Volkswagen Emissions Scandal: The Defeat Device Fraud

Introduction: Volkswagen's Broken Promises

Car companies have made many promises over the years — from reduced emissions and steady driving to fuel conservation. Car companies try to please the public with claims that are sometimes difficult to verify, and occasionally prove to be false. Volkswagen is one such company, having promised customers cars that produce fewer emissions. They did appear to deliver on that promise — but only under test conditions. In reality, their vehicles produced far higher emissions during normal driving than the company had ever disclosed.

Volkswagen has not been transparent about its emissions testing. In fact, the company cheated by giving the appearance that its cars created less pollution than they actually did. The U.S. Environmental Protection Agency (EPA) discovered the true figures and revealed them to the public: "The U.S. Environmental Protection Agency discovered that 482,000 VW diesel cars on American roads were emitting up to 40 times more toxic fumes than permitted — and VW has since admitted the cheat affects 11 million cars worldwide" (Topham, Clarke, Levett, Scruton, & Fidler, 2015). This revelation had serious consequences for the environment, as a far greater level of harmful NOx emissions — including nitrogen dioxide — had been released into the air without buyers' knowledge. The excess amount is estimated to fall between 250,000 and 1 million tons per year, a level experts suggest is comparable to the pollution produced by industry, power stations, and agriculture combined.

How the Defeat Device Worked

Although VW stated that their cars released less pollution than they actually did, the reduced readings were the product of a program embedded in the engine's software. This program allowed the car to detect whether it was being driven under test conditions. Only then would the vehicle activate its anti-pollution measures. The car was designed to inject a urea-based solution to neutralize harmful NOx compounds and to adjust exhaust flows and air-fuel ratios accordingly. VW labeled this program the "defeat device."

Because a car operates at a specific speed and follows a predictable pattern during emissions testing, the defeat device detected those test conditions by monitoring variables such as speed and road calibration. When it sensed a test environment, it reduced emissions. When experts tested VW vehicles and observed a dramatic increase in emissions during normal driving, they alerted the EPA — particularly after confirming that emission reductions occurred only while the vehicles were in test mode. In essence, VW engineered its cars to appear compliant during testing while doing nothing to reduce emissions at any other time.

Health and Environmental Consequences

Fumes containing NOx are dangerous, particularly when combined with other atmospheric compounds. Studies have demonstrated a clear link between high concentrations of NOx and an increase in premature deaths, due to elevated risks of heart disease and respiratory conditions. As Topham et al. (2015) noted, "long-term exposure to the pollution hastens death: research this year linked high levels of NOx to 9,500 premature deaths annually in London alone."

In response to these findings, VW was forced to recall nearly half a million cars in the United States and to halt sales of several of its models. "VW has issued a recall for its 482,000 cars in the U.S. and halted sales of its affected Audi A3, and VW Jetta, Beetle, Golf, and Passat diesel models" (Topham et al., 2015). In addition to the recall and sales halt, VW faced potential fines totaling eighteen billion dollars, with approximately eight billion dollars expected to go toward compensation and vehicle repairs. The company also faced the prospect of civil litigation and criminal charges.

Conclusion

History has shown that companies commit numerous acts of fraud. Now the public realizes that fraud can happen even with trusted car companies. Volkswagen was wrong to misrepresent the emissions performance of its vehicles. The company acted fraudulently by claiming reduced emissions and then delivering that reduction only under controlled test conditions. Had VW provided even a fraction of what it promised, the public outcry it faced might have been considerably less severe. Regardless, the actions of VW have prompted consumers and regulatory organizations alike to take a far more critical look before accepting the claims of automakers at face value.

References

Topham, G., Clarke, S., Levett, C., Scruton, P., & Fidler, M. (2015). The Volkswagen emissions scandal explained. The Guardian. Retrieved October 25, 2015, from http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars