VOLKSWAGEN IS IN A WORLD OF TROUBLE AFTER THE
ENVIRONMENTAL PROTECTION AGENCY DISCOVERED THAT THEY WERE
USING TRICKS IN ORDER TO PASS EMISSIONS TESTS.
THE CARS IN QUESTION HERE ARE SPECIFICALLY DIESEL CARS,
WHICH IS WHY THIS WHOLE STORY IS REFERRED TO AS DIESEL GATE.
ON FRIDAY THE EPA SAID VOLKSWAGEN FOUND A WAY TO
CIRCUMVENT EMISSIONS REQUIREMENTS DURING TESTING
WITH A DEVICE THAT LETS THE TDI CARS KNOW WHEN
THEY ARE BEING TESTED AND THEN EMIT FAR LESS THAN NORMAL.
BASICALLY THESE CARS ARE DRIVING AROUND TOWN EMITTING ALL OF
THESE POLLUTANTS, SPECIFICALLY SOMETHING KNOWN AS NITROGEN
OXIDE.
AS SOON AS THEY ARE BEING TESTED, THERE IS A DEVICE
THAT MAKES THEM EMIT LESS.
WHEN THE DEVICE IS NOT WORKING, AND THE CAR IS OPERATING
REGULARLY, THEY EMIT 10 TO 40 TIMES MORE THAN THE
ALLOWABLE LEGAL LEVELS OF CERTAIN POLLUTANTS.
COMPARED WITH OTHER RUN-INS BETWEEN THE EPA AND AUTOMAKERS,
VW'S ALLEGED VIOLATION STANDS OUT IN ITS BRAZENNESS.
THE INCREDIBLE THING IS THE WAY THEY GOT OUTED.
THERE WAS A SMALL ORGANIZATION IN GERMANY TRYING TO PROVE
THAT THESE CARS ARE VERY FUEL-EFFICIENT AND THEY
MIGHT BE A GOOD MODEL IN TERMS OF PROTECTING THE
ENVIRONMENT AND SAVING ENERGY.
THEY WANTED TO TEST OUT THESE VOLKSWAGEN VEHICLES TO MAKE
THAT POINT.
IN THE PROCESS OF DOING THAT, THEY FOUND ALL THESE
INCONSISTENCIES.
THEY HAD NO DESIRE TO HELP THEM.
THEY WANTED TO DEFEND VOLKSWAGEN, AND IT TURNS
OUT THAT THEY WERE OUTED.
I WANT TO TELL YOU WHICH CARS ARE IN QUESTION.
THEY ARE CARS FROM 2009 TO 2015 AND INCLUDES THE TDI
VOLKSWAGEN GOLF, JETTA, BEETLE, AND ALSO THE PASSAT.
>> FIRST OF ALL, I AM SHOCKED THAT THIS IS NOT ABOUT SHAQ.
THE APOLOGY OF VOLKSWAGEN IN THEIR EFFORTS TO TRY TO
MAKE THIS RIGHT ARE SIGNIFICANT.
THE CEO SAID HE HAS NOTHING TO DO WITH IT, BUT I WOULD
IMMEDIATELY FIRE MYSELF.
>> THE CEO HAS DECIDED TO RESIGN AND SAYS HE HAD NO IDEA
THIS WAS GOING ON.
THE EXECUTIVE BOARD HAS RELEASED A LIST OF WHAT THEY INTEND
TO DO TO MAKE THINGS RIGHT.
THROUGHOUT THAT LIST THEY SAY THE CEO HAD NO IDEA.
BUT WE RESPECT HIS RESIGNATION AND WE WILL LET HIM GO.
>> IF THIS WAS A U.S. COMPANY I WOULD BE SKEPTICAL.
ALSO, THE BOARD EXPLAINED THAT THEY ARE GOING TO DO THEIR
DAMNEDEST TO FIND OUT WHO MADE THIS DECISION AND HELP
PROSECUTE THEM CRIMINALLY.
WHEN WE HAD A GLOBAL ECONOMIC CATASTROPHE CAUSED BY U.S.
BANKING COMPANIES, NOBODY WENT TO JAIL ETC.
VOLKSWAGEN'S
REACTION TO THIS IS REFRESHING.
IT APPEARS THAT THEY ARE GOING TO WORK WITH THE GOVERNMENT
TO FIND OUT WHAT HAPPENED.
ON THE OTHER HAND, THIS IS NOT A MISTAKE.
THIS IS SOFTWARE THAT THEY PROGRAMMED.
YOU CAN'T ACCIDENTALLY PROGRAM A PIECE OF SOFTWARE TO DO
EXACTLY WHAT YOU WANTED IT TO DO, WHICH IS DEFEAT
ENVIRONMENTAL REGULATIONS.
WHOEVER DID IT CLEARLY DID IT ON
PURPOSE.
>>YEAH.
>> IT'S NOT LIKE SOME COMPUTER PROGRAMMER SAID OH, LET ME
SNEAK THIS INTO THE CODE.
ON RAND PAUL'S APP YOU CAN PLAY SPACE INVADERS.
BUT THIS IS A CAR.
IN ORDER TO HAVE THAT SOFTWARE AND HAVE EVERYBODY AGREE
TO PUT THIS IN THE CAR WILL REQUIRE A LOT OF PEOPLE.
>> REMEMBER ONE OF THEIR ADVERTISEMENT IDEAS IS TO
EMPHASIZE THE FACT THAT DIESEL VEHICLES ARE FUEL-EFFICIENT
AND ENVIRONMENTALLY FRIENDLY.
A LOT OF PEOPLE OUT THERE BOUGHT THOSE CARS FOR THOSE REASONS.
THEY WERE SOLD A LIE.
THESE CARS ARE ACTUALLY POLLUTING THE ENVIRONMENT.
ALSO, THEY PROBABLY DID THIS BECAUSE THEY WANT TO HAVE
FAST CARS WITH TORQUE, BUT AT THE SAME TIME SAVE MONEY.
BUT THIS IS ACTUALLY GOING TO COST THEM QUITE A BIT.
IN ORDER TO MEET THE TOUGHER EMISSIONS REGULATIONS THAT
WENT INTO EFFECT IN 2008, MOST AUTOMAKERS STARTING SUPPLYING
THEIR DIESEL CARS WITH TANKS OF A UREA-BASED SOLUTION, REFERRED
TO AS ADBLUE, THAT CUTS DOWN ON NITROGEN OXIDE EMISSIONS.
MAYBE THE PERSON BEHIND ALL THIS THOUGHT, OH, MAYBE WE CAN
DO SOMETHING WHERE WE CAN AVOID THAT AND MAKE IT SEEM AS
THOUGH OUR CARS ARE NOT POLLUTING THE ENVIRONMENT
AND CAN STILL AVOID COMPROMISING THE PERFORMANCE OF THE CAR.
NOW THEY WILL HAVE TO PAY A LOT OF MONEY IN RE-CALLING
THESE CARS AND CHANGING THE TECHNOLOGY.
THEY WILL ALSO HAVE A MAXIMUM POSSIBLE FINE OF $37,500
PER VEHICLE WHICH COULD ADD UP TO AS MUCH AS $18
BILLION FOR VOLKSWAGEN AND AUDI.
>>THEY WON'T MIND PAYING, THIS IS THE U.S.
IF THEY DIDN'T LOBBY BEFORE, THEY WILL HAVE TO LEARN HOW
TO NOW.
WE KNOW THIS FROM EXPERIENCE.
BP, WHICH IS ALSO NOT A U.S.
COMPANY, WHEN THEY HAD THE DISASTER IN THE GULF THEY
KICKED UP THEIR LOBBYING.
THEY DID THAT TO AVOID BILLIONS OF DOLLARS IN FINES.
BUT NOW WE FIND THAT THEY ARE NOT GOING TO PAY WHAT THEY
SAID THEY WERE GOING TO PAY.
NONETHELESS, I AM OPEN TO SEEING HOW THEY HANDLE THIS.
MAYBE SINCE THEY ARE A GERMAN COMPANY THEY WILL HANDLE IT
DIFFERENTLY.
IN GERMANY, HALF OF THE BOARD OF A COMPANY IS MADE UP BY
LABOR BECAUSE THEY WANT TO MAKE SURE THEY PROTECT THE
COMPANY AND THEIR JOBS.
HERE IN AMERICA THAT WOULD BE MET WITH CHARGES OF SOCIALISM.
PEOPLE'S HEADS WOULD EXPLODE.
THE KOCH BROTHERS WOULD DEFEAT ANY CANDIDATE THAT EVER
SUGGESTED THAT.
GERMANY HAS AN EXCELLENT ECONOMY, AND THIS HAS WORKED
WELL THERE.
IT IS POSSIBLE THAT VOLKSWAGEN WILL NOT SPEND A LOT OF MONEY
LOBBYING, AND WILL NOT FIGHT THE GOVERNMENT TOOTH AND NAIL AS
U.S.
COMPANIES DO.
BUT THEY WILL FIND OUT WHO IS RESPONSIBLE, TURN THEM IN,
AND TURN A NEW LEAF AND ACTUALLY PAY WHAT THEY OWE.
CORPORATIONS DON'T NORMALLY DO THAT, BUT GERMAN
CORPORATIONS ARE A LITTLE DIFFERENT THAN U.S.
CORPORATIONS IN TERMS OF HOW THEY ARE STRUCTURED.
IT WOULD BE INTERESTING TO SEE HOW THEY REACT.