Volkswagen controversies

Volkswagen, the German automotive company, has been involved in several controversies.

Environmental record

In 1974 Volkswagen paid a $120,000 fine to settle a complaint filed by the Environmental Protection Agency over the use of so-called "defeat devices" that disabled certain pollution-control systems. The complaint said the use of the devices violated the US Clean Air Act.[1]

In 1996, Volkswagen first implemented its seven environmental goals in Technical Development with themes involving climate protection, resource conservation, and healthcare, through objectives such as reducing greenhouse emissions and fuel consumption, enabling alternative fuels, and avoiding hazardous materials.[2] The goals have been revised in 2002 and 2007. Volkswagen was the first car manufacturer to apply ISO 14000 during its drafting stage and was re-certified in September 2005.

In 2011, Greenpeace began criticising Volkswagen's opposition to legislation requiring tighter controls on CO2 emissions and energy efficiency, and launched an advertising campaign parodying VW's series of Star Wars–based commercials.[2][3]

In 2013, the Volkswagen XL1 became the most fuel-efficient production car in the world, with a claimed combined fuel consumption of 261 mpg (0.90 L/100 km). Driving style has a huge impact on this result – "normal" driving produces mileage in the 120 mpg range (1.96 L/100 km).[4]

In 2015, the Volkswagen group admitted to producing certain engine models with software that instructed those models to reduce CO2 emissions during approval testing. These levels were significantly reduced from the actual CO2 concentrations being released once on the road.[5]

Model year 2017 VW vehicles sold in the US average 26.5 mpgUS, about 6% better than the average for all manufacturers. For comparison among major car makers, Honda led at 29.4 mpgUS while FCA, the owner of Jeep, Ram, Chrysler, Fiat, and Dodge brands, lagged at 21.2 mpgUS.[6]

Collaboration with Brazilian military dictatorship (1964–1985)

In 2015, activists and former VW employees in Brazil spoke out in public accusing the company of being silent about the persecution of its workers, which was during Brazil's military dictatorship from 1964 to 1985.[45] VW's security personnel informed Brazil's political police on eventual oppositional activities. In 1976, mass arrests occurred and some VW employees were tortured.[46]

In September 2020, Volkswagen announced that it signed a settlement with Brazilian state prosecutors, including compensation and donations amounting to 36 million reais (US$6.7 million), to atone for its collaboration with the dictatorship.[47][48][49]

CEO's usage of pun based on Nazi slogan at Auschwitz (2019)

In 2019, during an internal event with hundreds of managers, the CEO, Herbert Diess, repeatedly said "Ebit macht frei", ('EBIT will set you free'; EBIT is an acronym for "earnings before interest and taxes") a pun on "Arbeit macht frei", ('work will set you free'), a slogan that famously appeared above Nazi Germany's Auschwitz concentration camp. Diess also acknowledged Volkswagen's "special responsibility in connection with the Third Reich".[50]

Racist commercial (2020)

In 2020, Volkswagen released a commercial that contained references to colonialism and appeared to show a racial slur.[51] When initially faced with criticism the company stated that the "origin of the people depicted is irrelevant." When they faced an additional backlash from their response, the company stated "We distance ourselves from this and apologise."[52]

Allegations of complicity with human rights abuses against Uyghurs

In 2020, the Australian Strategic Policy Institute listed Volkswagen among "companies directly or indirectly benefiting from the use of Uighur workers outside Xinjiang through potentially abusive labour transfer programs."[53] German politician Reinhard Bütikofer, the chair of the European Parliament's delegation for relations with China, criticised Volkswagen on these grounds.[54] Volkswagen subsequently hired a Shenzhen-based law firm to conduct an audit of its factory in Xinjiang.[55] In September 2024, the Financial Times reported that the audit failed to meet international standards.[56]

On 17 June 2022, Volkswagen's anchor shareholder, the state of Lower Saxony, joined Germany’s most powerful union boss in calling on the company to address allegations of human rights abuses in Xinjiang. IG Metall’s Jörg Hofmann and Lower Saxony's minister president

GPS subscription payment demand thwarting a kidnapped child recovery attempt (2023)

A sheriff’s office in Lake County, Illinois released a statement claiming that it was initially thwarted from tracking a stolen car with a 2 year-old boy inside due to the car’s Car-Net GPS tracking service demanding a payment of $150 USD to access to service, as the subscription had expired. The car and child were reported as found just after officers paid the subscription bill. According to Deputy Chief Christopher Covelli, the detective had pleaded, explaining the "extremely exigent circumstance," but the on-call representative didn't budge, saying it was company policy. Covelli then stated that the detective had to work out getting a credit card number and then call the representative back to pay the $150, at that time, the representative provided the GPS location of the vehicle, but the “found” status of the car and child was announced before the GPS could be utilized.

The 2021 Volkswagen Atlas had been stolen from the driveway of a 34 year-old Libertyville, Illinois woman while she was transporting her other child inside her house. Reportedly, a white BMW (which itself had been stolen from a Waukegan car dealership) pulled into her driveway from which a masked man emerged, knocked her to the ground, stole her car, and another man, the driver, ran her over in the process. The car was later located in a parking lot near Pulaski and Route 43, and the child was discovered within the car; the perpetrators fled. The woman was hospitalized with serious injuries to her extremities and remained in stable condition.

Volkswagen has stated that there was a “serious breach” of their Car-Net service while working with the law enforcement officers, and made an official statement that read:[60]