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hatrack

(59,583 posts)
Tue Sep 22, 2015, 08:34 AM Sep 2015

VW Execs Lied, Repeatedly, For 1 Year+, Re. Emissions - And Got $51 Million "Clean" Diesel Subsidy

Volkswagen executives told environmental regulators for more than a year that discrepancies between pollution tests on its diesel cars and the starkly higher levels out on the road were a technical error, not a deliberate attempt to deceive Washington officials.

But this month, the executives made a startling admission: The diesel vehicles it sold in the United States used software meant to cheat on the tests.

VW made the admission only when the Environmental Protection Agency took the extraordinary action of threatening to withhold approval for the company’s 2016 Volkswagen and Audi diesel models, according to letters sent to company officials by the E.P.A. and California regulators.

Since that deception became public on Friday, Volkswagen has scrambled to conduct damage control. The chief executive apologized and the company said it would stop selling diesel-powered cars from the 2015 and 2016 model years.

EDIT

http://www.nytimes.com/2015/09/22/business/it-took-epa-pressure-to-get-vw-to-admit-fault.html

The federal government paid out as much as $51 million in green car subsidies for Volkswagen diesel vehicles based on falsified pollution test results, according to a Times analysis of the federal incentives.

On Friday, federal and state regulators said the German automaker used software in 482,000 of its diesel vehicles since the 2009 model year to cheat on U.S. emissions tests. Environmental Protection Agency officials said Monday that the U.S. Department of Justice is also investigating.

The Times analysis matched Internal Revenue Service data with Volkswagen sales figures to determine the value of subsidies VW diesel buyers were eligible to collect in 2009, the first and only year the vehicles qualified. The $1,300 tax credit would have been available to buyers of about 39,500 Jetta and Jetta Sportwagen models that sold that year, according to Motor Intelligence, an industry research firm.

"It is really unfortunate," said Luke Tonachel, director of clean vehicles and fuels project at the Natural Resources Defense Council. "The government has been effective to help advance clean technologies, but it is a waste of taxpayer dollars when they aren't actually helping to clean the environment."

EDIT

http://www.latimes.com/business/autos/la-fi-vw-subsidies-20150922-story.html

12 replies = new reply since forum marked as read
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VW Execs Lied, Repeatedly, For 1 Year+, Re. Emissions - And Got $51 Million "Clean" Diesel Subsidy (Original Post) hatrack Sep 2015 OP
A $51 million corporate welfare success story. n/t PoliticAverse Sep 2015 #1
VW are just beginners - Ford pocketed $2.5 BILLION from US taxpayers ... Nihil Sep 2015 #6
Interesting on GM and Ford madokie Sep 2015 #9
I remembered reading about this on DU a little while back ... Nihil Sep 2015 #11
Thanks madokie Sep 2015 #12
So they'll be returning that money yeah? abelenkpe Sep 2015 #2
What about the car buyers? procon Sep 2015 #3
I sure they'll be a huge class action suit... perhaps the lawyers will get billions... PoliticAverse Sep 2015 #5
That was why we bought the Jetta stuntcat Sep 2015 #7
Don't get depressed - you were (and are) still being good ... Nihil Sep 2015 #8
Not diesel here but gasoline powered madokie Sep 2015 #10
I wouldn't bet on this stopping with VW GliderGuider Sep 2015 #4
 

Nihil

(13,508 posts)
6. VW are just beginners - Ford pocketed $2.5 BILLION from US taxpayers ...
Wed Sep 23, 2015, 06:22 AM
Sep 2015

... GM $3.5 billion and even those pale into insignificance compared
to the $13 billion that Boeing got for assorted taxpayer bilking schemes.

Not in any way a defence of Volkswagen's cheating but just putting an
element of perspective into the money side.


 

Nihil

(13,508 posts)
11. I remembered reading about this on DU a little while back ...
Fri Sep 25, 2015, 11:01 AM
Sep 2015

... so had a quick google to find some numbers. First "public" site
(as in someone I'd heard of rather than Joe's Blog or whatever)
was the WaPo so you might find better ones if you dig further:

>> Of all the state and local subsidy dollars tracked, half went to the
>> top 30 companies, led by Boeing. The aerospace giant alone has
>> received $13 billion in subsidies. Chip-maker Intel and metal giant
>> Alcoa each received nearly $6 billion. General Motors scored $3.7 billion
>> and Ford secured $2.5 billion.
(http://www.washingtonpost.com/blogs/govbeat/wp/2015/03/17/the-united-states-of-subsidies-the-biggest-corporate-winners-in-each-state/)

If those figures were wrong, feel free to correct them - I was simply
looking for data to quantify the ridiculous difference in scale between
the VW scam and the "home-grown" ones to highlight the hypocrisy
in some of the more hyperbolic posters on the VW threads.

(In response to your other reply, I like the Focus too: my nephew has
one, as does a neighbour - so I have no problem with their current
"sensible car" products!)


abelenkpe

(9,933 posts)
2. So they'll be returning that money yeah?
Tue Sep 22, 2015, 09:01 AM
Sep 2015

And then fined a hefty amount to stop such shennanigans in the future? Maybe jail some who instigated the scam?

procon

(15,805 posts)
3. What about the car buyers?
Tue Sep 22, 2015, 09:29 AM
Sep 2015

People paid a lot of money because they thought they were buying environmentally green cars, and now they find out they were conned. Is VW going to give them a full refund?

PoliticAverse

(26,366 posts)
5. I sure they'll be a huge class action suit... perhaps the lawyers will get billions...
Tue Sep 22, 2015, 01:45 PM
Sep 2015

and the customers a 10% coupon on their next VW purchase.

stuntcat

(12,022 posts)
7. That was why we bought the Jetta
Wed Sep 23, 2015, 09:11 AM
Sep 2015

For years we've thought we were being so good. Now it's just depressing. The value of the cars is tanking too.

 

Nihil

(13,508 posts)
8. Don't get depressed - you were (and are) still being good ...
Thu Sep 24, 2015, 04:32 AM
Sep 2015

... just not as good as you were led to believe.



As usual, the media (and many commentators on DU) are lacking a sense
of perspective about this (a problem fanned by the hypocrisy of the EPA
along with the willing compliance of the administration desperate to be seen
to be doing something positive about the environment).

You are still way ahead of all the wankers in their trucks, their Hummers,
their "macho machines" and the majority of the old crocks on the road.

Just let their schadenfreude wash over you - it will not last long as things
will suddenly go quiet when the breadth of the problem across even just
the vehicle market starts to get recognised ...

And at least your manufacturer's problems didn't kill anyone ... VW don't
have a fund set aside to pay off the families of those killed by their defects
rather than fix them ...

madokie

(51,076 posts)
10. Not diesel here but gasoline powered
Fri Sep 25, 2015, 07:01 AM
Sep 2015

we bought a 2014 Ford Focus in August of 2013 and we get a consistent mid to upper thirty miles per gallon. Dividing miles driven by how many gallons of fuel used not relying on the computer to come up with those figures. Its full of pep too. No laggard in the performance department. How is ford doing that I wonder. Is it lying about the emissions we're polluting the air with I wonder? It seats four adults, not small people either, and on a drive up in the ozarks where you can look over your shoulder in places and see the road a half mile behind you that is right beside you plus up and down hills. In other words this is hilly country with crooked roads and we got 37.8 for sure MPGs on a 341 mile drive.

 

GliderGuider

(21,088 posts)
4. I wouldn't bet on this stopping with VW
Tue Sep 22, 2015, 09:53 AM
Sep 2015

Ilargi over at The Automatic Earth hits the nail on the head:

We must first of all look at the reasons why Volkswagen went as far as to develop specialized software systems to hide real emissions. Surely it must have tried to develop engines that would not emit the 10-40 times legal limits they have been found to do at present, before turning to its programmers to ‘solve’ the issue.

And if Volkswagen couldn’t make those engines, why should other carmakers be able to? They all have the ability to take each other’s vehicles apart and find out exactly how they function. It’s not an industry that has too many secrets lying around. Once your product’s on the market, your secrets are too.
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