Monday, September 21, 2015

Seven questions about the Volkswagen case – Les Echos

What is accused Volkswagen?

The United States and the State of California have accused Friday the German manufacturer to have deliberately circumvented the rules in force in the fight against air pollution. The US Environmental Protection Agency (EPA) accuses the group of having diesel models equipped with VW and Audi, between 2009 and 2015, with software to bypass emission tests of some air pollutants.

This is the University of West Virginia who discovered the pot to the roses. Commissioned in spring 2014 to study alternative energy, the lab could reproduce in real traffic conditions, low forward by Volkswagen emissions. Alerted, the EPA then took over investigations with its Californian counterpart but, until then, Volkswagen had denied the charges. Before finally being forced to recognize, given the evidence gathered by the authorities.



Why such a heavy fine?

VW total risk a fine of $ 18 billion (€ 16 billion), or 37,500 dollars per vehicle that is not up to standard, according to pollution control law. This would be the highest fine ever administered by EPA. In November 2014, EPA had sanctioned South Korean Hyundai and Kia to a fine of $ 100 million for having underestimated the fuel consumption of their vehicles. Before that, in the 1990s, seven diesel engine manufacturers had to pay $ 1 billion for using tools deceiving pollution controls.

Other automakers were recently sanctioned in the United States, but for technical faults, not by the US Agency for Environmental Protection: Toyota last year was sentenced to a fine of $ 1.2 billion for a problem on its accelerators and General Motors received it, a fine of 900 million Thursday for hiding for ten years a defect on some models.

This intransigence EPA is in the offensive of the Obama administration in the fight against global warming. New objectives in the fight against emissions were set in the summer, especially for coal plants, but also automobile pollution. Clearly, this survey sounds like a warning for other manufacturers who might be tempted to circumvent the law.



How was working this spyware?

The computer can be used for everything. It is a small “sophisticated algorithm” , according to the US Environmental Protection Agency (EPA), which has allowed Volkswagen to rig the results of emissions testing performed by the authorities American control. In practice, this software (very discreet) enables 100% of the car’s pollution control equipment only when it passes official controls. “Basically, these cars were equipped with software that cut the emission control mechanism in normal traffic, and activating if emission test” , has annoyed the EPA. Specifically, the software “flange” pollution control equipment of the car in its use of every day – and it may well roll on American roads by releasing such a nitrogen oxide levels (NOx) almost 40 times the standard. If Volkswagen admitted deception, the German group did not specify how the offending software. Hardly can we imagine that it could be triggered by GPS coordinates, or based on the use of the car – laboratory tests performed to meet a specific course

How reacted Volkswagen?

The manufacturer has acknowledged the facts quickly and launched an external investigation on Sunday. “I personally regret deeply disappointed that we have the trust of our customers and the public” , said CEO Martin Winterkorn. He promised that the group would cooperate with the US for “establish the facts quickly and transparently” and would do “all to fully regain the trust that so many people [it] agreed “. A mission that will be difficult: on Monday morning, as the stock market fell sharply, losing more than 19% at midday, the biggest plunge in session in its history. The group will now have to recall almost 500,000 cars of different models (Audi A3, Jetta, Beetle, Golf and Passat) sold since 2008 in the United States. And asked its dealers to stop selling its four-cylinder diesel models of its VW and Audi brands in the United States.

And now, what will it happen for VW?

For now, the authorities US continuing their investigation in cooperation with Volkswagen and the fine is not yet confirmed. But the deal fell bad for Volkswagen, already affected by internal bickering for months. The subject will be well discussed by the 20 members of Friday’s supervisory board and could lead to the departure of CEO Martin Winterkorn, who headed the VW brand from 2007 to 2015, a period that covers the six years covered by US investigations .

The other bad news for the future of the group in the United States. Encouraged by the tightening of regulations, which requires manufacturers to produce fuel-efficient vehicles, VW had staked everything on diesel in the US, where these types of engines are uncommon. But his models are perceived as more expensive than the competition in a highly competitive environment. The group has already cease until further notice the sale of its diesel models in the US, which accounted for 23% of its total sales in August. A blow to the German, who was betting heavily on that country to take the world leader in automotive Toyota.



What does such a fine for the group?

If the fine is finally applied, the amount would thus represent $ 18 billion (16 billion euros), representing 9% of the annual turnover Group in 2014! As for the title of VW stock drops on Monday morning, it is equivalent to a loss of 16.9 billion euros in funding, which is more than the total capitalization of a group like Peugeot … Eventually, VW will also face other costs. Vehicle recalls, stop sale in the United States, possible prosecution of vehicle owners, impact on future sales, etc.

Other manufacturers they be affected?

The competitors of the German manufacturer were quick to disassociate themselves from the case. Monday morning, the chief executive of Daimler, the parent company of Mercedes-Benz, felt that the matter did not concern him. “I have a vague idea of ​​what is happening and I think we are not concerned” , said Dieter Zetsche. “But it is too early to say anything definitive about it. “ The group added in a statement it had no knowledge of an investigation to its US subsidiary. BMW also said not to be concerned by this case. But already, European manufacturers are assigned Exchange: Automobile Stoxx 600 index fell by over 6% on Monday afternoon

For its part, the government. has announced German carmakers expect they communicate any information as to whether the German and European data on pollutant emissions could also have been distorted.

LikeTweet

No comments:

Post a Comment