[Script Info] Title: [Events] Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text Dialogue: 0,0:00:00.26,0:00:13.18,Default,,0000,0000,0000,,{\i1}33c3 preroll music{\i0} Dialogue: 0,0:00:13.18,0:00:16.86,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:00:16.86,0:00:22.61,Default,,0000,0000,0000,,Herald: So, has anyone of you heard of\NRolling Coal? It's a mostly American Dialogue: 0,0:00:22.61,0:00:29.15,Default,,0000,0000,0000,,phenomenon of modifying your car in such a\Nway as to maximize the emissions so they Dialogue: 0,0:00:29.15,0:00:38.53,Default,,0000,0000,0000,,are visible as a big black cloud of smoke.\NApparently I heard that VW cars are now Dialogue: 0,0:00:38.53,0:00:45.58,Default,,0000,0000,0000,,very popular among the friends of Rolling\NCoal. But let's not joke so much and focus Dialogue: 0,0:00:45.58,0:00:52.72,Default,,0000,0000,0000,,on the topic at hand. Daniel Lange has the\Nmission to stop the omissions of emissions Dialogue: 0,0:00:52.72,0:00:57.53,Default,,0000,0000,0000,,at VW. He spoke to hundreds\Nof people since... Dialogue: 0,0:00:57.53,0:01:08.84,Default,,0000,0000,0000,,{\i1}laughter{\i0}\N{\i1}applause{\i0} Dialogue: 0,0:01:08.84,0:01:13.10,Default,,0000,0000,0000,,Last year he also gave a talk together\Nwith a colleague about the same topic and Dialogue: 0,0:01:13.10,0:01:16.92,Default,,0000,0000,0000,,since then he has spoken to hundreds of\Npeople and has gained some new insides Dialogue: 0,0:01:16.92,0:01:21.45,Default,,0000,0000,0000,,that he will now share with us. I welcome\Nyou to Dieselgate—one year later. Dialogue: 0,0:01:21.45,0:01:24.96,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:01:24.96,0:01:33.17,Default,,0000,0000,0000,,Daniel Lange: Thanks very much. Can you\Nhear me? Okay. Wonderful. Thank you very Dialogue: 0,0:01:33.17,0:01:37.97,Default,,0000,0000,0000,,much. A very quick announcement: The talk\Nwill be about 40 minutes, so if you have Dialogue: 0,0:01:37.97,0:01:42.86,Default,,0000,0000,0000,,to leave after 30 minutes because you have\Na dinner appointment or something like Dialogue: 0,0:01:42.86,0:01:48.78,Default,,0000,0000,0000,,that, please do so quietly. I was really\Nunable to reduce the slides down much Dialogue: 0,0:01:48.78,0:01:57.64,Default,,0000,0000,0000,,further without taking all the jokes away.\NSo, my name is Daniel Lange. I have worked Dialogue: 0,0:01:57.64,0:02:02.06,Default,,0000,0000,0000,,on the Dieselgate stuff on and off over\Nthe last year because I worked with press, Dialogue: 0,0:02:02.06,0:02:10.56,Default,,0000,0000,0000,,so I worked with litigation people. And\Nlast year I was here because I felt that Dialogue: 0,0:02:10.56,0:02:17.14,Default,,0000,0000,0000,,this Volkswagen notion of there being this\N“rogue group of engineers” was so Dialogue: 0,0:02:17.14,0:02:20.98,Default,,0000,0000,0000,,utterly wrong, and everybody in the\Nautomotive industry actually knows this, Dialogue: 0,0:02:20.98,0:02:26.53,Default,,0000,0000,0000,,that I just felt I had to speak up. And I\Ndon't know why, but they kind of keep Dialogue: 0,0:02:26.53,0:02:30.97,Default,,0000,0000,0000,,motivating me to come back and point out\Ntheir lies, so that's actually what I'm Dialogue: 0,0:02:30.97,0:02:36.31,Default,,0000,0000,0000,,going to do. I myself have worked for 16\Nyears in the automotive industry. 14 years Dialogue: 0,0:02:36.31,0:02:41.81,Default,,0000,0000,0000,,of that at a Bavarian manufacturer that's\Nnot located in Ingolstadt. Dialogue: 0,0:02:41.81,0:02:43.98,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:02:43.98,0:02:48.60,Default,,0000,0000,0000,,And I run my own company, right,\NFaster IT here is a consultancy, but we Dialogue: 0,0:02:48.60,0:02:52.37,Default,,0000,0000,0000,,don't work for the automotive industry,\Nright, so that's why I can actually talk Dialogue: 0,0:02:52.37,0:02:59.57,Default,,0000,0000,0000,,here and don't have much of an issue.\NHello, next slide, okay, this was broken Dialogue: 0,0:02:59.57,0:03:07.25,Default,,0000,0000,0000,,in the process, so I'm fixed here. I can't\Nwalk. So everybody basically cheated, Dialogue: 0,0:03:07.25,0:03:13.25,Default,,0000,0000,0000,,right? The emissions thing is not a\NVolkswagen scandal. It's Dieselgate. It's Dialogue: 0,0:03:13.25,0:03:20.58,Default,,0000,0000,0000,,something where nearly everybody basically\Nhas an issue. So this is why I'd actually Dialogue: 0,0:03:20.58,0:03:27.72,Default,,0000,0000,0000,,like to show you this slide to just, you\Nknow, relieve my conscience. This is about Dialogue: 0,0:03:27.72,0:03:32.45,Default,,0000,0000,0000,,the temperature window. This is kind of\Nthe second last finding that came out in Dialogue: 0,0:03:32.45,0:03:38.87,Default,,0000,0000,0000,,the middle of this year, that basically\Neverybody has a temperature window, where Dialogue: 0,0:03:38.87,0:03:44.81,Default,,0000,0000,0000,,they reduce and at some point in time\Nswitch off the emissions treatment system. Dialogue: 0,0:03:44.81,0:03:51.44,Default,,0000,0000,0000,,And if like at Opel, which Felix is going\Nto talk about later a bit more, or Nissan Dialogue: 0,0:03:51.44,0:03:57.67,Default,,0000,0000,0000,,or Audi for example, these kick in at\N17°C, that kind of has a flavour to it, Dialogue: 0,0:03:57.67,0:04:02.69,Default,,0000,0000,0000,,that has a taste to it, because the\Ntesting is being done at 20°C and there's Dialogue: 0,0:04:02.69,0:04:09.98,Default,,0000,0000,0000,,a 2°C margin of error. So that means,\Ntesting can be at 18°C to 22°C and if Dialogue: 0,0:04:09.98,0:04:13.63,Default,,0000,0000,0000,,you're starting to switch off your\Nemissions treatment at 17°C, you just Dialogue: 0,0:04:13.63,0:04:18.71,Default,,0000,0000,0000,,start to switch it off, like in most\Nreal-life situations in northern Europe or Dialogue: 0,0:04:18.71,0:04:24.37,Default,,0000,0000,0000,,in the States, but you're sure it's\Navailable when the car has been properly Dialogue: 0,0:04:24.37,0:04:31.59,Default,,0000,0000,0000,,set up for testing. So, sadly so that's\Nthe only slide I'm going to show, which is Dialogue: 0,0:04:31.59,0:04:36.15,Default,,0000,0000,0000,,not on Volkswagen, so I'm also guilty of\Nnot putting enough focus on the others, Dialogue: 0,0:04:36.15,0:04:40.92,Default,,0000,0000,0000,,but Volkswagen is just so entertaining\Nthat, you know, I can't make that up with Dialogue: 0,0:04:40.92,0:04:47.36,Default,,0000,0000,0000,,anybody else. So, this is the money slide.\NThis is kind of to update you in case you Dialogue: 0,0:04:47.36,0:04:52.53,Default,,0000,0000,0000,,have been living under a rock for the\Nlast, I don't know, six months. There's Dialogue: 0,0:04:52.53,0:04:59.36,Default,,0000,0000,0000,,two class action suits. Class action suits\Nare a legislation in the States which Dialogue: 0,0:04:59.36,0:05:06.58,Default,,0000,0000,0000,,allows to collect actions from individual\Npeople that have owned a Volkswagen and Dialogue: 0,0:05:06.58,0:05:13.05,Default,,0000,0000,0000,,have been betrayed together and they have\Nsplit the solution to these class action Dialogue: 0,0:05:13.05,0:05:17.72,Default,,0000,0000,0000,,suits into two, because on the 2 liter it\Nwas rather easy—Volkswagen said: “Yes, Dialogue: 0,0:05:17.72,0:05:21.39,Default,,0000,0000,0000,,we cheated.”—, but on the 3 liter they\Nmaintained for quite a long time that they Dialogue: 0,0:05:21.39,0:05:25.74,Default,,0000,0000,0000,,didn't cheat, so there were extended\Nnegotiations. And what you see here is Dialogue: 0,0:05:25.74,0:05:31.53,Default,,0000,0000,0000,,basically a breakdown of the overall cost,\Nwhich is currently estimated to be in the Dialogue: 0,0:05:31.53,0:05:37.97,Default,,0000,0000,0000,,$ 12 billion range for settling these. For\Nthe 2.0 liters, Volkswagen basically has Dialogue: 0,0:05:37.97,0:05:43.93,Default,,0000,0000,0000,,to buy them back. A bit more on this\Nlater. And for the 3.0s they have split Dialogue: 0,0:05:43.93,0:05:49.23,Default,,0000,0000,0000,,them into a Generation 1, which they also\Nbuy back, and a Generation 2 and those Dialogue: 0,0:05:49.23,0:05:54.41,Default,,0000,0000,0000,,vehicles will be getting a new catalyst,\Nthey will be getting up to three new Dialogue: 0,0:05:54.41,0:05:59.96,Default,,0000,0000,0000,,sensors, they will get a turbine mixer for\Nthe injection of the Diesel emission Dialogue: 0,0:05:59.96,0:06:05.24,Default,,0000,0000,0000,,fluid, they will get a new Diesel emission\Nfluid—Ad Blue is the brand name—dosing Dialogue: 0,0:06:05.24,0:06:12.21,Default,,0000,0000,0000,,valve. All of these have to be approved by\Nthe EPA and if it is approved, Volkswagen Dialogue: 0,0:06:12.21,0:06:16.88,Default,,0000,0000,0000,,can retrofit it. If not, they also have to\Nbuy back the vehicles, so this is why it Dialogue: 0,0:06:16.88,0:06:20.87,Default,,0000,0000,0000,,says “GOTO 1” there, right, because\Nthen they will be treated the same as Dialogue: 0,0:06:20.87,0:06:24.26,Default,,0000,0000,0000,,Generation 1. Now if you compare that—I\Ndon't know whether you saw the talk last Dialogue: 0,0:06:24.26,0:06:29.17,Default,,0000,0000,0000,,year—in Europe there is this plastic\Ntube, this flow rectifier, a kind of, I Dialogue: 0,0:06:29.17,0:06:35.09,Default,,0000,0000,0000,,don't know, 3 Euro part, which is put into\Nyour car and all is well, right? Now, Dialogue: 0,0:06:35.09,0:06:40.08,Default,,0000,0000,0000,,okay, that's, you know? Honestly, 2 liter\Nengines, 3 liter engines, they are Dialogue: 0,0:06:40.08,0:06:43.96,Default,,0000,0000,0000,,different. 4 cylinders, 6 cylinders, but,\Nyou know, I guess everybody, you don't Dialogue: 0,0:06:43.96,0:06:47.47,Default,,0000,0000,0000,,need to work in the automotive industry to\Nunderstand that a plastic part for 3 Euro Dialogue: 0,0:06:47.47,0:06:52.62,Default,,0000,0000,0000,,and some better flow calculations are not\Nthe same as investing substantially in Dialogue: 0,0:06:52.62,0:06:59.07,Default,,0000,0000,0000,,each car to really equip it with what it\Nshould have been equipped with right from Dialogue: 0,0:06:59.07,0:07:05.18,Default,,0000,0000,0000,,the beginning. So that's kind of the\Nsettlement there. The process is quite Dialogue: 0,0:07:05.18,0:07:12.38,Default,,0000,0000,0000,,interesting. Volkswagen has to reach 85%\Nof all customers bringing in their vehicle Dialogue: 0,0:07:12.38,0:07:17.40,Default,,0000,0000,0000,,for fix or buying back those vehicles. If\Nnot, there will be additional penalties. Dialogue: 0,0:07:17.40,0:07:23.55,Default,,0000,0000,0000,,So that's the way that the US folks\Nactually make sure that this is successful Dialogue: 0,0:07:23.55,0:07:29.01,Default,,0000,0000,0000,,and somebody in the States gets like\N$ 10,000 to 20,000 on top of the value of Dialogue: 0,0:07:29.01,0:07:35.88,Default,,0000,0000,0000,,their car. So that's kind of quite\Nsubstantial. For the States themselves Dialogue: 0,0:07:35.88,0:07:39.90,Default,,0000,0000,0000,,this is also quite interesting, because\Nthe last lines you're seeing there is Dialogue: 0,0:07:39.90,0:07:46.62,Default,,0000,0000,0000,,$ 2.7 billion on the 2.0 settlement and\Nanother $ 225 million on the 3.0 liter Dialogue: 0,0:07:46.62,0:07:52.58,Default,,0000,0000,0000,,settlement. They go into an environmental\Ntrust and this is then used to, you know, Dialogue: 0,0:07:52.58,0:07:59.95,Default,,0000,0000,0000,,buy new bus fleets, build up forests, do\Ninfrastructure for zero emission vehicles Dialogue: 0,0:07:59.95,0:08:04.98,Default,,0000,0000,0000,,and so on and so on. So there's a lot of\Nmoney actually being available now to the Dialogue: 0,0:08:04.98,0:08:10.57,Default,,0000,0000,0000,,government of the United States, and\NCanada has settled for a very similar Dialogue: 0,0:08:10.57,0:08:14.82,Default,,0000,0000,0000,,thing, to actually do good for the\Nenvironment and set off the damage that Dialogue: 0,0:08:14.82,0:08:20.36,Default,,0000,0000,0000,,Volkswagen has done to the environment.\NThere's an unofficial figure which I Dialogue: 0,0:08:20.36,0:08:23.79,Default,,0000,0000,0000,,didn't put on the slides, so the press\Npeople that only read the slides don't get Dialogue: 0,0:08:23.79,0:08:29.87,Default,,0000,0000,0000,,it, so they really need to see the talk,\NBosch seems to have settled for a $ 300 Dialogue: 0,0:08:29.87,0:08:36.56,Default,,0000,0000,0000,,million fine as well, so they will pay\N$ 300 million into the fund to offset their Dialogue: 0,0:08:36.56,0:08:41.26,Default,,0000,0000,0000,,participation in the Dieselgate. I think\Nyou probably remember that we were Dialogue: 0,0:08:41.26,0:08:46.61,Default,,0000,0000,0000,,discussing how much did Bosch know last\Nyear and we basically showed that it's not Dialogue: 0,0:08:46.61,0:08:52.08,Default,,0000,0000,0000,,possible to do this type of cheating\Nwithout a close cooperation between the Dialogue: 0,0:08:52.08,0:08:56.95,Default,,0000,0000,0000,,supplier of the electronic control unit,\Nwhich is Bosch in this case, and the OEM, Dialogue: 0,0:08:56.95,0:09:01.57,Default,,0000,0000,0000,,which is the Volkswagen group. The\Ncallback process itself is quite Dialogue: 0,0:09:01.57,0:09:07.34,Default,,0000,0000,0000,,interesting as well. This is the form that\Nyou have to fill when you bring in your Dialogue: 0,0:09:07.34,0:09:12.92,Default,,0000,0000,0000,,car and Volkswagen has hired more than 700\Npeople in the States just to conduct this Dialogue: 0,0:09:12.92,0:09:18.46,Default,,0000,0000,0000,,process. So this is not only, you know,\Nabout $ 5 billion to the environment and Dialogue: 0,0:09:18.46,0:09:23.21,Default,,0000,0000,0000,,to zero emission vehicles and building up\Nthe infrastructure, it is also really a Dialogue: 0,0:09:23.21,0:09:27.54,Default,,0000,0000,0000,,job machine, because at every dealer's\Nthere is a dedicated person taking care of Dialogue: 0,0:09:27.54,0:09:33.03,Default,,0000,0000,0000,,this process and there are 700 people that\Nrun it for Volkswagen central in the USA. Dialogue: 0,0:09:33.03,0:09:38.83,Default,,0000,0000,0000,,I find this mildly funny here, because in\Nthe process they're actually making you Dialogue: 0,0:09:38.83,0:09:46.54,Default,,0000,0000,0000,,fill that your car has gone the milage\Nwhich is shown on the odometer, so about Dialogue: 0,0:09:46.54,0:09:54.84,Default,,0000,0000,0000,,30%-40% of our old cars sold in Germany\Nhave falsified odometer readings. This is Dialogue: 0,0:09:54.84,0:09:59.26,Default,,0000,0000,0000,,really another scandal. This is something\Nthat is not being so widely reported on, Dialogue: 0,0:09:59.26,0:10:04.03,Default,,0000,0000,0000,,but if you buy a used car, you have a\Nchance of one in three, that it's actually Dialogue: 0,0:10:04.03,0:10:10.01,Default,,0000,0000,0000,,a car that is not worth the money you're\Npaying. And it's so easy to fix this Dialogue: 0,0:10:10.01,0:10:16.53,Default,,0000,0000,0000,,problem, but the OEMs don't seem to have\Nan interest to do it. And the outcome here Dialogue: 0,0:10:16.53,0:10:21.34,Default,,0000,0000,0000,,is that actually Volkswagen tells you:\N“By law you are required to give an Dialogue: 0,0:10:21.34,0:10:25.60,Default,,0000,0000,0000,,honest statement on how many miles does\Nthat car actually have”. You know, it's Dialogue: 0,0:10:25.60,0:10:29.14,Default,,0000,0000,0000,,quite funny that they actually are bitten\Nby the same problem which they have Dialogue: 0,0:10:29.14,0:10:38.70,Default,,0000,0000,0000,,ignored in the market for a long time.\NOkay. So, the thing is, the official Dialogue: 0,0:10:38.70,0:10:46.20,Default,,0000,0000,0000,,narrative from Volkswagen is, they want to\Nbuy back transparency and trust to their Dialogue: 0,0:10:46.20,0:10:57.49,Default,,0000,0000,0000,,customers. This is from Mr. Müller, who\Nis the CEO of Volkswagen group at this Dialogue: 0,0:10:57.49,0:11:02.66,Default,,0000,0000,0000,,time: “From the very start I have pushed\Nhard for the relentless and comprehensive Dialogue: 0,0:11:02.66,0:11:08.04,Default,,0000,0000,0000,,clarification of events. We will stop at\Nnothing and nobody. This is a painful Dialogue: 0,0:11:08.04,0:11:13.52,Default,,0000,0000,0000,,process, but it is our only alternative.\NFor us, the only thing that counts is the Dialogue: 0,0:11:13.52,0:11:17.98,Default,,0000,0000,0000,,truth. This is the basis for the\Nfundamental realignment that Volkswagen Dialogue: 0,0:11:17.98,0:11:22.57,Default,,0000,0000,0000,,needs. The Board of Management of\NVolkswagen deeply regrets this situation Dialogue: 0,0:11:22.57,0:11:27.05,Default,,0000,0000,0000,,and wishes to underscore its determination\Nto systematically continue along the Dialogue: 0,0:11:27.05,0:11:30.91,Default,,0000,0000,0000,,present path of clarification\Nand transparency.” Dialogue: 0,0:11:30.91,0:11:33.00,Default,,0000,0000,0000,,Can I have an applause\Nfor this please? Dialogue: 0,0:11:33.00,0:11:35.16,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:11:35.16,0:11:39.70,Default,,0000,0000,0000,,Thank you very much. And, you know,\Nbecause heads of states and ministers Dialogue: 0,0:11:39.70,0:11:45.44,Default,,0000,0000,0000,,don't read press clippings, they actually\Nwrite letters like these to every head of Dialogue: 0,0:11:45.44,0:11:50.12,Default,,0000,0000,0000,,state, to every minister in Europe, at\Nleast as much as I could verify, where Dialogue: 0,0:11:50.12,0:11:55.44,Default,,0000,0000,0000,,they personally update the ministers to,\Nyou know, give them the latest Dialogue: 0,0:11:55.44,0:12:01.10,Default,,0000,0000,0000,,claims—this is from May 2016, so it's,\Nyou know, half a year later and you can Dialogue: 0,0:12:01.10,0:12:04.97,Default,,0000,0000,0000,,read it here, it's the same narrative as,\Nyou know, “we're doing well” and, you Dialogue: 0,0:12:04.97,0:12:07.73,Default,,0000,0000,0000,,know, “we keep you informed” and, you\Nknow, “there's no need to listen to Dialogue: 0,0:12:07.73,0:12:18.47,Default,,0000,0000,0000,,anybody else. We own the narrative. We are\Nactually informing you”. So, let's check Dialogue: 0,0:12:18.47,0:12:26.19,Default,,0000,0000,0000,,one thing. Hello? Thank you. Right when\Nthe Dieselgate scandal broke there were Dialogue: 0,0:12:26.19,0:12:32.05,Default,,0000,0000,0000,,two things. There was the NOx issue,\Nwhich has clarified that it's a real Dialogue: 0,0:12:32.05,0:12:35.50,Default,,0000,0000,0000,,problem, that there are defeat devices in\Nthe engines. They are being fixed. And Dialogue: 0,0:12:35.50,0:12:39.60,Default,,0000,0000,0000,,there was the CO2 issue. The CO2 issue\Nwas pretty clear, because, you know, the Dialogue: 0,0:12:39.60,0:12:44.19,Default,,0000,0000,0000,,cars actually consume much more fuel than\Nthe sticker rating says, so there must be Dialogue: 0,0:12:44.19,0:12:49.26,Default,,0000,0000,0000,,a problem there, right? There is a problem\Nthere, but Volkswagen called it off really Dialogue: 0,0:12:49.26,0:12:55.75,Default,,0000,0000,0000,,quickly and this is my Maha moment, right?\NMartin Haase is here. If you read that Dialogue: 0,0:12:55.75,0:13:00.20,Default,,0000,0000,0000,,line here: “No unlawful change to the\Nstated fuel consumption and CO2 figures Dialogue: 0,0:13:00.20,0:13:07.06,Default,,0000,0000,0000,,found to date” right? So there is\NVolkswagen saying: “We didn't find Dialogue: 0,0:13:07.06,0:13:11.73,Default,,0000,0000,0000,,anything to date.” Now that kind of, you\Nknow, that's a pointer, right? So, let's Dialogue: 0,0:13:11.73,0:13:17.67,Default,,0000,0000,0000,,keep on looking. This is from November\Nthis year. This is a new class action suit Dialogue: 0,0:13:17.67,0:13:23.69,Default,,0000,0000,0000,,and Audi in this case here is sued,\Nbecause inside their gearbox, inside their Dialogue: 0,0:13:23.69,0:13:28.29,Default,,0000,0000,0000,,automatic gearbox there is yet another\Ndefeat device. There is a defeat device Dialogue: 0,0:13:28.29,0:13:34.00,Default,,0000,0000,0000,,that actually makes this car drive like a\Ndog, so it shifts up really early, it Dialogue: 0,0:13:34.00,0:13:39.56,Default,,0000,0000,0000,,doesn't provide any torque, but that is\Nsufficient to run through test cycles and Dialogue: 0,0:13:39.56,0:13:43.74,Default,,0000,0000,0000,,obviously, if the car doesn't have any\Npower, it consumes very little fuel and Dialogue: 0,0:13:43.74,0:13:50.12,Default,,0000,0000,0000,,thus you get very good sticker ratings and\Nyou get very good CO2 emissions. So, we Dialogue: 0,0:13:50.12,0:13:56.07,Default,,0000,0000,0000,,found it, right? Felix will give a bit\Nmore details on the technical side here, Dialogue: 0,0:13:56.07,0:13:59.26,Default,,0000,0000,0000,,but this is a class action suit, so this\Nis the same thing, which they have settled Dialogue: 0,0:13:59.26,0:14:03.72,Default,,0000,0000,0000,,for with the engines now running for the\Ngearbox and the module in the engines that Dialogue: 0,0:14:03.72,0:14:15.33,Default,,0000,0000,0000,,cooperates with those gearboxes here. Next\Nfact check. Warranties. Volkswagen refuses Dialogue: 0,0:14:15.33,0:14:21.40,Default,,0000,0000,0000,,to give warranties in Europe. So, you\Nknow, we're only getting those cheap Dialogue: 0,0:14:21.40,0:14:29.36,Default,,0000,0000,0000,,fixes, but then people like the ADAC, the\NGerman biggest car owners' club, asks: Dialogue: 0,0:14:29.36,0:14:34.10,Default,,0000,0000,0000,,“Couldn't you please kindly at least\Ngive us a warranty? Can't you warrant that Dialogue: 0,0:14:34.10,0:14:39.97,Default,,0000,0000,0000,,it will not have a negative effect on the\Ncar?” And Volkswagen says: “No, we Dialogue: 0,0:14:39.97,0:14:43.60,Default,,0000,0000,0000,,can't. We'll give you a certificate. We'll\Ngive you a paper, but it's not a Dialogue: 0,0:14:43.60,0:14:49.35,Default,,0000,0000,0000,,warranty.” And this is 'juristische\NFeinheiten', so this is legal intricacies, Dialogue: 0,0:14:49.35,0:14:55.43,Default,,0000,0000,0000,,right? We can't do this, It's very sorry,\Nbut you'll get a paper. Now if you look at Dialogue: 0,0:14:55.43,0:15:01.42,Default,,0000,0000,0000,,the States, this is the settlement, which\Ncame out on 20th of December, so the Dialogue: 0,0:15:01.42,0:15:06.75,Default,,0000,0000,0000,,second part of the settlement and the\NAmerican customers get a 10 year warranty Dialogue: 0,0:15:06.75,0:15:14.47,Default,,0000,0000,0000,,or 120,000 miles, which is about 200,000\Nkilometers and they get 4 years or 48,000 Dialogue: 0,0:15:14.47,0:15:20.84,Default,,0000,0000,0000,,miles after the fitting the new catalyst\Nand all the other stuff insight the car. Dialogue: 0,0:15:20.84,0:15:24.07,Default,,0000,0000,0000,,So that means not only do they get a stash\Nof money, not only do they get their cars Dialogue: 0,0:15:24.07,0:15:28.72,Default,,0000,0000,0000,,properly fixed, they also get a warranty\Nthat the proper fix is proper and if not, Dialogue: 0,0:15:28.72,0:15:33.88,Default,,0000,0000,0000,,Volkswagen has to redo it. So, you see\Nthat it's possible, but there's a huge Dialogue: 0,0:15:33.88,0:15:38.84,Default,,0000,0000,0000,,discrepancy between the American legal\Nsystem that forces a company to do this Dialogue: 0,0:15:38.84,0:15:42.98,Default,,0000,0000,0000,,and the European legal system that\Napparently does not have any scare factor Dialogue: 0,0:15:42.98,0:15:49.16,Default,,0000,0000,0000,,or any lever to motivate them to give a\Nwarranty. And they're not giving it by Dialogue: 0,0:15:49.16,0:15:53.12,Default,,0000,0000,0000,,free will, right? They could. They could\Njust be generous and say like: “Of Dialogue: 0,0:15:53.12,0:15:57.39,Default,,0000,0000,0000,,course. We fucked up. Sorry, we'll give a\Nwarranty.” But they've been asked over Dialogue: 0,0:15:57.39,0:16:04.80,Default,,0000,0000,0000,,and over and over again and they've\Nrefused to do this. So, Jack Ewing from Dialogue: 0,0:16:04.80,0:16:09.81,Default,,0000,0000,0000,,the New York Times, one of the few really\Ngood journalists working on that topic put Dialogue: 0,0:16:09.81,0:16:14.47,Default,,0000,0000,0000,,it well: “In the US, VW owners get cash.\NIn Europe, they get plastic tubes.” Dialogue: 0,0:16:14.47,0:16:23.08,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:16:23.08,0:16:26.14,Default,,0000,0000,0000,,And there's another thing I want to point\Nout to you. We ran this here in the Dialogue: 0,0:16:26.14,0:16:33.53,Default,,0000,0000,0000,,Süddeutsche Zeitung a few days ago.\NVolkswagen says, it wants transparency, Dialogue: 0,0:16:33.53,0:16:40.74,Default,,0000,0000,0000,,but what it does is, it actually goes and\Nkeeps as much information secret as Dialogue: 0,0:16:40.74,0:16:49.47,Default,,0000,0000,0000,,possible. So in this case here, every time\Nsomebody sues Volkswagen, they settle and Dialogue: 0,0:16:49.47,0:16:52.62,Default,,0000,0000,0000,,they used to be settling in court,\Nwhich means, you could get the Dialogue: 0,0:16:52.62,0:16:56.34,Default,,0000,0000,0000,,information, you know, what was the\Nsettlement value? Did they buy back the Dialogue: 0,0:16:56.34,0:16:59.99,Default,,0000,0000,0000,,car? And now they've learned and they\Nsettle out of court, because then the Dialogue: 0,0:16:59.99,0:17:06.11,Default,,0000,0000,0000,,court only records that the two parties\Nhave settled, you know, somebody pays the Dialogue: 0,0:17:06.11,0:17:09.57,Default,,0000,0000,0000,,fee for the court, which is only a few\Nhundred Euros and everything is fine. And Dialogue: 0,0:17:09.57,0:17:13.61,Default,,0000,0000,0000,,you don't find out what the settlement is.\NSo this is something which they're now Dialogue: 0,0:17:13.61,0:17:20.32,Default,,0000,0000,0000,,doing quite on a big scale and the thing\Nhere is, we have a very odd situation. The Dialogue: 0,0:17:20.32,0:17:25.95,Default,,0000,0000,0000,,Kraftfahrtbundesamt says: “You need to\Ndo the recall”, but legally they have Dialogue: 0,0:17:25.95,0:17:31.45,Default,,0000,0000,0000,,not ordered the recall. So this is\Nsomething that is voluntary. Well Dialogue: 0,0:17:31.45,0:17:36.20,Default,,0000,0000,0000,,voluntary actually means, it's voluntary\Nfor both sides. Volkswagen voluntarily Dialogue: 0,0:17:36.20,0:17:41.41,Default,,0000,0000,0000,,fixes the car and you voluntarily agree to\Nhave the car fixed. If you don't want to Dialogue: 0,0:17:41.41,0:17:46.24,Default,,0000,0000,0000,,have that voluntary agreement, you can\Nsue. And we can't do this as a class Dialogue: 0,0:17:46.24,0:17:51.41,Default,,0000,0000,0000,,action suit. You can't do this like in the\NStates so it's done once and for all. It Dialogue: 0,0:17:51.41,0:17:54.88,Default,,0000,0000,0000,,has to be going through the regional\Ncourts and everywhere, but the pattern we Dialogue: 0,0:17:54.88,0:18:01.64,Default,,0000,0000,0000,,are seeing as Volkswagen is afraid of\Ngetting actually judges to trial this and Dialogue: 0,0:18:01.64,0:18:06.82,Default,,0000,0000,0000,,actually get fines and have to buy back\Nthe cars, so they settle quite generously Dialogue: 0,0:18:06.82,0:18:12.04,Default,,0000,0000,0000,,outside of court. The downside is, when\Npeople settle, they need to subscribe to a Dialogue: 0,0:18:12.04,0:18:15.92,Default,,0000,0000,0000,,non disclosure agreement, to keep\Neverything silent, and they put really Dialogue: 0,0:18:15.92,0:18:21.67,Default,,0000,0000,0000,,hefty sums on this, so there's like five\Nfigure Euro sums that people have to pay. Dialogue: 0,0:18:21.67,0:18:26.93,Default,,0000,0000,0000,,So they kind of get their car bought back\Nfor, you know, a few thousand Dollars or Dialogue: 0,0:18:26.93,0:18:31.67,Default,,0000,0000,0000,,Euros on top and then, if they were\Ntalking about it, they would be having to Dialogue: 0,0:18:31.67,0:18:38.10,Default,,0000,0000,0000,,pay hefty fines to Volkswagen. So that's\Nthe way they keep people quiet. Another Dialogue: 0,0:18:38.10,0:18:44.66,Default,,0000,0000,0000,,way, which is quite interesting, is a\Ncourt case which is running at the Dialogue: 0,0:18:44.66,0:18:52.42,Default,,0000,0000,0000,,Landgericht Paderborn actually asked Mr.\NWinterkorn to come around and testify. And Dialogue: 0,0:18:52.42,0:18:57.04,Default,,0000,0000,0000,,he's a witness, so, you know, courts can\Nask witnesses to show up. But Mr. Dialogue: 0,0:18:57.04,0:19:02.62,Default,,0000,0000,0000,,Winterkorn actually said: “No, sorry,\Nsorry. I would like to have my right to Dialogue: 0,0:19:02.62,0:19:10.86,Default,,0000,0000,0000,,remain silent on it.” Remaining silent\Nis a legal privilege against self Dialogue: 0,0:19:10.86,0:19:17.16,Default,,0000,0000,0000,,incrimination. So you cannot be forced to\Nsay something in court which will be later Dialogue: 0,0:19:17.16,0:19:22.43,Default,,0000,0000,0000,,causing a problem to yourself. But the\Nissue here is, Volkswagen always said: Dialogue: 0,0:19:22.43,0:19:26.41,Default,,0000,0000,0000,,“You know, he's not our boss anymore. We\Ncontinue to pay him and he gets a hefty, Dialogue: 0,0:19:26.41,0:19:31.01,Default,,0000,0000,0000,,hefty income still for sitting at home\Nand, I don't know, watching TV or watching Dialogue: 0,0:19:31.01,0:19:33.51,Default,,0000,0000,0000,,this talk.” Hi! Dialogue: 0,0:19:33.51,0:19:34.98,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:19:34.98,0:22:31.82,Default,,0000,0000,0000,,The thing is, if the narrative is true and\Nhe didn't know, he can go to court and he Dialogue: 0,0:19:43.52,0:19:50.34,Default,,0000,0000,0000,,can say: “I didn't know”. He may be on\Noath, so that means, he has to really be Dialogue: 0,0:19:50.34,0:19:54.72,Default,,0000,0000,0000,,sure that he didn't know, but that's the\Nonly thing that could happen. But they're Dialogue: 0,0:19:54.72,0:19:59.84,Default,,0000,0000,0000,,fighting this really hard. So in this case\Nhere, that's an invitation for 20th of Dialogue: 0,0:19:59.84,0:20:05.40,Default,,0000,0000,0000,,January. On 20th of January the court will\Nhave a hearing only on the fact of Mr. Dialogue: 0,0:20:05.40,0:20:10.67,Default,,0000,0000,0000,,Winterkorn having to show up and testify,\Nso the thing is another pattern which Dialogue: 0,0:20:10.67,0:20:15.60,Default,,0000,0000,0000,,we're seeing here and that pattern is:\NVolkswagen is trying to delay everything Dialogue: 0,0:20:15.60,0:20:19.65,Default,,0000,0000,0000,,as much as they can. So in this case\Nthey're not saying: “Yeah, we'll bring Dialogue: 0,0:20:19.65,0:20:23.41,Default,,0000,0000,0000,,him along and, you know, yes, there will\Nbe some press, but, you know, we fucked Dialogue: 0,0:20:23.41,0:20:28.52,Default,,0000,0000,0000,,up, so, you know, that's fair.” They\Ndelay everything as much as they can. Dialogue: 0,0:20:28.52,0:20:34.25,Default,,0000,0000,0000,,We think, the legal issue behind this is,\Nthey granted an extension on the deadlines Dialogue: 0,0:20:34.25,0:20:41.34,Default,,0000,0000,0000,,for cases to be brought against them until\N31st of December next year. So we think, Dialogue: 0,0:20:41.34,0:20:45.35,Default,,0000,0000,0000,,they kind of reconsidered and are now\Ntrying to drag everything out beyond that Dialogue: 0,0:20:45.35,0:20:49.86,Default,,0000,0000,0000,,deadline. Because legally, because there's\Nno class action suits here in Germany, Dialogue: 0,0:20:49.86,0:20:55.16,Default,,0000,0000,0000,,that means the right to sue has voided\Nbecause of the time when people bought the Dialogue: 0,0:20:55.16,0:21:00.66,Default,,0000,0000,0000,,cars and, you know, there's warranties of\Ntwo years and that's it. So that's kind Dialogue: 0,0:21:00.66,0:21:04.68,Default,,0000,0000,0000,,of, you know, what's probably happening\Nand that's probably the tactics, which is Dialogue: 0,0:21:04.68,0:21:11.71,Default,,0000,0000,0000,,behind that. Okay, one thing for the\Njournalists: This is a list from Rogert & Dialogue: 0,0:21:11.71,0:21:16.77,Default,,0000,0000,0000,,Ulbrich, who are lawyers working on the\NVolkswagen cases, of all the German court Dialogue: 0,0:21:16.77,0:21:22.24,Default,,0000,0000,0000,,cases where Volkswagen was forced to buy\Nback, compensate or terminate the leases. Dialogue: 0,0:21:22.24,0:21:26.39,Default,,0000,0000,0000,,So they are happening and the red ones\Nhere are Oberlandesgerichte. They're like Dialogue: 0,0:21:26.39,0:21:32.74,Default,,0000,0000,0000,,higher level courts. But I guess, you,\Nlike me, have not really seen much press Dialogue: 0,0:21:32.74,0:21:37.46,Default,,0000,0000,0000,,reporting on this. And that's one of the\Nissues here. The Volkswagen people are Dialogue: 0,0:21:37.46,0:21:42.35,Default,,0000,0000,0000,,very good at communicating to the press,\Ndoing regular press clippings, have all Dialogue: 0,0:21:42.35,0:21:48.60,Default,,0000,0000,0000,,the good marketing and advertising running\Nand journalists need to do tedious work. Dialogue: 0,0:21:48.60,0:21:53.55,Default,,0000,0000,0000,,They need to go to those courts and say,\Nlike, you know: “Can I please have the Dialogue: 0,0:21:53.55,0:21:57.81,Default,,0000,0000,0000,,documentation?” And they need to write a\Npiece on that and stuff like that. So, we Dialogue: 0,0:21:57.81,0:22:02.02,Default,,0000,0000,0000,,really need to get the message over to the\Njournalists that it would be really cool Dialogue: 0,0:22:02.02,0:22:06.78,Default,,0000,0000,0000,,if they were reporting both sides of the\Npicture, because then actually the people Dialogue: 0,0:22:06.78,0:22:11.45,Default,,0000,0000,0000,,that read the magazines, that read the\NInternet and possibly newspapers, if Dialogue: 0,0:22:11.45,0:22:17.05,Default,,0000,0000,0000,,people still do that, they will actually\Nget a more fair picture, because this Dialogue: 0,0:22:17.05,0:22:20.87,Default,,0000,0000,0000,,information here is out there. It's\Navailable for grabs, if you have all the Dialogue: 0,0:22:20.87,0:22:27.85,Default,,0000,0000,0000,,Aktenzeichen here, so, please folks, pick\Nit up and write some pieces on this. Dialogue: 0,0:22:27.85,0:22:34.84,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:22:34.84,0:22:42.30,Default,,0000,0000,0000,,One of the things I predicted in 2015 was\Naccidental data loss, right? Because Dialogue: 0,0:22:42.30,0:22:48.45,Default,,0000,0000,0000,,always when these big things happen and,\Nin the States the thing is, you actually Dialogue: 0,0:22:48.45,0:22:56.30,Default,,0000,0000,0000,,get the right to request the other party\Nto produce data for you. So, it's Dialogue: 0,0:22:56.30,0:23:02.40,Default,,0000,0000,0000,,different from the way it's here in\NEurope, and that's kind of a very big Dialogue: 0,0:23:02.40,0:23:08.67,Default,,0000,0000,0000,,tool. It's quite logical that it's very\Nhard for the incriminated side to go and Dialogue: 0,0:23:08.67,0:23:13.86,Default,,0000,0000,0000,,produce all the material that will\Nactually proof that it has betrayed, that Dialogue: 0,0:23:13.86,0:23:18.85,Default,,0000,0000,0000,,it has committed fraud and so on. So, it\Nwas a quite sure bet and here is the Dialogue: 0,0:23:18.85,0:23:23.90,Default,,0000,0000,0000,,result. We have two incidents here: The\None on the top is a gentleman called Dialogue: 0,0:23:23.90,0:23:27.45,Default,,0000,0000,0000,,Daniel Donovan. He worked as an\Ninformation manager at the general Dialogue: 0,0:23:27.45,0:23:33.89,Default,,0000,0000,0000,,counsel's in the legal team of Volkswagen\Ngroup of America and he said: “I Dialogue: 0,0:23:33.89,0:23:39.09,Default,,0000,0000,0000,,questioned whether you are actually\Npreserving evidence well.” And this is Dialogue: 0,0:23:39.09,0:23:44.88,Default,,0000,0000,0000,,why he was fired. And then they\Nsettled. So, there is an agreement or a Dialogue: 0,0:23:44.88,0:23:51.65,Default,,0000,0000,0000,,communication here again by Jack Ewing\Nreported, which is word by word the same Dialogue: 0,0:23:51.65,0:23:56.07,Default,,0000,0000,0000,,between his legal team and the Volkswagen\Nlegal team and they agreed on very Dialogue: 0,0:23:56.07,0:24:01.09,Default,,0000,0000,0000,,amicable terms. And it was settled out of\Ncourt, so we don't know how much he was Dialogue: 0,0:24:01.09,0:24:06.62,Default,,0000,0000,0000,,paid. And then there is another lawsuit.\NI didn't give the name here, because it's Dialogue: 0,0:24:06.62,0:24:10.36,Default,,0000,0000,0000,,not publicly known. You can find it out if\Nyou know how to use Google, but it's not Dialogue: 0,0:24:10.36,0:24:15.26,Default,,0000,0000,0000,,very publicly known. There was a German\Nlaw advisor at Volkswagen and he requested Dialogue: 0,0:24:15.26,0:24:19.63,Default,,0000,0000,0000,,his colleagues to delete documents. So he\Nbasically wrote an email to his colleagues Dialogue: 0,0:24:19.63,0:24:23.34,Default,,0000,0000,0000,,and said, like: “You know, we're getting\Nunder pressure. Please delete all Dialogue: 0,0:24:23.34,0:24:27.12,Default,,0000,0000,0000,,incriminating stuff.” That's not a very\Ncool thing to do if you're a company Dialogue: 0,0:24:27.12,0:24:34.13,Default,,0000,0000,0000,,lawyer. And then we have the FTC, the\NFederal Trade Commission, and they brought Dialogue: 0,0:24:34.13,0:24:38.59,Default,,0000,0000,0000,,a lawsuit against Volkswagen because,\Nread the first line here, they lost or Dialogue: 0,0:24:38.59,0:24:46.93,Default,,0000,0000,0000,,accidentally erased 23 mobile phones. I\Ndon't know. These things just, you know, Dialogue: 0,0:24:46.93,0:24:54.76,Default,,0000,0000,0000,,whoop, another one gone. I don't know.\NThe other issue they had is, Volkswagen Dialogue: 0,0:24:54.76,0:25:00.82,Default,,0000,0000,0000,,brought a witness and they said: “This\Nwitness was either unprepared or unable to Dialogue: 0,0:25:00.82,0:25:06.29,Default,,0000,0000,0000,,provide information because 250 times\Nhe said: “I don't know” to all the Dialogue: 0,0:25:06.29,0:25:11.02,Default,,0000,0000,0000,,questions. And the funny thing is, and\Nhere we have another Maha moment of Dialogue: 0,0:25:11.02,0:25:15.52,Default,,0000,0000,0000,,over-communication, in the reply\NVolkswagen said: “Oh, he was very well Dialogue: 0,0:25:15.52,0:25:20.18,Default,,0000,0000,0000,,prepared. We spent 20 days with him,\Njust preparing for that deposition.” Dialogue: 0,0:25:20.18,0:25:29.84,Default,,0000,0000,0000,,{\i1}laughter + applause{\i0} Dialogue: 0,0:25:29.84,0:25:37.85,Default,,0000,0000,0000,,So it took Volkswagen 20 days to make\None engineer say “I don't know” a Dialogue: 0,0:25:37.85,0:25:45.94,Default,,0000,0000,0000,,sufficient amount of times. Okay, so why do\Nwe all have this problem in Europe, right? Dialogue: 0,0:25:45.94,0:25:49.73,Default,,0000,0000,0000,,It seems to be working in the States\Nsomehow. Where does that come from? And Dialogue: 0,0:25:49.73,0:25:54.61,Default,,0000,0000,0000,,the root cause here is actually copy and\Npaste regulation, or regulation by Stack Dialogue: 0,0:25:54.61,0:26:00.81,Default,,0000,0000,0000,,Overflow, or however you want to call it.\NThe thing on the upper side is the Dialogue: 0,0:26:00.81,0:26:05.27,Default,,0000,0000,0000,,American regulation. They define two\Nthings. And I'm sorry, you won't be able Dialogue: 0,0:26:05.27,0:26:09.20,Default,,0000,0000,0000,,to read it all, but the slides are being\Nmade public and then you can dig into Dialogue: 0,0:26:09.20,0:26:14.05,Default,,0000,0000,0000,,this. But the basic idea here is, the\NAmericans define Auxiliary Emission Dialogue: 0,0:26:14.05,0:26:21.13,Default,,0000,0000,0000,,Control Devices, so things that actually\Nmodify some physical values which have an Dialogue: 0,0:26:21.13,0:26:27.87,Default,,0000,0000,0000,,effect on emissions. And then there's a\Ndefeat device. A defeat device is an AECD Dialogue: 0,0:26:27.87,0:26:31.48,Default,,0000,0000,0000,,which reduces the effectiveness of\Nemission control, so it doesn't improve it Dialogue: 0,0:26:31.48,0:26:40.22,Default,,0000,0000,0000,,for example, and in many cases it is not\Ndisclosed, so you may have AECDs. You may Dialogue: 0,0:26:40.22,0:26:43.93,Default,,0000,0000,0000,,even have AECDs that reduce the\Neffectiveness of an emission control Dialogue: 0,0:26:43.93,0:26:47.79,Default,,0000,0000,0000,,system and those are then called defects.\NAnd there's an amount of defects which Dialogue: 0,0:26:47.79,0:26:51.64,Default,,0000,0000,0000,,you’re allowed to have. And the amount of\Ndefects decreases from year to year, so Dialogue: 0,0:26:51.64,0:26:56.25,Default,,0000,0000,0000,,that is a way to steer the automotive\Nindustry into compliance. A very clever Dialogue: 0,0:26:56.25,0:27:01.55,Default,,0000,0000,0000,,system. Now whoever wrote the law for the\NEuropean Union actually just copied and Dialogue: 0,0:27:01.55,0:27:05.51,Default,,0000,0000,0000,,pasted, which you can see because you'll\Nfind all the same words there, and there's Dialogue: 0,0:27:05.51,0:27:09.79,Default,,0000,0000,0000,,a second slide coming up and you'll find\Nmore of the definition here at the top, Dialogue: 0,0:27:09.79,0:27:15.70,Default,,0000,0000,0000,,vehicle speed, engine RPM, transmission,\Nmanifold vacuum and so on. And, so, they Dialogue: 0,0:27:15.70,0:27:20.08,Default,,0000,0000,0000,,just copied and pasted and thought like,\N“We don't need AECDs”, you know, they Dialogue: 0,0:27:20.08,0:27:24.59,Default,,0000,0000,0000,,just say: “A defeat device is an AECD,\Nso, let's ditch the AECD.” It's like, Dialogue: 0,0:27:24.59,0:27:29.27,Default,,0000,0000,0000,,you know, people that copy and paste or\NDebian working on the random number Dialogue: 0,0:27:29.27,0:27:33.19,Default,,0000,0000,0000,,generator. It's like, you know, “I don't\Nunderstand that code. It doesn't seem to Dialogue: 0,0:27:33.19,0:27:37.13,Default,,0000,0000,0000,,be used. Let's ditch it.” And so they\Ndid “I don't understand AECDs. They Dialogue: 0,0:27:37.13,0:27:40.45,Default,,0000,0000,0000,,don't really … necessary. Ditch it.”\NBut the problem here is, this is Dialogue: 0,0:27:40.45,0:27:44.57,Default,,0000,0000,0000,,why Volkswagen can actually say: “We\Ndon't have a defeat device.” And the way Dialogue: 0,0:27:44.57,0:27:56.67,Default,,0000,0000,0000,,they say it is again very lovely. They\Nsay: “We have no unlawful defeat device Dialogue: 0,0:27:56.67,0:27:59.37,Default,,0000,0000,0000,,under European law”, right? Dialogue: 0,0:27:59.37,0:28:01.09,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:28:01.09,0:28:05.57,Default,,0000,0000,0000,,So we have a defeat device, but it's not\Nunlawful and not under European law. And Dialogue: 0,0:28:05.57,0:28:10.14,Default,,0000,0000,0000,,they clarify this and say: “The\Nefficiency of emissions cleanup systems Dialogue: 0,0:28:10.14,0:28:14.91,Default,,0000,0000,0000,,will not be reduced in those vehicles,\Nwhich however would be a prerequisite for Dialogue: 0,0:28:14.91,0:28:21.35,Default,,0000,0000,0000,,the existence of an unlawful defeat device\Nin the legal sense.” So that's a quote. Dialogue: 0,0:28:21.35,0:28:25.64,Default,,0000,0000,0000,,So what that actually means is, they found\Nthe loophole and the loophole is there Dialogue: 0,0:28:25.64,0:28:31.71,Default,,0000,0000,0000,,because people have been doing bad copy\Nand paste regulation. Okay, now, the other Dialogue: 0,0:28:31.71,0:28:37.16,Default,,0000,0000,0000,,problem the European Union has, is that\Nit's herding cats and the only tool it has Dialogue: 0,0:28:37.16,0:28:41.88,Default,,0000,0000,0000,,is this one very long stick, which is the\NEU Treaty infringement process, Dialogue: 0,0:28:41.88,0:28:50.41,Default,,0000,0000,0000,,Vertragsverletzungsverfahren in German.\NSo, the thing here is, they actually would Dialogue: 0,0:28:50.41,0:28:55.21,Default,,0000,0000,0000,,want to have proper emissions'\Nregulations, but they can't, because it Dialogue: 0,0:28:55.21,0:29:00.74,Default,,0000,0000,0000,,needs to be put into local laws and there\Nare 3 countries that didn't put any Dialogue: 0,0:29:00.74,0:29:06.96,Default,,0000,0000,0000,,sanctioning mechanisms in place over 7\Nyears and there are 4 countries which Dialogue: 0,0:29:06.96,0:29:12.36,Default,,0000,0000,0000,,didn't use those sanctioning mechanisms.\NOne of them is Germany, obviously. Dialogue: 0,0:29:12.36,0:29:17.84,Default,,0000,0000,0000,,Actually the UK will probably evade this\Nbecause they can just sit it out. Brexit. Dialogue: 0,0:29:17.84,0:29:23.45,Default,,0000,0000,0000,,Okay, so this guy here, he was really\Nreally pissed because Fiat didn't show up Dialogue: 0,0:29:23.45,0:29:27.81,Default,,0000,0000,0000,,when he said: “But you are actually\Nemitting way to much. We caught you in our Dialogue: 0,0:29:27.81,0:29:33.76,Default,,0000,0000,0000,,lovely report, which we made. So would you\Nplease show up and, you know, we'll really Dialogue: 0,0:29:33.76,0:29:39.42,Default,,0000,0000,0000,,tell you off.” And Fiat said: “You\Nknow, we're an Italian company. We are Dialogue: 0,0:29:39.42,0:29:44.94,Default,,0000,0000,0000,,regulated in Italy. We will answer to the\NItalian people, but we don't really want Dialogue: 0,0:29:44.94,0:29:48.78,Default,,0000,0000,0000,,to chat with you.” So he was really\Npissed. He made a press report, that was Dialogue: 0,0:29:48.78,0:29:53.17,Default,,0000,0000,0000,,from the press report, and said like:\N“This uncooperative behavior from Fiat Dialogue: 0,0:29:53.17,0:30:00.47,Default,,0000,0000,0000,,is completely not understandable.” All\Nright? This is from Süddeutsche Zeitung Dialogue: 0,0:30:00.47,0:30:07.61,Default,,0000,0000,0000,,and it basically says that his people went\Nand took the report, which was already Dialogue: 0,0:30:07.61,0:30:14.93,Default,,0000,0000,0000,,very amicable. We know the quote „Mit\Nindustriefreundlichen Grüßen“, right? Dialogue: 0,0:30:14.93,0:30:20.03,Default,,0000,0000,0000,,I don't know whether you read newspapers.\NAnd they softened it down even more, Dialogue: 0,0:30:20.03,0:30:29.24,Default,,0000,0000,0000,,right? I was at the IMIS commission of the\NEuropean Union, which is the investigative Dialogue: 0,0:30:29.24,0:30:34.46,Default,,0000,0000,0000,,committee on Dieselgate and I just called\Nthat report a joke and I'll repeat that Dialogue: 0,0:30:34.46,0:30:39.62,Default,,0000,0000,0000,,here. It's a joke and I wouldn't wan't to\Nhave my name on that, so any scientist Dialogue: 0,0:30:39.62,0:30:45.09,Default,,0000,0000,0000,,that does, sorry, that's more kind of\Nshameful. Perhaps take it out of your CV, Dialogue: 0,0:30:45.09,0:30:50.85,Default,,0000,0000,0000,,so as to try and hide it. So, the funny\Nthing is, here it is said, also in this Dialogue: 0,0:30:50.85,0:30:55.62,Default,,0000,0000,0000,,press statement: “It cannot be that a\NEuropean law is formulated in a way that Dialogue: 0,0:30:55.62,0:31:00.50,Default,,0000,0000,0000,,manufacturers of underdeveloped engines\Ncan hide behind engine protection Dialogue: 0,0:31:00.50,0:31:03.37,Default,,0000,0000,0000,,reasons.”\NAudience: Only German ones! Dialogue: 0,0:31:03.37,0:31:08.88,Default,,0000,0000,0000,,D: Right. So, I'm sorry, this is German.\NBut the car he meant was obviously the Dialogue: 0,0:31:08.88,0:31:14.42,Default,,0000,0000,0000,,Fiat 500X, which was measured in this\Nreport, but if you look at this engine Dialogue: 0,0:31:14.42,0:31:18.74,Default,,0000,0000,0000,,here, which is from his own report, it's\Nthe Audi A3, the 3 liter, the one, which Dialogue: 0,0:31:18.74,0:31:25.24,Default,,0000,0000,0000,,has just been settled in the States, and\Nit is allowed to emit 180 mg, so in the Dialogue: 0,0:31:25.24,0:31:30.11,Default,,0000,0000,0000,,cold and in the warm it does this, but as\Nsoon as you go below 10°C, remember, Dialogue: 0,0:31:30.11,0:31:35.60,Default,,0000,0000,0000,,there was this temperature window, right,\Nit does 663 mg and when you do it on the Dialogue: 0,0:31:35.60,0:31:41.19,Default,,0000,0000,0000,,road and you actually move the steering\Nwheel and it detects that, it does 868 mg. Dialogue: 0,0:31:41.19,0:31:45.65,Default,,0000,0000,0000,,So underdeveloped engines are made in\NGermany and actually produced in Hungary, Dialogue: 0,0:31:45.65,0:31:52.69,Default,,0000,0000,0000,,because that's where the engine comes\Nfrom. I was in a cold retreat on an island Dialogue: 0,0:31:52.69,0:31:56.32,Default,,0000,0000,0000,,in the mediterranean sea. I run my own\Ncompany, so, you know, we can do great Dialogue: 0,0:31:56.32,0:32:00.91,Default,,0000,0000,0000,,things for our employers and somebody\Nbrought this. And I don't read Bild Dialogue: 0,0:32:00.91,0:32:03.81,Default,,0000,0000,0000,,Zeitung. I have to read Bild Zeitung\Nbecause they are the only ones who have a Dialogue: 0,0:32:03.81,0:32:08.15,Default,,0000,0000,0000,,leak and get some information out of\NVolkswagen and everybody copies them, it's Dialogue: 0,0:32:08.15,0:32:11.98,Default,,0000,0000,0000,,really weird, right? Bild am Sonntag\Nreports it first and then the Süddeutsche Dialogue: 0,0:32:11.98,0:32:20.26,Default,,0000,0000,0000,,Zeitung writes an editorial on it. And in\Nhere I found a gem and the gem is the Dialogue: 0,0:32:20.26,0:32:25.79,Default,,0000,0000,0000,,Kraftfahrtbundesamt doesn't actually have\Npeople who are able to analyze what Opel Dialogue: 0,0:32:25.79,0:32:32.19,Default,,0000,0000,0000,,gives them, so they have tasked Felix\NDomke, the guy who is coming after me, and Dialogue: 0,0:32:32.19,0:32:38.41,Default,,0000,0000,0000,,asked him to actually verify whether Opel\Nhas actually implemented a fix. So, you Dialogue: 0,0:32:38.41,0:32:42.56,Default,,0000,0000,0000,,know, I'm very happy they support the\Nhacker community, but I don't think that Dialogue: 0,0:32:42.56,0:32:45.85,Default,,0000,0000,0000,,is a very sustainable business model\Nfor authorities, right? Dialogue: 0,0:32:45.85,0:32:47.70,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:32:47.70,0:32:54.84,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:32:54.84,0:33:01.60,Default,,0000,0000,0000,,Okay, so, second to last point.\NBraunschweig. Braunschweig. The Dialogue: 0,0:33:01.60,0:33:07.74,Default,,0000,0000,0000,,Braunschweig general attorney's office are\Nthe ones that actually should be analyzing Dialogue: 0,0:33:07.74,0:33:14.96,Default,,0000,0000,0000,,the case of all the Volkswagen senior\Nmanagement. They have now 28 people which Dialogue: 0,0:33:14.96,0:33:18.87,Default,,0000,0000,0000,,they are investigating against and that\Nincludes Mr. Hans Dieter Pötsch, who is Dialogue: 0,0:33:18.87,0:33:25.64,Default,,0000,0000,0000,,the former CEO, Martin Winterkorn, and the\Ncurrent head of Volkswagen, the Volkswagen Dialogue: 0,0:33:25.64,0:33:29.73,Default,,0000,0000,0000,,brand, which is Herbert Dress, who came\Nin from BMW. So that's great. That's Dialogue: 0,0:33:29.73,0:33:33.70,Default,,0000,0000,0000,,great. They're actually doing something.\NThe question is just, what are they doing? Dialogue: 0,0:33:33.70,0:33:38.33,Default,,0000,0000,0000,,Because we never get any feedback.\NSo, I don't know. I have no clue what Dialogue: 0,0:33:38.33,0:33:41.90,Default,,0000,0000,0000,,they're doing. You know, I'm in good\Ncontact with nearly everybody, but they Dialogue: 0,0:33:41.90,0:33:46.35,Default,,0000,0000,0000,,actually only rang me once and the only\Nthing they asked was: “Do you have Felix Dialogue: 0,0:33:46.35,0:33:49.22,Default,,0000,0000,0000,,Domke's phone number?”\N{\i1}laughter{\i0} Dialogue: 0,0:33:49.22,0:33:52.93,Default,,0000,0000,0000,,Perhaps Felix knows more. Perhaps, he's\Nable to tell us more about what they're Dialogue: 0,0:33:52.93,0:33:56.89,Default,,0000,0000,0000,,doing. The good thing is other people are\Ndoing something. That's the court of Mayo, Dialogue: 0,0:33:56.89,0:34:00.96,Default,,0000,0000,0000,,which is in Ireland, very nice place. You\Nshould go and visit it. And they have the Dialogue: 0,0:34:00.96,0:34:05.76,Default,,0000,0000,0000,,same legal mechanism as they have in the\NStates. So they have the capability to Dialogue: 0,0:34:05.76,0:34:11.93,Default,,0000,0000,0000,,order somebody to produce documents to\Nclarify the case, so in this case the Dialogue: 0,0:34:11.93,0:34:18.46,Default,,0000,0000,0000,,judge, Ms. Devins, has ordered Volkswagen\Nto produce documents. And they hate this. Dialogue: 0,0:34:18.46,0:34:24.21,Default,,0000,0000,0000,,They were furious. So what happened, is,\Nthe next time they had a meeting, which Dialogue: 0,0:34:24.21,0:34:29.67,Default,,0000,0000,0000,,was in September of this year, the legal\Nrepresentative told the court that this is Dialogue: 0,0:34:29.67,0:34:36.28,Default,,0000,0000,0000,,completely inappropriate and unfair. “I\Ndid not bring anyone except for myself Dialogue: 0,0:34:36.28,0:34:40.48,Default,,0000,0000,0000,,because we think you do not have\Njurisdiction in the case.” Now, it's an Dialogue: 0,0:34:40.48,0:34:45.35,Default,,0000,0000,0000,,Irish lady that has bought a Volkswagen\Nfrom an Irish dealer, but Volkswagen is Dialogue: 0,0:34:45.35,0:34:51.10,Default,,0000,0000,0000,,sure they don't have any legal beef in\Nthis, right? So, I don't know what they're Dialogue: 0,0:34:51.10,0:34:58.19,Default,,0000,0000,0000,,thinking. And to actually add, you know,\Nto this, they walked out of the court. So Dialogue: 0,0:34:58.19,0:35:02.100,Default,,0000,0000,0000,,in protest, the representatives of\NVolkswagen, their lawyers walked out of Dialogue: 0,0:35:02.100,0:35:09.62,Default,,0000,0000,0000,,the court. So, the thing is, the judge is\Na very cool lady and she said, she would Dialogue: 0,0:35:09.62,0:35:17.03,Default,,0000,0000,0000,,continue “without Hamlet”, referring\Nto the play, and said, the Volkswagen Dialogue: 0,0:35:17.03,0:35:25.88,Default,,0000,0000,0000,,legal team had a spectacular walk-out.\NThat has not happened to a court before. Dialogue: 0,0:35:25.88,0:35:30.25,Default,,0000,0000,0000,,And the other thing is, so the Irish\Npeople are trying to help the case a bit Dialogue: 0,0:35:30.25,0:35:34.74,Default,,0000,0000,0000,,and the States' people are trying the\Nsame. They have a gentleman called Dialogue: 0,0:35:34.74,0:35:40.62,Default,,0000,0000,0000,,Mr. Liang who has worked long time for\NVolkswagen. First in Germany and then in Dialogue: 0,0:35:40.62,0:35:45.68,Default,,0000,0000,0000,,the States. And he is now basically the\Nprincipal witness. They made a deal with Dialogue: 0,0:35:45.68,0:35:51.93,Default,,0000,0000,0000,,him and said, you know, “We will limit\Nthe cost you will have or the time even in Dialogue: 0,0:35:51.93,0:35:57.78,Default,,0000,0000,0000,,jail that you have to do if you cooperate\Nwith us”. And the thing boxed here in Dialogue: 0,0:35:57.78,0:36:01.69,Default,,0000,0000,0000,,red is: “Defendant shall cooperate fully\Nwith the government, and any other law Dialogue: 0,0:36:01.69,0:36:05.55,Default,,0000,0000,0000,,enforcement agency, including but not\Nlimited to the Staatsanwaltschaft Dialogue: 0,0:36:05.55,0:36:08.37,Default,,0000,0000,0000,,Braunschweig in Germany”, right? Dialogue: 0,0:36:08.37,0:36:11.58,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:36:11.58,0:36:17.33,Default,,0000,0000,0000,,So, the Americans are actually bringing\Nthe witness to Braunschweig and I have not Dialogue: 0,0:36:17.33,0:36:21.65,Default,,0000,0000,0000,,heard whether they even had a chat with\Nhim. At least there's nothing publicly Dialogue: 0,0:36:21.65,0:36:30.97,Default,,0000,0000,0000,,known. All right. Bonus round for the last\N5 minutes. Somebody on reddit actually Dialogue: 0,0:36:30.97,0:36:38.03,Default,,0000,0000,0000,,managed to get his car bought back. Cool.\NSuper. He received $21,000 for it. The Dialogue: 0,0:36:38.03,0:36:42.100,Default,,0000,0000,0000,,thing is, the buyback terms say, it\Nis okay if your car has damages... Dialogue: 0,0:36:42.100,0:36:45.09,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:36:45.09,0:36:49.88,Default,,0000,0000,0000,,... because they actually want to make\Nsure that somebody who has, you know, a Dialogue: 0,0:36:49.88,0:36:53.75,Default,,0000,0000,0000,,scratch or so, it doesn't get so\Ncomplicated, right? So the buyback process Dialogue: 0,0:36:53.75,0:36:57.71,Default,,0000,0000,0000,,actually just goes on, like, what car is\Nit, what did it cost initially and what Dialogue: 0,0:36:57.71,0:37:01.98,Default,,0000,0000,0000,,is the milage, and, you know, we know\Nabout the milage now. So, this car Dialogue: 0,0:37:01.98,0:37:06.20,Default,,0000,0000,0000,,apparently had some damage and the guy\Nthought: “You know, it's damaged anyway. Dialogue: 0,0:37:06.20,0:37:08.41,Default,,0000,0000,0000,,All the front parts... Dialogue: 0,0:37:08.41,0:37:10.35,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:37:10.35,0:37:16.79,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:37:16.79,0:37:20.94,Default,,0000,0000,0000,,All the front parts would be pretty good\Nuse for my friend who has a Volkswagen and Dialogue: 0,0:37:20.94,0:37:25.28,Default,,0000,0000,0000,,wants to keep it. So, you know, I just\Nremoved them.” Now the interesting thing Dialogue: 0,0:37:25.28,0:37:34.08,Default,,0000,0000,0000,,is, we have a company here, which has\Nbetrayed millions of its customers, more Dialogue: 0,0:37:34.08,0:37:39.07,Default,,0000,0000,0000,,than half a million in the States and …\NOops, there's a slide missing. That's not Dialogue: 0,0:37:39.07,0:37:45.62,Default,,0000,0000,0000,,good. Sorry. I hope this wasn't deleted by\Nour friends who set up the video, which Dialogue: 0,0:37:45.62,0:37:52.88,Default,,0000,0000,0000,,was a difficult thing at the beginning.\NOhh no, it's deleted. That's not very Dialogue: 0,0:37:52.88,0:37:56.80,Default,,0000,0000,0000,,nice. Ohh, it's moved there. Okay, let's\Nuse this one. It actually shouldn't be Dialogue: 0,0:37:56.80,0:38:08.89,Default,,0000,0000,0000,,there. It's the second to last slide.\NYay. So this is from a meeting of this Dialogue: 0,0:38:08.89,0:38:14.48,Default,,0000,0000,0000,,settlement class. I'm reading it. Dialogue: 0,0:38:14.48,0:38:16.67,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:38:16.67,0:38:26.36,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:38:26.36,0:38:31.88,Default,,0000,0000,0000,,“At least one owner went so far as to\Nstrip the car of almost every removable Dialogue: 0,0:38:31.88,0:38:34.78,Default,,0000,0000,0000,,part, including seats, doors,\Na radio, and even the air bag.” Dialogue: 0,0:38:34.78,0:38:36.49,Default,,0000,0000,0000,,{\i1}laughter{\i0} Dialogue: 0,0:38:36.49,0:38:41.96,Default,,0000,0000,0000,,Now remember. That company has actually\Nbetrayed half a million people in the Dialogue: 0,0:38:41.96,0:38:47.22,Default,,0000,0000,0000,,States, a few million worldwide. They've\Nmade people pay way more for a car which Dialogue: 0,0:38:47.22,0:38:52.83,Default,,0000,0000,0000,,is dirty, because they believed it was\Nclean, and now there's five people who Dialogue: 0,0:38:52.83,0:39:01.40,Default,,0000,0000,0000,,stripped parts of their cars and they\Ncomplain to the judge. Okay, that's it. Dialogue: 0,0:39:01.40,0:39:08.62,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:39:08.62,0:39:16.52,Default,,0000,0000,0000,,Takeaway points. I just wanted… The\Ntakeaway points here: Everybody's Dialogue: 0,0:39:16.52,0:39:20.09,Default,,0000,0000,0000,,cheating. I only did one slide, but\Nplease don't forget this, right? There Dialogue: 0,0:39:20.09,0:39:26.21,Default,,0000,0000,0000,,will be much more coming out from others.\NVolkswagen promises, but their actions Dialogue: 0,0:39:26.21,0:39:30.78,Default,,0000,0000,0000,,are completely different, so please look\Nbeyond the spin doctoring. Don't buy Dialogue: 0,0:39:30.78,0:39:34.12,Default,,0000,0000,0000,,the Volkswagen narrative. And the other\Nthing is, we don't have a functional Dialogue: 0,0:39:34.12,0:39:38.08,Default,,0000,0000,0000,,regulation in the EU. I hope, Julia Reda\Nand the others are able to fix it, but Dialogue: 0,0:39:38.08,0:39:41.22,Default,,0000,0000,0000,,this will be a really tough task.\NOkay. Thank you very much. Dialogue: 0,0:39:41.22,0:39:45.28,Default,,0000,0000,0000,,{\i1}applause{\i0} Dialogue: 0,0:39:45.28,0:39:50.50,Default,,0000,0000,0000,,{\i1}postroll music{\i0} Dialogue: 0,0:39:50.50,0:40:10.00,Default,,0000,0000,0000,,subtitles created by c3subtitles.de\Nin the year 2017. Join, and help us!