Will VW Survive The Emissions Debacle?

Wednesday, 27. January 2016

We all knew that VW would be eased somewhat off the hook if another manufacturer was found to be fiddling with emissions but is it getting too late? The Americans are hell bent, it would seem, on bringing down VW whilst electing the most bizarre human being on the planet as its president.
Is it just me fixated on his amazing hair art every time he appears on the TV, trying to work out where it starts and where it finishes? Just me then! But with Renault coming to the rescue is it all too late? The chances are that VW will survive, not without a lot of pain but as the biggest manufacturer in the world it is highly unlikely that the company will collapse.
In fact if they continue heavily discounting cars whilst producing some of the best on the road (emissions aside) I can see them growing even bigger. So what has happened at Renault? Well so far they have recalled 15,000 cars because of ’emission inconsistencies’ in order to have them checked.
It is said that there is a difference between test rig readings and real life readings – what a surprise. But this isn’t down to a deliberate attempt to fool the testing equipment as was the case with VW. A question was raised with regard to Peugeot Citroen and why they didn’t seem to have the same problems? The answer was in the technology. Renault uses a somewhat dated and cheaper method of reducing NOx by using what they refer to as an NOx absorber or NOx trap.
It captures Nitrogen Dioxide and burns it as opposed to the Peugeot Citroen method called Selective Catalytic Reduction (SCR). Whilst Renault is using the new method on its trucks it is yet to move across with its cars. The old method is cheaper and easier to fit but also makes the car less efficient and can lead to variations in emissions. I can’t see much happening to Renault as a result, especially as they are already in the throes of moving across to the better and more stable method anyway.
It also means that VW are still hanging out to dry! Incidentally the EU is working flat out (yer right) to come up with a new emissions testing regime which will closer reflect ‘normal’ driving conditions – whatever they are! By Graham Hill

 

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VW Looking To The Future Beyond The Scandal

Thursday, 19. November 2015

As VW continue to fight fire as things get worse following the latest revelations that 800,000 petrol cars have incorrectly stated CO2 emissions. In a statement from VW following a question about the effects on personal tax of those driving affected company cars, they have said that they will stand any additional CO2 based tax due from drivers and went further asking that the Governments involved charge VW direct rather than involve drivers.

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We are yet to see the responses from Governments across Europe – this is getting very messy. In addition VW have issued an action plan. The new chairman, Matthias Muller, said in the plan, ‘We have to look beyond the current situation and create the conditions for Volkswagen’s successful further development.’ There’s an optimist for you.

The first of the 5 point action plan – aimed at the re-alignment of the group, is to support customers affected by what VW is now referring to as ‘the diesel issue’. The company is working towards finding effective technical solutions to help its models to meet historical Euro4 and Euro5 emissions limits which it plans to roll out in January 2016 having liaised with the German Federal Motor Transport Authority.

Second on the action plan list is to carry out a thorough investigation in to how the software that was allegedly installed to falsify emission figures, during certain testing conditions, came into existence and why. Muller added, ‘We must uncover the truth and learn from it’. They have also recruited audit firm Deloitte to assist with the investigations and added that ‘those responsible for what has happened must face severe consequences’.

Third on the list is a total re-organisation of the group in an attempt to ensure that this can never happen again. Group management is to be decentralised to a greater extent in the future with individual brands and regions being given more independence. Muller said that the company would examine the portfolio of more than 300 models with a view to examine the contributions made by each model to earnings.

They will also look into ‘cross brand strategies’. The fourth ambition is one of openness. This will involve a realignment of the Group’s culture and management behaviour with a focus on retaining ‘the pursuit of perfection’ and employees’ commitment to the company. The company will change the way the business handles and communicates mistakes with an aim to create ‘a culture of openness and cooperation’.

Finally VW Group, which had a 2018 strategy, has replaced it with a 2025 strategy shifting emphasis from sales numbers to building ‘qualitative growth’. Muller revealed that they would be working on the new strategy over the next few months to be unveiled in mid 2016.

I have written several articles recently asking whether this ends with emissions. In the past manufacturers have been trusted to keep us safe in our cars and meet the many standards laid down by Governments. But is this the tip of the iceberg? Will other manufacturers be caught out fiddling emissions but worse have any of them been fiddling safety tests in order to sell more cars? By Graham Hill

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