CAUGHT BLACK-HANDED: Why Did Volkswagen Cheat? “The perpetrators likely believed they wouldn’t be caught, as self-certification is the norm under the EPA, which is too cash-strapped to test but 15 percent of the powertrains on the market and is perennially threatened with extinction by Congress. (Independent researchers discovered the ploy.) And if they were caught, VW probably figured, the penalty and market fallout would be small. Perhaps it was an easy choice to cheat. The European competitive environment is rife with deception. Just look at FIFA soccer, where officials are under indictment by U.S. prosecutors. Europeans have a win-by-any-means streak that sometimes emerges under intense pressure. There certainly was pressure. Then-CEO Martin Winterkorn, who took over Volkswagen AG in 2007 determined to make VW the world leader in volume and profit, ordered his staff to deliver a clean diesel that could be sold worldwide and could carry VW’s diesel religion to the New World to convert nonbelievers. And they did deliver. Did Winterkorn know the details? Maybe he didn’t want to. He has denied any knowledge of the deceit.”
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