It's been six months since one of the most controversial scandals rocked the automotive industry. In its wake, it has changed the face of a company from good to bad and has forced us to reevaluate our common goals for the protection of the environment. This scandal is referred to as diesel gate. In today's world, consumers need to trust the companies they buy products from. Let's examine what happens when an automotive company no longer has the public's trust and how this affects both sides of the equation - the general public and the automaker themselves.
What Is Diesel Gate?
Diesel gate, a.k.a. the Volkswagen emissions scandal, happened on 18 September 2015 when the United States Environmental Protection Agency (EPA) gave German automaker Volkswagen a notice of violation of the Clean Air Act. It was found that the German automaker was cheating its laboratory emissions testing by having turbocharged direct injection (TDI) diesel engines activate certain emissions controls only during the actual emissions testing and not on the road. In fact, during road tests, the nitrogen oxide output for vehicles with a TDI diesel engine was 40 times more than is accepted by the clean air act. Around 11 million cars are affected worldwide, with approximately 600,000 of them in the United States.
This scandal also helped to shed light upon the higher levels of pollution being produced by all sorts of vehicles built by a great number of car manufacturers, which are prone to surpass legal emission limits under real-world driving conditions.
If I Own a Volkswagen with a TDI Diesel Engine, What Happens Next?
As of now, Volkswagen cars with TDI diesel engine are safe and legal to drive. No action is needed by today's drivers of these vehicles.
When Will There Be a Recall?
There will eventually be a recall that will bring the existing models up to snuff as far as regulations are concerned. The fix will most likely be a software update for the newest models. Volkswagen cars manufactured before 2015 are expected to need to have additional components installed. All of these changes that will properly limit emissions can potentially compromise performance and fuel economy, causing your car's resale value to drop dramatically. The repairs that are performed during the recall will be done at no cost to owners.
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The Aftermath of Diesel Gate
After the dust has settled, Volkswagen plans to recall and fix about 80,000 3.0 liter SUVs. Also, Volkswagen sales are hurting along with its stocks. Stock value fell to a record four-year low and sales declined by 24.7%. Their public image has also greatly suffered a loss as news headlines reporting on the scandal reach a global audience.
The Future of Volkswagen and Diesel Cars
This scandal just might be one nail in the coffin for Volkswagen and the final nail in the coffin for diesel cars. This is due to the fact that VW was integral in selling the idea that diesel powered engines are better for the consumer in the United States through advertising. But ultimately VW lied to the public and with the growing popularity of alternative car types including electric cars, the popularity of diesel may well be of the past here in the United States.
There may be a spark of hope for diesel and that is diesel gate doesn't accurately represent the worthiness or worthlessness of other diesel cars. The man responsible for blowing the lid off of diesel gate (Daniel Carder) did the same emissions tests on a BMW X5 diesel and reports that the BMW "performed very nicely - at, or below, the certification emission levels."
When it comes to fixing the affected vehicles, even if the fix is small, it may end up costing Volkswagen a large sum of money. This fix will likely bring reductions in fuel economy figures and performance; as a result, customers will be wanting either a buyback or compensation for the diminished value of their vehicles.
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