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Ewing - Faster, higher, farther : the inside story of the Volkswagen scandal

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Ewing Faster, higher, farther : the inside story of the Volkswagen scandal
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Faster, higher, farther : the inside story of the Volkswagen scandal: summary, description and annotation

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A shocking expose of Volkswagens fraud by the New York Times reporter who covered the scandal. In mid-2015, Volkswagen proudly reached its goal of surpassing Toyota as the worlds largest automaker. A few months later, the EPA disclosed that Volkswagen had installed software in 11 million cars that deceived emissions-testing mechanisms. By early 2017, VW had settled with American regulators and car owners for $20 billion, with additional lawsuits still looming. In Faster, Higher, Farther, Jack Ewing rips the lid off the conspiracy. He describes VWs rise from the peoples car during the Nazi era to one of Germanys most prestigious and important global brands, touted for being green. He paints vivid portraits of Volkswagen chairman Ferdinand Piech and chief executive Martin Winterkorn, arguing that the corporate culture they fostered drove employees, working feverishly in pursuit of impossible sales targets, to illegal methods. Unable to build cars that could meet emissions standards in the United States honestly, engineers were left with no choice but to cheat. Volkswagen then compounded the fraud by spending millions marketing clean diesel, only to have the lie exposed by a handful of researchers on a shoestring budget, resulting in a guilty plea to criminal charges in a landmark Department of Justice case. Faster, Higher, Farther reveals how the succeed-at-all-costs mentality prevalent in modern boardrooms led to one of corporate historys farthest-reaching cases of fraud--with potentially devastating consequences.--Provided by publisher. Read more...

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Faster Higher Farther THE VOLKSWAGEN SCANDAL JACK EWING W W NORTON - photo 1

Faster,
Higher,
Farther

THE VOLKSWAGEN SCANDAL

JACK EWING

Picture 2

W. W. NORTON & COMPANY

Independent Publishers Since 1923

New York | London

Copyright 2017 by Jack Ewing

All rights reserved
First Edition

For information about permission to reproduce selections from this book, write to Permissions, W. W. Norton & Company, Inc., 500 Fifth Avenue, New York, NY 10110

For information about special discounts for bulk purchases, please contact W. W. Norton Special Sales at specialsales@wwnorton.com or 800-233-4830

Book design by Chris Welch Design
Production manager: Julia Druskin
JACKET DESIGN BY PETE GARCEAU
JACKET IMAGES: AKOS STILLER / BLOOMBERG VIA GETTY IMAGES; (CLOUDS) KAZAKOV / ISTOCKPHOTO.COM

ISBN: 978-0-393-25450-1

ISBN 978-0-393-25452-5 (e-book)

W. W. Norton & Company, Inc.
500 Fifth Avenue, New York, N.Y. 10110
www.wwnorton.com

W. W. Norton & Company Ltd.
15 Carlisle Street, London W1D 3BS

To my father, whose lifelong engagement with the
environment informs every page of this book.

CONTENTS

1937

The Nazi labor front founds a company to build a peoples car or Volkswagen. The familiar circular VW logo is designed by Franz Xaver Reimspiess, a motor specialist in Ferdinand Porsches design bureau.

1965

Volkswagen buys Auto Union from Daimler-Benz.

1969

Volkswagen merges Auto Union with NSU Motorenwerke to form Audi.

1986

Volkswagen acquires SEAT, state-owned Spanish automaker, with which it has already been jointly building cars.

1991

Following the fall of communism in Eastern Europe, Volkswagen acquires Skoda from the Czech government. It becomes the companys budget brand.

1998

In an attempt to move up market, Volkswagen buys British luxury car maker Bentley Motors, Italian sports car maker Lamborghini, and moribund luxury brand Bugatti.

2008

Volkswagen becomes majority shareholder in Swedish truck maker Scania.

2011

Volkswagen acquires a majority in German truck maker MAN.

2012

Volkswagen acquires Porsche, the sports car maker with which it has long cooperated. The deal leaves the Porsche and Pich families with a majority of Volkswagens voting shares.

2012

Volkswagen buys Italian motorcycle maker Ducati.

2015

For the first time, Volkswagen sells more vehicles than Toyota and becomes the worlds largest carmaker.

(Members with the greatest influence on Volkswagen history)

Faster Higher Farther T HEY WERE A CURIOUS SIGHT the graduate students - photo 3

Faster,
Higher,
Farther

T HEY WERE A CURIOUS SIGHT , the graduate students from West Virginia University, barreling down California freeways in the spring of 2013. The back end of their car, a Volkswagen Jetta station wagon, sprouted a tangle of pipes and hoses held together with hardware store clamps and brackets. Flexible tubes sucked exhaust from the tailpipes and fed the gas into a mysterious gray box sitting on a slab of plywood in the cars rear cargo area. The box had wires and cables coming out of it. Next to the box, bolted to the plywood, was a Honda portable generator, which stank and made an infernal racket. The students, Hemanth Kappanna from India and Marc Besch from Switzerland, tolerated the noise and the fumes. They had to. The generator was needed to power the whole mess.

People stared. They were questioned by a curious cop. The improvised equipment broke down often. The generator wasnt made to be bumped around so much and needed to be replaced, slowly draining the modest $70,000 grant that West Virginia University had received to fund the research by Kappanna and Besch and another student, named Arvind Thiruvengadam. After one breakdown, Besch and Thiruvengadam spent much of a night in the parking lot of a big-box home improvement store, trying to get the rig to function right again. But the work the students were doing was importantmuch more important than they could possibly have imagined at the time. They were testing the Jettas emissions. In particular, they were testing for nitrogen oxides, a family of gases with a wide array of fearsome effects on human health and the environment. Nitrogen oxides cause children to get asthma and provoke attacks in people who already have asthma. They cause chronic bronchitis, cancer, and cardiovascular problems. Excess nitrogen oxides in urban areas have been known to produce spikes in the number of people coming to hospital emergency rooms with heart attacks. Members of the nitrogen oxide family contribute to acid rain and are far more potent, pound for pound, than carbon dioxide as a cause of global warming. Nitrogen oxides also react with sunlight to produce the smog that smothers urban areas, especially Los Angeles, where the students spent much of their time. With its automobile culture, abundant sunlight, and bowl-shaped topography, Los Angeles is an ideal caldron for smog. Thanks largely to nitrogen oxides, LA has the worst air of any city in the United States.

The reason the students were testing a Volkswagen Jetta was that it was one of the few vehicles available in the United States with a diesel motor. They also tested a diesel Volkswagen Passat and a diesel BMW SUV under the supervision of Dan Carder, head of West Virginia Universitys Center for Alternative Fuels, Engines, and Emissions, or CAFEE, which is famous for its expertise in measuring and analyzing what comes out of a tailpipe. Diesels make more efficient use of fuel than gasoline-powered cars and produce less carbon dioxide. But they also produce far more nitrogen oxides. Thats because diesel ignites at higher temperatures than gasoline. The heat turns the inside of a diesel engine into a veritable nitrogen oxide factory, combining nitrogen and oxygen from the atmosphere to form malignant nitrogen oxide molecules.

Volkswagen claimed that the Jetta and Passat were clean diesels. They were equipped with technology that was supposed to scrub nitrogen oxides out of the exhaust. The German automaker had spent millions of dollars trying to convince Americans that diesels were an environmentally friendly alternative to Toyotas hybrid technology. Thats not what the students from West Virginia University were seeing, though, as they drove around Los Angeles and San Francisco and even up to Seattle. One student was at the wheel while the other sat in the passenger seat with a laptop computer, monitoring the data. Even an expert might have been puzzled by the sight of them. Technology to measure emissions on the road had been around since the 1990s, but it was rarely used for passenger cars. Government regulators preferred to test cars in laboratories, where it was much easier to control all the variables, like barometric pressure or air temperature, that can influence emissions output. The work that the students were doing wasnt exactly revolutionary, but it was unexpected.

The Jetta and Passat emissions were fine when the West Virginia crew tested them on rollers in a specially equipped garage borrowed from the California Air Resources Board, the states clean air enforcer. But when the students took the Jetta out on the road and hooked up their gear, the Jetta started producing nitrogen oxides in quantities that were off the charts. In fact, the Jetta was producing way more nitrogen oxides than a modern long-haul diesel truck. The Passat was better, but still far above the legal limits. The BMW performed fine, except during a few demanding uphill climbs.

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