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Dieselgate – A year later (33c3)

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    33c3 preroll music
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    applause
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    Herald: So, has anyone of you heard of
    Rolling Coal? It's a mostly American
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    phenomenon of modifying your car in such a
    way as to maximize the emissions so they
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    are visible as a big black cloud of smoke.
    Apparently I heard that VW cars are now
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    very popular among the friends of Rolling
    Coal. But let's not joke so much and focus
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    on the topic at hand. Daniel Lange has the
    mission to stop the omissions of emissions
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    at VW. He spoke to hundreds
    of people since...
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    laughter
    applause
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    Last year he also gave a talk together
    with a colleague about the same topic and
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    since then he has spoken to hundreds of
    people and has gained some new insides
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    that he will now share with us. I welcome
    you to Dieselgate—one year later.
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    applause
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    Daniel Lange: Thanks very much. Can you
    hear me? Okay. Wonderful. Thank you very
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    much. A very quick announcement: The talk
    will be about 40 minutes, so if you have
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    to leave after 30 minutes because you have
    a dinner appointment or something like
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    that, please do so quietly. I was really
    unable to reduce the slides down much
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    further without taking all the jokes away.
    So, my name is Daniel Lange. I have worked
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    on the Dieselgate stuff on and off over
    the last year because I worked with press,
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    so I worked with litigation people. And
    last year I was here because I felt that
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    this Volkswagen notion of there being this
    “rogue group of engineers” was so
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    utterly wrong, and everybody in the
    automotive industry actually knows this,
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    that I just felt I had to speak up. And I
    don't know why, but they kind of keep
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    motivating me to come back and point out
    their lies, so that's actually what I'm
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    going to do. I myself have worked for 16
    years in the automotive industry. 14 years
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    of that at a Bavarian manufacturer that's
    not located in Ingolstadt.
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    laughter
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    And I run my own company, right,
    Faster IT here is a consultancy, but we
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    don't work for the automotive industry,
    right, so that's why I can actually talk
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    here and don't have much of an issue.
    Hello, next slide, okay, this was broken
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    in the process, so I'm fixed here. I can't
    walk. So everybody basically cheated,
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    right? The emissions thing is not a
    Volkswagen scandal. It's Dieselgate. It's
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    something where nearly everybody basically
    has an issue. So this is why I'd actually
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    like to show you this slide to just, you
    know, relieve my conscience. This is about
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    the temperature window. This is kind of
    the second last finding that came out in
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    the middle of this year, that basically
    everybody has a temperature window, where
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    they reduce and at some point in time
    switch off the emissions treatment system.
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    And if like at Opel, which Felix is going
    to talk about later a bit more, or Nissan
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    or Audi for example, these kick in at
    17°C, that kind of has a flavour to it,
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    that has a taste to it, because the
    testing is being done at 20°C and there's
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    a 2°C margin of error. So that means,
    testing can be at 18°C to 22°C and if
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    you're starting to switch off your
    emissions treatment at 17°C, you just
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    start to switch it off, like in most
    real-life situations in northern Europe or
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    in the States, but you're sure it's
    available when the car has been properly
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    set up for testing. So, sadly so that's
    the only slide I'm going to show, which is
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    not on Volkswagen, so I'm also guilty of
    not putting enough focus on the others,
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    but Volkswagen is just so entertaining
    that, you know, I can't make that up with
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    anybody else. So, this is the money slide.
    This is kind of to update you in case you
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    have been living under a rock for the
    last, I don't know, six months. There's
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    two class action suits. Class action suits
    are a legislation in the States which
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    allows to collect actions from individual
    people that have owned a Volkswagen and
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    have been betrayed together and they have
    split the solution to these class action
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    suits into two, because on the 2 liter it
    was rather easy—Volkswagen said: “Yes,
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    we cheated.”—, but on the 3 liter they
    maintained for quite a long time that they
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    didn't cheat, so there were extended
    negotiations. And what you see here is
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    basically a breakdown of the overall cost,
    which is currently estimated to be in the
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    $ 12 billion range for settling these. For
    the 2.0 liters, Volkswagen basically has
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    to buy them back. A bit more on this
    later. And for the 3.0s they have split
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    them into a Generation 1, which they also
    buy back, and a Generation 2 and those
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    vehicles will be getting a new catalyst,
    they will be getting up to three new
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    sensors, they will get a turbine mixer for
    the injection of the Diesel emission
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    fluid, they will get a new Diesel emission
    fluid—Ad Blue is the brand name—dosing
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    valve. All of these have to be approved by
    the EPA and if it is approved, Volkswagen
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    can retrofit it. If not, they also have to
    buy back the vehicles, so this is why it
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    says “GOTO 1” there, right, because
    then they will be treated the same as
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    Generation 1. Now if you compare that—I
    don't know whether you saw the talk last
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    year—in Europe there is this plastic
    tube, this flow rectifier, a kind of, I
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    don't know, 3 Euro part, which is put into
    your car and all is well, right? Now,
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    okay, that's, you know? Honestly, 2 liter
    engines, 3 liter engines, they are
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    different. 4 cylinders, 6 cylinders, but,
    you know, I guess everybody, you don't
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    need to work in the automotive industry to
    understand that a plastic part for 3 Euro
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    and some better flow calculations are not
    the same as investing substantially in
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    each car to really equip it with what it
    should have been equipped with right from
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    the beginning. So that's kind of the
    settlement there. The process is quite
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    interesting. Volkswagen has to reach 85%
    of all customers bringing in their vehicle
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    for fix or buying back those vehicles. If
    not, there will be additional penalties.
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    So that's the way that the US folks
    actually make sure that this is successful
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    and somebody in the States gets like
    $ 10,000 to 20,000 on top of the value of
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    their car. So that's kind of quite
    substantial. For the States themselves
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    this is also quite interesting, because
    the last lines you're seeing there is
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    $ 2.7 billion on the 2.0 settlement and
    another $ 225 million on the 3.0 liter
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    settlement. They go into an environmental
    trust and this is then used to, you know,
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    buy new bus fleets, build up forests, do
    infrastructure for zero emission vehicles
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    and so on and so on. So there's a lot of
    money actually being available now to the
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    government of the United States, and
    Canada has settled for a very similar
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    thing, to actually do good for the
    environment and set off the damage that
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    Volkswagen has done to the environment.
    There's an unofficial figure which I
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    didn't put on the slides, so the press
    people that only read the slides don't get
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    it, so they really need to see the talk,
    Bosch seems to have settled for a $ 300
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    million fine as well, so they will pay
    $ 300 million into the fund to offset their
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    participation in the Dieselgate. I think
    you probably remember that we were
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    discussing how much did Bosch know last
    year and we basically showed that it's not
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    possible to do this type of cheating
    without a close cooperation between the
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    supplier of the electronic control unit,
    which is Bosch in this case, and the OEM,
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    which is the Volkswagen group. The
    callback process itself is quite
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    interesting as well. This is the form that
    you have to fill when you bring in your
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    car and Volkswagen has hired more than 700
    people in the States just to conduct this
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    process. So this is not only, you know,
    about $ 5 billion to the environment and
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    to zero emission vehicles and building up
    the infrastructure, it is also really a
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    job machine, because at every dealer's
    there is a dedicated person taking care of
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    this process and there are 700 people that
    run it for Volkswagen central in the USA.
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    I find this mildly funny here, because in
    the process they're actually making you
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    fill that your car has gone the milage
    which is shown on the odometer, so about
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    30%-40% of our old cars sold in Germany
    have falsified odometer readings. This is
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    really another scandal. This is something
    that is not being so widely reported on,
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    but if you buy a used car, you have a
    chance of one in three, that it's actually
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    a car that is not worth the money you're
    paying. And it's so easy to fix this
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    problem, but the OEMs don't seem to have
    an interest to do it. And the outcome here
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    is that actually Volkswagen tells you:
    “By law you are required to give an
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    honest statement on how many miles does
    that car actually have”. You know, it's
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    quite funny that they actually are bitten
    by the same problem which they have
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    ignored in the market for a long time.
    Okay. So, the thing is, the official
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    narrative from Volkswagen is, they want to
    buy back transparency and trust to their
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    customers. This is from Mr. Müller, who
    is the CEO of Volkswagen group at this
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    time: “From the very start I have pushed
    hard for the relentless and comprehensive
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    clarification of events. We will stop at
    nothing and nobody. This is a painful
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    process, but it is our only alternative.
    For us, the only thing that counts is the
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    truth. This is the basis for the
    fundamental realignment that Volkswagen
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    needs. The Board of Management of
    Volkswagen deeply regrets this situation
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    and wishes to underscore its determination
    to systematically continue along the
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    present path of clarification
    and transparency.”
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    Can I have an applause
    for this please?
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    applause
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    Thank you very much. And, you know,
    because heads of states and ministers
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    don't read press clippings, they actually
    write letters like these to every head of
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    state, to every minister in Europe, at
    least as much as I could verify, where
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    they personally update the ministers to,
    you know, give them the latest
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    claims—this is from May 2016, so it's,
    you know, half a year later and you can
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    read it here, it's the same narrative as,
    you know, “we're doing well” and, you
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    know, “we keep you informed” and, you
    know, “there's no need to listen to
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    anybody else. We own the narrative. We are
    actually informing you”. So, let's check
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    one thing. Hello? Thank you. Right when
    the Dieselgate scandal broke there were
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    two things. There was the NOx issue,
    which has clarified that it's a real
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    problem, that there are defeat devices in
    the engines. They are being fixed. And
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    there was the CO2 issue. The CO2 issue
    was pretty clear, because, you know, the
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    cars actually consume much more fuel than
    the sticker rating says, so there must be
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    a problem there, right? There is a problem
    there, but Volkswagen called it off really
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    quickly and this is my Maha moment, right?
    Martin Haase is here. If you read that
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    line here: “No unlawful change to the
    stated fuel consumption and CO2 figures
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    found to date” right? So there is
    Volkswagen saying: “We didn't find
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    anything to date.” Now that kind of, you
    know, that's a pointer, right? So, let's
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    keep on looking. This is from November
    this year. This is a new class action suit
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    and Audi in this case here is sued,
    because inside their gearbox, inside their
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    automatic gearbox there is yet another
    defeat device. There is a defeat device
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    that actually makes this car drive like a
    dog, so it shifts up really early, it
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    doesn't provide any torque, but that is
    sufficient to run through test cycles and
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    obviously, if the car doesn't have any
    power, it consumes very little fuel and
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    thus you get very good sticker ratings and
    you get very good CO2 emissions. So, we
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    found it, right? Felix will give a bit
    more details on the technical side here,
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    but this is a class action suit, so this
    is the same thing, which they have settled
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    for with the engines now running for the
    gearbox and the module in the engines that
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    cooperates with those gearboxes here. Next
    fact check. Warranties. Volkswagen refuses
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    to give warranties in Europe. So, you
    know, we're only getting those cheap
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    fixes, but then people like the ADAC, the
    German biggest car owners' club, asks:
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    “Couldn't you please kindly at least
    give us a warranty? Can't you warrant that
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    it will not have a negative effect on the
    car?” And Volkswagen says: “No, we
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    can't. We'll give you a certificate. We'll
    give you a paper, but it's not a
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    warranty.” And this is 'juristische
    Feinheiten', so this is legal intricacies,
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    right? We can't do this, It's very sorry,
    but you'll get a paper. Now if you look at
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    the States, this is the settlement, which
    came out on 20th of December, so the
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    second part of the settlement and the
    American customers get a 10 year warranty
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    or 120,000 miles, which is about 200,000
    kilometers and they get 4 years or 48,000
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    miles after the fitting the new catalyst
    and all the other stuff insight the car.
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    So that means not only do they get a stash
    of money, not only do they get their cars
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    properly fixed, they also get a warranty
    that the proper fix is proper and if not,
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    Volkswagen has to redo it. So, you see
    that it's possible, but there's a huge
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    discrepancy between the American legal
    system that forces a company to do this
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    and the European legal system that
    apparently does not have any scare factor
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    or any lever to motivate them to give a
    warranty. And they're not giving it by
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    free will, right? They could. They could
    just be generous and say like: “Of
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    course. We fucked up. Sorry, we'll give a
    warranty.” But they've been asked over
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    and over and over again and they've
    refused to do this. So, Jack Ewing from
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    the New York Times, one of the few really
    good journalists working on that topic put
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    it well: “In the US, VW owners get cash.
    In Europe, they get plastic tubes.”
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    applause
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    And there's another thing I want to point
    out to you. We ran this here in the
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    Süddeutsche Zeitung a few days ago.
    Volkswagen says, it wants transparency,
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    but what it does is, it actually goes and
    keeps as much information secret as
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    possible. So in this case here, every time
    somebody sues Volkswagen, they settle and
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    they used to be settling in court,
    which means, you could get the
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    information, you know, what was the
    settlement value? Did they buy back the
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    car? And now they've learned and they
    settle out of court, because then the
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    court only records that the two parties
    have settled, you know, somebody pays the
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    fee for the court, which is only a few
    hundred Euros and everything is fine. And
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    you don't find out what the settlement is.
    So this is something which they're now
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    doing quite on a big scale and the thing
    here is, we have a very odd situation. The
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    Kraftfahrtbundesamt says: “You need to
    do the recall”, but legally they have
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    not ordered the recall. So this is
    something that is voluntary. Well
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    voluntary actually means, it's voluntary
    for both sides. Volkswagen voluntarily
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    fixes the car and you voluntarily agree to
    have the car fixed. If you don't want to
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    have that voluntary agreement, you can
    sue. And we can't do this as a class
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    action suit. You can't do this like in the
    States so it's done once and for all. It
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    has to be going through the regional
    courts and everywhere, but the pattern we
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    are seeing as Volkswagen is afraid of
    getting actually judges to trial this and
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    actually get fines and have to buy back
    the cars, so they settle quite generously
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    outside of court. The downside is, when
    people settle, they need to subscribe to a
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    non disclosure agreement, to keep
    everything silent, and they put really
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    hefty sums on this, so there's like five
    figure Euro sums that people have to pay.
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    So they kind of get their car bought back
    for, you know, a few thousand Dollars or
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    Euros on top and then, if they were
    talking about it, they would be having to
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    pay hefty fines to Volkswagen. So that's
    the way they keep people quiet. Another
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    way, which is quite interesting, is a
    court case which is running at the
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    Landgericht Paderborn actually asked Mr.
    Winterkorn to come around and testify. And
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    he's a witness, so, you know, courts can
    ask witnesses to show up. But Mr.
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    Winterkorn actually said: “No, sorry,
    sorry. I would like to have my right to
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    remain silent on it.” Remaining silent
    is a legal privilege against self
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    incrimination. So you cannot be forced to
    say something in court which will be later
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    causing a problem to yourself. But the
    issue here is, Volkswagen always said:
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    “You know, he's not our boss anymore. We
    continue to pay him and he gets a hefty,
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    hefty income still for sitting at home
    and, I don't know, watching TV or watching
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    this talk.” Hi!
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    laughter
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    The thing is, if the narrative is true and
    he didn't know, he can go to court and he
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    can say: “I didn't know”. He may be on
    oath, so that means, he has to really be
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    sure that he didn't know, but that's the
    only thing that could happen. But they're
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    fighting this really hard. So in this case
    here, that's an invitation for 20th of
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    January. On 20th of January the court will
    have a hearing only on the fact of Mr.
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    Winterkorn having to show up and testify,
    so the thing is another pattern which
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    we're seeing here and that pattern is:
    Volkswagen is trying to delay everything
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    as much as they can. So in this case
    they're not saying: “Yeah, we'll bring
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    him along and, you know, yes, there will
    be some press, but, you know, we fucked
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    up, so, you know, that's fair.” They
    delay everything as much as they can.
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    We think, the legal issue behind this is,
    they granted an extension on the deadlines
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    for cases to be brought against them until
    31st of December next year. So we think,
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    they kind of reconsidered and are now
    trying to drag everything out beyond that
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    deadline. Because legally, because there's
    no class action suits here in Germany,
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    that means the right to sue has voided
    because of the time when people bought the
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    cars and, you know, there's warranties of
    two years and that's it. So that's kind
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    of, you know, what's probably happening
    and that's probably the tactics, which is
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    behind that. Okay, one thing for the
    journalists: This is a list from Rogert &
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    Ulbrich, who are lawyers working on the
    Volkswagen cases, of all the German court
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    cases where Volkswagen was forced to buy
    back, compensate or terminate the leases.
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    So they are happening and the red ones
    here are Oberlandesgerichte. They're like
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    higher level courts. But I guess, you,
    like me, have not really seen much press
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    reporting on this. And that's one of the
    issues here. The Volkswagen people are
  • 21:37 - 21:42
    very good at communicating to the press,
    doing regular press clippings, have all
  • 21:42 - 21:49
    the good marketing and advertising running
    and journalists need to do tedious work.
  • 21:49 - 21:54
    They need to go to those courts and say,
    like, you know: “Can I please have the
  • 21:54 - 21:58
    documentation?” And they need to write a
    piece on that and stuff like that. So, we
  • 21:58 - 22:02
    really need to get the message over to the
    journalists that it would be really cool
  • 22:02 - 22:07
    if they were reporting both sides of the
    picture, because then actually the people
  • 22:07 - 22:11
    that read the magazines, that read the
    Internet and possibly newspapers, if
  • 22:11 - 22:17
    people still do that, they will actually
    get a more fair picture, because this
  • 22:17 - 22:21
    information here is out there. It's
    available for grabs, if you have all the
  • 22:21 - 22:28
    Aktenzeichen here, so, please folks, pick
    it up and write some pieces on this.
  • 22:28 - 22:35
    applause
  • 22:35 - 22:42
    One of the things I predicted in 2015 was
    accidental data loss, right? Because
  • 22:42 - 22:48
    always when these big things happen and,
    in the States the thing is, you actually
  • 22:48 - 22:56
    get the right to request the other party
    to produce data for you. So, it's
  • 22:56 - 23:02
    different from the way it's here in
    Europe, and that's kind of a very big
  • 23:02 - 23:09
    tool. It's quite logical that it's very
    hard for the incriminated side to go and
  • 23:09 - 23:14
    produce all the material that will
    actually proof that it has betrayed, that
  • 23:14 - 23:19
    it has committed fraud and so on. So, it
    was a quite sure bet and here is the
  • 23:19 - 23:24
    result. We have two incidents here: The
    one on the top is a gentleman called
  • 23:24 - 23:27
    Daniel Donovan. He worked as an
    information manager at the general
  • 23:27 - 23:34
    counsel's in the legal team of Volkswagen
    group of America and he said: “I
  • 23:34 - 23:39
    questioned whether you are actually
    preserving evidence well.” And this is
  • 23:39 - 23:45
    why he was fired. And then they
    settled. So, there is an agreement or a
  • 23:45 - 23:52
    communication here again by Jack Ewing
    reported, which is word by word the same
  • 23:52 - 23:56
    between his legal team and the Volkswagen
    legal team and they agreed on very
  • 23:56 - 24:01
    amicable terms. And it was settled out of
    court, so we don't know how much he was
  • 24:01 - 24:07
    paid. And then there is another lawsuit.
    I didn't give the name here, because it's
  • 24:07 - 24:10
    not publicly known. You can find it out if
    you know how to use Google, but it's not
  • 24:10 - 24:15
    very publicly known. There was a German
    law advisor at Volkswagen and he requested
  • 24:15 - 24:20
    his colleagues to delete documents. So he
    basically wrote an email to his colleagues
  • 24:20 - 24:23
    and said, like: “You know, we're getting
    under pressure. Please delete all
  • 24:23 - 24:27
    incriminating stuff.” That's not a very
    cool thing to do if you're a company
  • 24:27 - 24:34
    lawyer. And then we have the FTC, the
    Federal Trade Commission, and they brought
  • 24:34 - 24:39
    a lawsuit against Volkswagen because,
    read the first line here, they lost or
  • 24:39 - 24:47
    accidentally erased 23 mobile phones. I
    don't know. These things just, you know,
  • 24:47 - 24:55
    whoop, another one gone. I don't know.
    The other issue they had is, Volkswagen
  • 24:55 - 25:01
    brought a witness and they said: “This
    witness was either unprepared or unable to
  • 25:01 - 25:06
    provide information because 250 times
    he said: “I don't know” to all the
  • 25:06 - 25:11
    questions. And the funny thing is, and
    here we have another Maha moment of
  • 25:11 - 25:16
    over-communication, in the reply
    Volkswagen said: “Oh, he was very well
  • 25:16 - 25:20
    prepared. We spent 20 days with him,
    just preparing for that deposition.”
  • 25:20 - 25:30
    laughter + applause
  • 25:30 - 25:38
    So it took Volkswagen 20 days to make
    one engineer say “I don't know” a
  • 25:38 - 25:46
    sufficient amount of times. Okay, so why do
    we all have this problem in Europe, right?
  • 25:46 - 25:50
    It seems to be working in the States
    somehow. Where does that come from? And
  • 25:50 - 25:55
    the root cause here is actually copy and
    paste regulation, or regulation by Stack
  • 25:55 - 26:01
    Overflow, or however you want to call it.
    The thing on the upper side is the
  • 26:01 - 26:05
    American regulation. They define two
    things. And I'm sorry, you won't be able
  • 26:05 - 26:09
    to read it all, but the slides are being
    made public and then you can dig into
  • 26:09 - 26:14
    this. But the basic idea here is, the
    Americans define Auxiliary Emission
  • 26:14 - 26:21
    Control Devices, so things that actually
    modify some physical values which have an
  • 26:21 - 26:28
    effect on emissions. And then there's a
    defeat device. A defeat device is an AECD
  • 26:28 - 26:31
    which reduces the effectiveness of
    emission control, so it doesn't improve it
  • 26:31 - 26:40
    for example, and in many cases it is not
    disclosed, so you may have AECDs. You may
  • 26:40 - 26:44
    even have AECDs that reduce the
    effectiveness of an emission control
  • 26:44 - 26:48
    system and those are then called defects.
    And there's an amount of defects which
  • 26:48 - 26:52
    you’re allowed to have. And the amount of
    defects decreases from year to year, so
  • 26:52 - 26:56
    that is a way to steer the automotive
    industry into compliance. A very clever
  • 26:56 - 27:02
    system. Now whoever wrote the law for the
    European Union actually just copied and
  • 27:02 - 27:06
    pasted, which you can see because you'll
    find all the same words there, and there's
  • 27:06 - 27:10
    a second slide coming up and you'll find
    more of the definition here at the top,
  • 27:10 - 27:16
    vehicle speed, engine RPM, transmission,
    manifold vacuum and so on. And, so, they
  • 27:16 - 27:20
    just copied and pasted and thought like,
    “We don't need AECDs”, you know, they
  • 27:20 - 27:25
    just say: “A defeat device is an AECD,
    so, let's ditch the AECD.” It's like,
  • 27:25 - 27:29
    you know, people that copy and paste or
    Debian working on the random number
  • 27:29 - 27:33
    generator. It's like, you know, “I don't
    understand that code. It doesn't seem to
  • 27:33 - 27:37
    be used. Let's ditch it.” And so they
    did “I don't understand AECDs. They
  • 27:37 - 27:40
    don't really … necessary. Ditch it.”
    But the problem here is, this is
  • 27:40 - 27:45
    why Volkswagen can actually say: “We
    don't have a defeat device.” And the way
  • 27:45 - 27:57
    they say it is again very lovely. They
    say: “We have no unlawful defeat device
  • 27:57 - 27:59
    under European law”, right?
  • 27:59 - 28:01
    laughter
  • 28:01 - 28:06
    So we have a defeat device, but it's not
    unlawful and not under European law. And
  • 28:06 - 28:10
    they clarify this and say: “The
    efficiency of emissions cleanup systems
  • 28:10 - 28:15
    will not be reduced in those vehicles,
    which however would be a prerequisite for
  • 28:15 - 28:21
    the existence of an unlawful defeat device
    in the legal sense.” So that's a quote.
  • 28:21 - 28:26
    So what that actually means is, they found
    the loophole and the loophole is there
  • 28:26 - 28:32
    because people have been doing bad copy
    and paste regulation. Okay, now, the other
  • 28:32 - 28:37
    problem the European Union has, is that
    it's herding cats and the only tool it has
  • 28:37 - 28:42
    is this one very long stick, which is the
    EU Treaty infringement process,
  • 28:42 - 28:50
    Vertragsverletzungsverfahren in German.
    So, the thing here is, they actually would
  • 28:50 - 28:55
    want to have proper emissions'
    regulations, but they can't, because it
  • 28:55 - 29:01
    needs to be put into local laws and there
    are 3 countries that didn't put any
  • 29:01 - 29:07
    sanctioning mechanisms in place over 7
    years and there are 4 countries which
  • 29:07 - 29:12
    didn't use those sanctioning mechanisms.
    One of them is Germany, obviously.
  • 29:12 - 29:18
    Actually the UK will probably evade this
    because they can just sit it out. Brexit.
  • 29:18 - 29:23
    Okay, so this guy here, he was really
    really pissed because Fiat didn't show up
  • 29:23 - 29:28
    when he said: “But you are actually
    emitting way to much. We caught you in our
  • 29:28 - 29:34
    lovely report, which we made. So would you
    please show up and, you know, we'll really
  • 29:34 - 29:39
    tell you off.” And Fiat said: “You
    know, we're an Italian company. We are
  • 29:39 - 29:45
    regulated in Italy. We will answer to the
    Italian people, but we don't really want
  • 29:45 - 29:49
    to chat with you.” So he was really
    pissed. He made a press report, that was
  • 29:49 - 29:53
    from the press report, and said like:
    “This uncooperative behavior from Fiat
  • 29:53 - 30:00
    is completely not understandable.” All
    right? This is from Süddeutsche Zeitung
  • 30:00 - 30:08
    and it basically says that his people went
    and took the report, which was already
  • 30:08 - 30:15
    very amicable. We know the quote „Mit
    industriefreundlichen Grüßen“, right?
  • 30:15 - 30:20
    I don't know whether you read newspapers.
    And they softened it down even more,
  • 30:20 - 30:29
    right? I was at the IMIS commission of the
    European Union, which is the investigative
  • 30:29 - 30:34
    committee on Dieselgate and I just called
    that report a joke and I'll repeat that
  • 30:34 - 30:40
    here. It's a joke and I wouldn't wan't to
    have my name on that, so any scientist
  • 30:40 - 30:45
    that does, sorry, that's more kind of
    shameful. Perhaps take it out of your CV,
  • 30:45 - 30:51
    so as to try and hide it. So, the funny
    thing is, here it is said, also in this
  • 30:51 - 30:56
    press statement: “It cannot be that a
    European law is formulated in a way that
  • 30:56 - 31:00
    manufacturers of underdeveloped engines
    can hide behind engine protection
  • 31:00 - 31:03
    reasons.”
    Audience: Only German ones!
  • 31:03 - 31:09
    D: Right. So, I'm sorry, this is German.
    But the car he meant was obviously the
  • 31:09 - 31:14
    Fiat 500X, which was measured in this
    report, but if you look at this engine
  • 31:14 - 31:19
    here, which is from his own report, it's
    the Audi A3, the 3 liter, the one, which
  • 31:19 - 31:25
    has just been settled in the States, and
    it is allowed to emit 180 mg, so in the
  • 31:25 - 31:30
    cold and in the warm it does this, but as
    soon as you go below 10°C, remember,
  • 31:30 - 31:36
    there was this temperature window, right,
    it does 663 mg and when you do it on the
  • 31:36 - 31:41
    road and you actually move the steering
    wheel and it detects that, it does 868 mg.
  • 31:41 - 31:46
    So underdeveloped engines are made in
    Germany and actually produced in Hungary,
  • 31:46 - 31:53
    because that's where the engine comes
    from. I was in a cold retreat on an island
  • 31:53 - 31:56
    in the mediterranean sea. I run my own
    company, so, you know, we can do great
  • 31:56 - 32:01
    things for our employers and somebody
    brought this. And I don't read Bild
  • 32:01 - 32:04
    Zeitung. I have to read Bild Zeitung
    because they are the only ones who have a
  • 32:04 - 32:08
    leak and get some information out of
    Volkswagen and everybody copies them, it's
  • 32:08 - 32:12
    really weird, right? Bild am Sonntag
    reports it first and then the Süddeutsche
  • 32:12 - 32:20
    Zeitung writes an editorial on it. And in
    here I found a gem and the gem is the
  • 32:20 - 32:26
    Kraftfahrtbundesamt doesn't actually have
    people who are able to analyze what Opel
  • 32:26 - 32:32
    gives them, so they have tasked Felix
    Domke, the guy who is coming after me, and
  • 32:32 - 32:38
    asked him to actually verify whether Opel
    has actually implemented a fix. So, you
  • 32:38 - 32:43
    know, I'm very happy they support the
    hacker community, but I don't think that
  • 32:43 - 32:46
    is a very sustainable business model
    for authorities, right?
  • 32:46 - 32:48
    laughter
  • 32:48 - 32:55
    applause
  • 32:55 - 33:02
    Okay, so, second to last point.
    Braunschweig. Braunschweig. The
  • 33:02 - 33:08
    Braunschweig general attorney's office are
    the ones that actually should be analyzing
  • 33:08 - 33:15
    the case of all the Volkswagen senior
    management. They have now 28 people which
  • 33:15 - 33:19
    they are investigating against and that
    includes Mr. Hans Dieter Pötsch, who is
  • 33:19 - 33:26
    the former CEO, Martin Winterkorn, and the
    current head of Volkswagen, the Volkswagen
  • 33:26 - 33:30
    brand, which is Herbert Dress, who came
    in from BMW. So that's great. That's
  • 33:30 - 33:34
    great. They're actually doing something.
    The question is just, what are they doing?
  • 33:34 - 33:38
    Because we never get any feedback.
    So, I don't know. I have no clue what
  • 33:38 - 33:42
    they're doing. You know, I'm in good
    contact with nearly everybody, but they
  • 33:42 - 33:46
    actually only rang me once and the only
    thing they asked was: “Do you have Felix
  • 33:46 - 33:49
    Domke's phone number?”
    laughter
  • 33:49 - 33:53
    Perhaps Felix knows more. Perhaps, he's
    able to tell us more about what they're
  • 33:53 - 33:57
    doing. The good thing is other people are
    doing something. That's the court of Mayo,
  • 33:57 - 34:01
    which is in Ireland, very nice place. You
    should go and visit it. And they have the
  • 34:01 - 34:06
    same legal mechanism as they have in the
    States. So they have the capability to
  • 34:06 - 34:12
    order somebody to produce documents to
    clarify the case, so in this case the
  • 34:12 - 34:18
    judge, Ms. Devins, has ordered Volkswagen
    to produce documents. And they hate this.
  • 34:18 - 34:24
    They were furious. So what happened, is,
    the next time they had a meeting, which
  • 34:24 - 34:30
    was in September of this year, the legal
    representative told the court that this is
  • 34:30 - 34:36
    completely inappropriate and unfair. “I
    did not bring anyone except for myself
  • 34:36 - 34:40
    because we think you do not have
    jurisdiction in the case.” Now, it's an
  • 34:40 - 34:45
    Irish lady that has bought a Volkswagen
    from an Irish dealer, but Volkswagen is
  • 34:45 - 34:51
    sure they don't have any legal beef in
    this, right? So, I don't know what they're
  • 34:51 - 34:58
    thinking. And to actually add, you know,
    to this, they walked out of the court. So
  • 34:58 - 35:03
    in protest, the representatives of
    Volkswagen, their lawyers walked out of
  • 35:03 - 35:10
    the court. So, the thing is, the judge is
    a very cool lady and she said, she would
  • 35:10 - 35:17
    continue “without Hamlet”, referring
    to the play, and said, the Volkswagen
  • 35:17 - 35:26
    legal team had a spectacular walk-out.
    That has not happened to a court before.
  • 35:26 - 35:30
    And the other thing is, so the Irish
    people are trying to help the case a bit
  • 35:30 - 35:35
    and the States' people are trying the
    same. They have a gentleman called
  • 35:35 - 35:41
    Mr. Liang who has worked long time for
    Volkswagen. First in Germany and then in
  • 35:41 - 35:46
    the States. And he is now basically the
    principal witness. They made a deal with
  • 35:46 - 35:52
    him and said, you know, “We will limit
    the cost you will have or the time even in
  • 35:52 - 35:58
    jail that you have to do if you cooperate
    with us”. And the thing boxed here in
  • 35:58 - 36:02
    red is: “Defendant shall cooperate fully
    with the government, and any other law
  • 36:02 - 36:06
    enforcement agency, including but not
    limited to the Staatsanwaltschaft
  • 36:06 - 36:08
    Braunschweig in Germany”, right?
  • 36:08 - 36:12
    applause
  • 36:12 - 36:17
    So, the Americans are actually bringing
    the witness to Braunschweig and I have not
  • 36:17 - 36:22
    heard whether they even had a chat with
    him. At least there's nothing publicly
  • 36:22 - 36:31
    known. All right. Bonus round for the last
    5 minutes. Somebody on reddit actually
  • 36:31 - 36:38
    managed to get his car bought back. Cool.
    Super. He received $21,000 for it. The
  • 36:38 - 36:43
    thing is, the buyback terms say, it
    is okay if your car has damages...
  • 36:43 - 36:45
    laughter
  • 36:45 - 36:50
    ... because they actually want to make
    sure that somebody who has, you know, a
  • 36:50 - 36:54
    scratch or so, it doesn't get so
    complicated, right? So the buyback process
  • 36:54 - 36:58
    actually just goes on, like, what car is
    it, what did it cost initially and what
  • 36:58 - 37:02
    is the milage, and, you know, we know
    about the milage now. So, this car
  • 37:02 - 37:06
    apparently had some damage and the guy
    thought: “You know, it's damaged anyway.
  • 37:06 - 37:08
    All the front parts...
  • 37:08 - 37:10
    laughter
  • 37:10 - 37:17
    applause
  • 37:17 - 37:21
    All the front parts would be pretty good
    use for my friend who has a Volkswagen and
  • 37:21 - 37:25
    wants to keep it. So, you know, I just
    removed them.” Now the interesting thing
  • 37:25 - 37:34
    is, we have a company here, which has
    betrayed millions of its customers, more
  • 37:34 - 37:39
    than half a million in the States and …
    Oops, there's a slide missing. That's not
  • 37:39 - 37:46
    good. Sorry. I hope this wasn't deleted by
    our friends who set up the video, which
  • 37:46 - 37:53
    was a difficult thing at the beginning.
    Ohh no, it's deleted. That's not very
  • 37:53 - 37:57
    nice. Ohh, it's moved there. Okay, let's
    use this one. It actually shouldn't be
  • 37:57 - 38:09
    there. It's the second to last slide.
    Yay. So this is from a meeting of this
  • 38:09 - 38:14
    settlement class. I'm reading it.
  • 38:14 - 38:17
    laughter
  • 38:17 - 38:26
    applause
  • 38:26 - 38:32
    “At least one owner went so far as to
    strip the car of almost every removable
  • 38:32 - 38:35
    part, including seats, doors,
    a radio, and even the air bag.”
  • 38:35 - 38:36
    laughter
  • 38:36 - 38:42
    Now remember. That company has actually
    betrayed half a million people in the
  • 38:42 - 38:47
    States, a few million worldwide. They've
    made people pay way more for a car which
  • 38:47 - 38:53
    is dirty, because they believed it was
    clean, and now there's five people who
  • 38:53 - 39:01
    stripped parts of their cars and they
    complain to the judge. Okay, that's it.
  • 39:01 - 39:09
    applause
  • 39:09 - 39:17
    Takeaway points. I just wanted… The
    takeaway points here: Everybody's
  • 39:17 - 39:20
    cheating. I only did one slide, but
    please don't forget this, right? There
  • 39:20 - 39:26
    will be much more coming out from others.
    Volkswagen promises, but their actions
  • 39:26 - 39:31
    are completely different, so please look
    beyond the spin doctoring. Don't buy
  • 39:31 - 39:34
    the Volkswagen narrative. And the other
    thing is, we don't have a functional
  • 39:34 - 39:38
    regulation in the EU. I hope, Julia Reda
    and the others are able to fix it, but
  • 39:38 - 39:41
    this will be a really tough task.
    Okay. Thank you very much.
  • 39:41 - 39:45
    applause
  • 39:45 - 39:50
    postroll music
  • 39:50 - 40:10
    subtitles created by c3subtitles.de
    in the year 2017. Join, and help us!
Title:
Dieselgate – A year later (33c3)
Description:

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Video Language:
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Duration:
40:10

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