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The VW Scandal Is Bad News For Diesel

Tyler Durden's picture




 

Submitted by Tom Kool via OilPrice.com,

The outlook for diesel looks grim after U.S. regulators found that the world’s second biggest car manufacturer cheated on its emission tests.

Last Friday, the U.S. Environmental Protection Agency reported that Volkswagen violated the U.S. Clean Air Act. The German auto maker deliberately rigged the so called emission control systems in several models of their cars in order to reduce nitrogen-oxide emissions when tested in the lab.

However, when tested on the road, the size of the ‘diesel deception’ proved to be bigger than many could have imagined. Bloomberg reported on September 22 that on an open road test both the ‘Jetta’ and ‘Passat’ models exceeded U.S. nitrogen-oxide emissions standards by up to 35 times.

It was Volkswagen CEO Martin Winterkorn who admitted that the company ‘betrayed the trust’ of millions of people in a mea culpa on September 21. He announced his decision to resign two days later.

Winterkorn must have known his position was untenable after Volkswagen’s stock lost around a third of its value in two days. According to Bloomberg, even the German government pressed for ‘quick action.’

The company has already announced it will allocate $7.3 billion to deal with the costs of the emissions scandal. Whether this will be prove to be sufficient to pay for all the consequences remains to be seen. It is clear, however, that Volkswagen’s reputation as a manufacturer of ‘clean diesel’ vehicles has taken a devastating hit.

Damage Report - diesel vehicles could result in lower demand for diesel

The Volkswagen scandal is not just likely to cause damage upon the company itself, it might also cause damage to the rest of the industry, including parts manufacturers, and other car makers.

There is also the possibility that other car builders may have also manipulated tests.

Maybe even more important is the damage done to the image of diesel as a ‘cleaner’ fuel.

This image was shaped back in the 1990’s as Volkswagen, along with other European car makers, started to pursue diesel innovations as the EU pressed to reduce CO2 emissions. It appears that regulators have opened their eyes to the fact that diesel is still not as clean as unleaded gasoline.

It is too early to predict exactly what the fallout will be for the automotive industry, but with the clean air debate intensifying globally, U.S. and E.U regulators will now seek to impose stricter emission test guidelines.

Now that diesel is not as clean as it appeared and stricter emissions tests and perhaps even stricter regulation can be expected, one has to ask; does this mean the end of diesel for light vehicles?

“Yes, it probably does,” Max Warburton, senior automotive industry analyst at Bernstein Research, said in an interview with the Wall Street Journal.

This is not just alarming for the automotive industry, but could also lead to a structural demand shift in fuel products.

That shift could not have come at a worse time for diesel.

As can be seen in the below chart, fuel stockpiles are building worldwide and ultralow-sulfur diesel futures are sinking back to yearly lows. In addition, the sales of light vehicles run on diesel is also tapering off in the U.S.

(Click to enlarge)

This second chart indicates that the U.S. diesel retail price is also approaching its six year low.

(Click to enlarge)

Source: Clipperdata

As can be seen from chart 1, diesel vehicle sales in the U.S. only amount to 2.7 percent of total U.S. auto sales. Diesel has had trouble penetrating the U.S. market. The VW scandal will ensure that it won’t.

Diesel has become vulnerable

In Europe however, diesel forms a much bigger part of the total amount of fuels sold. Roughly half of all European demand for refined products consists of diesel. Mainly caused by a favorable tax regime in many European countries, diesel has gradually replaced gasoline as the major road fuel, as can be seen in chart 3 below.

(Click to enlarge)

Needless to say, a change in tax policies, more stringent emissions tests and/or legislation will rapidly lead to a slowdown in new diesel vehicles sold.

And decision makers are in fact becoming more aware of hazardous emissions from diesel engines.

According to Viren Doshi, a senior partner in Strategy&, “There is increasing concern from the regulators around health issues linked to particulates in the air.”

Already, diesel’s share in new car registrations is falling in Europe’s top 5 diesel consuming countries like France, Spain and Germany as can be seen in chart 4.

Chart 5  indicates that diesel is losing the battle against gasoline.

The explanation for the switch back to gasoline can be attributed to better fuel economy of gasoline run cars and the ongoing crude oil price slump which has increased the supply of unleaded gasoline.

Oliver Jakob, from oil consultancy Petromatrix merely sees the scandal at Volkswagen as a "potential accelerator" of a trend that has already started.

Not just Volkswagen, but the downstream sector could also lose

Even though a complete collapse of global diesel demand is unexpected, European diesel demand is bound to slow down in the coming years. The negative consequences of this transition in demand will mostly be felt by the downstream sector. In recent years, new refineries in Asia, the Middle East and Europe have invested significantly in converting heavier crudes into diesel. The global supply of diesel has turned into a glut. Over the past year, refiners have done well because of the improved margins due to cheap oil. However, refiners churning out diesel could find the market increasingly hostile as their product becomes subject to heightened scrutiny.

 

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Thu, 09/24/2015 - 15:31 | 6589808 TeamDepends
TeamDepends's picture

Fahrfegfibbin

Thu, 09/24/2015 - 15:36 | 6589824 Boris Alatovkrap
Boris Alatovkrap's picture

What is happen to Faster and More Furious franchise!? First is demise untimely of Paul Walker, and now poor Vin is under scrutiny attack!

Thu, 09/24/2015 - 16:08 | 6589937 Stackers
Stackers's picture

My made in Tennessee Passat gets 700 miles to a $40 fill up or about 40mpg combinded city/hwy.

diesel aint dieing any time soon.

Thu, 09/24/2015 - 16:17 | 6589970 Overfed
Overfed's picture

Nobody gives an actual fuck about how clean or dirty diesels may be. They just like the 50-60mpg.

Thu, 09/24/2015 - 16:21 | 6589991 Diet Coke and F...
Diet Coke and Floozies's picture

Back to steam I guess...

Thu, 09/24/2015 - 16:31 | 6590031 Possible Impact
Possible Impact's picture
Run your vehicle on wood scraps.

Woodgas is a flammable vapor released by wood when its heated.

This gas can power an engine!

Wood Gasifiers

http://www.driveonwood.com/

Thu, 09/24/2015 - 16:44 | 6590122 HowdyDoody
HowdyDoody's picture

I for one am greatly relieved that our NSA-supporting tax dollars enabled this corruption to be detected. I am totally surprised that this evil corruption was carried out by corporations in a country that might defy the wishes of the USG.

 

Thu, 09/24/2015 - 18:26 | 6590609 A Nanny Moose
A Nanny Moose's picture

This is like a fake doping scandal in Baseball or Cycling. VW just got caught, because it didn't grease the right palms. If VW was doing it, then everybody else was probably doing PEDs as well.

Thu, 09/24/2015 - 19:45 | 6590985 ElectroGravitic
ElectroGravitic's picture

Goldman Sacks says this is a $600 Trillion nut. Actually this is much bigger.

We don't even need petroleum to power transportation, or coal for energy generation. Stan Meyer proved that more than 20 years ago.

A criminal cabal has hidden cheap, clean energy from humanity for more than 100 years. Since the price of energy is embedded in everything from food to housing, this has caused damages in excess of $600 Trillion in addition to unnecessarily polluting the biosphere, and killing our only planet. Put a price on that!

Also, socially significant news organizations refuse to publish this, which is itself a crime.

For more details, see SIRIUS The Movie at:

http://www.SiriusDisclosure.com/

https://youtu.be/uidDHEaxxlE?t=435

Source: https://youtu.be/0gVLv5eg4Xg?t=5093

Thu, 09/24/2015 - 20:55 | 6591259 ILoveDebt
ILoveDebt's picture

I'm not in the automobile industry, but as an engineer, I see this shit all the time.  I just came into a new startup company, and I'm amazed at how many ways people from other companies have found to cheat to hit specifications.  When I've brought up the myriad ways people cheat, I've literally been told on at least two different occasions, "The GM told us to do it this way".  

Poorly run capability studies, selective sampling, purposeful non-random sampling, mismarked materials that are found to late to reasonably recall so intentionally forgotten, etc.  

 

I'm somewhat impressed VW didn't try to blow smoke up people's asses honestly.  I'll give them points for that because most companies are doing it in one way or another.  As other posters have said above - 90% of the populous doesn't give two shits about emissions - especially if it means they are going to get less miles to the gallon and less power.  This whole thing seems blown out of proportion.  It isn't like they killed anyone like some other automakers....

Thu, 09/24/2015 - 18:16 | 6590496 RaceToTheBottom
RaceToTheBottom's picture

Onward to electric.  All part of a plan.  Back to the future....

http://gas2.org/2015/09/22/electric-volkswagen-microbus-on-the-way/

Thu, 09/24/2015 - 18:27 | 6590615 A Nanny Moose
A Nanny Moose's picture

Can I put a camper conversion on that?

Thu, 09/24/2015 - 21:15 | 6591328 RaceToTheBottom
RaceToTheBottom's picture

With an electric alarm clock....

Thu, 09/24/2015 - 18:34 | 6590644 A Nanny Moose
A Nanny Moose's picture

Bam. VW is setting aside $7 billion to cover the costs. What costs? How does this look? Does J6P Tree Hugger give two shits how his/her car passes smog? Do they care if these issues are fixed, if it comes at a cost of reduced performance and/or mileage? I wouldn't

So it's more like $7 billion that will go down the EPA (et all) Rabbit hole. What an abject waste of capital, to simply fund legalized piracy.

Thu, 09/24/2015 - 16:29 | 6589989 ZerOhead
ZerOhead's picture

This emissions control by-pass chip is exactly the kind of cutting edge technology that makes me want to buy a new Volkswagon... plus you now get to look and feel like bad-ass driving one. That drives chicks crazy.

Not to mention that when by-passed, the fuel efficiency of the car increases by up to 20%... thus reducing the same CO2 emissions that Obama says are incinerating and freezing our drought and flood plagued planet.

Going green never felt so good.

Thu, 09/24/2015 - 16:54 | 6590188 ChanceIs
ChanceIs's picture

I think that there is something to controlling the emissions of engines.  My neighbor hasn't tuned his lawnmower in years.  I have to close the windows when he cuts the grass.  Having said that, I think emission tests after a car leaves the factory are stooooopid.  I had  an old gasoline Mercedes that was failng emissions on CO.  Add a little ethanol in the form of gasoline fixer and that problem went away.  I would have gone to the hydrogen peroxide but the gasoline fixer worked the first time.  Emmissions test troubles with your diesel?  Try a mix of half kerosene.  Diesels kick out NOX.  You need to drop the operational temperature to address that.  H2O2 might be an approach.  Do the illegal immigrans running the DMVs have a clue as to what you put in your tank.  The last time I took my wife's car in there, I discovered that they weren't testing anything at all.  They just read the codes that the car had recorded for the prevvious month.  You can go online and get a code reader/resetter to fix that.

I have had three Mercedes diesels.  One went 340K miles.  The other only went 200K.  I was pissed and felt cheated.  I did go 800 miles on a tank with the second one averaging 37 mpg.  That was right after a top end overhaul.

Diesel used to be much more economic until Congress decided to make the source of 1% of emissions reduce those by 10%.  I think diesel used to be about 80% the cost of regular gasoilne.  Now it is often 20% more than premium.  How much energy was wasted at the refineries getting that last 2% of sulfur out of the road diesel?

Why don't we look at emissions per mile driven?  Congress is just soooooo stooooopid in this PPM approach.  Idiots.  Why screw with the diesels?  It isn't as if they compete with windmills the way coal fired generation does.

Thu, 09/24/2015 - 18:02 | 6590480 Larry Dallas
Larry Dallas's picture

Like Chevy, no one is actually proud they have to drive a VW...

Thu, 09/24/2015 - 18:34 | 6590649 divingengineer
divingengineer's picture

I love my Passat TDI, bought out the lease, in fact. 

Thu, 09/24/2015 - 19:36 | 6590968 Retired Guy
Retired Guy's picture

I am very proud of my 2003 VW Golf diesel. It gets 52mpg. The salesman claimed the engine was good for 200+K miles. Not only have I enjoyed lower fuel up costs but I don't have to replace the car. If EPA measured building more car costs and the actual polution pumped out by lower MPG cars I think my VW would prove better than low MPG cars.

I live rural so NOX is not the problem it is in LA. If they kill diesel people like me will be pumping out more CO2 and using more gallons of fuel with no air quality benefits.

I totally agree with the prior poster. The government is STUPID!

Thu, 09/24/2015 - 18:31 | 6590634 divingengineer
divingengineer's picture

My 2012 Passat has the urea injection, that I thought was a hassle before this happened.

The TDIs without the AdBlue will be causing their owners a good bit of trouble I think. I'm sure CA DMV will demand paperwork showing it has been fixed before you can renew the registration in the future.  VW will have a backlog and a list to get on. You will be stuck with a car you can't register for a while I think. 

Thu, 09/24/2015 - 20:09 | 6591098 glenlloyd
glenlloyd's picture

This article is just a lot of nothing. There are a lot of people who know what paying less than 5 cents per mile feels like and they're not giving it up.

The authors are probably anti-diesel anyway so who gives a flying f***, they're just prognosticating about things in the future...like economists.

Diesel isn't dead and this episode won't do anything to it.

I'm still waiting for an explanation as to how GM paid such a minuscule fine AND killed 174 people AND lied about it whereas VW cheated on an emissions test with an agency who arguably has little right to exist based on the Constitution and will now potentially be charged billions? How can we explain this?

Thu, 09/24/2015 - 15:46 | 6589832 mtl4
mtl4's picture

Thanks VW, looking forward to diesel finally being cheaper than gas again while taking our Chevy Chase vacations.

 

EPA is just an extension of the IRS so no surprise what they are after longterm........what's the big deal, just add a urea tank like everyone else does.

Thu, 09/24/2015 - 15:48 | 6589870 daveO
daveO's picture

Yep. $5/gal. gasoline by 2020, not counting the People's Republic of California.

Thu, 09/24/2015 - 16:59 | 6590201 ChanceIs
ChanceIs's picture

Hmmm.  That is an approach I hadn't considered in writing my previous post on defeating the emissions tests.  peeing into your fuel tank or perhaps directly on the air filter shortly before arriving at the test station should produce wonderful results.

Remember the old Cheech and Chong movie where one one them had to go to the probation officer and provide a urine sample.  He wasn't clean, so he got his sister to pee in a cup - and she was pregnant at the time.

Thu, 09/24/2015 - 18:36 | 6590659 divingengineer
divingengineer's picture

It wouldn't hurt my feelings if diesel went to $2.00 a gal. 

Thu, 09/24/2015 - 15:40 | 6589834 38BWD22
38BWD22's picture

 

 

Bad news for diesel engines is bad news for platinum.  Platinum is used for catalytic converters in diesel as well as gasoline engines.

Palladium (much cheaper than platinum) is used in gasoline engines, but cannot be used in diesel.

Net: Palladium use will go up, platinum will go down.  The price of palladium has gone up a lot since the VW scandal news came out.

Thu, 09/24/2015 - 15:45 | 6589860 NotApplicable
NotApplicable's picture

Given the massive overproduction of autos over the last few years, I can't imagine this would have much of an impact on palladium's industrial demand.

Thu, 09/24/2015 - 15:49 | 6589875 38BWD22
38BWD22's picture

 

 

Good point.  I should have more carefully written that relative use of Pd would go up vs. Pt in the automotive sector.

I do not have any insight into other industrial uses of Pt vs. Pd.

Thu, 09/24/2015 - 19:23 | 6590921 Jumbotron
Jumbotron's picture

The power of Propaganda. 

The DIRTIEST of all fossil fuels....Coal for solids and Diesel for liquids....being retagged as CLEAN just because of filters and technology.

There was never such a thng as clean diesel or clean coal.  It is IMPOSSIBLE to make them clean.  Just clean-ER. 

But as with every bit of Utopian thinking......Utopia COSTS MONEY.  And with Crony Fascist Capitalism the rule of the day and the rule of the Globe.......this should come as no surprise.

Thu, 09/24/2015 - 15:35 | 6589819 KnuckleDragger-X
KnuckleDragger-X's picture

Assuming one thing from another is not the way it'll work, but Oilprice has an axe to grind and they grind it as much as possible......

Thu, 09/24/2015 - 15:36 | 6589823 smacker
smacker's picture

"The outlook for diesel looks grim"

It sure looks like that.

Bad news for me as I've been driving diesel engine cars for 20 years and prefer them way more than petrol (gasoline) engines.

Thu, 09/24/2015 - 15:56 | 6589894 Mercury
Mercury's picture

Good news if I can now buy a nice, powerful, fuel efficient, diesel Audi on the used market for cheap!

I will still buy any late 70's-early 80's Mercedes diesel with the 123 chasis that isn't too rusted out. Those engines never die.

Thu, 09/24/2015 - 17:02 | 6590221 ChanceIs
ChanceIs's picture

I wish I still had my '83 240D with the 4 speed manual transmission.  What an elegant little no maintenance tank.  Wouldn't go faster than 82 mph, but who cares.

If I can find one w/o rust I will buy it.  No sensors.  No ERG valves.  NO EPA. No BS.  Just all car. 

Thu, 09/24/2015 - 18:38 | 6590671 divingengineer
divingengineer's picture

Perkins diesels. 

Thu, 09/24/2015 - 15:36 | 6589827 greatbeard
greatbeard's picture

Good for my Dodge Ram one ton.  Hope the fuel prices crash in time for my summer RV trip to the North Rim Grand Canyon area.

Thu, 09/24/2015 - 16:27 | 6590015 Zymurguy
Zymurguy's picture

is that the Kaibab forest or something like that... I once took my Jeep XJ down some trail there to an amazing overlook of the grand canyon.

Thu, 09/24/2015 - 20:12 | 6591108 greatbeard
greatbeard's picture

Yeah, I'm pretty sure it's Kaibab.  I've been to the South Rim a few times and passed through the North Rim area on the way to Zion and Bryce, but haven't spent time exploring the North Rim like I'd like to.  It's a long haul from Florida so when I go I like to have plenty of time to knock around.

Thu, 09/24/2015 - 15:38 | 6589835 hound dog vigilante
hound dog vigilante's picture

The US, EPA et al. regulations are purposefully rigged AGAINST diesel - this is an old story. Ever wonder how/why diesel fuel (which is cheaper to produce/refine) is more expensive in the US?  US auto manufacturers are not competitive per diesel technology, and are US oil refiners are not competitive with diesel products either.

This VW "scandal" is all about US protectionism and removing better, more efficient products from the US domestic market - all to facilitate a domestic monopoly for US auto+oil companies.

Anyone who has driven/run a modern diesel engine KNOWS that diesel is the superior technology/fuel.

And don't discount the potential threat to the US oil industry from algae-derived biodiesel... heaven forbid a sustainable, renewable fuel be developed that somehow benefits someone OTHER than big US oil companies.

Thu, 09/24/2015 - 15:54 | 6589885 daveO
daveO's picture

Granddad had an '83 Ford Diesel (VW engine) Escort. It was superior to similar class cars today. 50+ miles/gal. The EPA started regulating all that competition off the roads in the late 80's after the last huge oil price selloff. The dumbing down of America continues.

Thu, 09/24/2015 - 18:21 | 6590585 Non Merger
Non Merger's picture

I saw a magazine ad for one of these Escorts sometime back.  Sure wish Ford would sell some diesels here in the US.

Thu, 09/24/2015 - 16:17 | 6589972 Dickweed Wang
Dickweed Wang's picture

Ever wonder how/why diesel fuel (which is cheaper to produce/refine) is more expensive in the US?

The simple answer is that diesel fuel has about 20% more energy per gallon than gasoline.  In the old days diesel was almost a by product of gasoline refining and it was cheaper than gas.  As the demand increased so did the price for the reason given above.

Thu, 09/24/2015 - 16:50 | 6590164 headhunt
headhunt's picture

They want to kill the gas and diesel engines.

Their stupidity allows them to believe all electric vehicles will save the world.

Thu, 09/24/2015 - 15:38 | 6589837 Wannabee
Wannabee's picture

I call BS
Google urea. Mercedes, BMW, and others have been using it for years. Reduces nitrous up to 90% post combustion. VW wasn't using it and tried to pull a fast one.

Next scandal please.

Thu, 09/24/2015 - 15:44 | 6589852 KnuckleDragger-X
KnuckleDragger-X's picture

Yep, that's the easiest way, but clean burn can be done it's just a pain in the ass to do it......

Thu, 09/24/2015 - 15:59 | 6589877 mtl4
mtl4's picture

Alot better performance to just run the diesel "lean" then add the urea injection to just compensate for the NOx issue.

Thu, 09/24/2015 - 16:26 | 6590011 minion_of_icke
minion_of_icke's picture

Not ALL VW models negate the use of urea... The Touareg TDI uses it (although since diesel cars are not emissions tested in the US then why wouldn't one just run the urea empty and hack the vehicle's ECU so that it doesn't bug you about being out of urea?).

Thu, 09/24/2015 - 18:41 | 6590682 divingengineer
divingengineer's picture

I have to do a 2 year Smog Test in CA for diesel.

They don't even plug it in, just a visual insp.

They still hit you for $60 though, same as the test for my old Yukon 4X4 that had to go on the dyno and get the gas cap test in addition to the exhaust probe. 

 

Thu, 09/24/2015 - 17:05 | 6590231 Rhythmic Slapper
Rhythmic Slapper's picture

Yup.

They went cheap, got markt share, and got caught.

Now they will be out billions once the lawyers, IRS, EPA, and greens get done with them.

Thu, 09/24/2015 - 17:27 | 6590321 BigJim
BigJim's picture

That's all right, the CEO who green-lighted the decision has since retired.

Thu, 09/24/2015 - 15:42 | 6589844 css1971
css1971's picture

If they're cheating on the Diesel tests what makes you think the gasoline results are valid?

Thu, 09/24/2015 - 15:59 | 6589900 TalkToLind
TalkToLind's picture

Terrorist! Report to Room 101 immediately.

Thu, 09/24/2015 - 15:43 | 6589845 Scooby Dooby Doo
Scooby Dooby Doo's picture

Turbo diesel is a very efficient internal combustion variant. But it's all bullshit anyway. The cost of a crate diesel motor for a simple 1 ton truck is a whopping $10,000-$12,000. And then if you try to work on it forget it you need a $30,000 computer/software combo to tell you what is wrong with all the onboard computers. A single injector costs upwards of $750 and you have 8 of them.

Like everything else anymore, it's not worth it. I actively look for older models. Their loud and smelly but easy and cheaper.

Thu, 09/24/2015 - 15:47 | 6589864 KnuckleDragger-X
KnuckleDragger-X's picture

1st gen Dodge Cummins through '97 were mechanical (non-electronic) and simple. I'm watching out to find one that hasn't been beat to death.....

Thu, 09/24/2015 - 15:57 | 6589889 mtl4
mtl4's picture

Those oldies were so hearty you could just about run old unfiltered engine oil without seeing any performance issues......I like the Cummins 5.9L, Ford 7.3L and GM 6.6L motors for durability as well.  I might be crazy but I actually find the newer electronic versions easier to work on because the OBD system pretty much tells you where to look for issues.  You can just get the Torque app for your android phone if you need a cheap setup too.

Thu, 09/24/2015 - 15:59 | 6589908 greatbeard
greatbeard's picture

Personal opinion, but I think up to the 2007 5.9 Cummins Dodge combo is a good bet.  Transmissions are much better and you rarely hear of any pump/injector issues.  I do all my own maintenance and it's a easy truck to work on.

Thu, 09/24/2015 - 16:21 | 6589990 KnuckleDragger-X
KnuckleDragger-X's picture

Yeah, the 1st gen trucks had weak automatic transmissions, so either upgrade to an Allision or stick with a manual.....

Thu, 09/24/2015 - 17:45 | 6590403 83_vf_1100_c
83_vf_1100_c's picture

  Such a shame they stick them in a Dodge chassis.

Thu, 09/24/2015 - 19:32 | 6590960 greatbeard
greatbeard's picture

>> in a Dodge chassis.

I've heard that said many times but the HD Ram series appear to be pretty good trucks.  I've got 140,000 trouble free miles on mine with no signs of it breaking down.  Plenty of hot shot rigs out there with 350,000+ on them and the chassis is holding up just fine.

Thu, 09/24/2015 - 17:39 | 6590372 Citxmech
Citxmech's picture

The body of my 1990 1st gen Dodge Ram could rust away leaving nothing but the 12v 5.9 B series Cummins and I'd just put it into something else.  Easily one of the best engines I've every driven behind. 

Thu, 09/24/2015 - 17:52 | 6590428 Scooby Dooby Doo
Scooby Dooby Doo's picture

Very fine motors. Internationals also. DT466 was the standard for medium duty commercial for years. I'd like to get an older one and apply it to a 1 ton and compensate for the additional weight.

A vehicle should last for an entire lifetime like a 3rd generation John Deere.

Thu, 09/24/2015 - 15:49 | 6589874 hound dog vigilante
hound dog vigilante's picture

Yep.

They can try to demonize diesel til the cows come home, but I'll be running diesel anyways.

The engines last twice as long, are 40% more efficient, and easier to fix & modify.

Gasoline is for suckers.

Thu, 09/24/2015 - 16:52 | 6590176 Buster Cherry
Buster Cherry's picture

Until TPTB start charging by the BTU instead of the gallon.

Thu, 09/24/2015 - 16:13 | 6589954 Dickweed Wang
Dickweed Wang's picture

And then if you try to work on it forget it you need a $30,000 computer/software combo to tell you what is wrong with all the onboard computers. A single injector costs upwards of $750 and you have 8 of them.

Great points!  But the need for the $30,000 computer/software is not limited to diesel mechanics that's for sure!  Have you priced the cost of a Tech II scanner and software for GM (gas powered) vehicles lately??

Thu, 09/24/2015 - 19:13 | 6590870 mtl4
mtl4's picture

They have perfectly functioning chinese knockoffs of the Tech 2 now for around $400.

Thu, 09/24/2015 - 15:44 | 6589854 wmbz
wmbz's picture

I could not care less about this VW crap. I have been driving Mercedes diesels since the early 80's, and will keep right on doing so.

Diesels run all the big stuff, on the road and on the tracks.

Hey California, Here's an idea, vote to ban all diesel use in your state!

Thu, 09/24/2015 - 15:47 | 6589867 davidalan1
davidalan1's picture

All I know is i feel for the vw dealership owners, yikkes!!

Thu, 09/24/2015 - 15:49 | 6589871 22winmag
22winmag's picture

More scandalous is VW's parts-shitting vehicles and piss poor warranty work.

Thu, 09/24/2015 - 15:51 | 6589883 tarabel
tarabel's picture

 

 

Just you watch and see.

Someone is going to recalculate the amount of diesel emissions in the world and declare that Global Warming is worse than we assumed.

Thu, 09/24/2015 - 15:53 | 6589888 SgtShaftoe
SgtShaftoe's picture

I'd love to have a small diesel SUV. I even considered doing an engine swap on mine to a diesel. Diesel engines run forever. Diesel is shelf-stable for a decade or more, what's not to like?

Thu, 09/24/2015 - 16:09 | 6589940 Dickweed Wang
Dickweed Wang's picture

I'd love to have a small diesel SUV. I even considered doing an engine swap on mine to a diesel.

Diesel engines are much more versatile than gas engines.  It is not commonly known but computer managed diesels will run on just about any volatile fuel from vegetable oil to gasoline.  If there was ever a  problem with obtaining regular diesel fuel or gasoline it would relatively easy to obtain fuel for a diesel using alternative sources (such as making your own bio-diesel).  With a gas engine, unless you have a flex-fuel engine that can run on alcohol (where you could distill your own fuel), you're stuck when the gas supplies run out.

Thu, 09/24/2015 - 16:42 | 6590110 headhunt
headhunt's picture

You will F' up your diesel engine if you burn gas in it - toast!

Thu, 09/24/2015 - 17:05 | 6590232 Rockatanski
Rockatanski's picture

i know a ford mechanic that ran his 6.0L on used automatic trans fluid for a year. just filtered the oil and in it went.

Thu, 09/24/2015 - 17:13 | 6590259 Offthebeach
Offthebeach's picture

Used to fish off a boat with 2 stroke Cummins. Loud, dirty and fast. Those girls would burn human skin fat.

Thu, 09/24/2015 - 16:43 | 6590115 headhunt
headhunt's picture

259,000+ miles on my F350

Thu, 09/24/2015 - 16:48 | 6590151 Buster Cherry
Buster Cherry's picture

The Isuzu P'up and Chevy Luv trucks were cool...no power at all, but the mileage was great.

I'd like to have one too.

In this day and age I wonder why they haven't made hybrid diesel electric cars rather than the gas/electric. If I had my way, I'd drive the car on fuel for commuting and charging, then plug the car into my house so it could power the lights, stove and TeeVee.

Then my only bill would be water.

Thu, 09/24/2015 - 15:56 | 6589897 Lost in translation
Lost in translation's picture

Sounds like yet another convenient crisis that our Imperial overlords won't let go to waste.

Which sux, cuz I love diesel.

Thu, 09/24/2015 - 15:57 | 6589901 arbwhore
arbwhore's picture

I <3 my 3 cylinder Massey Ferguson. I'll probably be burried with it (or because of it).

Thu, 09/24/2015 - 17:41 | 6590384 Citxmech
Citxmech's picture

My MF 245 Orchard model says "Hi!"

Thu, 09/24/2015 - 16:00 | 6589902 jerry_theking_lawler
jerry_theking_lawler's picture

Fuck the .gov and their regs. Diesel is much more efficient due to engine design.  Keep listening to your .gov and they'll keep efficiency levels down.

Thu, 09/24/2015 - 16:01 | 6589916 SmittyinLA
SmittyinLA's picture

US Auto and Truck emission standards are based on EU (German standards) which are based on bullshit*. 

Does anybody think the truck and equipment makers didn't also "game the test"? 

Growth plans with clean diesel* cannot be supported----->bullish Nat gas

bearish for growth. 

CARB gonna have to think about limiting immigration.

Thu, 09/24/2015 - 16:48 | 6590148 ATM
ATM's picture

I thought US emissions standards were based on th ebullshit Clifornia standards that thoe moonbats developed?

Thu, 09/24/2015 - 16:22 | 6589977 European American
European American's picture

Fear mongering...diesel will out live gas-o-line.

Thu, 09/24/2015 - 16:24 | 6590005 dexter_morgan
dexter_morgan's picture

You can make ur own diesel......you cant make ur own regular unleaded......

which one will TPTB try to get rid of?

Thu, 09/24/2015 - 16:22 | 6589999 PoasterToaster
PoasterToaster's picture

Fuck the "government".

Thu, 09/24/2015 - 16:22 | 6590000 Zymurguy
Zymurguy's picture

Anyone test the Chevy Cruze diesel model yet?

Thu, 09/24/2015 - 16:25 | 6590007 dexter_morgan
dexter_morgan's picture

The main problem with it is......ITS A CHEVY

Thu, 09/24/2015 - 16:28 | 6590018 Zymurguy
Zymurguy's picture

just trying to point out that they're now probing into BMW and I'm sure Mercedes is next... but will they look at Govt. Union Motors?

Thu, 09/24/2015 - 16:41 | 6590085 dexter_morgan
dexter_morgan's picture

You might be on to the reason for all this probing and poking - perhaps Gubmit Motors wants to supplant volkswagen in the low end diesel marketplace............

BMW, Audi, MB owners wouldn't be interested in Chevy's but VW owners might be. 

And, Gubmit Motors would never lie or cheat on anything................

Thu, 09/24/2015 - 16:28 | 6590016 Ataxic Press
Ataxic Press's picture

My F350 demands BLOOD!

I leave it idling in the parking lot when I go to the Dollar Store.

Thu, 09/24/2015 - 16:40 | 6590095 headhunt
headhunt's picture

My '95 7.3 laughs at my fuel gauge

Thu, 09/24/2015 - 16:31 | 6590030 Sturm und Drang
Sturm und Drang's picture

...when a plan comes together...

Thu, 09/24/2015 - 16:40 | 6590091 dexter_morgan
Thu, 09/24/2015 - 16:39 | 6590092 cordial savage
cordial savage's picture

But Vin is ok, right?

Thu, 09/24/2015 - 16:40 | 6590094 ToSoft4Truth
ToSoft4Truth's picture

Was Diesel a scam from the start?  LOL

Personally, still waiting on that ‘Clean Coal Technology’ myself. 

Thu, 09/24/2015 - 17:40 | 6590278 TalkToLind
TalkToLind's picture

The E.P.A. was a scam from the start, they keep moving the damn goal posts. Technology X is clean today but filthy in 2016.

Thu, 09/24/2015 - 16:40 | 6590098 HowdyDoody
HowdyDoody's picture

The early 21st century wants their benchmark fixing scandal back.

In 2003, Futuremark confirmed that nVidia was cheating in benchmark tests

http://www.geek.com/games/futuremark-confirms-nvidia-is-cheating-in-benc...

Look on the bright side, none of the other car markers are sufficiently deceptive to do similar things when their cars are connected to testing stations. </cough>

 

 

 

Thu, 09/24/2015 - 16:48 | 6590153 darteaus
darteaus's picture

I think I'll drop by the VW dealer today, and see what kind of deal he'll have for a diesel car...

Get 'em before they're banned.

Thu, 09/24/2015 - 17:53 | 6590439 TalkToLind
TalkToLind's picture

Increased demand for TDI's after the E.P.A. action? That's not supposed to happen!!!

Thu, 09/24/2015 - 16:50 | 6590165 fowlerja
fowlerja's picture

Tom...that was a very kool prediction...lets see how this all turns out..

Thu, 09/24/2015 - 16:54 | 6590181 Hongcha
Hongcha's picture

Every few years the market offers an opportunity of this magnitude.

My thanks go out to panicked sheep fund managers (or squeezed managers forced to liquidate) for the Porsche shares @ $4>.

Thu, 09/24/2015 - 16:59 | 6590206 scatha
scatha's picture

All of this stems from clean energy mantra. In fact none of it is clean, their research is sponsored by benefactors and they lie thru their teeth.

Oil and industry owns all the research institutes and big chunk of the solar, wind industry keeping fossils fuels industry competitive and "clean" clean coal, clean diesel etc., VW is owned by oil interests and German government who wants the propaganda going. The real technical progress is none exactly as they want it.

Here is nice review of the fallacy of the renewable/clean energy being just a Wall Street propaganda to scam taxpayers for benefit of  SV  megalomaniacs and oil industry:

https://sostratusworks.wordpress.com/2015/02/11/engineering-renewable-de...

Thu, 09/24/2015 - 17:12 | 6590253 rejected
rejected's picture

Read until I got to:

"and forced utility companies to increase burning of oil, and consequently pollution and emission of the greenhouse gases in their power plants to maintain stability and reliability of the power supply."

Just another global warming article in disguise.

Thu, 09/24/2015 - 17:12 | 6590254 Teh Finn
Teh Finn's picture

"Clean" energy is 100% rent seeking and emotionalism.  All things produced must be mined out of the earth.  Living and life are messy.  People need to grow the **** up.

Thu, 09/24/2015 - 19:53 | 6591026 falconflight
falconflight's picture

some People just need to die the fuck already...there fixed it.

Thu, 09/24/2015 - 17:01 | 6590215 rejected
rejected's picture

First off,,, the only reason the u.s gov managed to clean the air somewhat is because it assisted in exporting all the production. (and jobs) As for autos,,, by 2000 95% of the pollutants were cleaned up... now they're after the 5% regardless of the cost to customers. They won't be happy until all the gas/diesel fueled cars are off the road in favor of electric which merely moves the point of so called pollution. Then the batteries will become the new pollution.

They won't stop until they control it all. They have taken decent light bulbs claiming their BS about power usage. Incandescents provided a natural light and heat in the Winter. With long daylight in summer they weren't used as much. Now we have bulbs that cost 10 times, are dangerous to our health, put out crummy light and are polluting the landfills with mercury. Don't hear nothing from the EPA about that do ya!.

Oh and don't forget to 2.6 gallon toilet you have to flush 2-3 times after a number 2. If you don't you'll end up calling a plumber.

Then comes the backflow prevention devices which are pretty useless but now required for homeowners that have wells or sprinkler systems and hook to a public water supply. They're afraid your going to contaminate their already chlorine and fluoride contaminated water even though it has never happened. It's "just in case".

Then the EPA itself pollutes the Animus river in Colorado and thinks nothing of it,,, of course it's OPM they will use to contract out the clean up,,,,,, which was the reason for creating the disaster to begin with.

They're answer of course is the usual BS "green shit",,, Solar, Wind and what they really really like,,, nuclear fission. You know, clean, like Fukushima. Three Mile and Chernobyl.... and how many more not reported?  Clean like all the nuclear waste being constantly moved around. And they especially like to place them on fault lines and in Hurricane areas.

Now a bunch of misguided and government educated PhD's will kill Diesels in the name of the greater good and global warming may even be blamed on them. 

Government destroys everything it eventually touches. The only industry(s) that usually survive are the Arms and Surveillance which of course they need to better watch you and kill you if they deem necessary.

Someday our descendants will have to fight this monster we created and I am sure they'll have some very colorful names when referring to us. 

 

Thu, 09/24/2015 - 18:35 | 6590653 TradingTroll
TradingTroll's picture

Batteries are the new pollution from electric cars?Are you kidding? Did you happen to miss the news about pollution from nuclear reactors? The same reactors that supply electricity used in electric cars. Or are we supposed to ignore that now?

 

 

 

 

 

 

Thu, 09/24/2015 - 21:00 | 6591272 Faeriedust
Faeriedust's picture

Well, of course, if we had only half as many people, we wouldn't need more than a quarter as much government.

The freedom to swing your arm ends where my nose begins.  Which means that EVERYBODY'S freedom to swing arms ends, when there are so many people that they're all within arm's reach of someone else.  The possibility of freedom is inversely related to population density.  Want to make the world "free" for all humanity?  Become a dedicated mass-murderer and kill at least 3 billion of the current 7 billion living humans.

In the meantime, government is the price we pay for unrestricted reproduction and extended life spans.

Thu, 09/24/2015 - 17:17 | 6590276 NoWayJose
NoWayJose's picture

It will hurt diesel in the U.S. but the rest of the world does not have such onerous emission standards on their cars.

Of course, you could argue that California has the tightest emissions standards AND the worst air quality in the U.S.

If the liberals really cares about global warming they would get high polluting cars OFF the road. But most states have loopholes in their emission test laws - car is too old, if you fail then put $100 into repairs and you automatically pass, etc...

Thu, 09/24/2015 - 20:55 | 6591257 Faeriedust
Faeriedust's picture

I doubt those loopholes were put into the laws by liberals.

And certainly, many countries don't have such "onerous" air quality standards.  Take China, for instance, where the air is so bad that they have numerous days during the summer where it's literally deadly to breathe the outdoor air.  Have you considered that part of California's problem, in addition to its crushing overpopulation, might be that it's the first civilized area downwind of China?  The place without emissions standards.  Because hey, Progress is so much more important than breathing.

Thu, 09/24/2015 - 17:48 | 6590418 TalkToLind
TalkToLind's picture

You RAYCISS TERRORISTS had better stop questioning the Chevy Cruze Diesel emissions figures, they are legit. If you question this you will be droned.

Thu, 09/24/2015 - 17:53 | 6590442 Lumberjack
Lumberjack's picture

May the bio diesel industry burn...

Thu, 09/24/2015 - 18:13 | 6590547 mijev
mijev's picture

"That shift could not have come at a worse time for diesel."

I wonder if it's coincidence that it happened after the Saudi visit to DC. Does any demise in diesel strengthen the petrodollar?

Thu, 09/24/2015 - 18:20 | 6590581 Ms No
Ms No's picture

I think I just decided to sell my diesel not because I am worried about them becoming illegal but because I am wondering how much longer one can get away without having emissions on a vehicle whatsoever.  Some models of trucks you pretty much had to remove the entire system or risk losing the engine because of the jacked designs.

Amazingly I get 20 miles to the gallon with a 1 ton with probably close to 2,000lbs on the back now that there isn't an environmental system, haven't seen any big plooms of black smoke yet either.  As it is right now I have it registered in a po-dunk town that has no emissions requirements, pretty sure that isn't going to last. 

Thu, 09/24/2015 - 20:50 | 6591240 Faeriedust
Faeriedust's picture

In other words, you are breaking the law and dumping crap into the air at will in the supreme confidence that you can avoid enforcement.  By doing so, you save money and can indulge your power fantasies at the wheel of a powerful machine while offloading the costs (crapping into the common air supply) on those less wealthy or powerful than big, strong, macho YOU.

Have you considered that perhaps those environmental systems were put onto your truck for a reason?  One that involves small children you don't know being able to breathe?  Yes, of course they made your truck less fuel-efficient and powerful.  And maybe the designs were crappy and therefore made your machine likely to fail earlier than a good design would have.  Which is why you have the responsibility to act like a grownup and choose the best technology available that you can afford.  And if you can't afford a 1-ton pickup that doesn't contribute too awfully much to killing your neighbors, maybe you shouldn't have one.

There are words for people who think only of their own good while intentionally ignoring any harm they do to others and pretending it's Somebody Else's Fault.  Most of them aren't used by ladies.  But here's one that is: BULLY.

 

Thu, 09/24/2015 - 21:54 | 6591440 Ms No
Ms No's picture

Well..... that's not all I'm doing.  The truck has made me tons of money, you see the funny thing about work trucks is.... you have to be able to idle the fucker without the environmental system clogging up and destroying a piece expensive equipment and the job that you could lose is worth way more than the truck.  I will probably also be receiving a check from the class action for that model of vehicle and then I will sell it to someone who lives in a state that doesn't have emissions and of course the truck was a write off and paid for in cash because I am not a whiny misinformed loser like yourself.  So I am doing that in addition to avoiding bullshit environmental laws.

Just because your name is faeridust and your mad because I can do numerous things that kick ass and it hurts your limp wristed feelings doesn't mean I am a butch or a bully.  If you saw me you never believe that I had ever worked any type of skilled labor before and I sure as hell didn't have to.  Actually most people I meet randomly don't believe me when I tell them what I do, or more accurately what I have done. 

Keep hatin baby...        

 

Thu, 09/24/2015 - 18:23 | 6590589 Non Merger
Non Merger's picture

I won't be taking my Passat TDI in for any emissions recalls.

 

6-speed manual FTW.

Thu, 09/24/2015 - 19:50 | 6591004 falconflight
falconflight's picture

the US Gov't/Pols and their NGO whores have done their best to destroy diesel autos not based on anything but ideology.  More proof that Amerika is not exceptional at all.  We owned two TDIs 98/2003 (Both 5 speed manuals), great cars for the gas mileage.  But again, the US Gov't ran VW TDIs out of the market, circa 2008, and forced them to reconstitute yet another even less parts per BILLION cleaner engine and of course Bush's signed law making petro more expensive than unleaded.  I even went so far as buy biodiesel a few times, but in fact the gov't/ngo's don't want me to have choices, just their fucking choice.  Fuck this country, more and more.

Thu, 09/24/2015 - 19:52 | 6591020 ElectroGravitic
ElectroGravitic's picture

Goldman Sacks says this is a $600 Trillion nut. Actually this is much bigger.

We don't even need petroleum to power transportation, or coal for energy generation. Stan Meyer proved that more than 20 years ago.

A criminal cabal has hidden cheap, clean energy from humanity for more than 100 years. Since the price of energy is embedded in everything from food to housing, this has caused damages in excess of $600 Trillion in addition to unnecessarily polluting the biosphere, and killing our only planet. Put a price on that!

Also, socially significant news organizations refuse to publish this scandal, which is itself a crime.

For more details, see SIRIUS The Movie at:

http://www.SiriusDisclosure.com/

https://youtu.be/uidDHEaxxlE?t=435

Source: https://youtu.be/0gVLv5eg4Xg?t=5093

Thu, 09/24/2015 - 21:00 | 6591270 TrustbutVerify
TrustbutVerify's picture

For automotive diesels...the fix, a little less NoX = a lot more CO2 = more use of precious resources = ever more money sent to other countries, some of which that give some money to terrorists.  

Thu, 09/24/2015 - 21:22 | 6591348 VWAndy
VWAndy's picture

Dogma abounds.

 You cant handle the truths. Id spell it out for ya but I do want to live. If ya think you can handle it start digging. Its there all big and ugly. Set aside all that you think you know, most of it is dogma. Then roll up your sleaves and start digging.

Fri, 09/25/2015 - 00:16 | 6591733 highwaytoserfdom
highwaytoserfdom's picture

I believe German engineers more than EPA..   This is a political move by Oil production countries

http://peakoil.com/consumption/volkswagens-new-300-mpg-car-not-allowed-i... this is going to be an EPA scandal and a government Tax scandal.

no different than the Enron Carbon tax scam devoid of science. 

 

What exactly are the CA NOx standards.  heck

(NH2)2CO ? NH3 + HNCO

The isocyanic acid hydrolyses to carbon dioxide and ammonia:

HNCO + H2O ? CO2 + NH3

The overall reduction of NOx by urea is:

2(NH2)2CO + 4NO + O2 ? 4N2 + 4H2O + 2CO2
Fri, 09/25/2015 - 03:23 | 6591944 BlackVoid
BlackVoid's picture

Diesel sux, good riddance.

Fri, 09/25/2015 - 03:25 | 6591945 BlackVoid
BlackVoid's picture

BTW this is economic war. Of all the manufacturers, the US targets a German carmaker? Coincidence? No. Probably retaliation for German business interests trying to undermine Russia sanctions.

Fri, 09/25/2015 - 16:28 | 6594482 FJ
Fri, 09/25/2015 - 18:13 | 6594732 nonplused
nonplused's picture

Anyone seen the smoke that comes out of a 3500 chipped to "burn coal" as they call it?  One of these trucks clearly emits more pollution than hundreds of Passots but you don't see the EPA going after them.  Granted this is an aftermarket product that is usually associated with a big lift kit but still you'd think they would shut down the chip manufacturers and possibly ban the product.

 

What these chips do is under heavy throttle they inject more fuel than the engine can burn.  Quite a bit more.  This creates plums of black smoke from the exhaust due to the partial burn.  The lift kit crowd thinks it's cool but it is way more polluting than a Passot that is chipped to get the best possible millage.  You can't hardly see smoke from a Passot so the particulate content has to be pretty low.

 

Something similar happened in the 1970's when the US went after NOX emissions from gasoline engines.  Anyone remember?  A big engine went from being a 302 ci to a 440 ci as they lowered compression ratios and strapped on all kinds of extra parts.  Fuel millage fell almost in half, partly due to lower engine efficiency but also partly because the cars became larger to hold the bigger engines.

 

So now that's all out of the way, why don't we go test the engines where most of the diesel actually gets burned, tractor trailers, construction equipment, train engines and shipping.  Oh wait those engines don't have any emissions control at all.  Jet airplanes don't run on diesel, but jet fuel is pretty similar (so similar you can run a jet on diesel in a pinch).  Are they testing those?  How do you put a catalytic converter on a jet?  So it's pretty much just cars and light trucks that have to be clean and it always comes at a reduction in fuel economy and an increase in CO2 emissions as a result.

 

PS all cars are computer controlled today including gas engines.  I bet if you hook a Chevy up to the same analyser you would find it also doesn't meet specs when it isn't connected to the EPA bench tester.  If you can program a diesel to cheat, you can program a gas burner to cheat.

 

It's the same with the mileage sticker.  Everybody knows you will not get the same results in real life.  My truck is supposed to get close to 20 mpg but in real life I can only get 15 downhill with the wind.  Nobody drives a constant 49 mph and never stops and starts.  The numbers are good relative though, you can tell from the stickers that a Passot will get much better mileage than a 3500.  I don't know if I needed a sticker for that though.

Fri, 09/25/2015 - 18:32 | 6594800 nonplused
nonplused's picture

Also i'd be curious to see what happens if you hook this new test equipment up to something like a Ford Eco-Boost engine.  I'm sure the NOX is pretty low when the engine is idling around, but I bet once the twin turbos kick in and double the combustion pressure there is NOX all over the place.  Modern direct injection gas engines use injection timing to prevent knock just like modern deisels, and they are also using high compression to increase effiiency via the turbos.

 

PS why is zerohedge so slow lately?  Are they under a coninous DMS attack?  Or maybe it's the billions of ads.

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