Dieselgate, the massive Volkswagen emissions cheating scandal revealed in September 2015, exposed how VW installed “defeat device” software in 11 million diesel vehicles worldwide to cheat emissions tests, triggering $30+ billion in fines, criminal charges, and devastating the diesel passenger car market.
The Revelation
On September 18, 2015, the EPA issued a Notice of Violation to Volkswagen Group for installing software that detected when vehicles underwent emissions testing and temporarily reduced pollution output. Under normal driving conditions, these “Clean Diesel” vehicles emitted up to 40 times the legal limit of nitrogen oxides (NOx), a key contributor to smog and respiratory disease.
Scale of Deception
The cheating affected 11 million vehicles globally: VW, Audi, Porsche, SEAT, and Škoda brands. In the U.S., 475,000 vehicles were involved. VW had marketed these diesels as environmentally friendly alternatives to hybrids, with celebrities like Leonardo DiCaprio praising their “Clean Diesel” technology.
How It Worked
Engineers programmed Engine Control Units to recognize emissions testing conditions (steering wheel unmoved, specific speed/temperature patterns). During tests, the engine operated in a “dyno calibration” mode meeting standards. Under real-world driving, the system prioritized performance and fuel economy over emissions compliance.
Executive Fallout
VW CEO Martin Winterkorn resigned days after revelation. U.S. prosecutors ultimately charged six executives with fraud; only one, engineer Oliver Schmidt, was arrested in the U.S. and sentenced to seven years in prison. German authorities proved less aggressive, frustrating American investigators.
Financial Devastation
Volkswagen paid over $30 billion in fines, settlements, and buybacks. U.S. owners received buyback offers or repair compensation averaging $7,000-$10,000 per vehicle. The scandal wiped billions from VW’s market capitalization and damaged the company’s reputation for German engineering excellence.
Diesel Market Collapse
Dieselgate accelerated diesel’s decline in passenger vehicles. European cities began banning older diesels. Manufacturers canceled diesel variants and pivoted to EVs. By 2020, diesel passenger car sales fell to insignificance in the U.S., with only a few pickup trucks and luxury SUVs offering the option.
Broader Industry Investigation
Dieselgate exposed wider automotive emissions manipulation. Fiat Chrysler, Mercedes-Benz, and BMW faced similar investigations. The scandal revealed that real-world emissions often exceeded test results across the industry, prompting regulatory reforms including stricter testing protocols.
Environmental Impact
The scandal’s environmental damage proved difficult to quantify but substantial. Millions of vehicles spewed illegal emissions for years, contributing to air quality problems and respiratory disease. Some studies estimated hundreds of premature deaths from excess NOx emissions.
The #Dieselgate hashtag documented this corporate crime: breaking news updates, owner outrage, settlement details, executive prosecutions, diesel market collapse, and the automotive industry’s forced pivot toward electrification as “clean diesel” revealed itself as fraud.
https://www.epa.gov/enforcement/volkswagen-clean-air-act-civil-settlement
https://www.nytimes.com/
https://www.bbc.com/news/business-34324772
https://www.autoblog.com/2020/09/18/volkswagen-emissions-scandal-five-years-later/