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Volkswagen & Dieselgate: Where Are We Now?

Published by Joe Webster.

What's in this article?
  1. What is Dieselgate?
  2. What penalties were handed down?
  3. Past Cases & The Future Of Volkswagen
Dieselgate volkswagen

What is Dieselgate?

The Environmental Protection Agency issued Volkswagen a violation of the Clean Air Act in September 2015. The violation came after it was determined that certain Volkswagen models--namely TDI, or turbocharged direct injection diesel engines--had emission control settings that were only activated during certain types of emission tests. What this did was allow the vehicles to essentially give a false negative in tests about emission pollution.

In some cases, the cars that were passing emissions tests were giving off up to 40 times more than a number of nitrous oxide emissions allowed by current regulations. All told, this “technology” was implemented in over 11 million vehicles between 2009 and 2015, of which about 500,000 were in the U.S.

What penalties were handed down?

Volkswagen will face criminal charges from the U.S. Department of Justice in light of the scandal, the details of which are still being worked out. It remains to be seen whether a guilty plea will be sought out, though Volkswagen has already agreed that it deceived regulators with the practice.

Volkswagen dieselgate penalty notice

Most likely, the case will be settled with financial penalties and a deferred prosecution agreement, as has been the case in past safety issues with auto manufacturers, namely GM and Toyota. As part of the penalty, Volkswagen must pay nearly $15 million to both consumers and regulators for intentionally misleading them. In the wake of the scandal, Volkswagen’s chief executive resigned after the findings of the EPA were revealed.

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Past Cases & The Future Of Volkswagen

According to an article in the Wall Street Journal, Volkswagen has earmarked $21 billion to deal with the aftermath of the scandal. Obviously, no small sum of money, which indicates the German automaker may be bracing for an even larger penalty and more fallout.

Previous Cases

Toyota - Toyota was forced to pay $1.2 billion in a settlement in 2014 in which it was revealed that they intentionally hid safety defects in their cars from consumers and regulators. The defect was related to a sudden and unexpected acceleration of several of their vehicle models.

General Motors - Following on the heels of the Toyota scandal, GM was forced to pay a $900 million fine an ignition-switch defect. The defect was connected to nearly 200 deaths before being discovered.

Volkswagen diesel compensation

Looking Forward

Based on the two previous cases that most closely resemble the Volkswagen emission scandal, it would seem that a hefty fine and a promise to change their methods is all that will come of this. In both the Toyota and GM case, no criminal charges were brought forward against specific employees and a deferred agreement was reached with prosecutors.

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Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

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435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus Drive
Edison, NJ 08837
NO. 17858N
Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd,
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
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