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ExplainingVolkswagensEmissionsScandalTheNewYorkTimes
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VolkswagensEmissionsScandal
ByGUILBERTGATES,JACKEWING,KARLRUSSELLandDEREKWATKINSUPDATEDApril28,2016
Volkswagenhasadmittedthat11millionofitsvehicleswereequippedwithsoftwarethatwas
usedtocheatonemissionstests.Thecompanyisnowcontendingwiththefallout.RelatedArticle

Thesoftwaresensedwhenthecarwasbeingtestedandthenactivatedequipmentthat
reducedemissions,UnitedStatesofficialssaid.Butthesoftwareturnedtheequipmentdown
duringregulardriving,increasingemissionsfarabovelegallimits,mostlikelytosavefuel
ortoimprovethecarstorqueandacceleration.Thecompanymayalsohavebeenworried
thatsomepartsoftheemissionssystemwouldbreakdownifusedcontinuously.
Thesoftwarewasmodifiedtoadjustcomponentssuchascatalyticconvertersorvalvesused
torecyclesomeoftheexhaustgasses.Thecomponentsaremeanttoreduceemissionsof
nitrogenoxide,apollutantthatcancauseemphysema,bronchitisandotherrespiratory
diseases.

http://www.nytimes.com/interactive/2015/business/international/vwdieselemissionsscandalexplained.html?_r=3

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5/8/2016

ExplainingVolkswagensEmissionsScandalTheNewYorkTimes

TheonroadtestinginMay2014thatledtheCaliforniaAirResourcesBoardtoinvestigate
VolkswagenwasconductedbyresearchersatWestVirginiaUniversity.Theytested
emissionsfromtwoVWmodelsequippedwiththe2literturbocharged4cylinderdiesel
engine.Theresearchersfoundthatwhentestedontheroadsomecarsemittedalmost
thepermittedlevelsofnitrogenoxides.

TheEnvironmentalProtectionAgencysaidinSeptemberthatitwouldorderVolkswagento
recallsevenofitsAmericancarmodelswithaffectedengines,whichamounttonearly
600,000vehicles.Volkswagenhasnotreleasedalistofinternationalmodels,whichmakeup
themajorityofthe11millionaffectedvehicles,thathaveengineswiththesoftwarein
question.

http://www.nytimes.com/interactive/2015/business/international/vwdieselemissionsscandalexplained.html?_r=3

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5/8/2016

ExplainingVolkswagensEmissionsScandalTheNewYorkTimes

TheE.P.A.saidonNov.2thatithadfoundthesametestcheatingsoftwareonadditional
VolkswagenandAudidieselmodelsandonaPorschemodel.Theagencysaiditcovered
about10,000carssoldintheUnitedStatessincethe2014modelyear.But,inmeetingswith
theE.P.A.onNov.19and20,thecompanyadmittedthatallmodelyearssince2009withits
3literdieselenginescontainedthesoftwareaswell.Thelatestdisclosurecoversan
additional75,000vehicles.

http://www.nytimes.com/interactive/2015/business/international/vwdieselemissionsscandalexplained.html?_r=3

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5/8/2016

ExplainingVolkswagensEmissionsScandalTheNewYorkTimes

VolkswagenagreedonApril21tofixorbuyback480,000affectedVolkswagensandAudi
A3modelswith2literenginesintheUnitedStates.Itremainsunclearwhenthefixesor
buybackswilloccurandifandhowmuchthecompanywillcompensateowners.
ThecompanyhasalsoyettosettleonwhattodowiththeremainingvehiclesintheUnited
States,whichallhave3literengines.
InNovember,Volkswagensaiditwouldinstallasmalltubularpartintosomeofitsengines
tohelpthemcomeintolinewithEuropeancleanairstandards.Thatpart,whichisaboutthe
sizeofthecardboardinsidearollofpapertowels,willnot,however,workforallaffected
dieselenginetypesinVolkswagensfleet,norwillitloweremissionsenoughtocomply
withAmericanstandards.

Volkswagenhasrecentlyreportedrecordlosses,asthecompanysvaluehasplummeted
sincethescandalbroke.Itsetasideabout$18billiontocoverthecostoffines,legalclaims
andrecalls,inadditiontohaltingsalesofaffectedcarsintheUnitedStates.
Internally,thecompanyhasshakenupitsleadership.Itschiefexecutive,MartinWinterkorn,
aswellastheheadofitsAmericanoperationshavesteppeddown,andthecompany
suspendedseveralhighrankingexecutives.
Volkswagenhasalsobeenfacingmountinglegalbattles.TheJusticeDepartmentfileda
lawsuitagainstthecompany,ashavetheFederalTradeCommission,dealersandvehicles
owners.Regulatorsacrosstheglobehavebeenconductingtheirowninvestigations.

http://www.nytimes.com/interactive/2015/business/international/vwdieselemissionsscandalexplained.html?_r=3

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ExplainingVolkswagensEmissionsScandalTheNewYorkTimes

The78yearoldcompanysunusualcultureconfident,cutthroatandinsularhascome
underscrutinyaspotentiallyenablingVolkswagenslawbreakingbehavior.
SignsofirregularitiesinVolkswagencarswerefirstdiscoveredin2014byanonprofit
group,theInternationalCouncilonCleanTransportation.ButthechairmanofVW
acknowledgedinDecemberthatthedecisionbyemployeestocheatonemissionstestswas
mademorethanadecadeago,aftertheyrealizedtheycouldnotmeetUnitedStatescleanair
standardslegally.
Inthesubsequentyears,severalhighrankingcompanyofficialsarebelievedtohavebeen
briefedaboutthesocalleddefeatdevices,thoughtheextentofwhoknewremainsunclear.
Mr.Winterkorn,theformerchiefexecutive,wasgivenamemoaboutemissions
irregularitiesin2014,thoughthecompanycontinuedtoinstalldefeatdevicesinitscarsuntil
lastyear.
Inthemeantime,thecompanyhasbeenconductinganinternalinvestigationofpeoplewho
mayhavehadknowledgeorinvolvementinthedeception.

RelatedCoverage

http://www.nytimes.com/interactive/2015/business/international/vwdieselemissionsscandalexplained.html?_r=3

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