Volkswagen Case Summary

In mid-September 2015, the Volkswagen (VW) scandal erupted in the United States, creating a shockwave in the diesel automobile sector both domestic and international. US authorities accused VW of installing “defeat devices” in nearly half a million cars between 2009 and 2015 to make them appear less polluting than they actually are. Independent tests done by the International Council on Clean Transportation (ICCT) confirmed that a selection of VW vehicles were emitting up to 40 times more nitrogen oxides (NOx) in real-world driving than what was legally allowed. The revelation that the VW Group had installed software to falsify emission test results undermined the trust in the entire automobile industry. It resulted in stringent audits conducted by the United States, the European Union and other national governments which brought into light large discrepancies between diesel engine emission test results and real life emissions. As a result, a number of governments in the European Union are currently reconsidering fiscal advantages established to incentivise the sale of diesel vehicles. This has given the opportunity for European governments to reconsider the fiscal advantages linked to diesel vehicles. By nullifying the fiscal advantage diesel holds over gasoline, European governments are also supporting the local refining industry, built around gasoline production and suffering from a decline in competitiveness in a diesel oriented regional market.
The demand in transport continues to grow in the European Union as well as internationally. The …show more content…
This study will provide an overview of air quality trends in the European Union linked to road transport as well as measures both in place and under consideration to mitigate the environmental and health impacts of the consumption of diesel