Short version: VW faces something like $30,000 in fines for EACH of 11,000,000 vehicles which were built to cheat on their emissions test.
Local emissions tests will probably stop the driving of a large percentage of these vehicles until fixed, which means VW will pay for the recall/retrofit - a repair which will leave the vehicle with severely reduced performance. By “affects resale value” we’re talking _destroying_ resale value.
Facing a third of a trillion dollars in realistic fines, plus funding recalls on this scale, would destroy pretty much any company.
Scenario: tomorrow you get a certified letter stating your vehicle will fail its annual emissions test. Driving it will be illegal, repairing it to passable will be costly and leave the formerly peppy vehicle downright anemic, and the manufacturer won’t be paying for the repair because it’s too busy trying to pay a $0.3T fine. THAT is a big deal to you the owner, multiplied by tens of millions of owners.
In its zeal to fine VW, the government could set off a financial carmageddon, wiping out a major car company and destroying a major asset of VW owners. This could have financial ripples which cascade out of control.
I'm suspicious of the timing. Was this done now to deflect attention from the EPA poisoning a river with heavy metals?
There are no emissions tests where I live (Ohio)
How many states do emissions checks? I remember here in Florida they did emissions back in the 80s, but they haven’t done them since. I don’t see that being problematic in states where there are no emissions checks.
Not so, if I understand things correctly. Unless local jurisdictions change their test methods, VW diesels using the old software will coast right through the emissions testing just like they always did.
And I don't see the state of North Carolina changing their laws to mandate real-time-driving-tests for emissions inspection. It's not practical.