Volkswagen Emissions Scandal Widens: CO2 Emissions Tests Rigged

Strategic Insights -

Volkswagen's emission scandal just got a lot worse, as the company admitted to manipulating CO2 emissions tests, implying that the company was using defeat devices to artificially lower emissions during testing. The affected vehicles include around 800,000 Volkswagen, Audi, Seat, and Skoda cars with 1.4-litre engines, mostly diesel-powered but also including some petrol engines. This revelation raises concerns that owners may have been misled about their cars' fuel efficiency, potentially leading to increased costs for compensation. The estimated economic risks for Volkswagen total €2 billion, a significant increase from the €609 per car set aside for the diesel emissions scandal.

Key Takeaways:

  • Volkswagen has admitted to irregularities in CO2 emissions tests, with some models' emissions levels set too low during testing.
  • Around 800,000 vehicles are involved, with 1.4-litre engines, mostly diesel-powered but also including some petrol engines.
  • The affected models include VW Polos and Golfs, as well as some Audi, Seat, and Skoda cars.
  • The company has indicated that the 800,000 cars are separate from the 11 million vehicles involved in the diesel emissions scandal.
  • Volkswagen faces estimated economic risks of €2 billion, with potential costs including compensation for owners and tax credits.
  • The revelation may have a more significant impact on the brand than the diesel emissions scandal due to its relation to the performance of the vehicle.
  • Shares in VW fell by 10% on Wednesday following the announcement.

Statistics:

  • Estimated economic risks for Volkswagen: €2 billion.
  • Number of affected vehicles: around 800,000.
  • Estimated costs per vehicle: €2,500.
  • Number of vehicles involved in the diesel emissions scandal: 11 million.
  • Economic risks for the diesel emissions scandal: €609 per car.

Sources:

  • Bloomberg: Volkswagen Admits Manipulating CO2 Emissions Tests (no date mentioned)
  • Reuters: Volkswagen says found irregularities in CO2 emissions testing (no date mentioned)
  • Volkswagen official statement (no date mentioned)