0:00:00.399,0:00:09.269 ♪ (preroll music) ♪ 0:00:09.269,0:00:15.829 Angel: After half a year, Volkswagen committed[br]to tweaks to their emission readings. 0:00:15.829,0:00:19.939 Those two boys, Daniel Lange and[br]Felix Domke here on my left, 0:00:19.939,0:00:22.170 will share some insights with us. 0:00:22.170,0:00:24.330 Daniel will not only focus on the ECUs, 0:00:24.330,0:00:26.759 which is the acronym for the[br]Electronic Control Unit, 0:00:26.759,0:00:29.599 and I think we're seeing one[br]over here already, 0:00:29.599,0:00:34.370 whereby Felix will show us some tricks[br]to extract and tweak the firmware. 0:00:34.370,0:00:37.750 On both sides we will see how many people[br]have been involved in the entire process 0:00:37.750,0:00:42.460 and we would get an idea what everything[br]is involved in there. 0:00:42.460,0:00:47.860 So, you applause and I'm gonna take over[br]the Bildschirm. 0:00:47.860,0:00:51.440 Good luck! 0:00:53.040,0:00:56.810 Felix: Alright. Hello? Okay. 0:00:56.810,0:01:01.210 Hey, so, I'm Felix Domke. 0:01:01.210,0:01:04.220 Do we see the video output yet?[br]No. 0:01:04.220,0:01:05.740 Anyway, I'm Felix Domke. 0:01:05.740,0:01:08.470 I'm here on my own[br]because I was personally interested 0:01:08.470,0:01:12.810 in how Volkswagen is cheating[br]on their emission control. 0:01:12.810,0:01:17.450 And maybe we get video at some point. 0:01:18.890,0:01:21.150 I want to stress that I was self-funded. 0:01:21.150,0:01:26.380 I did this with my own money because I was[br]personally interested in this. 0:01:26.380,0:01:30.280 So I did not do this on behalf of anyone else. 0:01:30.280,0:01:34.869 Daniel: Let's start the Keynote again and[br]see whether that one works better then. 0:01:34.869,0:01:37.720 F: I am sure we figure this out. 0:01:37.720,0:01:40.850 D: Oh, it worked before? 0:01:42.000,0:01:47.140 Yes, that's because one of us two wanted[br]to use a Mac. 0:01:47.140,0:01:48.880 audience laughs 0:01:48.880,0:01:52.690 F: But I wanted to use Keynote,[br]I don't care which operating system. 0:01:52.690,0:01:54.080 D: This one works. 0:01:54.080,0:01:58.010 F: Anyway. So I will now hand off to Daniel[br]which will give the first part of this talk 0:01:58.010,0:02:01.020 and after that I will give[br]the second part of this talk. 0:02:01.020,0:02:04.290 D: Okay, thanks Felix.[br]My name is Daniel. 0:02:04.290,0:02:09.559 I used to work for a big Bavarian auto[br]manufacturer which is not Audi... 0:02:09.559,0:02:12.629 audience laughing 0:02:12.629,0:02:14.189 ...for 14 years. 0:02:14.189,0:02:19.129 I've been running the IT strategy,[br]I've been doing IT architecture. 0:02:19.129,0:02:20.909 And most relevant to this talk, 0:02:20.909,0:02:26.200 I've been responsible for the[br]process chain electronics and electric. 0:02:26.200,0:02:30.680 I've done the rollout of[br]Connected Drive in China. 0:02:30.680,0:02:35.180 So I kind of have quite deep insight into[br]how the automotive industry works 0:02:35.180,0:02:37.219 and I'd like to share a bit with you. 0:02:37.219,0:02:41.430 I'm an Engineer by training,[br]I guess many of you are. 0:02:41.430,0:02:45.269 And I want to share[br]how the engineers think 0:02:45.269,0:02:48.799 inside such a big corporation[br]like Volkswagen, 0:02:48.799,0:02:52.560 and what pressures, what boundary[br]conditions they are working on. 0:02:52.560,0:02:55.900 I have my own company now[br]which makes my life a bit easier 0:02:55.900,0:02:59.099 than Felix's, as you see[br]in the legal disclaimer. 0:02:59.099,0:03:04.400 Those are folks from the UK. 0:03:04.400,0:03:10.150 They're called "Brandalism", I hope you[br]notice the "McDonald's"-M at the end. 0:03:10.150,0:03:15.450 Those are folks who started a few years[br]ago to reclaim the public space. 0:03:15.450,0:03:18.709 They were just annoyed by[br]all of that advertising. 0:03:18.709,0:03:24.049 And when the Paris negotiations[br]for the eco treatment came, 0:03:24.049,0:03:27.790 they just felt a big invitation to[br]use the opportunity 0:03:27.790,0:03:30.650 that Volkswagen has created[br]for all of us 0:03:30.650,0:03:34.639 and make advertising in their style, but[br]perhaps not in the message 0:03:34.639,0:03:36.879 they would usually have conveyed. 0:03:36.879,0:03:40.749 I'm a strategist. 0:03:40.749,0:03:46.939 So what is the thing that defines how the[br]automotive indusry works today? 0:03:46.939,0:03:50.709 We are in a saturated market. 0:03:50.709,0:03:56.579 In the developed countries, so everywhere[br]in Europe, in the North Americas, 0:03:56.579,0:03:59.639 everybody has a car that wants one.[br]Some have two. 0:03:59.639,0:04:01.870 So when you want to sell another car 0:04:01.870,0:04:07.049 you're basically talking about replacing[br]an existing car with another one. 0:04:07.049,0:04:09.779 The only growth you have[br]is in the BRIC states. 0:04:09.779,0:04:12.969 BRIC is: Brazil, Russia, India, and China. 0:04:12.969,0:04:15.989 And, here, especially in China. 0:04:15.989,0:04:19.978 You have a big overcapacity. There's just[br]too many automotive manufacturers 0:04:19.978,0:04:22.419 and there's too many plants they have. 0:04:22.419,0:04:26.690 So all of them basically struggle[br]to get the loads on the plants, 0:04:26.690,0:04:31.729 to produce enough cars and to have[br]those cars sold at some point in time. 0:04:31.729,0:04:35.050 Because the queueing in between[br]production and sales 0:04:35.050,0:04:41.849 is actually the big parking spaces you see[br]in Bremerhaven or so 0:04:41.849,0:04:45.979 where there's ten thousands, in some[br]countries even hundreds of thousands of cars 0:04:45.979,0:04:50.800 basically stored in between[br]production and sales. 0:04:50.800,0:04:53.629 Ten years ago, fifteen years ago,[br]that didn't exist. 0:04:53.629,0:04:58.419 The cars were basically sold off the factory. 0:04:58.419,0:05:02.770 But people have been moving away[br]very, very slowly from cars. 0:05:02.770,0:05:04.539 They have, as I said, a saturated market. 0:05:04.539,0:05:08.819 It's just not that easy[br]to sell a car anymore. 0:05:08.819,0:05:12.259 That is because of social shifts. 0:05:12.259,0:05:15.620 When I was young, there was[br]"The Dukes of Hazzard", 0:05:15.620,0:05:20.289 there was "General Lee", this car[br]that basically is the star of the show. 0:05:20.289,0:05:24.500 There was "Knight Rider" and nobody watched[br]it for David Hasselhoff, not even the girls. 0:05:24.500,0:05:27.870 They watched it for KITT. 0:05:27.870,0:05:30.720 When I was young, I wanted to own a car. 0:05:30.720,0:05:33.810 I wanted to have KITT, possibly. 0:05:33.810,0:05:37.430 And when I grew old enough, I found out[br]I can get a car that looks like KITT 0:05:37.430,0:05:39.710 but, you know, all the[br]fun stuff is not in there, 0:05:39.710,0:05:43.840 so I turned to computers. 0:05:43.840,0:05:48.710 The next thing is organization,[br]megacities. 0:05:48.710,0:05:51.259 We live in very condensed spaces[br]in those cities. 0:05:51.259,0:05:56.460 If you talk about a place like Beijing[br]where there's like 21 million people 0:05:56.460,0:06:01.669 in an area that is one city,[br]where there's nothing big inbetween, 0:06:01.669,0:06:04.259 there's no river, there's no forest, 0:06:04.259,0:06:06.389 it's just like one city. 0:06:06.389,0:06:09.990 If you go to Tokyo, Yokohama,[br]you can drive on the motorway 0:06:09.990,0:06:14.879 for nearly three hours when you enter[br]the city before you leave the city. 0:06:14.879,0:06:18.229 And you're driving on the motorway,[br]you're driving on an elevated road 0:06:18.229,0:06:21.620 for which you paid toll[br]so you actually can drive. 0:06:21.620,0:06:25.099 But it's three hours before[br]you leave the city again. 0:06:25.099,0:06:28.050 And in these cities owning a car[br]and operating a car 0:06:28.050,0:06:31.710 is about the worst thing you can do.[br]You just don't want to do that. 0:06:31.710,0:06:41.039 The average speed of a car in Beijing[br]these days is 12 km/h. 0:06:41.039,0:06:43.819 If you're a good runner you can beat that. 0:06:43.819,0:06:49.180 And incidentally this is exactly the speed[br]that a horse carriage makes. 0:06:49.180,0:06:55.889 audience laughs and applauds 0:06:55.889,0:07:01.039 We have managed to undo[br]all of the innovation of the last 200 years, 0:07:01.039,0:07:05.729 it's just the interior[br]is a little bit more comfortable. 0:07:05.729,0:07:10.189 The actual getting from A to B is the same[br]as with a horse carriage these days. 0:07:10.189,0:07:12.330 And then there's technology shifts. 0:07:12.330,0:07:17.879 The problem is, there are big things,[br]big visions that everybody follows, 0:07:17.879,0:07:20.919 like electric mobility.[br]Electric mobility means: 0:07:20.919,0:07:24.449 You buy a car that's one and a half times[br]the price of your standard car, 0:07:24.449,0:07:28.870 you lug around 300 kg of batteries for[br]no apparent reason to do so, 0:07:28.870,0:07:31.789 and you now need to install something[br]in your garage — 0:07:31.789,0:07:34.780 which you most probably don't have,[br]look at megacities — 0:07:34.780,0:07:38.740 to be able to recharge the car[br]because it only goes a hundred miles. 0:07:38.740,0:07:44.960 So it's currently not a very compelling[br]thing to sell to the end customer. 0:07:44.960,0:07:49.430 There's self-driving cars, which is kind of[br]a great, big vision. 0:07:49.430,0:07:51.520 But I would really call that a "vision". 0:07:51.520,0:07:56.169 A "vision" is something that's not being[br]implemented in my lifetime. 0:07:56.169,0:07:57.569 And then there's downsizing. 0:07:57.569,0:07:59.689 Downsizing means ... 0:07:59.689,0:08:01.699 Everybody wanted to have[br]the biggest engine, 0:08:01.699,0:08:04.770 everybody wanted to have the[br]biggest car, let's say, 10 years ago. 0:08:04.770,0:08:08.580 You wanted to have that six cylinder[br]that was giving you status. 0:08:08.580,0:08:12.289 But now the automotive industry[br]has an overall cap 0:08:12.289,0:08:17.469 on how much emissions the average[br]new car fleet my have. 0:08:17.469,0:08:22.009 And they can only reach that if they manage[br]to sell smaller engines to you. 0:08:22.009,0:08:24.349 Because for everybody who buys[br]a really big engine 0:08:24.349,0:08:26.999 that will never ever make that emission cap, 0:08:26.999,0:08:30.240 they need somebody whom they've[br]sold a small car to — 0:08:30.240,0:08:34.909 preferrably an electric car, because[br]they even have statistical advantages 0:08:34.909,0:08:37.220 to make them a bit more attractive — 0:08:37.220,0:08:38.820 to set that off. 0:08:38.820,0:08:43.230 So very literally the poor guy[br]with the small car needs to exist 0:08:43.230,0:08:47.850 for the rich guy that drives the[br]eight cylinder and doesn't give a shit. 0:08:50.700,0:08:57.940 Strategy-wise, there's only two things[br]that an automotive car company is driven in. 0:08:57.940,0:09:00.980 And that's really everything there is. 0:09:00.980,0:09:03.340 There is "reach a target ROCE". 0:09:03.340,0:09:07.260 ROCE is: Return on Capital Employed.[br]That is just two numbers: 0:09:07.260,0:09:12.200 your EBIT, which is your Earnings[br]Before Income Tax, 0:09:12.200,0:09:17.230 and the amount of money you have[br]in your company, the employed capital, 0:09:17.230,0:09:19.160 which you got from people[br]that lent it to you 0:09:19.160,0:09:22.660 or from your stakeholders, from your investors. 0:09:22.660,0:09:25.520 And that is what the company[br]is measured against. 0:09:25.520,0:09:27.900 Every automotive company[br]basically runs like this. 0:09:27.900,0:09:30.870 Just this one figure,[br]it's a percentage like "30%." 0:09:30.870,0:09:39.330 "30%" means: On the money you have[br]you made a 30% return during that year. 0:09:39.330,0:09:44.750 The downside of measuring in ROCE is that[br]everytime you use that Euro or Dollar 0:09:44.750,0:09:48.520 it counts again because[br]the money works for you. 0:09:48.520,0:09:50.010 That means what you're looking at 0:09:50.010,0:09:55.480 is a company that gradually moves[br]from a very industrial type of application 0:09:55.480,0:09:57.370 to something that tries to move faster, 0:09:57.370,0:10:03.180 that tries to be quick and[br]regain money faster. 0:10:03.180,0:10:05.100 And then there's[br]"outperform the competition." 0:10:05.100,0:10:08.200 You have to understand the situation 0:10:08.200,0:10:10.790 that there's a good dozen companies 0:10:10.790,0:10:14.420 and everybody has the[br]same strategic position: 0:10:14.420,0:10:17.240 "We will outperform the competition." 0:10:17.240,0:10:20.140 So statistically, you will know that[br]half of them are going to fail 0:10:20.140,0:10:25.460 because that won't happen, right?[br]Somebody has to be the lower half. 0:10:25.460,0:10:29.220 But the only thing I have seen[br]in about five or six companies 0:10:29.220,0:10:33.180 where I know the strategy in detail,[br]is: the sequence. 0:10:33.180,0:10:36.680 Is the first or is the latter[br]the more important one? 0:10:36.680,0:10:38.710 And sometimes that depends on markets. 0:10:38.710,0:10:41.890 There's this new emerging market and[br]you want to outperform the competition, 0:10:41.890,0:10:43.620 you want to grow more. 0:10:43.620,0:10:48.180 And then there's this laggard market somewhere[br]in the European Union 0:10:48.180,0:10:51.870 where you just look at the money, you know,[br]how much money are we making on this. 0:10:51.870,0:10:56.810 But that's all, that is how an engineer is[br]basically steered, that is the strategy. 0:10:56.810,0:11:03.530 And that means when you break that down[br]through the levels of hierarchy, what is counting is: 0:11:03.530,0:11:07.330 How much money do you[br]need to make this? 0:11:07.330,0:11:09.720 How much money are you[br]gonna make on this? 0:11:09.720,0:11:14.080 Those two divided will be[br]contributing to the ROCE. 0:11:14.080,0:11:20.320 And do you deliver anything that can[br]help us outperform the competition? 0:11:20.320,0:11:24.380 You notice that there is a lack, which is,[br]you know: What does the customer want? 0:11:24.380,0:11:27.790 Or: What is good for associates?[br]Or something like that. 0:11:27.790,0:11:30.720 Just in case you hadn't noticed before. 0:11:30.720,0:11:37.460 Okay, I'd like to do a bit of a quiz with[br]you before you all fall asleep after lunch. 0:11:37.460,0:11:39.270 Eleven million. 0:11:39.270,0:11:42.800 "Eleven million" in the context of the[br]exhaust emission scandal. 0:11:42.800,0:11:44.320 What is that number? 0:11:44.320,0:11:46.890 Audience: Cars affected! 0:11:46.890,0:11:48.830 Correct! Cars affected. 0:11:48.830,0:11:51.960 Eleven million is actually the[br]Volkswagen cars 0:11:51.960,0:11:54.910 which need to be recalled world-wide 0:11:54.910,0:12:00.050 to get this little filter thing fixed[br]and their software updated 0:12:00.050,0:12:04.880 to meet the emission targets which they[br]had been produced against. 0:12:04.880,0:12:07.580 1500 ...? 0:12:09.810,0:12:12.380 A: Number of engineers! 0:12:12.380,0:12:14.470 Number of engineers?[br]No, not correct. 0:12:14.470,0:12:20.420 Number of engineers would be above 10000[br]for a car in Volkswagen Group. Sorry? 0:12:20.420,0:12:22.880 A: Cost for fixing it per car? 0:12:22.880,0:12:26.750 Cost for fixing it per car? No, that's[br]maximum 600, we're gonna see later. 0:12:26.750,0:12:28.580 unintelligible suggestion from audience 0:12:28.580,0:12:32.100 No? Well that was too difficult then,[br]and that was a bit intentional. 0:12:32.100,0:12:37.080 That's the amount of hard disks they[br]collected from the associates. 0:12:37.080,0:12:42.420 audience laughs and applauds 0:12:42.420,0:12:48.190 Now the thing is, we've had in the press[br]that there is maximum 13 managers 0:12:48.190,0:12:53.740 which are responsible for this[br]emission scandal within Volkswagen. 0:12:53.740,0:12:59.780 But then they collect 1500 hard disks and[br]USB sticks from 380 associates, 0:12:59.780,0:13:03.670 and that number is a month old because[br]they haven't reported newer numbers. 0:13:03.670,0:13:07.680 So something is mismatching there, right?[br]Something is mismatching there. 0:13:07.680,0:13:09.980 So the first number we have is[br]for how many associates 0:13:09.980,0:13:13.190 are actually somehow[br]affected by this is 380. 0:13:13.190,0:13:17.780 Because you come to work somewhere in[br]Wolfsburg I think, right? 0:13:17.780,0:13:21.230 And then there's this nice chap coming up[br]and telling you, 0:13:21.230,0:13:24.170 "Uhm, actually we took[br]the hard disk off your PC, 0:13:24.170,0:13:26.880 you're gonna get a new one from IT,[br]we guess tomorrow, 0:13:26.880,0:13:31.920 they're a bit behind with, you know ..." 0:13:31.920,0:13:35.190 6.7 billion ...? 0:13:35.190,0:13:37.260 Just shout! 0:13:37.260,0:13:39.400 unintelligible suggestions from audience 0:13:39.400,0:13:42.640 Fine? No that will be less, much less. 0:13:42.640,0:13:44.050 unintelligible suggestions from audience 0:13:44.050,0:13:46.880 Yes, you're getting close.[br]It's the money they put back, 0:13:46.880,0:13:52.220 they set aside to actually pay[br]for the recall and the legal fees. 0:13:52.220,0:13:57.330 Now if you divide that by 11 million[br]you get about €600 per car. 0:13:57.330,0:14:01.760 So it's not that much money per car. 0:14:01.760,0:14:08.040 In Europe, the plan is basically that you[br]go to the dealer and get a software update. 0:14:08.040,0:14:14.980 In the States, people already got $1000[br]in cash and in coupons 0:14:14.980,0:14:17.260 as a goodwill measure. 0:14:17.260,0:14:22.770 So something I learnt from Martin Haase[br]here going to the CCC Congress all the time 0:14:22.770,0:14:26.150 is that we need to read text really well. 0:14:26.150,0:14:30.350 So the upper one is the original in German,[br]the lower one is my English translation. 0:14:30.350,0:14:34.870 The English translation is as accurate as[br]possible, so it's not good English. 0:14:34.870,0:14:40.070 Please excuse that, it is so you get the gist[br]in case you can only read the English. 0:14:40.070,0:14:44.400 So that is Mr. Pötsch, he's the president[br]of the Volkswagen supervisory board. 0:14:44.400,0:14:50.170 He is the poor guy that now[br]has to sort it all out. 0:14:50.170,0:14:55.290 He used to be the CFO. We're gonna see why[br]that is important a little bit later. 0:14:55.290,0:14:58.740 And he has made this analysis: 0:14:58.740,0:15:03.870 It was "individual misbehaviour",[br]so it's not an organizational problem, 0:15:03.870,0:15:06.630 it's "weaknesses in particular processes", 0:15:06.630,0:15:10.250 and it's "the attitude in[br]particular sub-partitions" ... 0:15:10.250,0:15:14.060 "Teilbereiche des Unternehmens",[br]it's impossible to translate in English, 0:15:14.060,0:15:19.850 it's actually impossible in German, but,[br]you know, the legal team came up with that. 0:15:19.850,0:15:24.620 So the "attitude in particular sub-partitions[br]of the company to tolerate rule violations." 0:15:24.620,0:15:28.590 Now, if we go through this very quickly:[br]It's not a rule violation, 0:15:28.590,0:15:32.050 you violated the fucking law. 0:15:32.050,0:15:37.160 The other thing is, if you have particular[br]processes, you have particular associates, 0:15:37.160,0:15:40.010 and you have particular sub-partitions[br]of the company, 0:15:40.010,0:15:43.560 That tells you something, right?[br]That just tells you something. 0:15:43.560,0:15:46.610 This was probably two days' work of[br]somebody in the legal team, 0:15:46.610,0:15:51.030 and I guess you noticed, right?[br]I guess you notice. 0:15:51.030,0:15:55.680 "Legal team" is probably these people. 0:15:55.680,0:16:02.040 Jones Day is a big American lawyer company[br] 0:16:02.040,0:16:05.320 and they've asked them to help[br]with sorting out this. 0:16:05.320,0:16:11.530 Now the funny thing is, there's public prosecutors[br]all over the planet interested in Volkswagen 0:16:11.530,0:16:13.980 but Volkswagen thinks it's[br]not really clever 0:16:13.980,0:16:17.320 to have those people come in[br]and find all the info, 0:16:17.320,0:16:22.020 it's better to have Jones Day,[br]their own kind of bought-in legal team, 0:16:22.020,0:16:24.690 ask the associates first. 0:16:24.690,0:16:31.040 Now the problem is, whenever the let's say[br]German prosecutors wake up and go in there 0:16:31.040,0:16:36.120 and say, like, "We would like[br]to see what has happened, 0:16:36.120,0:16:39.530 so please hand over the material,[br]please hand over the hard disks," 0:16:39.530,0:16:44.630 they would get a very, very nice reception,[br]be greeted with coffee and shown a room 0:16:44.630,0:16:47.100 where all of the hard disks[br]and everything is stored, 0:16:47.100,0:16:51.990 "We collected it for you." 0:16:51.990,0:16:55.860 I have no idea whether they gonna show[br]everything to them 0:16:55.860,0:17:00.890 I have no idea whether there may be[br]some material lost in between. 0:17:00.890,0:17:04.680 We've heard from Anna earlier[br]in Germany it seems to be 0:17:04.680,0:17:08.339 that things hit the shredder and[br]hard disks get lost and everything. 0:17:08.339,0:17:13.010 So if it works like that in the government[br]I have no idea how it works in companies. 0:17:13.010,0:17:17.540 But if I was on the prosecutors I'd[br]probably see that I speed up a little 0:17:17.540,0:17:20.540 because otherwise you'll get[br]all pre-prepared material. 0:17:20.540,0:17:23.010 And because Jones Day[br]can't do all of that — 0:17:23.010,0:17:26.310 you have to interview all of those people,[br]and you have to look through the hard disks — 0:17:26.310,0:17:29.450 they asked Deloitte[br]to come in and help them. 0:17:29.450,0:17:32.810 Now Deloitte are a very good company,[br]they have very, very good forensic teams, 0:17:32.810,0:17:36.020 so that's a very good choice.[br]But the important thing here is: 0:17:36.020,0:17:41.160 Out of the four big consulting companies[br]that do finance analysis and stuff 0:17:41.160,0:17:45.420 those are the only Americans. The others[br]are headquartered somewhere else. 0:17:45.420,0:17:52.080 So what it tells you here —[br]American legal teams, American auditors — 0:17:52.080,0:17:55.940 that's where Volkswagen looks.[br]Volkswagen is actually afraid of America. 0:17:55.940,0:18:02.510 They are not that afraid of Europe or some[br]other country in some other continent. 0:18:05.110,0:18:08.990 Now, let's talk text a bit again. 0:18:10.910,0:18:16.750 "We have no findings on the involvement[br]of the supervisory board 0:18:16.750,0:18:19.630 or the board of management presented." 0:18:19.630,0:18:24.590 Now, again, "no findings", okay,[br]"presented", right? 0:18:24.590,0:18:28.200 It's not "we don't have any findings"[br]or "there is nothing", 0:18:28.200,0:18:30.810 it says "we have no findings presented." 0:18:30.810,0:18:34.040 And the other thing is "involvement",[br]that's an odd term. 0:18:34.040,0:18:36.670 In German, "Involvierung",[br]that's not even German, right? 0:18:36.670,0:18:40.610 If you look it up, "Involvierung", nobody[br]of you talks of "Involvierung" 0:18:40.610,0:18:44.260 when you talk to your family or[br]when you do something at work. 0:18:44.260,0:18:49.750 The trick here is, the supervisory board[br]has a reason for existing: supervision. 0:18:49.750,0:18:54.480 audience laughs and applauds 0:18:54.480,0:18:59.140 The board of management has a reason for[br]existing and that is: decision. 0:18:59.140,0:19:01.050 They are the deciding body. 0:19:01.050,0:19:04.500 None of them are ever "involved", right? 0:19:04.500,0:19:07.740 When you work on something[br]in a big hierarchical company 0:19:07.740,0:19:10.840 there is no "involvement"[br]of your board member, 0:19:10.840,0:19:14.380 there is no "involvement"[br]of your supervisory board member. 0:19:14.380,0:19:18.120 So per definition, they cannot[br]have an involvement, right? 0:19:18.120,0:19:21.290 If he wanted to be straight[br]he would have said: 0:19:21.290,0:19:27.250 "I, as a former board of management director[br]and now as the head of the supervisory board, 0:19:27.250,0:19:32.520 I guarantee there was no involvement[br]of my or my colleagues in this. 0:19:32.520,0:19:37.370 And if there was, I would pay back my[br]salary, I will go to jail, I will ... whatever." 0:19:37.370,0:19:40.320 Right, sacrifice a goat? 0:19:40.320,0:19:42.970 But that would have been[br]straight communication. 0:19:42.970,0:19:47.250 But this is not straight communication,[br]this is... bullshit. 0:19:48.430,0:19:52.020 Okay, quiz time![br]10 ...? 0:19:52.020,0:19:59.070 You remember, this guy here told us there's[br]no involvement in anything fishy, right? 0:19:59.070,0:20:03.290 It's all those small engineers,[br]all those bad, bad people down there. 0:20:03.290,0:20:05.460 But they are gonna hunt 'em down, right? 0:20:05.460,0:20:08.110 So there's no involvement[br]with anything fishy here. 0:20:08.110,0:20:10.530 So, in that context, what is "10"? 0:20:10.530,0:20:12.140 A: Board members! 0:20:12.140,0:20:14.190 10 board members?[br]Close, they have a little more. 0:20:14.190,0:20:15.990 A: Levels of hierarchy. 0:20:15.990,0:20:20.120 Levels of hierarchy — quite good. It's,[br]I think, eight or so, but you're quite close. 0:20:20.120,0:20:29.120 No, it's actually the amount of planes[br]that Volkswagen owns. 0:20:29.120,0:20:30.930 All of them are jet planes. 0:20:30.930,0:20:35.260 Because if you're a board member[br]you have to, you know, fly in style. 0:20:35.260,0:20:38.740 And because there's nothing[br]ever fishy at Volkswagen 0:20:38.740,0:20:43.670 it's run by Lion Air Services[br]out of the Braunschweig airport. 0:20:43.670,0:20:49.870 And obviously, Lion Air Servives is registered[br]in Georgetown on the Cayman Islands. 0:20:49.870,0:20:52.870 applause and laughter 0:20:52.870,0:20:54.930 Nothing fishy ever in that company. 0:20:54.930,0:20:58.190 Okay, let's get back to topic. I have[br]about another ten minutes 0:20:58.190,0:21:03.450 before I want to get Felix the chance to[br]show you what he has done on the ECUs. 0:21:03.450,0:21:09.940 So I need to get you up to speed[br]about how all of this context here works. 0:21:09.940,0:21:15.930 And this here is called the NEDC,[br]it's the New European Driving Cycle. 0:21:15.930,0:21:20.860 This is what your car is tested[br]against for emissions. 0:21:20.860,0:21:24.620 It works like that: You condition[br]the vehicle a day before. 0:21:24.620,0:21:27.340 Which means you really[br]drive it hard on the Autobahn 0:21:27.340,0:21:31.370 so the exhaust is really free[br]and everything. 0:21:31.370,0:21:37.490 And then you do these cycles here where[br]you basically accelerate the vehicle, 0:21:37.490,0:21:40.200 slow down, accelerate the vehicle,[br]slow down, accelerate the vehicle, 0:21:40.200,0:21:43.680 slow a bit down, slow a bit more down,[br]and then you cycle again. 0:21:43.680,0:21:47.090 And the last, cycle 5, is an optional one,[br]depending on what you measure, 0:21:47.090,0:21:49.390 that is actually going to the autobahn 0:21:49.390,0:21:56.280 and you're going up to a top speed of[br]120 km/h for a very short period of time. 0:21:56.280,0:22:04.850 The people that have detected the[br]tweaked emissions 0:22:04.850,0:22:11.230 in the VW Jetta and Passat they looked at,[br]they have called this 0:22:11.230,0:22:16.450 "a very light usage cycle,"[br]and they called it "unrealistic". 0:22:16.450,0:22:21.260 Because basically nobody drives the car[br]like this, it's a very artificial thing. 0:22:21.260,0:22:23.210 And that is the problem[br]for the engineer, right? 0:22:23.210,0:22:27.630 The engineer looks at this and says,[br]"Yeah, you know, it's a standard. 0:22:27.630,0:22:30.010 It's something we do to measure against." 0:22:30.010,0:22:32.930 But nobody drives like this.[br]It's not realistic, right? 0:22:32.930,0:22:37.680 So if you fake the data in this we're not[br]actually faking something our customer uses 0:22:37.680,0:22:41.800 because no customer drives like this,[br]it's very artificial. 0:22:41.800,0:22:46.200 And there's a very good report by ICCT[br]which is, "Mind the Gap". 0:22:46.200,0:22:49.250 Which is what you hear in London when you[br]go into the Tube. 0:22:49.250,0:22:55.059 And what they mean is the gap between what[br]gets out when you measure emissions like this 0:22:55.059,0:22:57.850 and what gets out when you[br]actually drive the car. 0:22:57.850,0:23:00.870 And that gap is widening[br]year by year by year. 0:23:00.870,0:23:05.740 Because engineers get better and better[br]at optimizing for this cycle. 0:23:05.740,0:23:10.770 The cars on the street? Phhh, they do get[br]better as well, but less, right? 0:23:10.770,0:23:14.140 That's why the gap widens. 0:23:14.140,0:23:17.420 And trickery on those tests[br]is very common. 0:23:17.420,0:23:21.130 I'm sorry you can't probably[br]read that in the stream 0:23:21.130,0:23:23.800 and probably can't read that[br]when you're back down there. 0:23:23.800,0:23:27.010 But that's an original slide I had to take[br]from Transport & Environment, 0:23:27.010,0:23:29.180 from that report which I just named. 0:23:29.180,0:23:32.660 And what it says there is[br]what tricks people are doing 0:23:32.660,0:23:35.320 to actually drive down the emissions. 0:23:35.320,0:23:37.900 For example, they blow up the tyres 0:23:37.900,0:23:41.770 by 3 bars more than you could[br]actually use them on the road. 0:23:41.770,0:23:45.600 Now when you do, the bottom of the tyre[br]looks like this, right? 0:23:45.600,0:23:48.340 So that means you only have a very, very[br]small portion of the tyre 0:23:48.340,0:23:52.540 that still touches the ground,[br]so your resistance gets reduced. 0:23:52.540,0:23:59.760 They put diesel into the oil beause diesel[br]is lighter than the oil which you are using 0:23:59.760,0:24:02.740 inside the vehicle, so friction gets reduced. 0:24:02.740,0:24:07.320 They take off the mirror, the side mirror[br]on the passenger side 0:24:07.320,0:24:10.290 because that is not legally[br]required to be existing, 0:24:10.290,0:24:14.170 so, you know, it's resistance,[br]so get away with it. 0:24:14.170,0:24:17.790 They tape close all of the[br]openings of the vehicle 0:24:17.790,0:24:19.980 because obviously when the[br]wind goes over it 0:24:19.980,0:24:23.320 it goes much smoother[br]once you have everything taped. 0:24:23.320,0:24:30.220 Now all of these things are either okay or[br]they are kind of borderline grey area. 0:24:30.220,0:24:33.179 And they do this. This is how[br]actually emissions are tested. 0:24:33.179,0:24:36.170 So this is why an engineer,[br]when he looks at this, says, 0:24:36.170,0:24:40.160 "Yeah, it's an optimization problem. They[br]want me to get a low number 0:24:40.160,0:24:45.780 and I have pretty clever ideas, which involve[br]diesel and sticky tape and everything, 0:24:45.780,0:24:47.460 to reduce the number." 0:24:47.460,0:24:50.460 sighs 0:24:50.460,0:24:53.140 The results are this. 0:24:53.140,0:24:58.670 That's from a 2012 report from — a 2013[br]report, I'm sorry — from ADAC, 0:24:58.670,0:25:02.860 the German MRT company. 0:25:02.860,0:25:07.370 And what you see, the lighter blue ones[br]are actually the emissions 0:25:07.370,0:25:11.679 which the car produces in this cycle. 0:25:11.679,0:25:14.170 The darker blue ones are the ones[br]which are produced 0:25:14.170,0:25:17.490 when you just go on the motorway[br]and drive them. 0:25:17.490,0:25:19.140 And you see that there is a discrepancy 0:25:19.140,0:25:26.960 which is ten times, twenty times, thirty[br]times what is the measured data. 0:25:26.960,0:25:31.610 So what you need to understand is that[br]even in the past nobody ever thought, 0:25:31.610,0:25:35.980 nobody in the industry ever thought that[br]the data which was measured 0:25:35.980,0:25:40.160 had any real connection with reality, right? 0:25:40.160,0:25:43.510 The only connection was, you knew that[br]what you're measuring 0:25:43.510,0:25:48.090 within the duty cycle NEDC[br]is definitely less 0:25:48.090,0:25:51.080 than what you would ever see[br]in any realtime use. 0:25:51.080,0:25:54.410 But that's it, that's it.[br]That's no secret, right? 0:25:54.410,0:25:58.470 It's something that has been[br]out there for years. 0:25:59.630,0:26:04.690 Now the folks at Deutsche Umwelthilfe,[br]which are actually people that helped 0:26:04.690,0:26:09.130 find out what Volkswagen did, they wanted[br]to see that others do it as well. 0:26:09.130,0:26:12.460 And because I wanted to give you as much[br]information as possible 0:26:12.460,0:26:17.910 we are going to look at this product here now,[br]which is not a Volkswagen as you may see. 0:26:17.910,0:26:21.640 And when you measure this car[br]it actually looks like this. 0:26:21.640,0:26:26.809 So that means when the car is thinking it[br]is running an NEDC — 0:26:26.809,0:26:30.880 because it is conditioned to do so,[br]it is the right temperature, 0:26:30.880,0:26:35.000 it is the right setup —[br]it actually delivers the blue bars. 0:26:35.000,0:26:39.760 And if you run it because you just run it[br]and you don't do the conditioning 0:26:39.760,0:26:42.070 it delivers the grey bars. 0:26:42.070,0:26:45.610 Now there's many things you can say[br]about how they measured this 0:26:45.610,0:26:52.020 because, obviously, this is not science to[br]the best level of accuracy. 0:26:52.020,0:26:54.980 But you do see a pattern here,[br]and you do see the pattern 0:26:54.980,0:26:59.610 of the 30-, 35-fold emissions.[br]And that is what you always see 0:26:59.610,0:27:03.170 because this is what an engine[br]like the one in this car — 0:27:03.170,0:27:06.370 a 1.6 l diesel engine[br]if I remember correctly — 0:27:06.370,0:27:10.600 actually does when it's just[br]operated normally. 0:27:10.600,0:27:16.800 And the lower ones are the ones which you[br]get when the engineers did all the good tweaking. 0:27:18.420,0:27:23.660 Now why has all of this ...[br]Oh sorry, so this is just one test, right? 0:27:23.660,0:27:28.540 And you see that this test,[br]when the vehicle is cold, 0:27:28.540,0:27:34.799 you get fresh air with a nice rose smell[br]out of the exhaust. 0:27:34.799,0:27:38.660 And when the vehicle is operated normally[br]you basically get what you expect, 0:27:38.660,0:27:42.309 you get the combustion products[br]out of burning diesel. 0:27:42.309,0:27:44.929 Now why is all of this now a problem? 0:27:44.929,0:27:48.110 This is now a problem because of the[br]American legal system. 0:27:48.110,0:27:50.380 The American legal system is[br]very, very different 0:27:50.380,0:27:55.370 from what people in the European Union[br]are used to. 0:27:55.370,0:27:59.510 In America, there are two things which are[br]a bit strange perhaps 0:27:59.510,0:28:03.570 to somebody who's accustomed with a[br]German legal system. 0:28:03.570,0:28:05.580 The first thing is, there's jurys. 0:28:05.580,0:28:10.490 So there's common people that actually[br]decide about what's right or what's wrong. 0:28:10.490,0:28:14.260 And that means, what they[br]award as compensation 0:28:14.260,0:28:20.390 to people that have had a disadvantage[br]are often astronomic figures. 0:28:20.390,0:28:23.690 Now these figures are sometimes[br]reduced again by the judges, 0:28:23.690,0:28:30.080 but it's not uncommon that if something[br]hurt you or you got into an accident 0:28:30.080,0:28:32.620 you're awarded million dollar sums. 0:28:32.620,0:28:37.150 In Germany, if somebody shoots your[br]eye out, you may be getting €100,000. 0:28:37.150,0:28:39.790 So there's a huge discrepancy there. 0:28:39.790,0:28:43.290 And the other thing is, in America[br]there are punitive damages. 0:28:43.290,0:28:47.830 "Punitive damages" means: You did[br]something wrong, you did it on purpose, 0:28:47.830,0:28:50.420 and you're punished for it. 0:28:50.420,0:28:54.200 In Europe, a company basically is,[br]you did something wrong 0:28:54.200,0:28:58.580 so now you have to compensate the[br]disadvantage somebody else had. 0:28:58.580,0:29:03.400 So to a certain extent,[br]a company that doesn't try to trick 0:29:03.400,0:29:09.679 actually kind of loses an opportunity because[br]if they are not detected to be tricking 0:29:09.679,0:29:11.320 they have just saved money. 0:29:11.320,0:29:15.360 There's no punitive element, there's no[br]"You will go to jail for this." 0:29:15.360,0:29:19.950 At least in this context of[br]environmental regulation. 0:29:19.950,0:29:23.799 Now in case you couldn't read that, that's[br]actually a sign I took in california. 0:29:23.799,0:29:27.850 You go into a store and it tells you[br]that basically everything you see there 0:29:27.850,0:29:33.780 and touch there is giving you cancer and[br]your unborn children will be damaged. 0:29:33.780,0:29:36.240 This is what it says there: Belts, shoes,[br]jewellery, handbags, 0:29:36.240,0:29:38.030 all products with metal, and everything 0:29:38.030,0:29:41.929 causes cancer, birth defects,[br]and other reproducive damages. 0:29:41.929,0:29:43.809 So this is America, right? 0:29:43.809,0:29:51.030 Their view of protecting the consumer is[br]completely different from Europe. 0:29:51.030,0:29:54.670 And this is why Volkswagen goes and says,[br]"We will show good faith. 0:29:54.670,0:30:00.130 We will give you, American Volkswagen[br]owner, a thousand dollars 0:30:00.130,0:30:05.340 because we just wanna make sure that[br]you at least know we care." 0:30:05.340,0:30:07.790 It's important that you care because[br]the jury will say, 0:30:07.790,0:30:11.160 "Well at least they awarded $1000,[br]maybe a little too little, 0:30:11.160,0:30:13.100 but at least they did something." 0:30:13.100,0:30:18.210 The jury would say that. A professional[br]judge in Germany would say, "Pshh, why?" 0:30:18.210,0:30:22.880 So this is why as a European customer[br]you actually go to the dealership, 0:30:22.880,0:30:25.490 and if that guy is really nice[br]you may be getting a coffee 0:30:25.490,0:30:28.660 while you wait the hour[br]that he flashes your car. 0:30:28.660,0:30:34.160 So that's the only thing you're currently[br]supposedly getting in Europe. 0:30:34.160,0:30:38.799 Okay, now the problem is:[br]What they did hurts. 0:30:38.799,0:30:42.230 And it hurts because,[br]if you do the statistics ... 0:30:42.230,0:30:49.820 Very nice people have published a[br]publication here, a real scientific publication 0:30:49.820,0:30:52.380 where they did the maths,[br]and they say: 0:30:52.380,0:30:55.830 59 people may be dying[br]earlier in the United States 0:30:55.830,0:30:59.480 because of the additional emissions[br]in the environment 0:30:59.480,0:31:02.530 which they took in and which may[br]damage their body. 0:31:02.530,0:31:06.090 The social cost of treating those people —[br]because they may be developing cancer, 0:31:06.090,0:31:08.110 they may be going to a hospital,[br]and so on — 0:31:08.110,0:31:12.100 is about 450 million Euros.[br]Now that's statistics, right? 0:31:12.100,0:31:17.429 "Lies, damn lies, and statistics."[br]Mark Twain is often quoted with that. 0:31:17.429,0:31:21.210 But the problem is: That is a real cost,[br]it is a real damage. 0:31:21.210,0:31:27.960 If you do violate emission laws it is[br]something that is damaging people's health. 0:31:27.960,0:31:31.270 It may be something that is difficult[br]to prove statistically, 0:31:31.270,0:31:36.360 but it is something which you don't only[br]do to save money here or there, 0:31:36.360,0:31:39.240 it is something which you do[br]to actually hurt people. 0:31:40.670,0:31:46.880 Okay, I need to speed up a bit. Very[br]sorry, skip this, that's the next quiz. 0:31:46.880,0:31:51.020 15.9 million is actually the salary[br]of this guy here. 0:31:53.030,0:31:57.220 That's a lady from BMW,[br]I just wanted to put that out there. 0:31:57.220,0:31:59.919 She says, "It shouldn't be called[br]Dieselgate, it's Volkswagen-Gate. 0:31:59.919,0:32:02.540 We never did anything wrong at BMW." 0:32:02.540,0:32:07.440 And the SZ, actually, yay, they follow,[br]right? In November, it was "Abgasskandal", 0:32:07.440,0:32:10.230 in December, it's "Volkswagen-[br]Abgasskandal". 0:32:10.230,0:32:15.830 The only problem is that even in 2000,[br]BMW was cought cheating on the Motorrad. 0:32:15.830,0:32:21.190 So this is 15 years ago. 15 years ago[br]BMW actually put the same code 0:32:21.190,0:32:30.460 which we are now seeing in Volkswagen[br]into their ECUs for the F 650 motorcycle. 0:32:30.460,0:32:35.980 And we will see again here the same 34,[br]in this case, -fold increase 0:32:35.980,0:32:39.820 in between real use and test bench use. 0:32:39.820,0:32:44.559 Now, honestly, they've been caught, they've[br]been caught earlier, and they fixed it. 0:32:44.559,0:32:48.690 So in 2001, they actually[br]brought a new version 0:32:48.690,0:32:52.720 and apparantly that didn't have[br]this cheat code anymore. 0:32:52.720,0:32:56.960 But here we see a pattern again:[br]too little time for development, 0:32:56.960,0:32:59.710 too little money willing[br]to be spent on this, 0:32:59.710,0:33:01.960 so engineers try to trick. 0:33:01.960,0:33:04.260 When you get caught,[br]and you get caught early 0:33:04.260,0:33:07.080 nobody probably of you[br]remember this here. 0:33:07.080,0:33:09.830 It's fine, it kinda fades away into history. 0:33:09.830,0:33:13.929 If you're Volkswagen, if you have[br]11 million cars out of there, 0:33:13.929,0:33:15.600 you have a big problem. 0:33:15.600,0:33:20.460 Okay, I'll skip this one, it's really[br]nice, you can see it in the slides. 0:33:20.460,0:33:25.809 But I have to go to this here[br]to give Felix enough time. 0:33:25.809,0:33:27.940 So how does component development work? 0:33:27.940,0:33:34.299 There's a huge set of legal frameworks.[br]It's a very structured top-down process. 0:33:34.299,0:33:39.370 You get requirements from the people[br]that represent the market in the company, 0:33:39.370,0:33:42.929 you get requirements from the CFO,[br]from the finance director. 0:33:42.929,0:33:47.669 And these are broken down into documents[br]which are more than a thousand pages long. 0:33:47.669,0:33:53.870 And there's every single detail that[br]could exist in this ECU written out. 0:33:53.870,0:33:58.400 There's a piece of paper[br]for everything it does. 0:33:58.400,0:34:03.220 Everything. There's not a bit in this thing[br]which is not pushed down 0:34:03.220,0:34:06.650 into a very hard set of requirements. 0:34:06.650,0:34:12.418 This is then put into a tool,[br]often Rational DOORS by IBM or something, 0:34:12.418,0:34:15.109 and then every time something changes[br]this is documented. 0:34:15.109,0:34:18.228 There's a complete paper trail, right? 0:34:18.228,0:34:20.690 So that means unless there[br]will be a cover-up, 0:34:20.690,0:34:23.829 unless we're not given all the information[br]as a public, 0:34:23.829,0:34:29.190 there's no way Volkswagen cannot find out[br]who did exactly what at what point in time, 0:34:29.190,0:34:31.579 which level of management was involved. 0:34:31.579,0:34:36.219 Because every step of the development goes[br]through a Q-Gate, a Quality Gate. 0:34:36.219,0:34:39.799 There's managers sitting there and they're[br]approving everything it does, 0:34:39.799,0:34:43.059 every progress that has been made,[br]and they're getting reports, 0:34:43.059,0:34:45.899 at least bi-weekly, on the progress. 0:34:45.899,0:34:51.159 And these reports go up the ladder, they[br]are copied to the next levels of management. 0:34:51.159,0:34:55.498 So this is a fully transparent process and[br]this is a fully top-down driven process. 0:34:55.498,0:35:00.079 It is completely impossible that you have[br]an engineer that sits there and says, like, 0:35:00.079,0:35:05.470 "Well, I wanna cheat," and does the code.[br]There's no motivation for him to do either. 0:35:05.470,0:35:11.140 He doesn't get any money for it, he would[br]only be risking his career, so he won't do. 0:35:11.140,0:35:14.789 And this is why we have paper trails,[br]and this is why engineers have written down, 0:35:14.789,0:35:17.720 "I'm doing this because my[br]manager told me to do this." 0:35:17.720,0:35:22.690 And this is why you have Bosch sending[br]a letter in 2007 to Volkswagen which says, 0:35:22.690,0:35:27.700 "We delivered you this code you[br]requested. We're your supplier, we do. 0:35:27.700,0:35:30.680 But if you send it into production[br]it will be illegal." 0:35:30.680,0:35:33.370 And they did. 0:35:35.170,0:35:40.989 So this is how actually this[br]exhaust system works. 0:35:40.989,0:35:44.109 And this is a little bit important to[br]understand what Felix is now doing 0:35:44.109,0:35:50.299 and showing you how the ECU[br]that manages this all works. 0:35:50.299,0:35:53.190 To the left would be the engine,[br]to the right is the exhaust, 0:35:53.190,0:35:56.920 the end of the exhaust[br]where the remainders come out. 0:35:56.920,0:36:02.739 And the first thing is,[br]you have diesel oxid cathalytic 0:36:02.739,0:36:06.729 and it basically takes out ...[br]The interesting stuff here is CO, 0:36:06.729,0:36:12.569 so carbon oxide, and PM, the[br]particle mass, through 98%, 50%. 0:36:12.569,0:36:17.329 The hydrocarbonides before that,[br]they just kind of don't go through 0:36:17.329,0:36:21.539 the rest of the process anymore. 0:36:21.539,0:36:27.220 Then you have a filter that basically[br]traps all of the diesel particles, 0:36:27.220,0:36:29.979 the stuff that causes[br]cancer in your lungs. 0:36:29.979,0:36:35.400 But you have to burn them out at some[br]point in time, about every 700 km, 0:36:35.400,0:36:36.989 when there have been enough collected. 0:36:36.989,0:36:38.460 So it's a bit a trick, right? 0:36:38.460,0:36:44.059 The trick is: You collect them so they[br]don't exit the exhaust 0:36:44.059,0:36:47.970 but at some point in time you have to burn[br]them again, so they do exit the exhaust. 0:36:47.970,0:36:52.729 Now the positive thing here is,[br]they get larger, and the larger they are, 0:36:52.729,0:36:58.670 the less risk they — at least as much[br]as we know — cause as a health hazard. 0:36:58.670,0:37:04.700 So this is the DPF here. And then at the end,[br]this is the really interesting thing, 0:37:04.700,0:37:07.579 this is what most of the[br]scandal now focuses on: 0:37:07.579,0:37:10.749 There's a selective catalytic reduction. 0:37:10.749,0:37:14.109 And what this thing does is,[br]it does reduce the particle mass, 0:37:14.109,0:37:16.099 it does reduce the particles.[br]That's nice. 0:37:16.099,0:37:23.239 But the interesting thing is NOx.[br]It goes against this to about 90%. 0:37:23.239,0:37:26.650 So this is what it is made for. 0:37:26.650,0:37:36.190 It basically injects urea into the airflow[br]and helps to reduce the NOx content 0:37:36.190,0:37:41.940 by creating by-products[br]which are mostly water 0:37:41.940,0:37:44.809 that comes out the end of the exhaust. 0:37:44.809,0:37:47.670 And this is the system, this is a very[br]complex technical system 0:37:47.670,0:37:51.839 that has to be managed,[br]and this is managed by an ECU. 0:37:51.839,0:37:56.440 This ECU which they selected to do this,[br]and everybody does, is the engine ECU. 0:37:56.440,0:37:59.890 Because to the left of the diagram before[br]was this big engine, you didn't see it, 0:37:59.890,0:38:04.960 it fell off the diagram, but that's[br]actually the fan blowing into the system. 0:38:04.960,0:38:10.729 So this is what you want to manage to[br]actually control what happens there. 0:38:10.729,0:38:15.989 Now this thing is quite[br]a sophisticated processor, 0:38:15.989,0:38:20.170 it's about the most complex device[br]outside multimedia and entertainment 0:38:20.170,0:38:25.400 which we find in the car, and it is a[br]very proprietory thing 0:38:25.400,0:38:28.150 because it contains a[br]physical model of engines. 0:38:28.150,0:38:32.229 So there have been hundreds, if not[br]thousands of engineers sitting there 0:38:32.229,0:38:37.309 and modelling how an engine works,[br]really physically modelling it. 0:38:37.309,0:38:41.789 And the things that an OEM —[br]an original equipment manufacturer, 0:38:41.789,0:38:44.859 a car maker — can actually tweak[br]are variables. 0:38:44.859,0:38:49.049 They can say,[br]"My engine has this and this size, 0:38:49.049,0:38:51.890 my combustion cycle looks like this and that." 0:38:51.890,0:38:55.309 But the code itself is opaque to the OEM. 0:38:55.309,0:39:02.369 It's a proprietory product which you can[br]buy from Continental, or Bosch, or so. 0:39:02.369,0:39:06.849 And there's about 20,000 variables[br]which you can tune. 0:39:06.849,0:39:12.920 And this thing is simulated and tested[br]to death. Because it is hugely important. 0:39:12.920,0:39:17.349 Because you have this machine here[br]that has like 100, 200 horsepowers 0:39:17.349,0:39:21.509 and if you steer it wrong it will blow up,[br]and it will blow up really hard. 0:39:21.509,0:39:29.039 So this is why this thing is about the best[br]tested piece of software you will ever find. 0:39:29.039,0:39:34.729 Which also again means there's everything[br]documented, everything is written down, 0:39:34.729,0:39:39.029 everything is seen by everybody[br]who's working with these, 0:39:39.029,0:39:41.979 whether it's in development,[br]whether it's in integration, 0:39:41.979,0:39:45.720 whether it's in the plants that[br]flash these things, and so on. 0:39:45.720,0:39:47.630 There's nothing secret here in this, right? 0:39:47.630,0:39:51.319 The functions which are there are[br]actually there to be seen, 0:39:51.319,0:39:58.560 well, seen if they are named apparantly, and[br]that is something that Felix will talk about. 0:40:00.754,0:40:09.744 audience applauds 0:40:09.744,0:40:13.190 F: Thank you. Hey, okay.[br]So I will do the second part of this talk. 0:40:13.190,0:40:15.029 I'm Felix, by the way. 0:40:15.029,0:40:18.400 So my motivation with this[br]was a little bit different. 0:40:18.400,0:40:25.749 I'm curious, and, I mean, we can find a lot[br]of source material for this whole scandal. 0:40:25.749,0:40:28.249 We can find a lot of[br]information in the press, 0:40:28.249,0:40:31.759 a lot of information in the[br]Volkswagen press releases. 0:40:31.759,0:40:36.779 However, it should be easier[br]because all the cars are there, 0:40:36.779,0:40:42.950 the 11 million cars are out there[br]that have the cheat code in them. 0:40:42.950,0:40:47.420 And we are hackers, and we know code,[br]and the truth is in the code. 0:40:47.420,0:40:52.660 So my approach was, well,[br]let's take a car, let's take it apart, 0:40:52.660,0:40:55.729 let's take the firmware out of it,[br]let's throw it in a disassembler, 0:40:55.729,0:40:59.069 maybe get some measurements, and[br]then look at what the car is actually doing 0:40:59.069,0:41:04.799 instead of relying on all of this[br]second-hand, third-hand information. 0:41:04.799,0:41:06.660 So what do we need for this approach? 0:41:06.660,0:41:10.969 So first of all, we need a car[br]that's affected. 0:41:10.969,0:41:14.910 You need to drive that car somehow,[br]and driving a car on an open road 0:41:14.910,0:41:18.160 can be dangerous if you have to follow[br]particular driving cycles. 0:41:18.160,0:41:21.789 So there's a "dyno" you can put the car on[br]and then you can just drive 0:41:21.789,0:41:23.599 without the car physically moving. 0:41:23.599,0:41:26.309 The wheels are moving,[br]but the car isn't moving. 0:41:26.309,0:41:28.069 And this is what other people have done, 0:41:28.069,0:41:31.249 and they have taken very interesting[br]measurements out of this. 0:41:31.249,0:41:34.170 However, we as hackers,[br]we can go one step further. 0:41:34.170,0:41:37.869 We can take a look at the ECU itself. 0:41:37.869,0:41:45.469 And not only that, we can also ask[br]other people who worked with these things 0:41:45.469,0:41:50.029 and may be able to get[br]more information about them. 0:41:50.029,0:41:51.799 I will talk about this in a minute. 0:41:51.799,0:41:58.039 So first of all, this is my car, luckily that[br]car was affected by the recall. 0:41:58.039,0:42:02.039 So I was very happy when I got the letter[br]telling me I have to go to the shop in January 0:42:02.039,0:42:05.559 and get a firmware update because[br]firmware updates are exciting, right? 0:42:05.559,0:42:09.969 I love updating things,[br]so updating a car seems great. 0:42:09.969,0:42:14.279 Yeah, it sucked that my car was putting out[br]more emissions than it should have, 0:42:14.279,0:42:17.599 but otherwise, it gave me the chance[br]to actually look at the car. 0:42:17.599,0:42:24.599 I mean, I could have rented a car or[br]something, but that makes it much easier. 0:42:24.599,0:42:28.460 I also went on a dyno with my car.[br]On a dyno, there are no speed limits 0:42:28.460,0:42:32.509 or no people to run over when you just[br]have to keep a constant speed or something, 0:42:32.509,0:42:35.359 so it makes things much easier. 0:42:35.359,0:42:39.969 And I talked about ripping apart[br]my car and disassembling it. 0:42:39.969,0:42:44.410 I didn't really want to do that,[br]so what I did instead was what I always do: 0:42:44.410,0:42:49.789 I go to eBay and I bought an extra ECU. 0:42:49.789,0:42:54.929 Here it is, maybe you can show it? 0:42:54.929,0:42:58.229 You can go here after the talk[br]and take a look at it. 0:42:58.229,0:43:03.989 This is the ECU. This here is the main CPU[br]that also includes the flash. 0:43:03.989,0:43:09.509 On the other side there are the power drivers[br]that drive the actual stuff in the car. 0:43:09.509,0:43:12.460 And then there's other[br]watchdog circuits and so on. 0:43:12.460,0:43:14.760 Okay, thank you. 0:43:16.970,0:43:23.180 So, the ECU was built by Bosch,[br]it's an EDC17C46, 0:43:23.180,0:43:25.299 that's the name of the hardware. 0:43:25.299,0:43:29.099 And it can easily be obtained on eBay,[br]and you can put it on your desk, 0:43:29.099,0:43:31.599 you apply 12 volt to it and then it boots. 0:43:31.599,0:43:34.279 It will complain about a lot of[br]sensors being missing and so on 0:43:34.279,0:43:37.650 but you can see it executing code. 0:43:37.650,0:43:43.150 And it doesn't have the very same[br]firmware as my car, but it's very close. 0:43:43.150,0:43:46.479 The flash chip is unfortunately in the[br]same pakage as the main CPU, 0:43:46.479,0:43:49.519 which is an Infineon TriCore chip, 0:43:49.519,0:43:51.779 which is apparantly only used[br]in automotive equipment, 0:43:51.779,0:43:55.690 or at least I'm only aware of it[br]being used there. 0:43:55.690,0:43:59.380 And I was able to dump the flash by[br]attacking the hardware 0:43:59.380,0:44:03.989 and exploiting a bug in the hardware[br]that I haven't found documented anywhere, 0:44:03.989,0:44:06.359 but it was not that complicated. 0:44:06.359,0:44:09.999 And then I had a firmware dump, I had a[br]2 megabit binary, 0:44:09.999,0:44:12.329 and I throw it in a disassembler. 0:44:12.329,0:44:16.910 And what we see is interesting because[br]the code is written very different 0:44:16.910,0:44:18.829 from other code that we know. 0:44:18.829,0:44:20.930 So usually, code has[br]a lot of flow control 0:44:20.930,0:44:24.400 and usually more or less[br]resembles spaghetti code. 0:44:24.400,0:44:26.769 This was the exact opposite. 0:44:26.769,0:44:31.739 It's more like someone took electrical[br]schematics and put them into code. 0:44:31.739,0:44:35.529 There's a set of input signals,[br]there's a set of processing on it, 0:44:35.529,0:44:37.009 and there's a set of output signals. 0:44:37.009,0:44:42.180 That gets updated every 10 ms or[br]once per rotation depending on processoids. 0:44:42.180,0:44:46.759 Really interesting way of writing software[br]and building this. 0:44:46.759,0:44:52.279 Also it's very data-driven, so a large[br]part of the firmware is not code but is data. 0:44:52.279,0:44:55.829 All of the computations,[br]they don't use constants at all, 0:44:55.829,0:44:58.849 they always refer to something[br]from the data section. 0:44:58.849,0:45:07.109 As Daniel said, Bosch writes this code,[br]the code is not directly visible to Volkswagen, 0:45:07.109,0:45:10.150 but they have visibility into this data,[br]and they know what the data does. 0:45:10.150,0:45:12.210 They have tools to change the data. 0:45:12.210,0:45:16.839 Volkswagen and other companies[br]can customize this, 0:45:16.839,0:45:20.150 really they cannot just customize it, 0:45:20.150,0:45:24.089 they can change the whole[br]behaviour of this ECU 0:45:24.089,0:45:29.559 by changing just the data, not the code. 0:45:29.559,0:45:34.369 The ECU really is a small embedded machine[br]in your car that takes care of the engine, 0:45:34.369,0:45:38.849 it's an Engine Electronic Control Unit,[br]there are multiple names for it. 0:45:38.849,0:45:42.229 The most important thing that it does is[br]that it takes sensor input, 0:45:42.229,0:45:46.180 for example the throttle, and then it[br]applies control to the system. 0:45:46.180,0:45:49.420 For example it calculates the amount of fuel[br]to inject, the amount of air to inject 0:45:49.420,0:45:54.539 to make the motor running at the speed[br]you want it to run. 0:45:54.539,0:45:56.630 These days it's much more complicated. 0:45:56.630,0:46:02.400 One important thing the ECU does[br]these days is emission control. 0:46:02.400,0:46:06.710 This is why we would expect to find the[br]"cheat code", the code that cheats 0:46:06.710,0:46:09.710 that Volkswagen used to[br]cheat in the whole thing, 0:46:09.710,0:46:13.430 we would expect to find it in the ECU. 0:46:13.430,0:46:16.880 Now taking a look at[br]two megabyte firmware binaries 0:46:16.880,0:46:19.769 that doesn't have any visible strings in it, 0:46:19.769,0:46:22.880 it's kind of painful if you're just suscepting[br]a code analysis. 0:46:22.880,0:46:30.339 So what I did was to do realtime logging. 0:46:30.339,0:46:35.279 You can actually read data from your ECU[br]by plugging into this OBD-II port 0:46:35.279,0:46:36.999 which is next to your steering wheel. 0:46:36.999,0:46:40.180 And while the engine is running you can[br]read out certain data. 0:46:40.180,0:46:43.400 Usually you can read out boring data[br]like RPM, and speed, 0:46:43.400,0:46:46.640 and some things that the[br]vendor wants you to see. 0:46:46.640,0:46:48.910 But there's also a mode that's[br]a little bit hidden, 0:46:48.910,0:46:51.089 but you can get pretty easily into it, 0:46:51.089,0:46:54.559 where you can read by address,[br]where you can just read the whole memory. 0:46:54.559,0:46:58.630 Well, not everything.[br]Some security data is locked out. 0:46:58.630,0:47:02.670 But the data we are interested in,[br]we can read that memory. 0:47:02.670,0:47:07.569 Now we still need to understand[br]where the interesting stuff is. 0:47:07.569,0:47:09.630 We can disassemble the firmware,[br]and that's all fine. 0:47:09.630,0:47:13.120 We can also get a little help[br]from something called "A2L files". 0:47:13.120,0:47:17.799 The chip tuners use them extensively[br]when they change the mappings, 0:47:17.799,0:47:20.640 they want to optimize an engine[br]for a different goal, 0:47:20.640,0:47:24.519 for example for more power instead of[br]long lifetime, or something. 0:47:24.519,0:47:29.219 They change things in the ECU firmware. 0:47:29.219,0:47:34.029 They do reverse engineer a lot,[br]but they also got these files. 0:47:34.029,0:47:37.109 And I'm not sure how they got them,[br]but they are out there. 0:47:37.109,0:47:40.950 And if you use the right Google terms[br]you will find them. 0:47:40.950,0:47:42.920 They are specific to each firmware. 0:47:42.920,0:47:45.029 I wasn't able to find one for[br]my actual firmware 0:47:45.029,0:47:49.829 but I was able to find one for[br]firmware that is close to mine. 0:47:49.829,0:47:53.369 And if you look into this file,[br]what you see is the symbol names, 0:47:53.369,0:47:54.749 it's basically a fancy map file. 0:47:54.749,0:48:00.940 You see the symbol names, you see a[br]mostly German description of that symbol, 0:48:00.940,0:48:06.489 you see a real-use unit, and you see the[br]adress in memory that we can read at. 0:48:06.489,0:48:12.489 So with the help of these files we can read[br]out almost any internal state in the ECU. 0:48:12.489,0:48:16.650 We still have to make sense out of that,[br]but at least we know where the data is 0:48:16.650,0:48:20.420 and what to look for. 0:48:20.420,0:48:26.119 It's surprising how complex an ECU is.[br]For example, this thing, what does it display? 0:48:26.119,0:48:32.209 Everybody would say it's a function of RPM,[br]it shows you how fast the engine is running. 0:48:32.209,0:48:37.249 Well, it's not quite the case,[br]and if we look careful we see that 0:48:37.249,0:48:42.180 this code is post-processing[br]the RPM signal. 0:48:42.180,0:48:47.019 It's 12 kilobyte of densely written code[br]that has a lot of internal state 0:48:47.019,0:48:50.250 that tries to make the RPM value, 0:48:50.250,0:48:52.739 convert it to something[br]that the customer wants to see. 0:48:52.739,0:48:57.180 For example, you want your idle speed[br]to be stuck at 780, you don't want it to oscillate. 0:48:57.180,0:49:01.039 But in reality it does,[br]and this code takes away all of that 0:49:01.039,0:49:05.890 and makes it flat 780. 0:49:05.890,0:49:10.049 You realize probably at this point that there[br]is a lot of cheating that could go on here 0:49:10.049,0:49:12.459 without most people noticing. 0:49:12.459,0:49:17.839 You don't really believe that the speedometer[br]in your car displays your actual speed, right? 0:49:17.839,0:49:22.190 It displays something related to speed ... 0:49:22.970,0:49:25.209 But let's get back to topic. 0:49:25.209,0:49:29.349 Selective Catalytic Reduction is the process[br]of, well, if you don't have it 0:49:29.349,0:49:34.400 you get a lot of NOx, of nitrogen oxides[br]at the end of the exhaust. 0:49:34.400,0:49:36.940 That's bad, you don't want that. 0:49:36.940,0:49:42.109 There is one way of getting rid of this,[br]is to add an SCR catalyst. 0:49:42.109,0:49:46.099 And the SCR catalyst —[br]I simplified this a lot, 0:49:46.099,0:49:48.929 you can find a lot more information[br]about this — 0:49:48.929,0:49:56.839 SCR is a process that reduces the NOx[br]using something called DEF, 0:49:56.839,0:50:00.599 or AdBlue is a term for it.[br]It's some fluid that you put in there. 0:50:04.029,0:50:06.859 Basically it's an Urea/water solution. 0:50:06.859,0:50:13.019 And the AdBlue, at a high temperature,[br]converts to Ammonia 0:50:13.019,0:50:16.469 and then it reacts with the NOx[br]to nitrogen and water. 0:50:16.469,0:50:21.809 Which is great because that's not[br]in any way harmful to us. 0:50:21.809,0:50:26.440 However, there's a problem here because[br]the dosage of the AdBlue needs to be correct 0:50:26.440,0:50:28.630 and it's very hard to do. 0:50:28.630,0:50:33.690 If we dose too little of that[br]the conversion is not perfect 0:50:33.690,0:50:36.069 and we will still get[br]a lot of NOx at the output. 0:50:36.069,0:50:38.410 Which is better than not doing anything. 0:50:38.410,0:50:41.619 It's not perfect,[br]but it's not more harmful than before. 0:50:41.619,0:50:45.359 However, if you put in[br]too much of the AdBlue 0:50:45.359,0:50:50.089 what you get at the output is ammonia,[br]and you really don't want that. 0:50:50.089,0:50:54.769 So the primary goal of emission control[br]is, if you have the SCR system, 0:50:54.769,0:50:58.630 is to eliminate as much[br]as possible of the NOx 0:50:58.630,0:51:03.170 and minimize the amount of ammonia[br]that comes out of the exhaust pipe. 0:51:03.170,0:51:06.640 Ammonia is NH3. 0:51:06.640,0:51:10.589 Calculating the right dosage works[br]with a model again. 0:51:10.589,0:51:13.459 They modeled everything that happens[br]in the exhaust process, 0:51:13.459,0:51:17.390 they have a model of the catalyst,[br]they have a model of the internal state, 0:51:17.390,0:51:23.339 they do have a number of sensors and[br]outputs from the other models 0:51:23.339,0:51:25.180 that tell them a lot of values. 0:51:25.180,0:51:30.349 And the model uses this with a lot of[br]internal storage, internal state. 0:51:30.349,0:51:34.619 And the model then calculates[br]the amount of AdBlue to dose 0:51:34.619,0:51:42.839 to convert as much NOx as possible[br]without leaking any ammonia. 0:51:42.839,0:51:47.180 The way things usually work in an ECU is,[br]there's one system that controls things 0:51:47.180,0:51:50.079 and there's another system[br]that monitors things. 0:51:50.079,0:51:54.200 It's independent from the main system,[br]it tries to be as independent as possible. 0:51:54.200,0:51:57.849 It's still running on the same hardware[br]but it's not sharing a lot of code. 0:51:57.849,0:52:04.390 There is an efficiency monitoring scheme that,[br]if the conversion is not good enough anymore, 0:52:04.390,0:52:07.930 it will flag this as an OBD-II error 0:52:07.930,0:52:10.209 and you will see your[br]"check engine" light going on, 0:52:10.209,0:52:13.999 and then you go to the shop, and the shop[br]will diagnose your car and will fix this, 0:52:13.999,0:52:18.549 for example if your catalyst is broken. 0:52:18.549,0:52:21.749 Based on the test results we would have[br]expected this efficiency monitoring 0:52:21.749,0:52:27.219 to actually flag the inefficiencies.[br]But it didn't. 0:52:27.219,0:52:30.410 It turns out the main model[br]doesn't always work. 0:52:30.410,0:52:33.719 There are some operating conditions[br]where the main model is not sufficient, 0:52:33.719,0:52:38.499 it has certain bounds where it works,[br]and outside of these conditions — 0:52:38.499,0:52:44.630 for example if the engine is too hot or if[br]the exhaust mass is too large — 0:52:44.630,0:52:46.739 the model doesn't produce[br]meaningful results. 0:52:46.739,0:52:51.789 It may overdose the AdBlue,[br]and we don't want that. 0:52:51.789,0:52:55.450 There's an alternative model[br]which is much, much simpler, 0:52:55.450,0:52:58.209 and takes only a few sensory inputs, 0:52:58.209,0:53:01.579 and doesn't rely on as many variables[br]to be perfect. 0:53:01.579,0:53:04.799 It will still calculate an AdBlue dosage. 0:53:04.799,0:53:10.009 However, the main goal of this alternative[br]model is to make the exhaust processing work 0:53:10.009,0:53:17.329 in all situations without ever[br]overdosing the NH3. 0:53:17.329,0:53:22.549 They're calculating both of these models and[br]then they are selecting one of the models. 0:53:22.549,0:53:26.140 The output of the selection then controls[br]the AdBlue dosage, 0:53:26.140,0:53:29.269 the pump that injects the AdBlue[br]into the exhaust. 0:53:29.269,0:53:34.099 There's code that controls[br]which of the models to use. 0:53:34.099,0:53:39.209 There's also a statistics model that counts[br]how often each mode is selected. 0:53:39.209,0:53:43.319 Again, all of this model selection[br]depends on the data. 0:53:43.319,0:53:45.739 It's code that does the selection[br]but it depends on a lot of data, 0:53:45.739,0:53:48.910 there are parameters tought of this. 0:53:48.910,0:53:51.769 Let's take a look at the selection criteria[br]for this alternative model. 0:53:51.769,0:53:55.200 We see that a lot of these parameters[br]are dummy variables, 0:53:55.200,0:53:56.989 things that can never happen. 0:53:56.989,0:54:01.979 For example, the athmospheric pressure[br]can't be negative, that can never happen. 0:54:01.979,0:54:06.420 Or the air temperature ...[br]I hope it's never larger than that, 0:54:06.420,0:54:09.079 or smaller than 0.1K, right? 0:54:09.079,0:54:11.859 However, one thing stuck out, 0:54:11.859,0:54:17.749 and that was a check if the engine condition[br]is larger than negative temperature. 0:54:17.749,0:54:19.839 Which does not exist,[br]the temperature is always positive. 0:54:19.839,0:54:23.420 That last one is always true, 0:54:23.420,0:54:27.549 so the model that would be selected would[br]always be the alternative model. 0:54:27.549,0:54:30.150 That sounded weird and[br]I was looking at the firmware. 0:54:30.150,0:54:34.640 Maybe I understood it incorrectly,[br]or maybe I looked at the wrong place 0:54:34.640,0:54:37.630 when looking at these parameters? 0:54:37.630,0:54:42.369 But if we look at the intermediate results[br]there is a bit at a certain location 0:54:42.369,0:54:47.579 that tells us which model was selected,[br]and that bit is indeed always set. 0:54:47.579,0:54:51.249 That is weird, it sounds fishy. 0:54:51.249,0:54:57.489 Let's take a look at the statistics,[br]the car counts what model you're in. 0:54:57.489,0:55:00.309 20% of the cases[br]my car does not do dosing at all. 0:55:00.309,0:55:02.630 So I drove some time and then[br]looked at the values. 0:55:02.630,0:55:06.369 And the 20% where it doesn't do anything[br]is mostly the warm-up cycle. 0:55:06.369,0:55:09.469 But everytime it does something,[br]it's actually the alternative model 0:55:09.469,0:55:14.719 which we know does underdose NH3[br]because it doesn't want to leak ammonia. 0:55:14.719,0:55:19.449 And that makes sense because my car[br]uses much less than expected of the AdBlue. 0:55:19.449,0:55:25.529 The expected value is roughly 2.5 liters[br]per 1000 kilometers, of the AdBlue. 0:55:25.529,0:55:28.779 In my case it only used 0.6 liters[br]per 1000 kilometers. 0:55:28.779,0:55:32.469 Which is great for me because I don't have[br]to refill this tank very often. 0:55:32.469,0:55:37.319 In fact, I never had to do it,[br]the shop always does it when I'm there. 0:55:37.319,0:55:42.380 But this is fishy,[br]and let's take a look at this. 0:55:42.380,0:55:46.029 What we also see is that sometimes[br]the regular model is active, 0:55:46.029,0:55:47.859 so there must be something more. 0:55:47.859,0:55:52.539 If we look at the selection criteria we find[br]that there's an additional term there 0:55:52.539,0:55:54.959 that I haven't found before. 0:55:54.959,0:55:57.049 There's an additional condition[br]that has to be true 0:55:57.049,0:56:01.680 in order to go to the alternative model[br]that underdoses. 0:56:01.680,0:56:04.989 We look at the particular conditions[br]and we find a lot of stuff 0:56:04.989,0:56:07.739 that is related to diagnostics,[br]things they can do in the shop. 0:56:07.739,0:56:09.969 So that's definitely not[br]happening on the street. 0:56:09.969,0:56:12.959 But one of the criteria,[br]that really was weird 0:56:12.959,0:56:18.769 because it looks if the engine and fuel[br]temperature is larger than 50°C, 0:56:18.769,0:56:24.249 it looks at the athmospheric pressure[br]and if it's lower than 750m, 0:56:24.249,0:56:25.809 that must be satisfied. 0:56:25.809,0:56:29.859 If all of these conditions are satisfied[br]it will move back to the main model 0:56:29.859,0:56:33.759 that does the proper exhaust processing.[br]And one thing was really weird. 0:56:33.759,0:56:36.380 There were seven curves,[br]not all of them used, 0:56:36.380,0:56:38.789 that define an upper and a lower bound 0:56:38.789,0:56:42.799 on the distance driven[br]after a certain amount of time. 0:56:42.799,0:56:46.459 This is how it looks in disassembly.[br]I'm not sure if you can read this. 0:56:46.459,0:56:52.699 But the comments are from this A2L file[br]and they call it "acoustic function". 0:56:52.699,0:56:55.440 I'm not sure if this has anything[br]to do with acoustics. 0:56:55.440,0:57:00.900 I tried to find all the usages, and there[br]was nothing related to sound or anything. 0:57:00.900,0:57:04.180 I think it's just a name for it. 0:57:04.180,0:57:09.579 Now if we go and take a look at these[br]upper and lower bounds, we see this: 0:57:09.579,0:57:16.999 These are three curves that are defined,[br]each of them has an upper and a lower bound. 0:57:16.999,0:57:19.259 It's basically the distance 0:57:19.259,0:57:22.670 that you need to have driven[br]after a certain amount of time. 0:57:22.670,0:57:27.479 And if you ever fall out of one of these curves[br]we're switching back to the alternative model 0:57:27.479,0:57:30.859 that underdoses NH3[br]and causes the inefficiencies. 0:57:30.859,0:57:34.109 This is weird,[br]and I didn't really know what this is. 0:57:34.109,0:57:38.709 Let's get back to something[br]completely different, which is the NEDC. 0:57:38.709,0:57:43.219 We've seen this slide before,[br]the NEDC mandates you how to drive. 0:57:43.219,0:57:46.479 One thing is also interesting:[br]It mandates you that ... 0:57:46.479,0:57:50.269 You want this test at "cold-start",[br]and what's better for a cold start 0:57:50.269,0:57:54.660 than heating the car to 20°C[br]and keep it that warm until you start. 0:57:54.660,0:58:02.819 That's the "cold-start", that's the[br]cold start as defined in the law: 20°C. 0:58:02.819,0:58:10.339 This is speed over time, so to get[br]distance over time we need to integrate this. 0:58:10.339,0:58:12.869 And we get this graph. 0:58:12.869,0:58:17.479 And if we overlay what we found in the[br]firmware we get this. 0:58:17.479,0:58:27.140 audience laughs and applauds 0:58:27.140,0:58:31.660 What we can see here is that if you drive[br]the driving cycle correctly 0:58:31.660,0:58:35.660 you will exactly be in the bounds[br]of one of these curves. 0:58:35.660,0:58:37.400 And you can do this on the street,[br]you can do this everywhere. 0:58:37.400,0:58:42.779 As long as you satisfy the distance over[br]time and your car is warm enough 0:58:42.779,0:58:46.609 it will detect this in some way. 0:58:46.609,0:58:49.650 Well, you can drive this on a street,[br]but it's really dangerous 0:58:49.650,0:58:52.690 because you have to follow[br]a given speed pattern. 0:58:52.690,0:58:55.799 So i did this on a dyno,[br]I put my laptop in there, 0:58:55.799,0:58:58.849 I logged the data in real-time[br]and then displayed it. 0:58:58.849,0:59:02.959 Basically, this is what it looks like.[br]In the middle you see a bar. 0:59:02.959,0:59:06.469 You have to drive and keep this[br]middle bar in the middle, 0:59:06.469,0:59:11.410 which means you are well within this upper[br]and lower bound, and not try to escape it. 0:59:11.410,0:59:17.099 And as long as you do, one of the[br]other green boxes will tell you 0:59:17.099,0:59:22.249 that the car is still detecting this[br]as being in this cycle. 0:59:22.249,0:59:29.539 Then what I did in the end, I stayed in the[br]cycle for a while and I logged all the data. 0:59:29.539,0:59:32.089 At the end I would just hit[br]a constant speed 0:59:32.089,0:59:36.130 which would eventually get me[br]out of the conditions. 0:59:36.130,0:59:39.509 This is the log that I made. 0:59:39.509,0:59:41.880 On the first graph you see[br]the vehicle speed, 0:59:41.880,0:59:45.049 you see how I tried to follow the NEDC[br]more or less successfully. 0:59:45.049,0:59:49.559 On the second graph you see[br]the distance over time, 0:59:49.559,0:59:54.680 you see that I stay within the bounds[br]enforced by the firmware. 0:59:54.680,0:59:56.739 You an also see on the third graph— 0:59:56.739,0:59:59.179 this is the actual signal at the AdBlue pump— 0:59:59.179,1:00:02.130 that it actually doses[br]quite a lot of AdBlue. 1:00:02.130,1:00:05.630 It calculates the amount of AdBlue to dose[br]based on the model output 1:00:05.630,1:00:09.420 which you see in graph 5 and 6. 1:00:09.420,1:00:14.839 By the way, graph 4 is the actual NOx[br]emitted by the engine based on their model. 1:00:14.839,1:00:20.789 That's the RML, their mission model then[br]calculates the amout of the dosing to happen. 1:00:20.789,1:00:25.880 As we see, as long as we stay within the[br]limits enforced that match the NEDC 1:00:25.880,1:00:29.579 everthing is good[br]and a lot of AdBlue is dosed. 1:00:29.579,1:00:32.749 And then, in the end, I drove too fast. 1:00:32.749,1:00:35.979 And you can see in the second graph[br]that I crossed the upper bar, 1:00:35.979,1:00:38.249 the blue line goes[br]over the red line, right? 1:00:38.249,1:00:40.989 You can see that the car[br]immediately detects this, 1:00:40.989,1:00:44.529 that I'm no longer in the driving cycle. 1:00:44.529,1:00:52.259 The interesting part you see here is the[br]effect on the AdBlue dosing, which is here. 1:00:52.259,1:00:57.619 It immediately stops doing the dosing.[br]And you can see in the model below 1:00:57.619,1:01:01.670 the model still calculates that[br]AdBlue should be dosed. 1:01:01.670,1:01:04.630 But after they have the max,[br]after they switch the model 1:01:04.630,1:01:08.709 and switch to the alternative model,[br]the alternative model just outputs zeroes, 1:01:08.709,1:01:11.869 it doesn't dose anything. 1:01:11.869,1:01:14.359 This shows that when we're[br]following the cycle 1:01:14.359,1:01:17.539 everything is fine,[br]enough Urea is dosed, 1:01:17.539,1:01:24.599 and then once we leave the cycle,[br]there's a severe reduction in the dosing. 1:01:24.599,1:01:26.949 And it's all based on[br]detecting this driving cycle. 1:01:26.949,1:01:29.180 Two more slides.[br]A: Two more slides. 1:01:29.180,1:01:32.349 F: Two more slides.[br]A: Two more slides, here we go! 1:01:32.349,1:01:38.299 audience laughs and applauds 1:01:38.299,1:01:40.979 I have to be clear[br]on the limitations here. 1:01:40.979,1:01:43.599 All of this was looking at[br]disassembled code and so on, 1:01:43.599,1:01:47.559 I could have done something wrong here,[br]so take this with a grain of salt. 1:01:47.559,1:01:50.979 We couldn't do NOx measurements[br]on the dyno, unfortunately. 1:01:50.979,1:01:55.569 And I have to stress: We looked at one[br]particular car that uses SCR processing, 1:01:55.569,1:01:57.660 not all of the affected cars are doing this, 1:01:57.660,1:01:59.719 there are some other[br]mechanisms in the other cars. 1:01:59.719,1:02:02.559 And I looked at a car[br]for the German market, 1:02:02.559,1:02:05.569 at least the curves have to be different[br]for the other markets. 1:02:05.569,1:02:10.900 Let's reenumerate the results—[br]and this is my last slide. 1:02:10.900,1:02:16.749 Most of the time, on a regular car,[br]a nonstandard treatment mode is active 1:02:16.749,1:02:20.799 that is not as efficient[br]as the real mode that is implemented. 1:02:20.799,1:02:23.309 We can show the code[br]that is responsible for this: 1:02:23.309,1:02:26.269 This is this negative temperature limit[br]that they look at 1:02:26.269,1:02:29.809 which doesn't make any sense and[br]always selects the alternative mode. 1:02:29.809,1:02:32.630 And we can see, in the logs,[br]the state selection bit, 1:02:32.630,1:02:38.359 we can see the counters that count[br]that the alternative model is active. 1:02:38.359,1:02:42.019 We can see that there's an AdBlue[br]underdosing in this state 1:02:42.019,1:02:44.920 which causes the inefficient[br]NOx conversions, 1:02:44.920,1:02:49.609 that's what we've seen before when[br]people put the car on the dyno. 1:02:49.609,1:02:52.939 We know that the efficiency checks[br]are only enabled in the main mode 1:02:52.939,1:02:57.019 and the car does exceed the limits. 1:02:57.019,1:03:03.400 This shows how the alternate model is[br]selected where it doses too little AdBlue 1:03:03.400,1:03:06.569 and causes the inefficient conversion. 1:03:06.569,1:03:10.209 We can see that if we[br]follow the driving cylce, 1:03:10.209,1:03:12.459 the minimum temperature and[br]the distance over time, 1:03:12.459,1:03:14.869 we will see that it switches[br]to the main model 1:03:14.869,1:03:17.640 that should have been active[br]all the time. 1:03:17.640,1:03:20.289 We can show the code[br]that's responsible for that, 1:03:20.289,1:03:23.529 the driving cycle detection that uses[br]the upper bound and the lower bound. 1:03:23.529,1:03:28.630 We can extract the exact limits, overlay[br]the NEDC data and see that there's a match. 1:03:28.630,1:03:33.680 We can, if we do this actually on a dyno,[br]we can see how it switches the SCR state. 1:03:33.680,1:03:37.319 We can show the effect on the DEF dosing,[br]on the AdBlue dosing. 1:03:37.319,1:03:41.499 As you've seen on the slide before,[br]as soon as we switch out of the driving cycle 1:03:41.499,1:03:48.170 into the street mode,[br]the dosing will get close to zero. 1:03:48.170,1:03:50.910 Once you're back in the main model[br]all the efficiency checks are enabled, 1:03:50.910,1:03:54.519 for example to take better Urea. 1:03:54.519,1:03:56.979 So the efficiency checks are there,[br]but they are not active 1:03:56.979,1:04:00.680 because the car is forced to run[br]in the alternative model. 1:04:00.680,1:04:04.709 These results are all in line[br]with the Volkswagen press releases. 1:04:04.709,1:04:07.859 These are basically just the details[br]as extracted from the firmware 1:04:07.859,1:04:10.450 to show you the background. 1:04:10.450,1:04:12.330 Thank you. 1:04:12.330,1:04:16.190 audience applauds 1:04:16.190,1:04:20.229 A: Wow![br]Thank you very much, Daniel and Felix. 1:04:20.229,1:04:35.919 audience applauds 1:04:37.609,1:04:40.269 I'm really sorry,[br]but we have to clear the stage. 1:04:40.269,1:04:42.609 There is not going to be time[br]for the Q&A session. 1:04:42.609,1:04:46.650 Do that down there. I'm sure that a few[br]people just come down, 1:04:46.650,1:04:49.670 grab you and ask questions.[br]Unfortunately, we can't do that. 1:04:49.670,1:04:54.059 I have to close it in exactly four seconds[br]over here because we have to go off the stream. 1:04:54.059,1:04:57.529 Thank you very much Felix,[br]thank you very much Daniel. 1:04:57.529,1:05:03.387 [br]F: Thank you. 1:05:03.387,1:05:05.676 ♪ postroll music ♪ 1:05:05.676,1:05:11.000 subtitles created by c3subtitles.de[br]Join, and help us!