Volkswagen Could Face $18 Billion Fine Over Emission-Cheating Software
After getting caught cheating on emissions testing by means of software, Volkswagen could face up to $18 billion in fines, reports USA Today. That number is based on the company being assessed the maximum penalty of $37,500 per affected vehicle. That's not the only bad news for Volkswagen, which has halted sales of its 4-cylinder diesel cars; the linked article reports that the violations "could also invite charges of false marketing by regulators, a vehicle recall and payment to car owners, either voluntarily or through lawsuits. Volkswagen advertised the cars under the 'Clean Diesel' moniker. The state of California is also investigating the emissions violations."
For reference, $18B would be about 23% of the market cap of the company. In other words, if the company were to pay such a fine by issuing new stock and giving the stock to the government, the government would end up with 23% of the company (or so goes the math if the stock market were being logical).
That's not what's going to happen, but it shows that the company should be able to raise the money to pay the fine if it comes to it. Of course, such things usually take many years of lawsuits and appeals before it's all settled, which is why these things often are settled out of court for a lower price.
And a civilization-killer asteroid *could* crash into the Earth this evening. They're both equally unlikely.
"I don't know, therefore Aliens" Wafflebox1
Unless there is some mitigating factor that none of the reports on this story have so far mentioned; Volkswagen seems to be 100% deserving of an absolutely brutal smackdown.
Building ECU code specifically to deliver 'correct' results under test; and totally different results elsewhere, is going to be difficult to explain as an 'accident'; and also the sort of thing that it'd be pretty tricky for a single rogue actor to pull off without the knowledge, and probably the cooperation, of others on the design team and in management.
I realize that it is considered unspeakably barbaric to pierce the corporate veil and cruelly touch the people who actually made the decisions; but under any non-corporate circumstance I'd have to imagine that the prosecution would have a stack of conspiracy charges so thick that it has to be delivered by two burly paralegals, in addition to charges related to the violations themselves; and all the possible civil litigation on the part of the misled customers.
Operative words there are 'so far'. This is some Dr. Evil style stuff, intentionally being criminal on a massive scale for profit, and if Volkswagen does it and gets away with it this long, other car companies must surely ask what they have to do in order to compete in the market with this sort of monster.
Race to the bottom (in diesel cars): they ALL have to start lying like rugs and making computers that cheat on tests, as much or worse than VW was doing.
That's unfettered market capitalism, and that is what you get. Alternative is regulation and holding somebody accountable.
"The state of California is also investigating the emissions violations"
Oh boy are they in trouble now. I've heard they're worse than the Feds when it comes to issues like these.
No sig for you! Come back one year!
In October 2012 I bought a new car. it was a close decision between the VW Jetta TDI and Ford Fiesta. The slightly better highway mileage on the Jetta was the deciding factor for me.
Ford probably lost a sale because of this deception.
Learning HOW to think is more important than learning WHAT to think.
That's unfettered market capitalism
Since when has the US and Europe had unfettered market capitalism? Hell, even in the 1800s there were all sorts of market protection laws and government grants to business.
Alternative is regulation and holding somebody accountable.
You forgot bribery and Communism.
"I don't know, therefore Aliens" Wafflebox1
They do not meet the requirements to be on the road and any use should be immediately prohibited
You realize a turn of the PREVIOUS century model T ford a meets the requirements to be on the road, and their idea of emissions control amounted to having the exhaust exit outside the vehicle instead of inside. There is a big difference between 'legal to drive on the street' and 'legal to register as a new vehicle'. And lots of cars that would NEVER EVER EVER pass modern rules for emissions, for safety, for anything are still perfectly legal to operate.
And hundreds of thosuands of vehicle owners have bought a new car, and then promptly had it retuned for performance. (One guess what that gain was at the expense of!) And in jurisidicitons where they need to get it tested periodically they'd even install switches to cut it back over for the test, to make sure they'd pass, then after exitting the test facility flip it back to fast+dirty.
Hell, you can buy aftermarket kits for this. And people 'chipping' their cars... etc, etc...
with VW ordered to repurchase all affected vehicles at original price and to pay all costs for replacement transportation until impacted drivers can obtain a US-legal alternative
Impacted drivers, by and large, probably want their TDI left exactly the way it is. TDI owners buy them for the excellent fuel efficiency and decent performance.
If there was a button in the car where they could push "better mileage, worse emissions" I'd bet most of them would have pushed it.
VW deserves to get slapped hard for this, what they did was brazen and deceptive... but lets not go off the deepend. They aren't gong to be hit for $37,000 per vehicle... at worst they'll settle for buying some extra carbon credits to offset the extra pollution they've caused, plus some punitive damages.
When called on it their response was, "well yes, the test definitions should be improved but it would be unfair to alter the standards without a few year advance notice."
Yup, gaming the testing standards is par for the course in every industry ever. And yes, the onus is on the regulatory body to change the test standards (or clarify them); and yes, a couple years lead time is both normal and the way it should be.
Digging through several layers of links:
EPA and CARB uncovered the defeat device software after independent analysis by researchers at West Virginia University,
So it looks like WVU might have to bite the bullet on this one and the EPA will get off scott free. Sorry to all of you students who were hoping for your degree. After the school shuts down, maybe you can get jobs mining coal.
Have gnu, will travel.
I would assume that numerous nations as well as buyers could file suit. We must not allow any company to profit by wrong doing. The fines should be several times the profits made from such a violation.
Ford Motor Company said they would NEVER do a diesel because it is too hard to make them clean. They say the emissions alone on the powerstroke 250/350 trucks is a $4,000 bandaid to meet emissions. Here is the one sentence that makes me believe that Jane is pissed that Sally has a hotter boyfriend so she is going to dig up some dirt on Ken and show everyone that Ken got busted as a repeat offender paying for services from prostitutes... or something like this : "EPA and CARB uncovered the defeat device software after independent analysis by researchers at West Virginia University, working with the International Council on Clean Transportation, a non-governmental organization, raised questions about emissions levels, and the agencies began further investigations into the issue. "
I bet they paid to get the cars looked at, why JUST the 2.0 TDI from 2009-2015? And I bet they had to reverse engineer the CPU instructions so that is another issue in itself.
If I were a betting man I would bet there are other skeletons in the closets of other engines...
And a LOT of tuners and tweakers of the TDI chip them so they blow all the emissions when they hot rod the cars. The diesel truck guys do the same thing. Guys with turbo charged and supercharged cars do it too as well as ALL the ricer kids with Honda's or Acura's. LOL
Your Average Joe
Jurisdictions_requiring_periodic_vehicle_emissions_inspections
The car's clean enough not to make the person driving it sick. If everyone drove cars that cheated on emission standards, then sure, pollution would be a lot worse. But as a percentage of cars on the road, this model is a drop in the ocean. The more serious issue if you own this car is that it could cost hundreds or even thousands of dollars to make it street legal in California. If it can be made street legal at all.
They've just wound up and kicked their most loyal customer base in the nuts as hard as they can.
VW diesel owners are unswervingly loyal and unswervingly proud of their purchase and the VW brand, and unanimously proud of doing the right thing ecologically, so this is like finding their wife committing adultery with their dog.
Star Trek transporters are just 3d printers.