Dieselgate Shook the Auto World and Still Costs Consumers Past auto scandals like Takata airbags and GM ignition switches brought fines, bankruptcies, and lawsuits, yet business largely continued. In 2015, Dieselgate detonated in the US and spread worldwide, touching about 11 million cars. Reputations crumbled, managers resigned, and development strategies were rewritten across the industry. Buyers still pay for the consequences and will for a long time.
EA189 Software Trick Turned Lab Compliance into Roadside Pollution US environmental tests showed Volkswagen Group’s 2.0‑liter EA189 diesels cheated emissions in North America. Software detected lab conditions, adjusted fueling to meet limits, then reverted on the road, emitting many times more. These engines powered best‑selling Audi, Seat, Skoda, and Volkswagen models such as Golf, Passat, A3, and Octavia. The trick let cars pass tests they would fail in real driving.
Volkswagen’s Diesel Bet Fueled by Tech Upgrades and Racing Glory Volkswagen bet on diesel’s economy, durability, and driving character instead of spending on hybrids or hydrogen. The EA189 family launched in 2007 with 2.0 and later 1.6 liters, adopting Continental common‑rail, swirl flaps, a variable‑geometry BorgWarner turbo, and more complex exhaust cleaning. The company pushed diesels in the US and highlighted Audi’s R10 TDI endurance wins to sell the idea. The gamble turned into Russian roulette as Americans embraced diesels just before the blowup.
A Playbook of Punitive Scandals: From Toyota’s Acceleration to Targeting VW A precedent existed in Toyota’s unintended‑acceleration saga: a $1.2 billion fine and recalls, even as NASA found no electronic defects and later crashes traced to pedal confusion. Sales fell by a third, and the episode was seen as punishment for overtaking General Motors. Dieselgate followed a similar script against a strong, innovative rival amid a “green” agenda favoring Tesla over diesels. Prosecutors showed Volkswagen deliberately understated emissions, and management knew but hid it.
Global Backlash: Massive Recalls, Executive Ousters, and Uneven Penalties The blaze jumped from the US to Europe and beyond, triggering recalls of roughly 11 million diesels and sweeping out top leaders, including CEO Martin Winterkorn and R&D chiefs. In the US, Volkswagen paid about $10 billion to roughly half a million owners, plus $2.7 billion for environmental harm and $2 billion for green technologies. Germany imposed only recalls, officially citing different standards and unofficially avoiding harm to a national cash cow. US owners kept working cars and collected money, while the company absorbed huge costs.
The Domino Effect Hits Mercedes with Narrow “Temperature Window” Emissions Scrutiny expanded to Nissan, Renault, Fiat, and especially Mercedes, whose OM642 and OM651 diesels used software that kept emissions controls most effective only within a narrow temperature range matching test conditions. Arguments about engine protection failed, bringing an €870 million fine, mass recalls, and software updates that many owners said cut power and raised fuel use. In the US, Daimler agreed to about $1.5 billion in settlements. Both the manufacturer and customers paid for the outcome.
BMW Contains Damage by Framing Problems as Errors, Not Intent BMW faced class actions over X3 and X5 diesels (N47 and N57) and later 5‑ and 7‑Series sedans, with attention on lower emissions when air‑conditioning was off during tests. The company settled with crossover owners as for a production defect and recalled nearly 12,000 M550d and 750d sedans, claiming the wrong X5/X6 software was installed. It maintained there was no intent, calling it an error. Compared with rivals, costs were far lower and reputation damage minimal.
Test Cycles Invited Gaming While Regulators Looked Away Certification centered on the NEDC, a 1,180‑second roller test that invited optimization. Makers overinflated tires, filled engines with ultra‑thin oil, and tuned cars to survive the short cycle; hybrids began on electric power to post tiny consumption numbers. Authorities and media knew road emissions were higher, yet when the scandal hit, politicians blamed carmakers alone. Europe then introduced green zones that pushed buyers back to gasoline.
Complexity, Higher Costs, Quality Trade‑offs, and a Push Toward EVs—Yet Diesel Lingers To meet stricter norms, engines grew complicated with soot filters and multiple catalysts—three or even four on some V6 and V8s—making cars pricier to buy, service, and repair, and tethering them to dealer equipment and software. Cost cutting spread: fewer soft‑touch plastics, squeaks even in an S‑Class, thinner paint that chips to metal, and softer glass that scratches; ergonomics shifted from many buttons to one big screen. Brands turned to hybrids and EVs—Volkswagen’s MEB, Audi’s e‑tron, Mercedes EQ, and BMW’s NeoK—aiming for zero tailpipe emissions while glossing over battery production’s footprint. Volkswagen halted new ICE development under Euro‑7 pressure, but at Munich BMW, Renault, and Volkswagen urged life‑cycle accounting to keep cars affordable, hinting diesel will live on.