Life after Volkswagen: Big changes coming?
Despite the latest scandal, this could actually result in safer driving for the public
It’s hard to shake off the grimness that has engulfed the auto industry these days.
The Volkswagen scandal is not only threatening to take down the German automaker, but also suppliers, dealers, even economies.
But is there any silver lining to the whole mess?
Might be tough to see it now, particularly if you are VW, or a VW owner.
I have seen some people already bringing up the dreaded B word — bankruptcy — as the investigations expand and lawsuits pile up. Some estimates show that the impacted diesel cars could lose as much as $5,000 of their value — a big blow to those who have a VW diesel sitting in their garage.
Every automotive crisis is different but if there’s one thing we have learned from past ones it’s that things do get better.
For instance, the Bridgestone/ Firestone tire recalls at the turn of the century gave us the tire pressure monitoring system and firmly entrenched the relationship between safety and tires among vehicle owners.
Other car industry fails starting right from the Chevrolet Corvair controversy in the 1960s to the downfall of General Motors and Chrysler have always managed to improve things for both consumers and companies.
So here are five ways the auto world might change once the current gloom clears away:
1. Tougher regulations: This is a no-brainer, really, and may not be necessarily good for automakers in the short term. It will eat into profits through greater compliance needs. But the VW crisis (and Hyundai’s mileage inflation last year) revealed the flaws of the current system. It’s one thing to make a passing grade in a single test but another to maintain similar results in a real-world environment.
Regulatory bodies may just introduce more spot checks to ensure that vehicles live up to automaker claims.
2. Understanding software: The Chrysler cyber-security recalls and now VW clearly point to the fact that our cars are rapidly changing — increasingly shifting from a mechanical to a digital environment. Going forward, software will be king in cars but very few outside the core automotive industry fully understand its implications. Should automakers reveal their codes to authorities? To what extent? Should a vehicle owner have access to that? Starting from regulators down to consumers, we have to start thinking about cars differently and create an appropriate regulatory framework that protects everyone’s interests.
3. More power to consumers: Electronics may be complex but they also produce information. And there’s technology at hand that may allow consumers to harness some of the data.
Various plug-in devices are available currently that can measure different vehicle metrics, from fuel efficiency to component wear. More people may start to use these gadgets.
4. Realistic mileage/efficiency goals: Are current fuel efficiency goals too tough? The 54.5 miles per gallon (4.3L per 100 km) U.S. target for 2025 may sound great on paper but the auto industry will be stretched to its limits to get there.
Aiming high is great, particularly with growing environmental concerns, but automakers are forced to cut corners in the process. Tougher regulations may result in pushbacks from car companies. 5. Shift to alternative powertrain: Too early to tell if diesel is dead but its future is surely dimming. European carmakers such as VW may have a lot invested in the powertrain but they will have to begin moving toward electric vehicles, hybrids or fuel cells to hedge their bets.
It’s one thing to make a passing grade in a single test but another to maintain similar results in a real-world environment