12.05.16 - Volkswagen Cars

The VW Diesel Scandal Has a Far Reaching Effect

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12.05.16 - Volkswagen Cars

You might think that because Volkswagen was found cheating with their diesel models the trouble and challenges would be limited to their company. In fact the issues with the diesel engines were found to have occurred because of a device in the 2.0 and 3.0-liter engines that were made to detect when testing was taking place but at no other time. Unfortunately for other brands, this scandal has reached more of the market and other automakers are trying to adhere to the new regulations that are being put in place by the EPA.

Both Mercedes-Benz and BMW have run into delays by the EPA when it comes to having their diesel engines certified this year. These delays certainly have to do with two factors that are obvious and one that isn’t. The two obvious factors are the stricter regulations that are being put in place for diesel engines as a result of the VW scandal and the change in the testing by the EPA to ensure their tests can’t be cheated on. The not so obvious factor is the fact that both these brands come from Germany, the same company as Volkswagen, which leads to more testing being needed because there would be employees and technology that was shared in some form.

The problem right now isn’t as much the fact that more testing is needed, but the viability of the diesel program for small cars and SUVs in the US. Not only was our confidence in these vehicles destroyed when VW was found to be cheating, but we suddenly questioned ever diesel powered smaller vehicle. There might not be as much of a market for these vehicles going forward, which would lead to both Mercedes-Benz and BMW to stop going through the process of becoming certified to sell diesel powered small vehicles in the US.

Another factor that may have an impact on this market is the increased number of EV models that are being built. While they still don’t make up a large amount of the market, the diesel models don’t either. This means the EV and the diesel powered vehicles could be competing for the same customer and with the scandal from VW, EV may be winning out. Does this mean we’ve seen the last of diesel powered vehicles from BMW and Mercedes-Benz? Not yet, but probably soon this will be the case.

Currently Mercedes-Benz is dealing with delays by the EPA, but they expect their diesel vehicles to be approved. Whether or not these will be offered the next time they need to be certified is yet to be seen, but right now the three point star brand will offer us the GLS, GLC, GLE and C-Class as models that will have a diesel engine in the lineup. As you can see, the VW scandal has had an effect on the entire market of diesel powered cars and SUV and not just an effect on Volkswagen and the models they sell.

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