1:34
- ABC News
- September 25, 2015
Why Volkswagen May Have Risked It All by Allegedly Cheating on Emissions
Volkswagen was lauded as a "sustainable" and "clean" company weeks earlier.
Nerad explained that Volkswagen was facing more restrictive emissions standards for diesels than it had encountered before.
\"At the same time restrictive emissions standards are typically challenging to drivability and fuel economy,\" Nerad said. \"This put Volkswagen engineers in a bind, while it prompted other manufacturers to delay or cancel their plans to introduce diesel engines in the U.S.”
Regulators say Volkswagen's diesel cars emit nitrogen oxides, or NOx, at 10 to 40 times the federal limit. The government accused Volkswagen of using illegal \"defeat device\" software that causes 482,000 of its diesel cars to cheat on emissions standards tests. Several lawsuits have been filed against Volkswagen and CEO Martin Winterkorn resigned from the company on Wednesday.
\"As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group,\" Winterkorn said in a statement. \"I am doing this in the interests of the company even though I am not aware of any wrong doing on my part.\"
Volkswagen told dealers this week to halt sales of both new vehicles and certified pre-owned cars equipped with the 4-cylinder 2.0 TDI engine. Audi, which is owned by Volkswagen, also implemented a stop-sale for its model with that same engine, the A3 2.0 TDI.
Volkswagen's troubles could also cause it to lose the \"world's most sustainable automotive group\" title.
Earlier this month Volkswagen was named the world's most sustainable automaker for the second time by RobecoSAM. The German automaker ranked No. 1 in terms of climate strategy, conduct, compliance and anti-corruption compared to 33 other car companies.
Get real-time updates as this story unfolds. To start, just \"star\" this story in ABC News' phone app. Download ABC News for iPhone here or ABC News for Android here.
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