World’s leading automobile manufacturers and the largest carmaker in Europe.

The Group comprises twelve brands from seven European countries.

Volkswagen Group is also active in other fields of business, manufacturing large-bore diesel engines for marine and stationary applications etc. Volkswagen Group offers a wide range of financial services.

Group’s goal: to offer safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.

“BUT WHAT HAPPENED THAT CHANGED THE WHOLE SCENARIO”

Volkswagen

“HOW DID IT HAPPEN”“WHY IT DID HAPPEN”

“WHEN IT DID HAPPEN”

VW ANTI POLLUTION SYSTEM2005:Parts of Volkswagen intended to purchase Mercedes but other parts rejected.2009:Volkswagen Group began migrating its light-duty passenger

vehicle turbocharged direct injection (TDI) diesel engines to a common-rail fuel injection system.

Allows for higher precision of fuel delivery using fuel injectorsFurther due to some unsuccessful inventions, the system failed to combine good fuel

economy with compliant emissions As of 2014, VW is registered with a Corporate Average Fuel Economy (CAFE) of 34-38

mpg.

EARLY WARNINGS:In 2011 European commission published a report which says that the vehicle emits more than limits

i.e. exceeding the criteria.European discrepancies:The independent body International Council on Clean Transportation (ICCT) commissioned a study

in 2014 and obtained data on 15 vehicles from three sources. The ICCT expected the cars to pass, and thought they would be able to use the results to

demonstrate to Europeans that it was possible to run diesels with cleaner emissionsThe study found emissions discrepancies in the diesel VW Passat and VW Jetta, and no

discrepancies in a BMW X5. They wanted to test a Mercedes as well, but could not get one.

Volkswagen Emission Scam - A Corporate Catastrophe

EA 189 TDI 2.0 Ltr Diesel Engine

What Unfolded One of the Biggest Frauds in the History of Automobiles.

PC: Hindustan TimesDr. Arvind Thiruvengadam and Dr. Marc Besch tested a rented Volkswagen Passat on a 2400 mile round trip from Los Angeles to Seattle in March 2013.

The NOx (mono nitrogen oxide) emission level of the Passat was five to 20 times higher than the European standards.

These test were repeated with Volkswagen Jetta too. It showed 15 to 35 times higher emissions than EPA standards, while a BMW X5 did fine.

Why would VW Cheat on Emission Tests ???

Another reason was to avoid the cost of additional hardware required to meet the US emission norms.

VW Emission Scam - RepercussionsMartin Winterkorn resigned as CEO, currently

Matthias Müller is holding the position.

VW’s stocks down by 20% after the news.

Volkswagen has to face a penalty of 18 Billion USD.

It has to recall 11mn vehicles affected by the emissions violations in order to fix them which can take 2 or 3 years.

Martin Winterkorn, Former CEO VW

Contd…

VW has set aside 7.3 Billion USD as a preliminary estimate for repairs.

This scandal wiped out 25 Billion euros of market capitalization.

The 2009 Volkswagen Jetta Diesel Sedan was chosen Green Car of the Year. The award was rescinded in early October 2015.

VW scandal caused nearly 1m tonnes of extra pollution, analysis shows.

Matthias Müller, CEO VW

Reaction of Media, Public and Political FiguresIt received a lot of negative media exposure.Reuters said that the it will have adverse impact on

German economy.German Chancellor Angela Merkel stated she hoped

that all facts in the matter would be made known promptly, urging “complete transparency”.

French Finance Minister, called for an investigation of diesel-powered cars in the entire continent.

When it comes to public:50% have a positive or very positive impression of

Volkswagen.Whereas 7.5% have a very negative impression.

“Our company was dishonest, with the EPA and with all of you, we have totally screwed up. We have to make things right, with the government, the public, our customers, our employees and also very important, our dealers. We are committed to do what must be done, and to begin to restore your trust”

- Michael Horn (CEO, Volkswagen Group of America)