The scandal that has ensnared the German automaker Volkswagen may prove to be the largest, and most expensive corporate crisis ever. The discovery of secret software installed to allow its vehicles to cheat on emissions tests has done extraordinary damage not only to the car manufacturer's reputation and bottom line, but to human health and the environment as well.
The revelations and repercussions from this scandal are not complete. More corporate heads will fall as responsibility for decisions to install the software is made clear and the scale of the cheating is exposed. The scandal has also exposed an uncomfortable truth that has long been known but rarely discussed — virtually all automakers "cheat" on the emissions tests. The implications of this revelation could be equally troubling.
VW's problems began when an independent, nonprofit organization proposed testing diesel emissions from cars in the United States while they were operating, rather than in carefully controlled settings as was the usual practice. The tests produced surprising results showing that Volkswagens were generating higher than anticipated levels of emissions. Yet when the same cars were put on treadmills usually used for emissions tests, they performed exactly as expected.