Volkswagen, meaning ‘the people’s car’ in German, ironically failed the very people they claimed to stand for in one of the most notorious scandals in history. Volkswagen started by establishing itself as a symbol of 'reliable motoring', and it gradually transformed into a powerful automobile manufacturer. After the Second World War, Volkswagen expanded to over 30 countries; it then became a massive supplier of vehicles in over 150 countries.

The significance of emissions increased rapidly because car ownership expanded, specifically in the United States. The Clean Air Act was introduced in 1970 due to heightened concerns about air pollution as the number of vehicles on the roads was rising. This essentially meant that every single car manufacturer had to ensure that before they sold their vehicles, the vehicles would have to meet the stringent emission standards. The Clean Air Act helped significantly in terms of reducing copious amounts of automobile pollutants. Emissions testing was one core example of mechanisms that were effective in enforcing this legislation. For vehicles to be sold in the United States and other countries, they have to undergo a series of rigorous assessments to prove that their pollutant emissions comply with the environmental standards that are established. If these car companies did meet those standards, they could avoid any sort of financial penalty, and they could also safeguard their image in this market. Nonetheless, several manufacturers found methods to circumvent these regulations by installing defeat devices. 

This deceiving technology would instantly recognise when a vehicle was undergoing an emissions test, and it would adjust the engine temporarily, reducing the amount of pollutants that were released. When the vehicle returned to normal car driving, all the restrictions were removed. The European Union (EU) caught on to these deceitful tactics in 2007 and interdicted this technology. However, Volkswagen refused to abide by the regulations and continued to install this software in their vehicles. It wasn't long before the European Commission’s Joint Research Centre began noticing serious disparities between the emissions test results and the pollution that was released by Volkswagen vehicles during normal driving. The company's candor was questioned since they faced scrutiny in 2014, conducted by the International Council on Clean Transportation. This investigation revealed that the Volkswagen vehicles sold in the United States released copious amounts of pollutants in comparison with the results recorded under testing conditions. The scandal was unfolding when Volkswagen acknowledged that approximately 11 million vehicles globally were equipped with the defeat devices. 

"We've totally screwed up," said the CEO of Volkswagen America, Michael Horn, while the CEO of Volkswagen globally, Martin Winterkorn, said that his company had "broken the trust of our customers and the public." This was egregious since Winterkorn was charged with four felony counts not long after this scandal came to light. Selfishly, Volkswagen's diesel engines released around 40 times the legal limit of nitrogen oxides; this could lead to severe respiratory illnesses. 

Volkswagen's reputation fell sharply; ergo, its share price also fell rapidly. Several investigators and customers prompted legal action. Volkswagen further agreed to a $14.7 billion settlement to resolve any claims; by June 30th 2019, it was mandated to remove any implicated vehicles in the US. What started as this emissions controversy soon became so extensive that it earned its own title: "Volkswagen Dieselgate."