By now, unless you literally live under a rock, you must have heard about VW's scandal over its diesel engines cheating on emissions tests. In case you were indeed under said rock, the VW 2.0L disesel four cylinder motor was found to have different tuning in the test mode used to perform emissions testing. That different tuning was used to reduce NOx emissions to within spec to pass emissions tests, but was not reflective of how the car actually performed in the real world. According to VW, forcing the car to run on the tune that passes the emissions tests also drastically reduces the fuel economy and performance, which are the only real reasons anyone buys diesel in the land of heavily subsidized gasoline that is America.
Of course, VW is now feeling the pain of this scandal, having suffered a huge hit against its stock in global markets as well as having to shake up a sizable portion of its senior leadership, including the resignation of CEO Martin Winterkorn (although he may get a big golden parachute so don't waste your tears on him). With numbers already struggling in the US and diesels accounting for a rather surprisingly large portion of VW sales here, this scandal could not come at a worse time for the company.
But the real damage has only just begun.
