Executive Briefings

Did VW Puncture Credibility of Other Automakers' Diesel Technology?

The Volkswagen emissions cheating scandal has tanked the company's stock price, ousted its top executive and could ultimately cost the world's top automaker tens of billions of dollars. It may also destroy the credibility of diesel technology from all automakers.

Diesel engines are at the heart of Volkswagen's subterfuge. The company has admitted installing a "defeat device" in about 11 million vehicles that allow them to emit far fewer pollutants during tests than during real-world driving. The entire technology may be tarnished by Volkswagen's sins, analysts said.

"It's bad for diesel in the U.S.," said Mark Wakefield, managing director and head of automotive practices for the consulting group AlixPartners. "There isn't a high bar on creating a concern in the consumer's mind. Now people are waiting to see if this is really a one-company issue."

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Diesel engines are at the heart of Volkswagen's subterfuge. The company has admitted installing a "defeat device" in about 11 million vehicles that allow them to emit far fewer pollutants during tests than during real-world driving. The entire technology may be tarnished by Volkswagen's sins, analysts said.

"It's bad for diesel in the U.S.," said Mark Wakefield, managing director and head of automotive practices for the consulting group AlixPartners. "There isn't a high bar on creating a concern in the consumer's mind. Now people are waiting to see if this is really a one-company issue."

Read Full Article