From the beebs review:
30% of the value of the company in 2 days? This is obviously massive for VW, I cannot imagine it will be terminal but there are some serious questions.
Discuss what you like, from "big corporations screwing us" to "government should keep out of the market so brave entrepreneurs will not need to do this". One thing that occurs to me is how this happens. How can you usefully measure the emissions of a car without simultaneously measuring the power output? Surely to translate laboratory emissions tests to real world emissions levels you need to know the amount of emissions at certain energy output levels, and then translate that to required energy output of driving?
It's been dubbed the "diesel dupe". The German car giant has admitted cheating emissions tests in the US. According to the Environmental Protection Agency (EPA), some cars being sold in America had devices in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results.
VW has had a major push to sell diesel cars in the US, backed by a huge marketing campaign trumpeting its cars' low emissions. The EPA's findings cover 482,000 cars in the US only, including the VW-manufactured Audi A3, and the VW brands Jetta, Beetle, Golf and Passat. But VW has admitted that about 11 million cars worldwide are fitted with the so-called "defeat device".
Full details of how it worked are sketchy, although the EPA has said that the engines had computer software that could sense test scenarios by monitoring speed, engine operation, air pressure and even the position of the steering wheel.
When the cars were operating under controlled laboratory conditions - which typically involved putting them on a stationary test rig - the device appears to have put the vehicle into a sort of safety mode in which the engine ran below normal power and performance. Once on the road, the engines switched from this test mode.
The result? The engines emitted nitrogen oxide pollutants up to 40 times above what is allowed in the US.
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Are VW's problems confined to the US?
Certainly not. Other countries, including Italy, France and South Korea, are opening investigations. Throughout the world, politicians, regulators and environmental groups are questioning the legitimacy of VW's emissions testing. France's finance minister Michel Sapin said a "Europe-wide" probe was needed in order to "reassure" the public.
At this time, only cars in the US named by the EPA are being recalled, so owners elsewhere need take no action. However, with about 11 million VW diesel cars potentially affected, further costly recalls and refits are possible. Half of the company's sales in Europe - VW's biggest market - are for diesel cars. No wonder the carmaker's shares plunged around 30% in the first couple of days after the scandal broke - with other carmakers also seeing big falls in their stock prices.
30% of the value of the company in 2 days? This is obviously massive for VW, I cannot imagine it will be terminal but there are some serious questions.
Discuss what you like, from "big corporations screwing us" to "government should keep out of the market so brave entrepreneurs will not need to do this". One thing that occurs to me is how this happens. How can you usefully measure the emissions of a car without simultaneously measuring the power output? Surely to translate laboratory emissions tests to real world emissions levels you need to know the amount of emissions at certain energy output levels, and then translate that to required energy output of driving?