported in 2015 that 20 percent of European city dwellers were exposed to unhealthy levels of nitrogen dioxide, and that in London, where diesel road traffic was responsible for 40 percent of emissions, 3,000 deaths per year could be attributed to air pollution. (updated 25 September 2015) A Channel 4 documentary in January 2015 referred to the UK government moving to a emission band system for road tax, which favoured diesel power, as the "great car con", with Barry Gardiner MP, former member of the Blair government, stating that the policy, which lowered emissions yet increased pollution, was a mistake.
In 2011, the European Commission's Joint Research Centre published a report which found the average on-road emission of all tested diesel vehicles to be 0.93 ± 0.39 g/km, and that of tested diesel vehicles to be 0.62 ± 0.19 g/km. Those numbers substantially exceeded the respective Euro 3–5 emission limit. Analyzing on-road emissions of light-duty vehicles with Portable Emission Measurement Systems (PEMS) , Weiss, M., Bonnel, P., Hummel, R., Manfredi, U., Colombo, R., Lanappe, G., Le Lijour, P., and Sculati, M., JRC Scientific and Technical Reports, EUR 24697 EN, (2011). In 2013, the research center then warned:
The European Commission and European governments could not agree upon who was responsible for taking action.Jim Brunsden and Christian Oliver. " EU failed to heed emissions warnings in 2013" Financial Times, October 2015 In the United Kingdom, the Department for Transport received a report from the International Council on Clean Transportation (ICCT) in October 2014, which stated there was a "real world nitrogen oxides compliance issue" with diesel passenger cars. The UK's DEFRA research indicated a significant reduction in and particulate matter from 1983 to 2014. Respirable suspended particles with a diameter of 10 micrometres – also known as Particulates (including diesel particulates) – halved since 1996 despite the increased number and size of diesel cars in the UK.
In early 2013, researchers at WVU CAFEE began testing emissions from the three diesel cars: a Volkswagen Passat, a Volkswagen Volkswagen Jetta, and a BMW X5, on the road in California. They wanted to test a Mercedes as well, but could not obtain one. Abgasexperte Peter Mock: Der Mann, der aus Versehen VW ins Wanken brachte, Der Spiegel, 23 September 2015. They used a portable emissions measurement system, making it possible to collect real world driving emissions data, for comparison with laboratory dynamometer testing. The three vehicles were all certified at a California Air Resources Board facility before the tests as falling below the emissions limits when using the standard laboratory testing protocols. They put on the Jetta and X5. For their final test, they wanted to put even more mileage on the Passat and drove it from Los Angeles to Seattle and back again, virtually the entire West Coast of the United States, over . The BMW was "at or below the standard ... with exception of rural-up/downhill driving conditions". But the researchers found that under real-world driving conditions the Jetta exceeded US emissions limits "by a factor of 15 to 35" while the Passat exceeded the limit "by a factor of 5 to 20".
The emissions far exceeded legal limits set by both European and US standards. One of the testers said, "... we did so much testing that we couldn't repeatedly be doing the same mistake again and again." John German said the deceit required more effort than merely adding some code to the engine software, as the code would also have to be validated. The US test results confirmed the ICCT's findings in Europe. ICCT also purchased data from two other sources. The new road testing data and the purchased data were generated using Portable Emissions Measurement Systems (PEMS) developed by multiple individuals in the mid-late 1990s and published in May 2014. The West Virginia scientists did not identify the defeat device, but they reported their findings in a study they presented to the EPA and CARB in May 2014. In May 2014 Colorado's RapidScreen real-world emissions test data reinforced the suspected abnormally high emissions levels. After a year-long investigation, an international team of investigators identified the defeat device as a piece of code labelled "acoustic condition" which activated emissions-curbing systems when the car's computer identified it was undergoing a test.
Volkswagen's "defeat device" is specially-written engine-management-unit firmware that detects "the position of the steering wheel, vehicle speed, the duration of the engine's operation, and barometric pressure" when positioned on a dynamometer using the FTP-75 test schedule. These criteria very closely match the EPA's required emissions testing protocol which allowed the vehicle to comply with emissions regulations by properly activating all emissions control during testing. The EPA's NOV alleged that under normal driving conditions, the software suppressed the emissions controls, allowing better fuel economy, at the expense of emitting up to 40 times more NOx than allowed by law.
The first sign that Volkswagen was ready to come clean reportedly occurred on 21 August 2015 at a conference on green transportation in Pacific Grove, California, where an unnamed company representative approached Christopher Grundler, director of the EPA Office of Transportation and Air Quality, and surprised him by informally admitting that the company had been deceiving regulators. A CARB official was standing next to Grundler at the time.
Formal acknowledgement of the deception was made by Volkswagen executives in Germany and the United States to EPA and California officials during a 3 September conference call, during which Volkswagen executives discussed written materials provided to the participants demonstrating how Volkswagen's diesel engine software circumvented US emissions tests. That admission came after the EPA threatened to withhold approval for the company's 2016 Volkswagen and Audi diesel models.
Volkswagen's CEO Martin Winterkorn said: "I personally am deeply sorry that we have broken the trust of our customers and the public." Winterkorn was in charge at Volkswagen from the start of 2008 to September 2015. He attributed the admitted wrongdoing to "the terrible mistakes of a few people". Winterkorn initially resisted calls to step down from his leadership role at VW, but then resigned as CEO on 23 September 2015.
Volkswagen Group of America CEO Michael Horn was more direct, saying, "We've totally screwed up." Horn added, "Our company was dishonest with the EPA, and the California Air Resources Board and with all of you." Olaf Lies, a Volkswagen board member and economy minister of Lower Saxony, later told the BBC that the people "who allowed this to happen, or who made the decision to install this software" acted criminally, and must be held personally accountable. He also said the board found out about the problems only "shortly before the media did", and expressed concerns over "why the board wasn't informed earlier about the problems when they were known about over a year ago in the United States".
Volkswagen announced that 11 million cars were involved in the falsified emission reports, and that over seven billion dollars would be earmarked to deal with the costs of rectifying the software at the heart of the pollution statements. The newly appointed CEO of Volkswagen Mathias Müller stated that the software was activated in only a part of those 11 million cars, which has yet to be determined. The German tabloid Bild claimed that top management had been aware of the software's use to manipulate exhaust settings as early as 2007. Bosch provided the software for testing purposes and warned Volkswagen that it would be illegal to use the software to avoid emissions compliance during normal driving. Der Spiegel followed Bild with an article dated 30 September 2015 to state that some groups of people were aware of this in 2005 or 2006. Süddeutsche Zeitung had similarly reported, that Heinz-Jakob Neusser, one of Volkswagen's top executives, had ignored at least one engineer's warnings over "possibly illegal" practices in 2011.
On 28 September 2015, it was reported that Volkswagen had suspended Heinz-Jakob Neusser, head of brand development at its core Volkswagen brand, Ulrich Hackenberg, the head of research and development at its brand Audi who oversees technical development across the Volkswagen group, and Wolfgang Hatz, research and development chief at its sports-car brand Porsche who also heads engine and transmissions development of the Volkswagen group. On the same day it was reported that besides the internal investigation of the incidents, the supervisory board of Volkswagen had hired American law firm Jones Day to carry out an independent investigation. Computerworld suggested that a software audit trail and test logs were ways to investigate what took place when. In February 2016 Volkswagen also contracted three public relations firms (Kekst in the United States, Hering Schuppener in Germany, Finsbury in Britain), in addition to its usual US-retained firm Edelman. To further help deal with the scandal, Volkswagen hired ex-FBI director Louis Freeh, alongside former German constitutional judge Christine Hohmann-Dennhardt previously employed by Daimler AG, and as of 2016 on Volkswagen's board as its director of integrity and legal affairs.
In November 2016, California regulators claimed to have discovered software installed on some Audi models that allowed the manufacturer to cheat emissions during standard testing, thereby also masking the cars' contribution to global warming.
**Subsequent Modification
On 8 October 2015, Volkswagen US CEO Michael Horn said in testimony before the US Congress that it could take years to repair all the cars, especially the older models, due to the required complex hardware and software changes. He said that the fixes would likely preserve fuel economy ratings but, "there might be a slight impact on performance".
On 12 October 2015, Paul Willis, Volkswagen UK managing director, told the Commons Transport Select Committee that about 400,000 Volkswagen cars in the UK will need fuel injectors altered as well as a software fix. The vehicles requiring the hardware fix are the 1.6 litre diesel models. The 1.2 litre and 2.0 litre diesel models will require only a software fix.
On the same day, Volkswagen announced it would overhaul its entire diesel strategy, saying that in Europe and North America it will switch "as soon as possible" to the use of selective catalytic reduction technology to improve diesel emissions. It also announced plans to accelerate the development of electric cars and plug-in hybrids, as well as petrol, instead of diesel engines for smaller cars.
On 12–13 October 2015, Volkswagen Group vehicle drivers in the UK started receiving notification letters, to "rectify the issue". Volkswagen later announced a timeline for UK diesel recalls, citing March 2016 for 2.0-litre engines, June 2016 for 1.2-litre engines, and October 2016 for 1.6-litre engines.
At the beginning of October 2015, Volkswagen suggested to let car owners decide whether to take their cars for rectification. However, the German Federal Motor Transport Authority ( Kraftfahrt-Bundesamt, or KBA) views the software as illegal, and has ordered a full recall of all affected cars in Germany. Volkswagen then decided to recall around 8.5 million cars in Europe, about a third of all its car deliveries since 2009. KBA requires Volkswagen to send a recall plan to KBA before the end of October for 2.0-litre cars, and end of November for 1.2 and 1.6-litre cars. If KBA approves a plan, Volkswagen can then start handling the cars. The German authorities require that Volkswagen remove the software and that Volkswagen ensures that emission rules are fulfilled. Media estimates that the KBA procedure sets a precedent for how authorities in other countries handle the case.
On 18 November 2015, Autoblog reported that the KBA was reviewing a Volkswagen fix for the affected 1.6 diesel engine. On 25 November 2015, Volkswagen said the fix involved a minor hardware modification to the car's air intake system, alongside a software update. This low-cost solution contradicted earlier speculation regarding the possible fitting of new injection nozzles and catalytic converters. In December 2015, Volkswagen said that the affected 1.2-litre and 2.0-litre diesel engines needed only a software update. As of November 2015, the KBA had approved the fixes with the first recalls likely to begin in January 2016. According to VW, the measures aimed to achieve legal EU emissions compliance without impairing engine output, fuel consumption, or performance. The simple fixes with inexpensive parts and software were then possible though not available when the engines were developed, because engine technology understanding and intake flow simulation capabilities had matured in the meantime, to address the burning of diesel and air mixtures via intake flow shaping. As of December 2015, due to stricter environmental legislation, fixes for US vehicles were expected to take longer to produce and be more technically complex.
As of February 2016, there were three sizes of affected diesel engines, and more than a dozen variations to the repairs exist, prompting Volkswagen to roll out the recalls in waves for each cluster of vehicle; the first model to be repaired was the low-volume Volkswagen Amarok. Classified as a light commercial vehicle, the Amarok pickup has a higher Euro 5 emissions limit than the passenger cars that are yet to have an available approved fix. German motoring journal Auto Motor und Sport tested two Amarok TDI pickups pre and post software update and found that whilst engine power had remained the same, fuel consumption had increased by 0.5 litres/100 km. This is believed in turn to have delayed the next wave of updates to the larger volume Passat model which had been expected to start on 29 February 2016 due to the further testing of the update by the KBA. Volkswagen confirmed on 11 April 2016 that the Passat recall would be delayed as testing had revealed higher fuel consumption. In 2017 Swedish auto journal Teknikens Värld performed tests on 10 different models and most of them showed a reduction in power output and increase in fuel consumption after having the update applied.
On the occasion of German Unity Day, Volkswagen launched an ad campaign in German Sunday newspapers, that it wanted to express its joy about the 25th anniversary of German reunification, its pride about having shaped the country together with all people for the last 25 years, to give thanks for the confidence of the customers it had experienced during all this time and that it wanted to thank all its employees and trade partners in Germany, and that in one sentence, that "it would do everything to win back the confidence of its customers".
As of October 2015, Sales of vehicles with EA 189 engines were halted in some European countries, including Spain, Switzerland, Italy, the Netherlands, Belgium and the UK.
In the United States, Volkswagen withdrew its application for emissions certification for its 2016 diesel models, leaving thousands of vehicles stranded at ports in October 2015, which the company said contained software which should have been disclosed to and certified by the EPA. EPA some 2016-models until it would become clear that their catalysts perform the same on the road as they do in tests.
On 21 April 2016, the federal district court for the Northern District of California, which was appointed in December 2015 to oversee almost all of the US litigation, including claims filed by vehicle owners and state governments, announced that Volkswagen would offer its US customers "substantial compensation" and buy back nearly 500,000 2.0-litre vehicles as part of a settlement in North America. The court appointed former FBI Director Robert Mueller as a mediation to oversee the negotiations between claimants, regulators, and Volkswagen, to produce a final "consent decree" by late June 2016.
In Germany, over 60,000 civil lawsuits of various degrees representing about 450,000 citizens were filed from 2015 through 2019 by Volkswagen owners, seeking similar compensation as Volkswagen had given to United States drivers. A case led by the Federation of German Consumer Organizations (VZBV) was brought against Volkswagen. At the Braunschweig Oberlandesgericht (Higher Regional Court) Volkswagen argued that where the United States had banned the affected cars, no EU member state had banned the affected vehicle, and thus there was no basis for any compensation. However, Judge Michael Neef rejected a summary judgement for Volkswagen in September 2019, allowing what was anticipated to be a multi-year case to go forward. Volkswagen had settled with VZBV for about – providing between and to approximately 260,000 Volkswagen owners through the VZBV – in February 2020. Many consumers were angered over this settlement, representing only a fraction of what Volkswagen had paid to United States' owners. One of the other civil cases, serving as a template for those not covered by the VZBV case, reached the Federal Court of Justice, Germany's highest court, and in May 2020 it ruled that the consumer was entitled to the full market value of the car, several times larger than what the settlement would have offered. It is unclear how much Volkswagen will owe from a result of the remaining civil lawsuits.
A similar class-action suit against Volkswagen representing more than 91,000 owners is currently underway in the United Kingdom, seeking greater compensation for being sold vehicles known by Volkswagen to be defective. The High Court of Justice had giving preliminary findings in the case in April 2020 that there is a likelihood that Volkswagen did sell vehicles with a "defeat device" and attempted to abuse the process, allowing the trial to go forward.
Earlier non peer-reviewed studies published in media sources, quoted estimates ranging from 10 to 350 excess deaths in the United States related to the defeat devices based on varying assumptions.
A 2022 study by economists found that each cheating Volkswagen car per 1,000 cars caused a low birth weight rate increase of 1.9 percent and infant mortality rate increase by 1.7 percent.
A 2025 study by the Centre for Research on Energy and Clean Air found that excess emissions are projected to cause 205,000 (123,000–356,000) premature deaths over the period of 2009 to 2040 across the EU and UK.
A peer-reviewed study published in Environmental Pollution estimated that the fraudulent emissions would be associated with 45 thousand disability-adjusted life years (DALYs) and a value of life lost of at least 39 billion US dollars.
In June 2016, Axel Friedrich, formerly with the German equivalent of the E.P.A. and a co-founder of the International Council on Clean Transportation stated "It's not just fraud – it's physical assault."
In December 2019, Volkswagen was fined for making false and misleading representations about compliance with Australian diesel emissions standards.
In January 2016, public broadcaster VRT reported on Opel Zafira cars having lower emissions after an update compared to before receiving the update. Opel denied deploying software updates influencing emissions, and the Economic Inspection of the Federal Government started an investigation on the request of Minister of Consumer Protection Kris Peeters.
In September 2017, Volkswagen Brazil was ordered to pay to the 17,000 owners of the Amarok pickups equipped with defeat devices, as decided by the 1st Business Court of the Court of Justice of Rio de Janeiro. The automaker may still appeal the decision. The total amount reaches ( at the September 2017 exchange rate) and each consumer will receive () for material damages and another () for moral damages. In addition, the magistrate ordered the automaker to pay an additional into the National Consumer Protection Fund. According to the judge, the purpose was "to compensate the Brazilian society as a collective moral damage of a pedagogical and punitive nature because of the collective fraud caused in the domestic motor vehicle market".
Ontario provincial authorities executed a search warrant at Volkswagen Canada offices in the Toronto area on 19 September 2017 as part of its investigation into the emissions scandal that rocked the company two years previously. The Ministry of the Environment and Climate Change have charged Volkswagen AG with one count under the province's Environmental Protection Act, alleging the German company did not comply with Ontario emission standards. The allegations have not been proven in court.
In July 2018, Volkswagen Group Canada announced plans for its new Electrify Canada subsidiary to launch a network of public fast-charging stations in major cities and along major highways, starting with 32 charging sites in the four most-populated provinces: Ontario, Quebec, British Columbia and Alberta.
On 9 December 2019, Volkswagen AG was charged with 60 counts of contravening the Canadian Environmental Protection Act, 1999. On 22 January 2020, Volkswagen pleaded guilty to all charges and was fined .
In June 2016, documents leaked to the press indicated that in 2010, European Commission officials had been warned by their in-house science team that at least one car manufacturer was possibly using a -related defeat device in order to bypass emission regulation. Kathleen Van Brempt, the chair of the EU inquiry into the scandal, found the documents "shocking" and suggested that they raised serious concerns with regard to the future of commission officials: "These documents show that there has been an astonishing collective blindness to the defeat device issue in the European commission, as well as in other EU institutions".
In September 2020, European union laws changed and the European commission has the right to check car conformity to emission standards and to recall vehicles when needed. Fines can be up to per car.
On 15 April 2019 Winterkorn and four other executives were charged by prosecutors in Braunschweig, Germany. The four were sentenced in May 2025, to over 4 years prison, over 2 years prison, and over 1 year probation. Winterkorn's case is suspended for health reasons.
In August 2019, a district court ruled that updated software didn't properly address the emissions, citing a tested Tiguan turbodiesel engine that only reduced emissions in the ambient temperature range of .
Audi's then CEO Rupert Stadler was taken into German custody in June 2018 until being released in October 2018, when he was also removed from being CEO. In July 2019, Stadler was charged with fraud in Munich due to the scandal. Former Audi CEO Rupert Stadler charged with fraud over diesel scandal 2019-07-31.
In May 2016, Norway's sovereign wealth fund, the world's largest ($850 bn) and also one of the company's biggest investors, announced legal action against Volkswagen, to be filed in Germany as part of a class-action lawsuit being prepared there.
In November 2015, after defeat devices had been found in some Volkswagen models, the Environment Minister issued a fine of and ordered the cars to be recalled. As of 20 January 2016, the country's environmental agency had filed criminal charges against VW, seeking up to $48 billion in penalties. Johannes Thammer, managing director of Audi Volkswagen Korea, was placed under investigation and faced up to five years in prison and a fine of up to . Volkswagen's recall plan for South Korea, submitted on 6 January 2016, was rejected by the authorities, as it failed to meet a number of key legal requirements. Authorities are also reported to have rejected a revised plan on 23 March 2016 for the same reasons. In May 2016, following a wider investigation of 20 diesel-powered cars, South Korean authorities accused Nissan of using a defeat device for manipulating emissions data for the British-built Nissan Qashqai, allegations which the Japanese carmaker denied.
In August 2019, the government announced a ban on 8 VW Group diesel models cars for cheating emissions regulations.
A report on "real world" tests commissioned by the Government published in April 2016 showed emissions from 37 diesel engines up to 14 times higher than had been claimed, with every vehicle exceeding the legal limit of nitrogen oxide emissions. Only Volkswagen group vehicles were found to have test cycle detection software.
In January 2017, an action group announced it had 25,000 vehicle owners who were seeking compensation of £3,000–4,000 per vehicle.
In May 2022, VW UK settled UK class action claims from around 90,000 drivers, totalling £193m, without admitting liability. Due to time limitations, Dieselgate victims not part of this group litigation will unlikely be able to make a claim from May 2022 onwards.
As of 6 October 2015, the EPA decided to broaden its investigations onto 28 diesel-powered models made by BMW, Chrysler, General Motors, Land Rover and Mercedes-Benz. The agency would initially focus on one used vehicle of each model, and widen the probe if it encountered suspicious data. The EPA has described the hidden Volkswagen pollution as "knowing endangerment". In May 2016, the owners of Mercedes-Benz confirmed that the US Justice Department asked Daimler AG to run an internal investigation into its diesel emissions testing, as well.
On 4 January 2016, the Justice Department, on behalf of the EPA, brought suit against Volkswagen in the United States District Court for the Eastern District of Michigan in Detroit. The complaint, seeking up to $46 billion in penalties for Clean Air Act violations, alleged that Volkswagen equipped certain 2.0 and 3.0-litre diesel-engine vehicles with emissions cheating software, causing pollution to exceed EPA's standards during normal driving conditions. It further claimed that Volkswagen entities provided misleading information and that material omissions impeded and obstructed "efforts to learn the truth about the (excess) emissions". while "so far recall discussions with the company have not produced an acceptable way forward". On 9 January 2016, US officials criticized Volkswagen for citing German law in order to withhold documents from a group of states investigating the company's actions. Schneiderman also complained over Volkswagen's slowness in producing documents from its US files, claiming the company "has sought to delay responses until it completes its 'independent investigation' several months from now".
On 12 January 2016, US regulators rejected Volkswagen's recall plans for its affected 2.0-litre diesel engines, submitted to CARB in December 2015, claiming that these "do not adequately address overall impacts on vehicle performance, emissions and safety". Volkswagen confirmed that its discussions with CARB will continue, and said that the company is working on bringing "a package together which satisfies our customers first and foremost and then also the regulators". The states of Arizona, West Virginia, New Mexico, and Texas, as well as Harris County, Texas, all filed separate lawsuits seeking restitution from VW. The company also faces investigations by 48 United States state attorneys ().
On 29 March 2016, Volkswagen was additionally sued by the United States Federal Trade Commission for false advertising due to fraudulent claims made by the company in its promotion of the affected models, which touted the "environmental and economic advantages" of diesel engines and contained claims of low emissions output. The suit was consolidated into existing litigation over the matter in San Francisco, which would allow the FTC to participate in global settlements over the matter.
The Ninth U.S. Circuit Court of Appeals ruled on 1 June 2020 that Volkswagen was liable for further legal damage lawsuits brought by state and local governments in the emissions fraud. The unanimous ruling by the court paved the way for two counties in Florida and Utah to proceed with litigation against Volkswagen, as well as potential further cases brought by jurisdictions in the US. By June 2020, VW had already expended $33.3 billion in settlements and other costs including buybacks of the excessively polluting diesel vehicles. In a statement, VW said it would ask the circuit court to review the ruling, and that the company if necessary would take the case to the U.S. Supreme Court.
On 7 January 2017, former top emissions compliance manager for Volkswagen in the US Oliver Schmidt was arrested by the FBI on a charge of conspiracy to defraud the United States. On 11 January 2017 Volkswagen pleaded guilty to weaving a vast conspiracy to defraud the US government and obstructing a federal investigation and agreed to pay a US$2.8 billion criminal fine and US$1.5 billion in civil penalties. In addition, six executives have been criminally charged.
On 3 May 2018, former Volkswagen CEO Martin Winterkorn was indicted on fraud and conspiracy charges in the emissions scandal case. He has repeatedly denied any knowledge of the rigged emissions tests.
Of the buyback, 138,000 had been completed by 18 February 2017 with 150,000 more to be returned. 52,000 chose to keep their cars. 67,000 diesel cars from model year 2015 were cleared for repairs, but left uncertainty about the future of 325,000 "Generation One" diesel VWs from the 2009–2014 model years, which use the "lean trap" and would be harder to repair.
In March 2018, Reuters reported that 294,000 cars from the buyback program have been stored at 37 regional US staging sites; some of the first reported sites included: Colorado Springs, Colorado; Pontiac, Michigan; Baltimore, Maryland; San Bernardino, California; and Gary, Indiana.
Volkswagen will also pay $2.7 billion for environmental mitigation and another $2 billion for clean-emissions infrastructure. Toward that end, Volkswagen formed a U.S. subsidiary called Electrify America, LLC., based in Reston, Virginia, that will manage the $2 billion brand-neutral zero-emission vehicle infrastructure programs and marketing campaigns for the next ten years. The group will get four installments of $500 million, at -year intervals, subject to California Air Resources Board and U.S. EPA approval. Volkswagen planned to install hundreds of chargers with 50, 150 and even some ultra-fast 320 kW charge rate, beginning in California in 2017. Competing charge networks (and automakers) saw the effort as controversial. In August 2018, Electrify America launched the first national media advertising campaign to promote electric vehicles; it featured the Chevy Bolt, with other EVs in cameo roles.
, at least one investor lawsuit seeking class action status for holders of Volkswagen American Depositary Receipts had been filed in the United States seeking compensation for the drop in stock value due to the emissions scandal.
On 7 October 2015, the Los Angeles Times reported that the number of class-action lawsuits filed had grown to more than 230.
On 19 November 2015, ABC News Australia reported that more than 90,000 VW, Audi and Skoda diesel vehicle owners had filed a class action lawsuit against Volkswagen in the country's Federal Court.
On 8 December 2015, the United States Judicial Panel on Multidistrict Litigation issued an order consolidating over 500 class actions against Volkswagen into a single multidistrict litigation, captioned In re: Volkswagen 'Clean Diesel' Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672, and transferred the entire MDL to Judge Charles R. Breyer of the federal district court for the Northern District of California.
On 21 January 2016, Judge Breyer held a hearing on the requests by over 150 plaintiff's attorneys for some kind of leadership role in the gigantic Volkswagen MDL, of which over 50 sought to serve as lead counsel or to chair the plaintiffs' steering committee. More than 100 of those attorneys tried to squeeze into his San Francisco courtroom to argue their requests in person, and some of them had to stand in the aisles or in the outside hallway. That afternoon, Judge Breyer issued an order naming 22 attorneys to a plaintiffs' steering committee, and of those, selected Elizabeth Cabraser of Lieff Cabraser as chair of the committee. On the other side, Volkswagen hired Robert Giuffra of Sullivan & Cromwell as its lead defense counsel in the MDL.
On 14 March 2016, Volkswagen AG was sued in Germany for allegedly failing to inform financial markets in a timely manner about defeat devices used in diesel engines. The suit on behalf of 278 institutional investors seeks ( at March 2016 exchange rate) in compensation. BlackRock, the world's largest asset manager, joined other institutional investors in the lawsuit in September 2016.
In November 2015, Moody's Investors Service downgraded Volkswagen's bond credit rating from A2 to A3. Moody's downgrades Volkswagen's ratings to A3/P-2; negative outlook Moody's Investors Service, 4 November 2015 Fitch Ratings downgraded Volkswagen's Long-term Issuer Default Rating by two notches to BBB+, with a negative outlook.
In May 2016, The Children's Investment Fund Management, run by Chris Hohn and retaining a 2 percent stake in Volkswagen preference stock, launched a campaign aiming to overhaul the company's executive pay system, arguing that "for years management has been richly rewarded with massive compensation despite presiding over a productivity and profit collapse", thereby leading to an "aggressive management behavior" and contributing to the diesel emission scandal. Later the same month, German investor group DSW called for an independent audit of Volkswagen's emissions-cheating practices, arguing that the company's internal investigation might not necessarily make everything transparent to smaller shareholders.
On 28 June 2016, Volkswagen agreed to pay $15.3 billion to settle the various public and private civil actions in the United States, the largest settlement ever of an automobile-related consumer class action in United States history. On 25 October 2016, a U.S. federal judge approved the settlement. Up to $10 billion will be paid to 475,000 Volkswagen or Audi owners whose cars are equipped with 2.0-litre diesel engines. Owners can also opt to have their car repaired free of charge or can sell it back to the company, who will pay back its estimated value from before the scandal began. Leases can also be terminated without incurring penalty charges. Independent of which options are selected, owners will still receive compensation ranging from $5,000 to $10,000 per affected car. Additionally, should they choose to decline the offer, they are free to pursue independent legal action against the firm. The settlement also includes $2.7 billion for environmental mitigation, $2 billion to promote zero-emissions vehicles and $603 million for claims by 44 states, Washington, D.C., and Puerto Rico. Volkswagen agreed not to resell or export any vehicles it repurchases unless an approved emission repair has been completed. , no practical engineering solutions that would bring the vehicles into compliance with emission standards had been publicly identified. The consumer settlement will resolve all claims by participating consumers against Volkswagen and all its associates, except for any potential claims against Robert Bosch GmbH. Bosch supplied two exhaust treatment components and engine control software. In the case of 3.0-litre V6 TDI engines, Volkswagen suggested it can provide an uncomplicated fix that will bring the vehicles into compliance without adversely affecting performance, a move that the company hopes will avoid an expensive buyback of these cars.
However, during the bank's annual press conference on 14 January 2016, the bank president, Werner Hoyer, admitted that the loan might have been used in the creation of an emissions defeat device. Many redacted documents obtained by Bankwatch, along with the EIB not disclosing the details of the loan, hint to the bank possibly already knowing that there were some discrepancies with the 'Antrieb RDI' loan.
In 2017, the European Anti-Fraud Office (OLAF) found that Volkswagen had misled the bank about the car company's use of emissions cheating software, in a scandal that has become known as Dieselgate.
Also in 2017, Hoyer said the bank did not find "any indication" that its loans had been misused. However, six months later news website Politico reported that Olaf had concluded that Volkswagen acquired the EIB loan through "fraud" and "deception".
Over one quarter of Volkswagen's sales in the US are diesel-powered vehicles. The corporation has chosen a market strategy that emphasizes clean diesel over electric cars or hybrid electric vehicles.
The vehicles affected by the recall in the US include the following model years:
The EPA revealed on 2 November 2015 that Volkswagen had shipped additional diesel models with defeat devices, including the 2014 VW Touareg and the 2015 Porsche Cayenne. Model year 2016 Audi Quattro diesels were also found affected, including several 2016 Audi Quattro models (the 2016 Audi Quattro A6, A7, A8, A8L, and Q5). Cynthis Giles, the EPA Assistant Administrator for Office of Enforcement and Compliance Assurance, called out the company for further refusing to take responsibility for its failure to comply with the law. Under US federal Clean Air Act, Volkswagen could be liable for up to $375 million in fines.
On 15 March 2016, Volkswagen Financial Services took a writedown of to cover a potential decline in the residual value of the fleet of its leased cars.
On 21 September 2015, the first day of trading after the EPA's Notice of Violation to Volkswagen became public, share prices of Volkswagen AG fell 20 percent on the Frankfurt Stock Exchange. On 22 September, the stock fell another 12 percent. On 23 September, the stock quickly fell 10.5 percent, dropping below to a record 4-year low before regaining some lost ground. Share prices of other German automakers were also affected, with BMW down 4.9 percent and Daimler down 5.8%. A year later Volkswagen stock was down by 30 percent.
Qatar, one of the biggest Volkswagen shareholders with a 17 percent stake in the company, lost nearly $5 billion as the company stock value fell.
In South Korea, sales in November rose 66 percent to 4,517 units from a year ago due to the Volkswagen's aggressive marketing efforts such as a discount of up to ( at December 2015 exchange rates) for some models.
In Great Britain, the scandal did not affect sales, which increased in 2016 to an all-point high, placing Volkswagen second in the league of best-selling cars.
VW sales across Europe returned to growth in April 2016 for the first time since the scandal broke, with a group market share of 25.2 percent, compared to its previous level of 26.1 percent.
Suzuki had won the case to terminate its partnership with Volkswagen at the International Court of Arbitration of the International Chamber of Commerce and dissolved the capital tie-up until September 2015, and was not involved in this scandal.
On 16 June 2016, Volkswagen announced plans to make major investments into the production of electric vehicles; Matthias Müller predicted that Volkswagen would introduce 30 all-electric models over the next 10 years, and that electric vehicles would account for around a quarter of its annual sales by 2025. Volkswagen plans to fund the initiative by streamlining its operations and engaging in cost-cutting. Müller stated that the changes would "require us – following the serious setback as a result of the diesel issue – to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity". Volkswagen plans a battery factory near Salzgitter to compensate for the reduced numbers of piston engines.
In November 2016, Volkswagen and its labour unions agreed to reduce the workforce by 30,000 people until 2021 as a result of the costs from the violations. However, 9,000 new jobs would come by producing more electric cars. Volkswagen CEO Herbert Diess stated to the German financial publication Handelsblatt that the company planned to stop marketing diesel models in the U.S., citing "the legal framework".
Automakers who have been caught using a defeat device within a diesel vehicle, in a similar manner to Volkswagen include: Jeep and Ram Trucks under FCA (now a part of Stellantis), Opel (when under General Motors), and Mercedes-Benz.
In July 2021, BMW agreed to pay a €373 million () fine to settle an antitrust suit for setting the standards for diesel emissions, though they claimed to have already been cleared of suspicion for falsifying emissions data. In 2024, the company also settled a $6 million class-action lawsuit.
Other manufacturers have been accused, with varying amounts of evidence, of using diesel defeat devices in their vehicles, but have yet to be proven. Some of the manufacturers accused include: Toyota, Suzuki, BMW, Citroën and Peugeot under PSA Group (now a part of Stellantis), Mitsubishi, Nissan and Renault, Chevrolet and GMC, Ford, Cummins, as well as Hyundai and Kia.
While not all using defeat devices, diesel vehicles built by a wide range of carmakers, including Volvo, Renault, Mercedes, Jeep, Hyundai, Citroen, BMW, Mazda, Fiat, Ford and Peugeot had independent tests carried out by ADAC that proved that, under normal driving conditions, many diesel vehicles exceeded legal European emission limits for nitrogen oxide (), some by more than 10 times, and one by 14 times. Researchers have criticized the inadequacy of current regulations and called for the use of a UN-sanctioned test called Worldwide harmonized Light vehicles Test Procedures that better reflects real-life driving conditions, as well as on-road emissions testing via PEMS. The two types of new test started to come into force in 2017, with critics saying that car firms have lobbied fiercely to delay their implementation, due to the high cost of meeting stricter environmental controls.
The Volkswagen scandal has increased scrutiny on combustion engines in general, and Volkswagen and several other car makes have been shown to pollute more than allowed. A French government report in 2016 investigated 86 different cars, and about 1/5th of those were found to comply with emission laws. One car was measured to emit 17 times more than allowed. An overview of tests showed that cars turned off the exhaust improvement device in many ordinary conditions, with 5 out 38 cars complying with regulations in an English test. A German test showed 10 out of 53 cars compliant when exposed to temperatures below 10 degrees Celsius. A French test showed 4 out of 52 cars compliant when tested outside (not in a laboratory).
As of March 2017, 38 out of 40 diesel cars of all brands tested by ADAC failed a -test based on government standards.
Beyond exclusively diesel or passenger vehicles, automakers such as: Hino Motors (subsidiary of Toyota), Hyundai and Kia, Nissan, Mazda, Yamaha Motors, Suzuki, Subaru, and others have been proven to be falsifying fuel economy or emissions on non-diesel powered and/or commercial vehicles.
Michel Sapin, the French Finance Minister, called for an investigation of diesel-powered cars that would encompass the entire continent of Europe.
Catherine Bearder, MEP for South East England, commented on 27 October 2015 in the European Parliament that "we now have the political momentum for a radical overhaul that will ensure carmakers cannot dodge the rules", defending an EU resolution meant to specifically "cut deadly pollution from diesel vehicles". However, when the European Commission proceeded with passing legislation that allowed the car industry more time to comply with the newer regulation, while also permitting cars, even under the more "realistic" tests, to emit more than twice the legal limit of nitrogen oxides () from 2019 and up to 50 percent more from 2021, Bearder denounced the legislation as "a disgraceful stitch-up by national governments, who are once again putting the interests of carmakers ahead of public health".
Renault-Nissan CEO Carlos Ghosn said it would be difficult for an automaker to conceal internally an effort to falsify vehicle emissions data, such as has happened at Volkswagen AG: "I don't think you can do something like this hiding in the bushes."
Jim Holder, the editorial director of Haymarket Automotive, which publishes WhatCar and AutoCar, opined that there had never been a scandal in the automotive industry of this size.
A commentary in Spiegel Online argued that the Volkswagen scandal will affect the entire German industry, and that German companies operating abroad will face a decrease in competitiveness.
Alan Brown, chairman of the Volkswagen National Dealer Advisory Council, commented on the scandal's negative impact on US dealers, who were already struggling with overpriced products and a deteriorating relationship between the company and the dealer body. Car and Driver similarly emphasized Volkswagen's inability to efficiently operate in the US market, while also suggesting that the company had grossly underestimated the EPA's power, and inexplicably failed to go public before the story broke, despite receiving ample warning.
Tesla Motors CEO Elon Musk was asked about his opinion whether the scandal will weaken the consumer's view on green technologies; he responded saying he expects the opposite to happen: "What Volkswagen is really showing is that we've reached the limit of what's possible with diesel and petrol. The time has come to move to a new generation of technology."
Similarly, analysts at Fitch Ratings suggested the Volkswagen diesel emissions crisis was likely to affect the entire automotive industry, with petrol cars potentially enjoying a revival in Europe and greater investment being poured into electric vehicles. Other commentators argued that the diesel engine will nevertheless regain its footing in the market, due to its international indispensability, low emissions and strong presence in the US pickup– and commercial–truck segments.
On 29 September 2015, S&P Dow Jones Indices and RobecoSAM stated that Volkswagen AG's stock will be de-listed from the Dow Jones Sustainability indexes after close of trading on 5 October 2015. Among the reasons for the de-listing, the statement issued by RobecoSAM cited social and ethical reasons, and confirmed that Volkswagen will no longer be identified as an Industry Group Leader in the "Automobiles & Components" industry group.
In early October, Green Car Journal rescinded its Green Car of the Year awards, for models that "best raise the bar in environmental performance", that were given to the 2009 Volkswagen Jetta TDI and 2010 Audi A3 TDI models.
In December 2015, a group of business and environmental leaders, including Tesla CEO Elon Musk, addressed an open letter to CARB, urging the agency to absolve Volkswagen of recalling the 85,000 diesel vehicles affected by the scandal in the US, and argued that Volkswagen should instead be asked to allocate resources to an accelerated rollout of zero-emissions vehicles ("cure the air, not the cars"). The letter, which includes a 5-step legally enforceable plan, argues that this course of action could result in a "10 for 1 or greater reduction in pollutant emissions as compared to the pollution associated with the diesel fleet cheating", while suggesting that the affected vehicles on the road in California "represent an insignificant portion of total vehicles emissions in the State" and "do not, individually, present any emissions-related risk to their owners or occupants". Similar requests were put forward by the American Lung Association, who petitioned the EPA to determine Volkswagen to promote zero-emissions vehicles, build sustainable transport infrastructure and retrofit older diesel models with superior emissions controls.
Volkswagen got a 2016 Ig Nobel Prize in chemistry from the scientific humor magazine Annals of Improbable Research for "solving the problem of excessive automobile pollution emissions by automatically, electromechanically producing fewer emissions whenever the cars are being tested".
The Volkswagen emissions cheating scandal has joined the ranks of other -gate suffix stories, with media coining both Dieselgate and Emissionsgate to describe it.
and Volkswagen Diesel anti-pollution system
Underlying U.S. and EU emission standards
Early warnings 1998–
ICCT's emission testing, 2013–14
+ numbers for Volkswagen Passat and Jetta (See note)
! rowspan=2 Car
! colspan=3 WVU measurement
! colspan=2 European limits
! rowspan=2 Comment Vehicle A
Volkswagen Jetta 2.0 TDI 0.043 g/km|| style="background: lightgreen"| 0.022 g/km || style="background: pink"| 0.61–1.5 g/km || 0.18
g/km || 0.08
g/km | Fitted with a NOx adsorber (LNT) emission treatment system.
Vehicle B
Volkswagen Passat 2.0 TDI 0.043 g/km|| style="background: lightgreen"| 0.016 g/km || style="background: pink"| 0.34–0.81 g/km || 0.18
g/km || 0.08
g/km | Fitted with the same engine as Vehicle A, but with a urea-based selective catalytic reduction (SCR) emission treatment system.
EPA Notice of Violation, 2015
Intelligence agencies, 2015
Volkswagen's response
Other irregularities, November 2015
emissions
3.0 litre TDI emissions
Affected Volkswagen and Audi TDI models
*Initial Modification
+List of affected vehicles and generation of engine
!Brand
!Model
!Model Years
!Generation of Engine Audi A1 2010–2014 1 A3 2009–2013 Volkswagen Beetle 2013–2014 Beetle Convertible Volkswagen Golf 2010–2013 Volkswagen Golf 2010–2014 Volkswagen Jetta 2009–2014 Volkswagen Jetta Passat 2012–2015 Audi A3 2015 3* Volkswagen Beetle Beetle Convertible Volkswagen Golf Volkswagen Golf Volkswagen Jetta Passat Audi A3 2015 3** Volkswagen Beetle Beetle Convertible Volkswagen Golf Volkswagen Golf Volkswagen Jetta Passat Touareg 2009–2012 3 Audi Q7 2009–2015 Volkswagen Touareg 2013–2016 3 Audi A6 2014–2016 A7 A8 A8L Q5 Q7 2013–2015
Vehicle recall and consequences
it was unclear whether the repair would include hardware modifications, such as selective catalytic reduction (SCR) upgrades. The recall was scheduled to start in January 2016, with all affected cars projected to be fixed by the end of the year. The company also announced a review of all of its brands and models, including its supercar marque [[Bugatti]].
Advertising, 2015
New orders, September 2015
US Congressional Testimony, October 2015
Compensation, November 2015
European actions, 2015–2020
Consequences
Health consequences
Deaths
Non-fatal health impacts
Environmental consequences
also contribute to [[acid rain]], and visibly brown clouds or [[smog]] due to both the visible nature of , and the ground level ozone created by NO. NO and are not greenhouse gases, whereas is. is a precursor to ground-level ozone.
Legal and financial repercussions
Government actions
Australia
Belgium
Brazil
Canada
China
European Union
France
Germany
Hong Kong
India
Italy
Israel
Japan
Netherlands
Norway
Romania
South Africa
South Korea
Spain
Sweden
Switzerland
United Kingdom
United States
Charges against Volkswagen engineering/management
Settlement
Securities and Exchange Commission lawsuit
Private actions
European Investment Bank's possible involvement
Models affected
Resale value
Effects on Volkswagen corporate
Stock value
Sales
Industry consequences
Secondary market consequences
Other manufacturers
Reactions
Political figures
Automotive industry and other commentators
Media
Public polling
See also
Notes
Citations
Further reading
External links
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