 "Volkswagen sought green seal for its diesel cars")
In July 2011, President Obama took the stage here to announce sweeping new fuel economy and carbon emissions targets for vehicles in the United States. Joining him were top executives from nearly every automaker, representing 90 per cent of vehicles sold domestically. But one automaker in particular was missing from the stage: Volkswagen.
The German automaker, now at the center of a firestorm over its cheating on diesel emissions tests, boycotted the announcement and refused to pledge support for the deal. Behind the scenes, its main complaint, according to a former top official at the Environmental Protection Agency, involved the diesel engines it is now accused of rigging. Volkswagen has admitted selling 11 million cars worldwide with engines that spew far more pollution than allowed under the Clean Air Act.
But Volkswagen lobbied hard before the announcement, demanding that its diesel engines receive special fuel economy credits for their environmental friendliness, just as zero-emission electric cars were receiving. The credits are helpful to automakers' efforts to achieve the new standard - a 54.5-mile-per-gallon fleet average by 2025.
"They wanted a special deal for diesel cars that we now know weren't even meeting the standard," said Margo Oge, a former director of the EPA Office of Transportation and Air Quality, who helped lead negotiations with the automakers, including Volkswagen, at the time.
Volkswagen did not just consider its clean diesels comparable to hybrids or plug-in electrics; it believed they were superior, Oge said. "These people had religion," she said. "And that religion was diesel. They simply did not believe in electric powertrains and thought they were a waste of time."
One of the most devout followers was a top Volkswagen executive from Germany who has been suspended in the wake of the emissions scandal. The executive, Wolfgang Hatz, most recently led Porsche's research and development efforts, but had been in charge of Volkswagen's powertrain division. "He said the company simply did not believe in electric powertrains or hybrids," Oge said. "The Volkswagen management was extraordinarily arrogant. They thought they were the kings of diesel."
While German rivals like BMW had been developing electric cars, and Mercedes-Benz - which also boycotted the announcement over concerns the rules favoured American trucks - had invested in alternatives like fuel cell technology, Volkswagen had thrown its entire weight behind the promise of clean diesels.Without special incentives, the company would have a tougher time meeting the requirements of the new regulations.
But American officials were not swayed. Hybrids would not get such special credits (which Toyota had requested), because regulators considered the technology sufficiently mature. By comparison, diesel engines had been around for a century.
Their verdict was not well received. "They were very upset they didn't get extra credits for diesel," said Ms. Oge, the vice chairman of DeltaWing Technologies, a company that aims to use racecar technology to improve street vehicles' efficiency.
A former Volkswagen employee familiar with the 2011 negotiations confirmed that the diesel issue was responsible for the company's lack of public support at Obama's announcement.
It was mainly Volkswagen representatives from Germany, as opposed to American-based executives, who dominated the discussions and tended to dismiss the regulators' concerns and questions, Ms. Oge said.
"I never had a problem dealing with the Americans. The US Volkswagen people would always come and apologize to us after meeting with the Germans," she said. "My sense was that things were being dictated by Germany."
What remains unknown is whether Hatz knew of the emissions cheating when he was negotiating with American regulators in 2011.
He did not respond to an email requesting a comment on Tuesday. A spokesman for Porsche said that Hatz was contesting the implication that he was involved in the emissions cheating. Volkswagen's American headquarters did not respond to a request for comment.
But the suggestion that Hatz, 56, may have played a role in the scandal has been a shock in German car industry circles, where he has been a prominent figure in engine development.
Unlike many Volkswagen executives, including the new chief executive, Matthias Müller, Hatz has not spent his entire career at the company. After studying machine tool construction, he began his career at Porsche before its acquisition by Volkswagen. Later he worked at BMW, General Motors' Opel unit, and Fiat, always in positions that involved designing engines, in some cases racecar engines.
Hatz joined Volkswagen's Audi division in 2001, becoming director of engine and transmission development for all Volkswagen brands in 2007. He was part of a new team that took over responsibility for developing important engines, including the EA 189 line that contains the illegal emissions software at the center of the scandal - which sets off the proper emissions controls only when the vehicle is being tested for compliance.
Volkswagen has promised to submit proposed fixes for its European diesel engines this week. But those proposals will not apply to American cars.
And on Thursday, Volkswagen of America's chief executive, Michael Horn, is set to testify before a House committee investigating the emissions scandal.
©2015 The New York Times News Service
The German automaker, now at the center of a firestorm over its cheating on diesel emissions tests, boycotted the announcement and refused to pledge support for the deal. Behind the scenes, its main complaint, according to a former top official at the Environmental Protection Agency, involved the diesel engines it is now accused of rigging. Volkswagen has admitted selling 11 million cars worldwide with engines that spew far more pollution than allowed under the Clean Air Act.
But Volkswagen lobbied hard before the announcement, demanding that its diesel engines receive special fuel economy credits for their environmental friendliness, just as zero-emission electric cars were receiving. The credits are helpful to automakers' efforts to achieve the new standard - a 54.5-mile-per-gallon fleet average by 2025.
"They wanted a special deal for diesel cars that we now know weren't even meeting the standard," said Margo Oge, a former director of the EPA Office of Transportation and Air Quality, who helped lead negotiations with the automakers, including Volkswagen, at the time.
Volkswagen did not just consider its clean diesels comparable to hybrids or plug-in electrics; it believed they were superior, Oge said. "These people had religion," she said. "And that religion was diesel. They simply did not believe in electric powertrains and thought they were a waste of time."
One of the most devout followers was a top Volkswagen executive from Germany who has been suspended in the wake of the emissions scandal. The executive, Wolfgang Hatz, most recently led Porsche's research and development efforts, but had been in charge of Volkswagen's powertrain division. "He said the company simply did not believe in electric powertrains or hybrids," Oge said. "The Volkswagen management was extraordinarily arrogant. They thought they were the kings of diesel."
While German rivals like BMW had been developing electric cars, and Mercedes-Benz - which also boycotted the announcement over concerns the rules favoured American trucks - had invested in alternatives like fuel cell technology, Volkswagen had thrown its entire weight behind the promise of clean diesels.Without special incentives, the company would have a tougher time meeting the requirements of the new regulations.
But American officials were not swayed. Hybrids would not get such special credits (which Toyota had requested), because regulators considered the technology sufficiently mature. By comparison, diesel engines had been around for a century.
Their verdict was not well received. "They were very upset they didn't get extra credits for diesel," said Ms. Oge, the vice chairman of DeltaWing Technologies, a company that aims to use racecar technology to improve street vehicles' efficiency.
A former Volkswagen employee familiar with the 2011 negotiations confirmed that the diesel issue was responsible for the company's lack of public support at Obama's announcement.
It was mainly Volkswagen representatives from Germany, as opposed to American-based executives, who dominated the discussions and tended to dismiss the regulators' concerns and questions, Ms. Oge said.
"I never had a problem dealing with the Americans. The US Volkswagen people would always come and apologize to us after meeting with the Germans," she said. "My sense was that things were being dictated by Germany."
What remains unknown is whether Hatz knew of the emissions cheating when he was negotiating with American regulators in 2011.
He did not respond to an email requesting a comment on Tuesday. A spokesman for Porsche said that Hatz was contesting the implication that he was involved in the emissions cheating. Volkswagen's American headquarters did not respond to a request for comment.
But the suggestion that Hatz, 56, may have played a role in the scandal has been a shock in German car industry circles, where he has been a prominent figure in engine development.
Unlike many Volkswagen executives, including the new chief executive, Matthias Müller, Hatz has not spent his entire career at the company. After studying machine tool construction, he began his career at Porsche before its acquisition by Volkswagen. Later he worked at BMW, General Motors' Opel unit, and Fiat, always in positions that involved designing engines, in some cases racecar engines.
Hatz joined Volkswagen's Audi division in 2001, becoming director of engine and transmission development for all Volkswagen brands in 2007. He was part of a new team that took over responsibility for developing important engines, including the EA 189 line that contains the illegal emissions software at the center of the scandal - which sets off the proper emissions controls only when the vehicle is being tested for compliance.
Volkswagen has promised to submit proposed fixes for its European diesel engines this week. But those proposals will not apply to American cars.
And on Thursday, Volkswagen of America's chief executive, Michael Horn, is set to testify before a House committee investigating the emissions scandal.
©2015 The New York Times News Service