The Strategist

Volkswagen Found Three Reasons of the Diesel Cheating

12/10/2015 - 15:40

Today, the German carmaker Volkswagen has announced preliminary results of the internal investigation conducted into the scandal with understating emissions of diesel engines. According to the company’s CEO Matthias Mueller, speaking at a press conference at the headquarters of VW's in Wolfsburg, the company managed to reveal three factors of the "dieselgate" - violations made by individual workers, vicious business processes and most importantly - "the mentality of individual divisions of the company", showed tolerance for the deception.

Mueller said that Volkswagen has found the "best" way to eliminate the program bypassing environmental standards for 189 EA diesel engines. Withdrawal in Europe will begin in January. The two-liter diesel engines will require only change of the firmware. 1.6 liter engines will get a special divider. The revocable campaign for them is likely to last into next year. Solving Problems in the US is likely to take even longer because of more stringent environmental standards, said the general director of Volkswagen.  

Head of the concern’s Supervisory Board Hans Dieter Pötsch said that VW will introduce a new electronic accounting system for personal irregularities and all the tests on emissions will be subject to independent verification that in the future. At the same time, he noted that the test bypass system was installed only because engineers could not find a way to comply with restrictions on US emissions of nitrogen oxides "within budget and the required time." "As for the thresholds, we have to be honest. The growing divergence in passport and actual emissions data is getting intolerable. We must find new solutions" - said Pötsh.  

At the same time, Pötsh said the investigation revealed that the leadership and members of the Board of Management of Volkswagen were not aware of the violations. There was a "relatively small group" of people, who have made the "irresponsible decision." However, underestimation of emissions was made possible due to systemic defects in the company’s management, admitted he. "We are not talking about an isolated mistake, this is a whole chain of them," - said the head of the supervisory board. So far, nine managers were suspended from work. The investigation is likely to last for at least a year.

After the "dieselgate”,  Volkswagen found itself in a very difficult situation. Pötsh announced the company will be decentralized to respond more rapidly. "Nobody could have predicted that we will find ourselves in such a situation. The past two months have been unprecedented... These events led Volkswagen to a very difficult situation", - he said.

US regulators in September accused Volkswagen in understating emissions of diesel engines (“dieselgate”). The CEO resigned. The concern will have to withdraw hundreds of thousands of cars and pay a fine of up to $ 18 billion. The media reported that Volkswagen reached an agreement with 13 banks for a bridge loan of 20 billion euros for costs in connection with the scandal.