California Rejects Volkswagen Diesel Fix As Not Good Enough

This article highlights what I've been talking about since the Dieselgate scandal broke in September 2015. I stated two issues are at hand:
(1) VW uses defeat software that is ruled illegal by various authorities when tailpipe emissions are tested in the lab.
(2) If VW addresses this first issue, and can pass lab emissions tests legally, there is still the outstanding issue of emitting up to 40x legal levels when the vehicle is used in the real world, outside the lab.

By addressing the "letter of the law" but not the "spirit of the law", they can tend to #1 but not #2. This article asserts that US authorities are not satisfied with that approach, and I agree with them. It seems we both agree that real world use should result in fairly similar emissions as those tested for in the lab. That's why C.A.R.B. is unhappy with VW's proposal.

This also opens up a can of worms: If CARB isn't happy with VW legally passing an in-lab emissions test while producing up to 40x the legal levels of emissions in the real world (and rightfully so), then is VW the *ONLY* manufacturer who's doing this? As per other articles, independent and government tests say not, and they've named other manufacturers who legally pass in-lab emissions tests (i.e., without a cheat device) while emitting many times legally permitted levels outside of the lab.

My hope is that VW, and everyone else, clean up their act and actually stay within legal limits, in the lab, and even more importantly, when used in real world conditions.

CARB specifies a testing method - and the cars must meet that - not a real world measurement. THat has already been established in court when the EPA tried to change the test while keeping their mileage requirements. So - harping about real world results is of no use - since it does not apply to this case. Now Carb CAN change its method of testing - BUT - not retroactively.

The main issue is that VW is not giving government agencies access to all the information.

Without all the information: where, how, when, to what extent the cheat software works; there is no way to accurately determine if the software has been "neutralized". This goes to the information requests that VAG had the German government block.

THE EPA REJECTED ALSO!

I would not be surprised if vehicles that were bought in California, and states that use CARB guidelines, are bought back and others are fixed.

VAG's actions will lead to people thinking that this software cheat is on more than just diesel vehicles.

Do the semantics of the tests matter as much as the idea that VW, knowingly and purposely lied and cheated for YEARS about the viability of their product to their customers and dealers in the USA and across the world. Just today, the new Chairman of VW, Matthias Mueller suggested that VW never cheated or lied. At the Detroit Auto show, he said according to Bloomberg News "The issue, related to rigging engines to cheat on emissions tests, was instead caused by “a technical problem” and stemmed from a misinterpretation of U.S. law, the CEO said, appearing to downplay the company’s role in actively deceiving regulators. He then questioned the reporter’s assertion that Americans believe there are ethical issues within the company: “I cannot understand why you say that.” " The PR department at VW had to ask for an interview "re-do" so the Chairman could eat crow on his second re-do interview with NPR. Yet he instead asserted according to Bloomberg news at the NPR re-do interview that "“We have worked night and day to find solutions. “It’s a lot of work for the lawyers and also for the press department.” I suggest California and the EPA should never agree to a solution short of buying back all 480,000 cars at MSRP and force VW to replace the cars for free. Then perhaps the company will understand cynical lying and cheating do not pay and the Lawyers and PR department won't have to be so overworked on his behalf, after all he (Meuller) is the one that insisted the Porsche Diesel was not rigged to cheat, we now know that was a bold face lie.. Clearly VW the corporation is like a dead fish, rotting from the head and still believes that it is above the law... we have the Chairman's word on it...

It's all about the money now. Various state and federal agencies are going to hold VW's feet to the fire and let them twist in the wind followed by big money fines and/or big dollar settlements. Forgot who in the democratic party said it but this is an excellent example of "Never let a good crisis go to waste."

Brilliant! I like how you think.

Couple of small problems like the state of Saxony owns 20%, and the P families own 25% each. 70% of the shareholders aren't going to take it in the chops like USA shareholders had to do. They would stop selling in the states before doing that.

My first hand experience with German execs tells me they view Americans as loony gun-slinging cowboys, who let groups like the EPA tell them to do things that to the Germans are "illogical". They will stonewall a long time.

No court, U.S. or otherwise, would allow VAG to file for bankruptcy.

VAG has ample means, money and assets!!!!, to pay.

VW will never file for an "elective" bankruptcy (which is what GM did). When a company files for bankruptcy, its equity sharholders stock becomes worthless and new equity is issued to satisfy the claims of the company's creditors - the creditors end up owning the company and the previous owners are left with nothing.

The Piech's will not allow their investment to go to $Zero. Recall that Ford did not file for bankruptcy 7 years ago, while GM and Chrysler did file. If they did, it would wipe out their ownership position.

You can argue about whether or not GM was really "to big to fail," but there is NO DOUBT that, in Germany, VW is definitely in that category. So intertwined with the unions and state government that it will not be allowed to happen.