DIESEL GATE


For those who do not know, in the car industry there has recently been a lot of talk about Volkswagen . The reason for this is because for the past 6 years or so, Volkswagen has duped their customers and the government. How is this possible you might ask. In 2009 Volkswagen added some new lines of coding to their engine management system, specifically for their 2 liter, 4 cylinder TDI diesel engines. This new line of code was able to detect how the engine was being used. Based of the use, the engine would act in two very different manners. The two uses that were programmed were for EPA testing and for regular driving. When the computer detected EPA testing, the engine would cut performance and reduce power to make for better emissions results. This is great until you put the car into normal driving mode. When in the normal mode, these engines produce 30-40 times the limit of allowed emissions. This makes for a moral dilemma for anyone who bought this vehicle with the intentions of being greener. Further more, this has been detrimental to any dealer that has a 2009-2015 TDI on their lot. Any new or used TDI is not allowed to be sold and there are 2016 models sitting on US soil that cannot roll onto lots because of this problem.

Now that we what the problem is, how should VW proceed in solving it. There are many things that still remain very unclear and will take time to figure out. So far Martin Winterkorn, the CEO of VW has stepped down. On top of this there has been talk about certain execs being to blame as well as the now ex-ceo. The next logical move was to find and hire a new CEO.

In order to get the company back on track, there was a need for a new CEO. They needed one who is strong and has experience in the industry. Who better to take over such a company than the CEO of Porsche AG. Matthias Müller became the new CEO of Volkswagen AG on September 25th. This is a natural fit because Müller has a history with the VW group as it is. In the 1970’s Müller was an apprentice tool maker for Audi. After finishing his apprenticeship he left the group in order to further his education. He studied computer science in Munich for a few years and then came back to Audi again in 1984 to work in the IT department. Fast forward 11 years and Müller was the product manager at Audi. Later in his career Müller would be appointed as head of Volkswagens product strategy. He became the head of VW product strategy under none other than Martin Winterkorn. In 2010 Müller became the CEO of the Porsche Automotive Group. He would remain there up until very recently. After the scandal at VW broke, it only made sense for Müller to step in. It was if he had been bred for this position. There are high expectation for Müller and if I may throw my 2 cents in there, I think he is just the man for the job.