Photo: Volkswagen
Volkswagen tried to save money by applying an unauthorized modification in the ECUs of its diesel-engined cars to avoid developing more advanced systems to reduce their emissions.
The scheme worked like a charm for years, across the globe, until they got caught. The German corporation admitted it cheated with its EA189-series of four-cylinder engines, but it was soon discovered that those were not the only cheating units in the line-up.
It all turned out into a scandal that was dubbed Dieselgate, and authorities in several countries are punishing the conglomerate for its deceit.
After the USA took Volkswagen to court and settled a deal that will make the automaker fix all of the affected vehicles sold in the states, the company will also have to pay fines, along with the application of a compensation scheme for the owners who did not know of its cheating ways.
France is reportedly planning to fine the German company with 19.7 billion euros (approx. $22.1 billion), according to Le Monde. The newspaper’s unnamed sources told reporters that the state wants to fine the automaker, and that the modifications VW made to its diesels amount to an estimated fraud of 22.78 billion euros in taxes and other costs.
The appraised value of the penalty represents 10% of Volkswagen’s turnover in 2012, 2013, and 2014. The percentage is not random, but the maximum legal amount allowed in the country for corporate fraud.
It is unclear when will we have an official confirmation of the indented fine, or if VW’s lawyers will reach a settlement with the French government.
Regardless, the entire scandal has led to intensive scrutiny of all oil-burners sold across the globe. The EPA and California Air Resources Board in the USA have decided to increase checks for any new approval requests, and rival automakers are considering ditching diesel engined models in the country.
Meanwhile, other states are considering banning diesels in their cities, along with other means of preventing automakers from committing fraud in matters like these.
It all turned out into a scandal that was dubbed Dieselgate, and authorities in several countries are punishing the conglomerate for its deceit.
After the USA took Volkswagen to court and settled a deal that will make the automaker fix all of the affected vehicles sold in the states, the company will also have to pay fines, along with the application of a compensation scheme for the owners who did not know of its cheating ways.
France is reportedly planning to fine the German company with 19.7 billion euros (approx. $22.1 billion), according to Le Monde. The newspaper’s unnamed sources told reporters that the state wants to fine the automaker, and that the modifications VW made to its diesels amount to an estimated fraud of 22.78 billion euros in taxes and other costs.
The appraised value of the penalty represents 10% of Volkswagen’s turnover in 2012, 2013, and 2014. The percentage is not random, but the maximum legal amount allowed in the country for corporate fraud.
It is unclear when will we have an official confirmation of the indented fine, or if VW’s lawyers will reach a settlement with the French government.
Regardless, the entire scandal has led to intensive scrutiny of all oil-burners sold across the globe. The EPA and California Air Resources Board in the USA have decided to increase checks for any new approval requests, and rival automakers are considering ditching diesel engined models in the country.
Meanwhile, other states are considering banning diesels in their cities, along with other means of preventing automakers from committing fraud in matters like these.
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