Is the 'defeat device' crisis VW's 'Deepwater Horizon moment'; an echo of the 2010 corporate and environmental disaster which has - so far - cost BP $58bn? Will VW's drama continue to ripple through public and auto industry consciousness for years, or will it slide quietly into history as similar transgressions did in the 70s and 90s?
In an environmentally and corporately-sensitized world, it is likely the fallout - for both VW and the auto industry - will be much greater this time. In recent years, the US Department of Justice has fined global banks over USD 200bn for mismanagement and, in this case, VW's debt support has already been suspended by the ECB (European Central Bank) - a significant blow to the company's current sales finance.
Diesel manufacturers beware! Although diesel is still eclipsed by gasoline in China and the US, VW remains market leader in China (even announcing further expansion recently) and the authorities are now likely to take the opportunity to support local producers.
Across the world, emission control authorities will certainly be looking to tighten regulations to focus on 'real-world' vehicle usage rather than lab-based test data. In fact, it is likely to lead to greater scrutiny of emissions legislation generally, with China already pushing harder than ever.
With rising wealth, health and environmental issues, also comes more pressure on ACEA (where VW is a leading member) and a drive to improve lubricants specifications. Rarely have lubricants been so close to the the everyday news and this changing landscape is changing is a key reason for the newly-launched EuropaLub.
We hope you enjoy our new, re-designed and compact OATS Bulletin. As always, we welcome your thoughts, so, to comment on anything you have read this month or to find out more about OATS products, simply contact Diana Shen for China-based enquiries. For global information, contact us by e-mail or follow our updates on social media via Twitter, Facebook, LinkedIn and Google+.
Sebastian Crawshaw
Chairman