VW CEO: 'I am endlessly sorry' brand is tarnished

[webfact]

VW CEO: 'I am endlessly sorry' brand is tarnished
By DEE-ANN DURBIN and GEIR MOULSON

DETROIT (AP) — Volkswagen AG's smog-test scandal escalated Tuesday as the company acknowledged putting stealth software in millions of vehicles worldwide. The crisis has already cost VW more than 24 billion euros ($26 billion) in market value.

The world's top-selling carmaker now admits that 11 million of its diesel vehicles contain software that evades emissions controls, far more than the 482,000 cars identified by the U.S. Environmental Protection Agency as violating clean air laws.

Volkswagen set aside an initial 6.5 billion euros ($7.3 billion) to cover the fallout and "win back the trust" of customers. It also said this year's profit projections will change, and warned that future costs remain undetermined.

CEO Martin Winterkorn apologized for the deception under his leadership and pledged a fast and thorough investigation, but gave no indication that he might resign. Meanwhile, Volkswagen's ordinary shares fell another 20 percent Tuesday, to close at 111.20 euros.

"Millions of people across the world trust our brands, our cars and our technologies," Winterkorn said Tuesday in a video message. "I am endlessly sorry that we have disappointed this trust. I apologize in every way to our customers, to authorities and the whole public for the wrongdoing."

"We are asking, I am asking for your trust on our way forward," he said.

That may be a tall order for people who bought "clean diesel" VWs believing they could get peppy rides but still be environmentally friendly.

"I thought I was doing something good and not something bad," said Zandy Hartig, an actress in Los Angeles who bought a diesel-powered Jetta Sportswagen in 2013.

She plans to get it repaired, but says she'll never buy a Volkswagen again. "It's not a design flaw. It's deliberately manipulating the system, and it's quite evil," Hartig said.

VW has yet to explain who installed the software, under what direction, and why.

"I do not have the answers to all the questions at this point myself, but we are in the process of clearing up the background relentlessly," Winterkorn said.

The EPA said Friday that VW faces potential fines of $37,500 per vehicle, and that anyone found personally responsible is subject to $3,750 per violation.

In theory, the penalties could total $18 billion or more, although companies rarely pay maximum fines in the U.S.

"I don't think this is a life-threatening event, but it's clear it's going to be very expensive," said Christian Stadler, who teaches strategic management at the Warwick Business School.

Volkswagen blamed unrelated issues for more than a year while the EPA and California regulators asked why its cars were running much dirtier on the road. The agencies refused to approve 2016 models without an answer.

Only then did VW acknowledge that software switches its engines to a cleaner mode during official emissions testing. The "defeat device" then switches off again, giving the cars more power while emitting as much as 40 times the legal pollution limit during actual driving, the EPA said.

"Let's be clear about this. Our company was dishonest. With the EPA, and the California Air Resources Board, and with all of you. And in my German words, we have totally screwed up," the head of Volkswagen's U.S. division, Michael Horn, said Monday while unveiling a new Passat model in New York.

Across the sector, investors wondered how far this scandal could grow. Germany's Daimler AG, the maker of Mercedes-Benz cars, was down 7 percent Tuesday, while BMW AG fell 6 percent. France's Renault SA was 7.1 percent lower.

"Brands are all about trust and it takes years and years to develop. But in the space of 24 hours, Volkswagen has gone from one people could trust to one people don't know what to think of," said Nigel Currie, an independent U.K.-based branding consultant.

Volkswagen's stock plunged again Tuesday after the company said similar "discrepancies" in Type EA 189 engines involve some 11 million vehicles worldwide — more than the 10 million or so cars it sold last year.

It also said new vehicles with EU 6 diesel engines currently on sale in the European Union comply with legal requirements and environmental standards.

The company hasn't revealed the results of internal investigations, beyond announcing the much wider impact on Tuesday.

"I hope that the facts will be put on the table as quickly as possible," German Chancellor Angela Merkel said in Berlin.

It may already be too late for people like Peggy Schaeffer, a librarian from Durham, North Carolina, who bought her diesel Jetta Sportwagen in 2010. She had liked Volkswagens, and "until this week, I was completely happy with it," she said.

Now, she's dismayed to know that during a recent cross-country trip, she was "polluting all the way." And if Volkswagen's eventual repair diminishes her car's sportiness or fuel efficiency, she's not sure she wants it.

"I really feel like I've been had. I've been hoodwinked. This is deliberate fraud and deceit," she said.

Winterkorn became CEO in 2007. The software was installed starting with 2009 models. He was looking forward to getting a two-year contract extension, keeping him in charge through 2018, at the company's regular board meeting Friday. Some board members reportedly planned a crisis meeting Wednesday.

Other authorities looking into VW's actions include Germany, where the transport minister announced a commission of inquiry to determine whether VW's diesel vehicles comply with German and European rules; the French government, which demanded that its automakers "ensure that no such actions are taking place in France," the South Korean government and the European Commission. The U.S. Justice Department is involved, and New York's attorney general also announced a multi-state investigation on Tuesday.
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Dee-Ann Durbin reported from Detroit, Geir Moulson from Berlin and Pan Pylas from London.


-- (c) Associated Press 2015-09-23

[razer]

VW CEO: 'I am endlessly sorry' brand is tarnished'

Translation: 'I am endlessly sorry we got caught.

Plus ... I am endlessly sorry my job is hanging by a string. Will I still get my year end bonus?

[Muzarella]

Really a very bad move....and not easy to understand why was done.

VW-Porche-Audi is one of the oldest and best car makers in the world.

Edited September 23, 2015 by Muzarella

[maidee]

the CEO can quit or be replaced

after getting 100.000.000$ or more in his golden parachute

Edited September 23, 2015 by maidee

[Jimbo2014]

I hope VW shareholders decide to sue management - then Im sure he will be eternally sorry

[Dustdevil]

Really a very bad move....and not easy to understand why was done.

VW-Porche-Audi is one of the oldest and best car makers in the world.

German cars are overpriced and overrated, and now we see that the largest one doesn't mind spewing out 40 times the legal limit of particulate matter into US air. Do they do it in Europe?

[jerome2]

A software in the car cannot affect a pollution test.. looks like the fed found a good sheep

Edited September 23, 2015 by jerome2

[NeverSure]

A software in the car cannot affect a pollution test..

Sure it could. It would just need a sensor to know when test equipment is plugged into the car's test port. Then the on-board computer could add air and cut back fuel. That would reduce power temporarily while causing it to burn much cleaner.

Cars today have an electronic control module that adjusts, among other things, the air/fuel ratio depending on a lot of factors. It's a computer that could easily be manipulated, and apparently was.

Cheers.

[BKKdreaming]

just the beginning , if it has been going for 6 years you can be sure other car companies know about it and are probably doing the same thing , not many secrets in the auto industry as they buy the other guys cars and take them apart to see what they can learn.....

First thing is the entire VW board needs to resign , take the fall as they were in charge ,

Now who did the software ???? VW or.....ummm Bosch or even an outside company ?

Fire them too !

Now offer a 30% discount on a new VW to anyone who bought ANY new VW since the resale value has taken a big hit.....

and even with that its probably not enough.....

STUPID STUPID STUPID thinking they would never get caught....

[Carmine6]

A software in the car cannot affect a pollution test..

Well that's a weird statement. The ignition is now controlled by the the computer. Mess up the timing or fuel air mixture, and it is extremely easy to have worse emissions through less complete combustion.

But anyway, what is claimed is there is software that detects whether the car is being tested for emissions, and then it runs a mode to get the best emissions results. Otherwise it runs a different mode, which results in worse emissions, and better performance.

In the case of California which was also part of the complaint, or included in it, the tail pipe smog test is run at 15 mpg, and 25 mph. So they probably tuned a special mode for those speeds. Even more significantly, California this year went to an OBDII test only for year 2000 and newer cars. So there's no longer a tailpipe test. It relies on the information the computer reports regarding performance. So the computer needs to be recording and monitoring the right information or the output is garbage.

http://www.smogcheck.ca.gov/Consumer/Q&As_On-Board_Diagnostic_Systems.html

"Vehicle model-years 2000 and newer only receive an OBD II test (BAR-OIS) and a visual inspection. There is no tailpipe inspection of these 2000 and newer vehicles. For 1996-1999 model-year vehicles, the Smog Check will also include a tailpipe test and a visual inspection."

Other countries are looking into this. South Korea was one and I think some countries in Europe, but that's just the start. This is an opportunity for governments all over the place to start handing out fines.

[HerbalEd]

What an idiotic thing to do ... and to leave a trail of evidence by in multiple emails, corporate records, etc. is beyond stupid. He's lost VW billions of dollars and yet they're questioning whether or not to fire him. He should have been out the door the minute this was exposed.

[impulse]

I hope VW shareholders decide to sue management - then Im sure he will be eternally sorry

Sadly, I'm sure his contract has an indemnity clause where the corporation will pay all his legal fees and any judgment against him. So, the shareholders will effectively be suing themselves and each other- and the only net winners will be the attorneys on both sides.

More likely, it will be vehicles owners suing the company under a class action, and then he and his cronies will still be indemnified.

I'm afraid the only hope for justice would be that his attorney wrote a bad contract (doubtful), or some complicit folks lose their jobs and go to jail.

More likely- Joe Lunchpail and a few thousand of his fellow line workers will get sacked as redundant and VW "will emerge a leaner, stronger company" (or some other corporate speak for shafting the rank and file for the sins of the higher-ups)

Edited September 23, 2015 by impulse

[VocalNeal]

Smokey Yunick would be impressed. VW should transfer those responsible to their, maybe, F1 effort. Those VW guys are very clever and I like the way they think. They would be an asset to F1.

[IAMHERE]

Many may not undrstand but I am not willing to say anything bad about VW until Tom Brady gives his opinion of a little cheating scandal by VW.

[wabothai]

VW is not a person.

Whoever is responsible for the lies and deception must be tried and jailed. Attack the folks and not the company.

There are thousands of people working for VW and know nothing about what happens in the executive's office.

[chilli42]

If they were serious the CEO would have tendered his resignation (and those of other key executives) along with the apology. What they are sorry about is that they got caught.

[uksomchai]

Way to go VW !

I am 100% behind the guy that came up with this ruse. All he is doing is what the Climate Change Nazi's have been doing for decades now which is falsifying the data on warming to suit their own political agenda. All VW is doing is playing them at their own game. Making a car produce the figures that they want just like the Climate Change Nazi's do

BRILLIANT !

You can also be sure that if one car manufacturer has done this they all will have. Just some will have done it better than others

OH and if you really want to see one of this Eco nutters get in a real lather just ask them to explain why the grass verges besides the roads where these nasty cars belch out all their poison, death and destruction have some of the most prolific flora and fauna to be found anywhere ?

Surely if these cars are belching out all these poisons they say they are then you would expect the roadsides to be barren strips of ground but they aren't

[lifeincnx]

Take note far right America. This is why an unfettered market cannot and will not regulate itself.

[1BADDAT]

To anyone who thinks this isn't possible do some research. I worked for a Diesel engine manufacturer before and helped do calibration work for emmisions and ran the EPA cycle test. A competitor knew the rest was only xx minutes long and after xx minutes the engine put out significantly more power. They were fined a significant amount of money. This was a very easy on to catch too. The VW cheat algorithm is much more sophisticated but was still caught.

[robblok]

VW CEO: 'I am endlessly sorry' brand is tarnished'

Translation: 'I am endlessly sorry we got caught.

Plus ... I am endlessly sorry my job is hanging by a string. Will I still get my year end bonus?

He should be quitting his job this happened under his watch. He is cashing in big pay checks and with that responsibility.

[cookee68]

A software in the car cannot affect a pollution test..

My thoughts exactly, unless they are tested by a VW garage that has it installed in their computer, but most emission tests are done at a random garage, But hey i am no expert, i think those big power houses give off more and worse shit

[JHolmesJr]

The real damage is that they may have also tarnished other auto makers….who is now going to believe a thing they all say…if VW can lie, so can everyone else….

[impulse]

A software in the car cannot affect a pollution test..

My thoughts exactly, unless they are tested by a VW garage that has it installed in their computer, but most emission tests are done at a random garage, But hey i am no expert, i think those big power houses give off more and worse shit

If you read the linked articles, you'd know that certain things happen and don't happen during an emissions test, no matter who is testing the car. For example, the steering wheel doesn't move much, the rear wheels don't rotate, the brake lights don't come on, seat belts aren't fastened, and a lot of other things happen and don't happen on anyone's test stand. God only knows what they triggered on- the list is pretty long.

Program the emissions controls to activate only when those indicators of a test are present, and you have gamed the test.

Edited September 23, 2015 by impulse

[Lokie]

So VWA Group have admitted they have been at it... they are honest (and stupid enough) to do this, anyone think no other auto manuafacturers have not been diddling the gizmo's to suit emmission tests as required...? lol

If one has been doing it they all have, bet yer boots on it!!

[Ulic]

When the statement is made that this defeat software when not activated allowed the car to

pollute up to 40 times the legal limit I would like to know exactly what that means. Is that

for a millisecond during a gear shift and the rest of the time while cruising the level was

twice the allowable limit. Just some clarification. Also what are the levels of trucks, both

tractor trailers big trucks and diesel pickups. I know they fall under much more relaxed

rules, but how much more relaxed. There are far more diesel pick-ups and tractor trailers

than VW diesel vehicles on the road in the US. If this is such a dangerous emission causing10's

of thousands of deaths a year why the double standard. Will there be a automobile industry

wide investigation for diesel and gasoline powered vehicles. After all we all know the numbers

manufactures achieve in EPA tests for mileage are far from real world results. This costs

consumers thousands in extra fuel and also means manufactures are not meeting mandated

economy standards. Are the manufactures of gasoline engine vehicles doing the same

with settings tweaked up to achieve better results when the car senses it is undergoing

testing but not when being driven in the real world. (Is the car being run so lean during testing

that there would be cylinder head damage, and then run richer thus cooler under normal

circumstances. "Enquiring minds want to know" or at least me.

[1BADDAT]

When the statement is made that this defeat software when not activated allowed the car to

pollute up to 40 times the legal limit I would like to know exactly what that means. Is that

for a millisecond during a gear shift and the rest of the time while cruising the level was

twice the allowable limit. Just some clarification. Also what are the levels of trucks, both

tractor trailers big trucks and diesel pickups. I know they fall under much more relaxed

rules, but how much more relaxed. There are far more diesel pick-ups and tractor trailers

than VW diesel vehicles on the road in the US. If this is such a dangerous emission causing10's

of thousands of deaths a year why the double standard. Will there be a automobile industry

wide investigation for diesel and gasoline powered vehicles. After all we all know the numbers

manufactures achieve in EPA tests for mileage are far from real world results. This costs

consumers thousands in extra fuel and also means manufactures are not meeting mandated

economy standards. Are the manufactures of gasoline engine vehicles doing the same

with settings tweaked up to achieve better results when the car senses it is undergoing

testing but not when being driven in the real world. (Is the car being run so lean during testing

that there would be cylinder head damage, and then run richer thus cooler under normal

circumstances. "Enquiring minds want to know" or at least me.

too many questions to answer them all but I'll tell you what I know from firsthand experience. I used to do engine calibration and test F250 and F350 diesel trucks in the U.S. Those light duty pickups go through a driving cycle test and the exhaust gasses are collected for the entire test. The level of NOx and soot (carbon) are analyzed and have to fall within a range.

This is how the test was performed circa 2005. Passenger cars and light duty pickups and large trucks all have different regulations so I am not 100% about the VW test but I am pretty sure it is a driving cycle test as well. I highly doubt it puts out 40x the NOx level through the whole test. Maybe at a given high load condition.

Regardless none of these emissions are deadly. They will have an effect on the environment, but one vehicle from let's say 10-15 years ago will pollute maybe 10X+ times as much. This is just a ballpark but it shows that the standards get tougher and tougher by orders of magnitude each few years. That's is why manufacturers have trouble meeting the strict emissions while achieving power and fuel economy.

[Carmine6]

Take note far right America. This is why an unfettered market cannot and will not regulate itself.

You're picking one of the worst examples to try to make your case. This is cheating on things required by regulations. Without those regulations, there's nothing to complain about here. You should save this for something like over fishing or industrial pollution or whatever, where it at least makes sense.

[Carmine6]

So VWA Group have admitted they have been at it... they are honest (and stupid enough) to do this, anyone think no other auto manuafacturers have not been diddling the gizmo's to suit emmission tests as required...? lol

If one has been doing it they all have, bet yer boots on it!!

Some of the other articles have gone into differences in VW's emissions versus others. Some use injections of liquid (urea) into the exhaust to knock down the NOx emissions. But it takes refilling of that fluid, which is another maintenance item. VW doesn't use that type of system.

http://www.discoverdef.com/def-overview/faq/#def

What is Diesel Exhaust Fluid (DEF)?

Diesel Exhaust Fluid (DEF) is a non-hazardous solution, which is 32.5% urea and 67.5% de-ionized water. DEF is sprayed into the exhaust stream of diesel vehicles to break down dangerous NOx emissions into harmless nitrogen and water. This system is called Selective Catalytic Reduction (SCR) and can be found on 2010 and later model year trucks and many diesel pickups and SUVs. DEF is not a fuel additive and never comes into contact with diesel. It is stored in a separate tank, typically with a blue filler cap.

The 2015 Chevy Cruze user manual discusses DEF for it's diesel version on page 19. As do the truck manuals, though those are much larger engines, so not quite comparable to the smaller VW cars.

http://www.chevrolet.com/content/dam/Chevrolet/northamerica/usa/nscwebsite/en/Home/Ownership/Manuals%20and%20Videos/02_pdf/GTK_2015_Cruze_22951275_A.pdf

[1BADDAT]

Some more info of this happening before

http://jalopnik.com/how-the-epa-won-1-billion-from-diesel-cheaters-long-be-1732109485

[metisdead]

An off topic post has been removed as well as a reply.