What you need to know about the VW scandal
Volkswagen has announced that irregularities on diesel emission readings extend to 11 million vehicles around the world. In light of the scandal engulfing the German automaker, here are the top 10 questions that need to be asked.
1) What models are affected by the EPA’s Notice of Violation (NOV) indicating excessive NOx emissions? Volkswagen Jetta, Jetta Sportwagon, Golf, Beetle, Beetle Convertible and Audi A3 from 2009 to 2015 are covered by the NOV, as well as 2014 and 2015 Volkswagen Passats. Only the above vehicles powered by VW’s 2.0-litre four-cylinder “Clean Diesel” engine with a TDI nameplate — the initials mean turbocharged direct injection — are affected. Note that, at this time, the Volkswagen Touareg and larger Audi diesels remain unaffected. 2) Is driving my 2009 to 2015 diesel-powered Volkswagen Jetta, Beetle, Golf or Passat (or one of the few diesel A3s Audi brought into Canada) dangerous? If by dangerous you mean will any immediate harm come from driving one of the afflicted TDI Volkswagens, the answer is no. Although Volkswagen is indeed in deep trouble with the EPA, the California Air Resources Bureau (CARB) and Environment Canada, the cars affected present no immediate danger to their owners, passengers or the public. VW Canada has stressed that there is no need for owners to bring their cars in for immediate servicing as there is no immediate cure.
Volkswagen has issued a statement verifying such: “Volkswagen is committed to fixing this issue as soon as possible. We want to assure customers and owners of these models that their automobiles are safe to drive, and we are working to develop a remedy that meets emissions standards and satisfies our loyal and valued customers.”
Environment Canada concurs, noting that, “Car owners should know that the effectiveness of a vehicle’s air pollutant control devices is not a safety issue.” 3) How long will it take to fix my Volkswagen TDI? That would be the $64,000 question of the moment, wouldn’t it? Right now, nobody knows. On the one hand, Volkswagen officials are saying it will take some time to figure out a cure (one would have thought that having poisoned the engine, they would know the antidote, but for now Volkswagen management is claiming ignorance). Meanwhile, some experts say it could take up to a year by the time Volkswagen engineers a fix, then the EPA, CARB and Environment Canada will need to approve it and all the afflicted cars will be called in to Volkswagen dealers for the upgrade. There are, after all, 11 million cars worldwide with the four-cylinder TDI engine, and 107,000 of them are here in Canada. 4) How much will the repairs cost for Volkswagen owners? Nothing. Nada. Volkswagen is most definitely on the hook for upgrading all the affected cars until they are in compliance. 5) Can I still buy a diesel Volkswagen in Canada? Yes, if the model you’re interested in is a Touareg. All other TDI VWs are in stop-sale mode for the foreseeable future until Volkswagen finds a cure for what ails its turbodiesels. As for the Touareg, while you can still buy one, the TDI version was not available through Volkswagen’s online configurator. The company apparently doesn’t want to confuse the issue by still marketing one of its diesel products.
6) Will the trade-in value of my 2009-to-2015 Volkswagen be affected?
If it is powered by a diesel en- gine, almost assuredly. Volkswagen has already pulled most of its new TDIs off the market and, in the U.S., where lawsuits are considered a cure-all, classaction suits are already being organized to compensate current owners for the perceived drop in their cars’ value. Exactly how much less your used Volkswagen will be worth is, right now, unknowable.
Much will depend on how many TDI loyalists are motivated by fuel economy and how many were attracted by Volkswagen’s former “clean diesel” environmental messaging. Some environmentally conscious TDI owners are already talking about dumping the TDIs; if they turn out to represent the majority of current TDI owners, then the bottom could drop out of the used Jetta and Golf market pretty fast. On the other hand, there has been plenty of feedback that many TDI owners aren’t overly bothered about the excessive NOx emissions as long as they get good fuel economy. If they prove to be the majority, then perhaps the hit won’t be too bad.
There’s also the small matter of re-registering the car. Some provinces and states require an emissions test as condition of the sale, which the affected models may not pass until they are fixed by Volkswagen. 7) What are the dangers of excessive nitrous oxide pollution? According to the EPA, “NOx pollution contributes to nitrogen dioxide, ground-level ozone, and fine particulate matter. Exposure to these pollutants has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses that can be serious enough to send people to the hospital. Exposure to ozone and particulate matter have also been associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly, and people with pre-existing respiratory disease are particularly at risk for health effects of these pollutants.”
These concerns are neither abstract nor fearmongering. Motor Mouth recently covered the effect that nitrogen oxide emissions are having in large European cities where dieselpowered cars are far more prevalent. 8) Are other brands of diesels afflicted with the same malady? There’s been much speculation that this is just the tip of the iceberg and that diesel manufacturers, especially those in Germany, may be equally culpable. It’s possible, of course, and there is talk of expanding the investigation to other manufacturers, but for now this sounds like headline grabbing. It’s worth noting that a diesel-powered BMW X5 xDrive 35d was also tested, along with the Volkswagens that failed so miserably, and the BMW easily passed the emissions test. There’s reason to be cautiously optimistic that this excessive gas might be limited to the Volkswagen Group. 9) Why did it take so long to discover this problem? Although the EPA “certifies” the emissions outputs of all cars, it does not actually test all of them. In fact, the automakers do the testing themselves, document the results and then send them to the EPA, which then — assuming it accepts the proof — offers a certificate of conformity. The EPA claims it randomly tests about 15 to 20 per cent of the cars in its own laboratories.
Note that this is the same process employed for the EPA’s fuel-economy ratings that resulted in Hyundai, Kia and Ford having to restate some of their data. In the case of Hyundai and Kia, it would appear that mistake was simply a calibration error. But in Ford’s case, the Blue Oval actually used a loophole in the system that allowed it to claim the C-Max had the same fuel economy as a Ford Fusion — despite being much heavier and having the aerodynamics of a brick — simply because it used the same powertrain. In actual testing, Ford had to reduce the C-Max’s EPA rating from 47 (U.S.) mpg to 40. 10) Will Volkswagen be penalized for this? Almost assuredly. The maximum penalty in the United States is US$37,500 per car. All told, that could amount to $18 billion. In Canada, however, the penalty could be much less. According to Environment Canada, “Canadian vehicle emission regulations are made under the authority of the Canadian Environmental Protection Act, 1999. Penalties for offences relating to violations of such regulations may be imposed following a conviction of the offender and under CEPA 1999 the maximum fine, which a large corporation would face for conviction on indictment, is $6 million for each offence. A sentencing court may order an offender to pay an additional fine if satisfied that a benefit was obtained as a result of the commission of the offence.”