The Latest on VW's Diesel Scandal

When the VW diesel emissions cheat scandal erupted last September, it left long-term shockwaves in its wake. After the United States Environmental Protection Agency (EPA) issued the German automaker with a notice of violation of the Clean Air Act, VW’s reputation was tarnished to the point of destruction.

Feds flush out corporate criminals

Now, the company’s controversial representatives are blowing more smoke over the rubble. On January 7, senior VW executive Oliver Schmidt was detained by federal police as he attempted to jet back to Germany. As head of VW’s US regulatory compliance office from 2014 to 2015, he was arrested on charges of conspiracy for fraudulent reporting on vehicle emissions. Just days later, five more executives were impeached by the US Justice Department. Grounds included multiple counts of conspiracy, as well as intent to defraud.

On the same day, VW agreed to fork out a cool US$4.3 billion in a bid to “resolve” the string of criminal, environmental and civil claims triggered by the ‘dieselgate’ scandal. This is on top of the US$10 billion it was forced to use to buy back the 500,000 US vehicles that were affected by the scandal.

VW scrambles to rebuild reputation

As expected, VW is desperately attempting to put the scandal behind it, and rebuild its reputation.

Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen Group echoes this sentiment, assuring the public that "We are no longer the same company we were 16 months ago. The Supervisory Board and the Management Board have faced up to past actions."

VW CEO Matthias Müller has also been candid about the company’s offences, and its intentions.

"Volkswagen deeply regrets the behaviour that gave rise to the diesel crisis. Since all of this came to light, we have worked tirelessly to make things right for our affected customers and have already achieved some progress on this path," he said in a recent report issued by the company.

Execs criticised for shallow words

Though despite appearances, some critics have accused Müller of dodging responsibility. They maintain that terms like ‘behaviour’ and ‘crisis’ fail to describe the scope of the situation, and the severity of the offence. While the statement suggests otherwise, the reality is that VW intentionally polluted the environment, defrauded millions of customers and deliberately deceived government regulatory bodies. As a result, critics are urging the company to stop distributing manicured statements, and instead opt for the truth.  

While some companies are attempting to dodge the eco revolution, others are working tirelessly to make the transition. ‘Can fossil fuels and green energy work hand-in-hand?’ treats readers to expert commentary from Gioia Falcone, a Professor and Head of the Oil and Gas Engineering Centre at Cranfield University.