German car manufacturing has a world-leading reputation.
But now its mightiest maker, Volkswagen, has been caught falsifying environmental tests for diesel emissions in the United States.
The VW halo slipped this week. The question is whether it has fallen completely.
Apparently the test exposing the so-called “defeat device” covers 482,000 motors in the US only but VW has admitted a whopping 11 million cars worldwide could be affected.
To put this in context, the figure represents more than the firm’s entire production line for a year.
Given the number of vehicles involved in the scandal, City firm Bernstein has predicted the era of diesel cars in Europe is over.
Interestingly, environmentalists have long claimed the system for testing cars in Europe itself is flawed and that what comes out of the tailpipe of a diesel car being driven on a real road often does not compute with laboratory tests.
European Green Party environment spokesman Bas Eickhout said: “The scandal with Volkswagen in the US on car pollution rules should focus the minds of EU politicians.
“Exactly the same is happening in Europe. Yet, as we speak, car manufacturers and EU Governments are trying to weaken draft rules for a new EU test procedure for car emissions.”
There is no doubt this is a bad time for the “Made in Germany” brand, with criminal and government investigations pending.
Volkswagen owners are angry that their more expensive diesel models are now shown to pollute.
VW has been advertising here in the UK for 60 years. Even I have been suckered in by the cute adverts with the slogan “There’s a Volkswagen for all of us”, accompanying images of cute pooches sticking their heads out of car windows as they speed along.
This is a company that has spent millions on cultivating the image of a friendly, environmentally caring brand.
Volkswagen has a lot to do in terms of reputation rebuilding although, given its historic associations with Nazi Germany, it has overcome worse.
System change is needed for a company that has admitted “We totally screwed up”. Chief executive Martin Winterkorn’s resignation yesterday was a step in the right direction.
Volkswagen literally has to clean up its act.