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The Dark Side of Volkswagen - Greenpeace

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<strong>The</strong> <strong>Dark</strong> <strong>Side</strong><br />

<strong>of</strong> <strong>Volkswagen</strong>


CONTENTS<br />

Key facts 1<br />

Summary 2<br />

Driving climate change 4<br />

<strong>Volkswagen</strong> Group: <strong>The</strong> big player 8<br />

1. Slow progress on emissions 10<br />

2. Greenwashing the fleet 12<br />

3. Lobbying against progress 14<br />

Conclusion: Capable <strong>of</strong> better 20<br />

References 22<br />

June 2011<br />

Published by <strong>Greenpeace</strong> International<br />

Ottho Heldringstraat 5<br />

1066 AZ Amsterdam<br />

<strong>The</strong> Netherlands<br />

www.greenpeace.org<br />

Cover: ©Cobbing/<strong>Greenpeace</strong> Contents: ©Langrock/Zenit/<strong>Greenpeace</strong>


KEY FACTS<br />

1. <strong>The</strong> <strong>Volkswagen</strong> Group is the largest car maker in Europe. One in five<br />

new cars sold in Europe is a <strong>Volkswagen</strong> brand, and by 2018, the company<br />

aims to be the biggest car maker in the world.<br />

2. <strong>Volkswagen</strong> claims it also wants to be ‘the most eco-friendly automaker in the<br />

world’, yet the company has dragged its feet in reducing the fuel consumption<br />

<strong>of</strong> its vehicle fleet, and whilst it has developed the technologies to produce<br />

highly fuel-efficient vehicles, it has not made them widely available.<br />

3. As the biggest car company in Europe, the <strong>Volkswagen</strong> Group has the biggest<br />

climate footprint <strong>of</strong> any car manufacturer in Europe.<br />

4. <strong>Volkswagen</strong> penalises consumers wanting smarter, cleaner vehicles by<br />

artificially inflating their price and making them marginal to its fleet.<br />

5. Just 6% <strong>of</strong> the <strong>Volkswagen</strong> Group’s global sales in 2010 were <strong>of</strong> its most<br />

efficient models.<br />

6. <strong>Volkswagen</strong> has a history <strong>of</strong> diverting attention from its poor overall<br />

environmental performance by developing super-efficient prototype car<br />

designs which never come to mass production.<br />

7. <strong>Volkswagen</strong> were one <strong>of</strong> the driving forces in the lobbying campaign against<br />

the introduction <strong>of</strong> vehicle efficiency standards in Europe. It has also been part<br />

<strong>of</strong> efforts to oppose the introduction <strong>of</strong> strong US standards.<br />

8. <strong>The</strong> <strong>Volkswagen</strong> Group has more positions on the board <strong>of</strong> ACEA (the car<br />

manufacturers’ association and one <strong>of</strong> the most powerful lobby forces in<br />

Europe) than any other company. ACEA has been leading the charge against<br />

strong fuel efficiency standards in Europe.<br />

9. Despite its green rhetoric, <strong>Volkswagen</strong> is opposing two vital climate policies<br />

in Europe which are needed to drive innovation and cleaner technology in<br />

the car sector, save drivers money, and help Europe reduce its damaging<br />

dependence on oil.<br />

10. <strong>The</strong> company has the capacity to do so much better. If <strong>Volkswagen</strong> made the<br />

most fuel-efficient cars it produces as standard, rather than <strong>of</strong>fering efficiency<br />

technology as an expensive add-on, it would be able to reduce its fleet<br />

emissions and oil consumption dramatically. If it rolled out its best technology<br />

across the fleet it would be transformational, not just to its own performance<br />

but to the European vehicle fleet as a whole.<br />

Commercial<br />

Vehicles


2 THE DARK SIDE OF VOLKSWAGEN<br />

SUMMARY<br />

<strong>The</strong> <strong>Volkswagen</strong> Group is the largest car maker in<br />

Europe. It has repeatedly claimed that it wants to be a<br />

‘green’ company, but has so far failed to live up to its<br />

green ambitions. It has been slow to make its fleet more<br />

efficient, despite having developed the technology<br />

to do so, and has actively worked to impede strong<br />

European climate policies. <strong>The</strong> company must change.<br />

<strong>Volkswagen</strong>’s significance in the car market should not be<br />

underestimated. By 2018, the company aims to take the<br />

number one spot from Toyota 1 to become the biggest car<br />

maker in the world. 2 <strong>The</strong> Group comprises nine well-known<br />

brands 3 and also owns a controlling stake in Porsche. One in<br />

five new cars sold in Europe is a <strong>Volkswagen</strong> brand and the<br />

company hopes to attain global dominance by expanding sales<br />

in the US market and the emerging markets <strong>of</strong> China and India.<br />

ThE bUlK oF ThE VolKSwAgEn<br />

gRoUp’S CARS ConTinUE<br />

To bE AMongST ThE MoST<br />

pollUTing in EURopE.


<strong>Volkswagen</strong> speaks <strong>of</strong> being ‘determined to become the<br />

world’s leading automaker in terms <strong>of</strong> both economy<br />

and ecology’, 4 and some <strong>of</strong> its models regularly feature<br />

in top ten ‘green car’ lists. 5 <strong>The</strong> company emphasises its<br />

commitment to environmental protection within much<br />

<strong>of</strong> its public advertising. 6 Yet the bulk <strong>of</strong> the <strong>Volkswagen</strong><br />

Group’s cars continue to be amongst the most polluting<br />

in Europe compared to other volume brands. 7<br />

<strong>The</strong> company has dragged its feet in reducing the<br />

fuel consumption <strong>of</strong> its vehicle fleet, and whilst it<br />

has developed the technologies to produce highly<br />

fuel-efficient vehicles, it has not made them widely<br />

available or affordable. And despite its green rhetoric,<br />

<strong>Volkswagen</strong> is opposing two vital climate policies which<br />

SUMMARY<br />

are needed to drive innovation in Europe and cleaner<br />

technology in the car sector, save drivers money, and<br />

help Europe reduce its damaging dependence on oil.<br />

If the <strong>Volkswagen</strong> Group is to live up to its promises, the<br />

company must rapidly improve the fuel efficiency <strong>of</strong> its<br />

products, and put its weight behind strong climate change<br />

policies in Europe. In particular, public support from the<br />

<strong>Volkswagen</strong> Group for an European greenhouse gas<br />

(GHG) emission reduction target <strong>of</strong> 30% by the year<br />

2020 would be a powerful sign that the company wants<br />

to be a genuine leader on green issues, whilst support<br />

for stringent car efficiency legislation would show it was<br />

serious about improving the efficiency <strong>of</strong> its vehicles<br />

and driving down pollution from the car industry.<br />

onE in FiVE nEw CARS Sold in EURopE iS A VolKSwAgEn bRAnd.<br />

3<br />

©Langrock/Zenit/<strong>Greenpeace</strong>


4 THE DARK SIDE OF VOLKSWAGEN<br />

dRiVing<br />

CliMATE ChAngE<br />

Climate change is fundamentally reshaping our lives.<br />

Greenhouse gases (GHGs) in the atmosphere now exceed<br />

by far their natural range over the last 650,000 years,<br />

due primarily to fossil fuel use. 8 Despite repeated debate<br />

at international summits and ongoing haggling over global<br />

agreements, the international community has so far made<br />

only tentative progress toward reducing global emissions.<br />

Europe is currently committed to unilateral action to reduce<br />

its GHG emissions by 20% below 1990 levels by the year<br />

2020. Yet this target is now hopelessly out <strong>of</strong> date. It is not<br />

ambitious enough to drive much needed investments in Europe’s<br />

green economy. It does not reflect the scale and speed <strong>of</strong> the<br />

growing clean technology sector in other major economies<br />

(particularly China, now the world’s largest single investor in<br />

renewable energy). It is also insufficient to ensure the continued<br />

functioning <strong>of</strong> Europe’s flagship climate policy, the Emissions<br />

Trading Scheme; or to ensure that Europe is on target to meet<br />

its own long term goal <strong>of</strong> an 80–95% emissions cut by 2050.<br />

This year, European governments are discussing the need to<br />

strengthen the 2020 target, to a 30% cut below 1990 levels.<br />

A study commissioned by the German government concluded<br />

that such a target could boost investment in Europe’s green<br />

economy and increase European GDP by ¤620 billion by 2020. 9<br />

Agreeing a 30% target for domestic emissions reductions<br />

by 2020 is also a critical step in rebuilding confidence in the<br />

international negotiations on climate change, where this<br />

commitment would give new weight to Europe’s efforts to<br />

build a broad coalition <strong>of</strong> nations committed to action.<br />

<strong>The</strong> EU currently consumes around 670 million tonnes <strong>of</strong> oil<br />

a year 10 (equivalent to around 13.68 millions <strong>of</strong> barrels <strong>of</strong> oil<br />

per day 11 ), with the EU’s transport sector using around 60% <strong>of</strong><br />

that, a proportion that is projected to grow to 65% by 2030<br />

without additional policy changes. Over half <strong>of</strong> the oil consumed<br />

by the EU’s transport sector is used by cars and vans. 12<br />

<strong>The</strong> burning <strong>of</strong> oil in vehicle engines creates significant<br />

amounts <strong>of</strong> GHG emissions. While the overall emissions<br />

in Europe are falling, decreasing 11% between 1990 and<br />

2008, those from transport increased by 24% in the same<br />

period 13 , and are still rising. 14 <strong>The</strong> European Environment<br />

Agency estimates that cars are the single largest source <strong>of</strong><br />

transport emissions, representing around half <strong>of</strong> the total.<br />

Currently, the EU imports around 85% <strong>of</strong> the oil it consumes.<br />

As its few domestic reserves are declining, this dependence<br />

on imports may increase to at least 90% by 2030. 15 If this<br />

happens, risky and dangerous unconventional oil extraction<br />

methods like deep water drilling and tar sands production are<br />

likely to make up a greater proportion <strong>of</strong> EU oil consumption.<br />

Globally, it has been estimated that up to 13% <strong>of</strong> oil production<br />

currently comes from unconventional sources – with<br />

probably more than 75% <strong>of</strong> this coming from deep water<br />

oil, while the second largest contributor is tar sands. 16 With<br />

oil companies now eyeing up potential reserves in the Arctic<br />

(which is thought to contain less than three years’ worth <strong>of</strong><br />

oil based on current global consumption 17 ), it could only be a<br />

matter <strong>of</strong> time before cars on Europe’s roads are fuelled by<br />

oil coming from dangerous drilling in pristine Arctic waters.<br />

iT CoUld onlY bE A MATTER<br />

oF TiME bEFoRE CARS<br />

on EURopE’S RoAdS ARE<br />

FUEllEd bY oil CoMing FRoM<br />

dAngERoUS dRilling in<br />

pRiSTinE ARCTiC wATERS.<br />

©Arthur J D/<strong>Greenpeace</strong>


DRIVING CLIMATE CHANGE<br />

5<br />

©Cobbing/<strong>Greenpeace</strong>


6 THE DARK SIDE OF VOLKSWAGEN<br />

Above: <strong>Greenpeace</strong> scientists research depletion <strong>of</strong><br />

Arctic sea ice. ©Cobbing/<strong>Greenpeace</strong><br />

Right: As the ‘easy to reach oil’ is running out, oil<br />

companies are turning to tar sands – the dirtiest <strong>of</strong><br />

all oil – to meet the demand. ©Rezac/<strong>Greenpeace</strong><br />

Far right: BP’s Deepwater Horizon explosion caused<br />

the worst oil spill in US history, killing 11 workers<br />

and leaking millions <strong>of</strong> barrels <strong>of</strong> oil into the Gulf <strong>of</strong><br />

Mexico. ©<strong>The</strong> United States coastguards<br />

<strong>The</strong>se marginal barrels are expensive to extract, commanding a<br />

high oil price to be pr<strong>of</strong>itable. High oil prices in turn contribute<br />

to economic and geopolitical instability, both by driving up<br />

transport costs for businesses, and by contributing to higher<br />

food prices and increased military tensions in producer<br />

regions. At the same time, high oil prices increase the risk <strong>of</strong><br />

a return to recession during a fragile economic recovery.<br />

Regardless <strong>of</strong> their price, burning through the world’s<br />

remaining fossil fuel reserves also exposes us to the risks<br />

<strong>of</strong> catastrophic climate change. In the most recent World<br />

Energy Outlook published by the IEA, the ‘business as usual’<br />

scenario (including ‘business as usual oil consumption’) is<br />

shown to be consistent with a six degree increase in global<br />

average temperatures. 18 <strong>The</strong> potentially devastating impacts<br />

<strong>of</strong> higher atmospheric CO 2 levels, combined with higher global<br />

temperatures, are likely to be far reaching and could lead to the<br />

extinction <strong>of</strong> many species, reduced diversity <strong>of</strong> ecosystems, 19<br />

and adversely affect hundreds <strong>of</strong> millions <strong>of</strong> people. 20<br />

<strong>The</strong> alternative is clear – the world needs to go beyond oil<br />

by putting in place policies which will dramatically reduce<br />

consumption <strong>of</strong> oil. <strong>The</strong> IEA World Energy Outlook suggests that<br />

global oil consumption must peak in 2018 and drop below today’s<br />

levels by 2030 (alongside cuts in emissions from other sectors)<br />

if we want to prevent the worst impacts <strong>of</strong> climate change. 21<br />

One important step, along with other policies, is to improve<br />

the fuel efficiency <strong>of</strong> vehicles and shift to smaller vehicles.<br />

EU legislation passed in 2009 requires an ongoing improvement<br />

in the fuel efficiency <strong>of</strong> new cars sold in Europe. Despite strongly<br />

opposing the introduction <strong>of</strong> the legislation, the car sector has<br />

since shown that fuel consumption can be dramatically reduced,<br />

simply through the deployment <strong>of</strong> existing technologies. Several<br />

car makers are now on track to meet their mandatory 2015<br />

targets ahead <strong>of</strong> time, with Toyota having already almost met<br />

its target six years early – yet <strong>Volkswagen</strong> has consistently<br />

lagged behind. 22 Car makers have also shown they are capable<br />

<strong>of</strong> producing electric vehicles that produce no emissions at<br />

all, if they are powered from renewable energy sources.<br />

Tough but achievable vehicle efficiency standards <strong>of</strong> 50g CO 2 /km<br />

for cars and 88g CO 2 /km for vans by 2030 could reduce the oil<br />

consumption <strong>of</strong> the EU’s transport sector by around 13%, or<br />

1.1 million barrels a day, compared to business as usual. 23 This is<br />

equivalent to approximately the total petroleum consumption <strong>of</strong><br />

Austria, Denmark, Portugal, Norway and Finland combined 24 and<br />

would represent an economy-wide reduction <strong>of</strong> 8% in the EU. 25


MEASURING EMISSIONS: WHAT THE NUMBERS MEAN<br />

About 70% <strong>of</strong> the world’s transportation GHG emissions are<br />

now under regulation by national governments. <strong>The</strong> United<br />

States, European Union, Japan, China, Australia, Canada and<br />

South Korea have all adopted vehicle efficiency standards.<br />

In some cases these standards began as voluntary guidelines;<br />

all but Australia’s are now mandatory. Mexico plans to announce<br />

fuel efficiency standards soon, and India, Indonesia, and Thailand<br />

are drawing up regulations. 26<br />

Around the world, the fuel efficiency <strong>of</strong> vehicles is measured in<br />

different ways.<br />

In Europe, vehicles are rated by how many grams <strong>of</strong> CO 2 they<br />

emit for every kilometre they are driven. This is described as<br />

XXg CO 2 /km. Measurements are mandatory for all models and<br />

carried out according to an EU procedure.<br />

In Germany, it is also common to describe a car’s efficiency by<br />

how many litres <strong>of</strong> fuel it consumes for every 100km travelled,<br />

shortened to X L/100km.<br />

DRIVING CLIMATE CHANGE<br />

<strong>The</strong> two values can be converted using a simple calculation since<br />

one litre <strong>of</strong> gasoline produces, when burned, approximately 23<br />

grams <strong>of</strong> CO 2 (petrol) or 26 grams <strong>of</strong> CO 2 (diesel) respectively.<br />

For example, the usual way <strong>of</strong> describing the fuel consumption<br />

<strong>of</strong> the ‘Golf 1.4 with 59kW’ is to say it emits 149g CO 2 /km,<br />

or consumes 6.4 litres <strong>of</strong> gasoline.<br />

In the US, vehicles are rated by how many miles they will go<br />

for every gallon <strong>of</strong> fuel, described as XXmpg. Measurement<br />

procedures differ so numbers cannot easily be converted<br />

and compared with European values. However, these are the<br />

approximate comparisons to help the reader:<br />

EU Germany US<br />

95g CO 2 /km 4.1 L/100km (petrol) 62mpg<br />

130g CO 2 /km 5.6 L/100km (petrol) 52mpg<br />

SEVERAl CAR MAKERS ARE now on TRACK To MEET ThEiR<br />

MAndAToRY 2015 TARgETS AhEAd oF TiME, wiTh ToYoTA<br />

hAVing AlREAdY AlMoST MET iTS TARgET Six YEARS EARlY<br />

whilST VolKSwAgEn hAS ConSiSTEnTlY lAggEd bEhind.<br />

7


8 THE DARK SIDE OF VOLKSWAGEN<br />

VolKSwAgEn gRoUp:<br />

ThE bIG plAyEr<br />

Part owned by state-owned oil company, Qatar Petroleum, 27<br />

and the German state <strong>of</strong> Lower Saxony, the <strong>Volkswagen</strong><br />

Group operates 62 production plants in 15 European<br />

countries and in the Americas, Asia and Africa. 28 In 2010,<br />

the Group increased the number <strong>of</strong> vehicles produced to<br />

7.2 million, giving it an 11.4% share <strong>of</strong> the world passenger<br />

car market. 29 <strong>The</strong> <strong>Volkswagen</strong> Group sold nearly three<br />

million passenger cars in Europe in 2010, meaning that<br />

one in five new cars (21%) was a <strong>Volkswagen</strong> brand. 30<br />

This dominance is even more pronounced in particular<br />

segments <strong>of</strong> the car market. Across Europe, the ‘compact’ or<br />

small family car is now the most popular size <strong>of</strong> car in terms<br />

<strong>of</strong> sales. In Germany, the biggest car market in Europe, the<br />

compact class has, according to the German Federal Motor<br />

VEHICLE EFFICIENCY LEGISLATION<br />

In 2009, a continental car efficiency standard was put in place<br />

by the EU. It required that by 2015 the average emissions from<br />

all cars sold in Europe must not exceed 130g <strong>of</strong> CO 2 per km<br />

driven. Under the legislation, each manufacturer was allocated<br />

a different target, reflecting the differences in average weight<br />

and CO 2 performance <strong>of</strong> vehicles at the time <strong>of</strong> the introduction<br />

<strong>of</strong> the law. <strong>The</strong> targets were based on the average weight <strong>of</strong> the<br />

cars produced by each manufacturer. So, for example, BMW‘s<br />

target is 138g CO 2 /km as they make big, heavy cars, whilst Fiat<br />

has a target <strong>of</strong> 116g CO 2 /km, reflecting the fact that they make<br />

small vehicles. Overall, the system is designed so that across the<br />

whole European fleet, the average emissions <strong>of</strong> new vehicles<br />

should be 130g CO 2 /km by 2015.<br />

<strong>Volkswagen</strong> were one <strong>of</strong> the driving forces in the lobbying<br />

campaign against the introduction <strong>of</strong> these vehicle efficiency<br />

standards.<br />

On 26 January 2007, <strong>Volkswagen</strong> joined other German car<br />

companies to send a letter to European Commissioners asking<br />

them to reconsider proposals to impose a mandatory target <strong>of</strong> no<br />

more than 120g CO 2 /km for new cars sold in Europe by 2012.<br />

Transport Authority (KBA), a share <strong>of</strong> nearly 28% <strong>of</strong> the<br />

total market. 31 In this segment in Germany, every third car<br />

is a <strong>Volkswagen</strong>. 32 <strong>The</strong> <strong>Volkswagen</strong> Golf is so popular that<br />

the whole class is <strong>of</strong>ten referred to as the ‘Golf class’. 33<br />

<strong>The</strong> <strong>Volkswagen</strong> Group’s size, power and influence all make it<br />

a major player in global car markets, and the dominant player<br />

in Europe. That in turn means that its influence can be used<br />

for good or ill when the need arises for car manufacturers<br />

to shoulder their environmental responsibilities.<br />

In recent years, despite claims to the contrary, <strong>Volkswagen</strong><br />

has used that influence to stand firmly against action on<br />

climate change. It has done so in three key ways.<br />

<strong>The</strong> companies claimed that this target was ‘technically not<br />

accomplishable’ and would constitute ‘a massive industrial<br />

political intervention at the expense <strong>of</strong> the entire European,<br />

and especially the German, automobile industry’. <strong>The</strong>y did not<br />

hesitate to evoke the spectre <strong>of</strong> massive industrial destabilisation.<br />

‘<strong>The</strong> direct consequence would be the migration <strong>of</strong> a large<br />

number <strong>of</strong> jobs from European production plants <strong>of</strong> automobile<br />

manufacturers and the supplier industry’. 34 From a huge employer<br />

such as <strong>Volkswagen</strong>, this statement could be construed as a<br />

serious threat, particularly as it came only two months after the<br />

company had announced restructuring plans that could result in<br />

the loss <strong>of</strong> up to 4,000 jobs in the Brussels region. 35<br />

In reality, these threats were unfounded. Several car makers are<br />

now on track to meet their 2015 targets ahead <strong>of</strong> time, with<br />

Toyota having already almost met its target six years early. 36<br />

When the vehicle efficiency legislation was set, a more ambitious<br />

medium term target <strong>of</strong> 95g CO 2 /km was also included for 2020.<br />

<strong>The</strong> details <strong>of</strong> how that target must be achieved will be decided<br />

in a review in the next couple <strong>of</strong> years. A new target also needs to<br />

be set for 2025.


VOLKSWAGEN GROUP: THE BIG PLAYER<br />

VolKSwAgEn hAS USEd iTS inFlUEnCE To STAnd<br />

FiRMlY AgAinST ACTion on CliMATE ChAngE.<br />

9<br />

©Langrock/Zenit/<strong>Greenpeace</strong>


10 THE DARK SIDE OF VOLKSWAGEN<br />

1. Slow pRogRESS on EMiSSionS<br />

<strong>The</strong> <strong>Volkswagen</strong> Group has the biggest climate footprint <strong>of</strong> any<br />

car manufacturer in Europe. Figure 1 estimates that the new<br />

cars sold by the company in 2009 emitted over five million<br />

tonnes <strong>of</strong> CO 2 per year, 37 representing an estimated 23% <strong>of</strong> the<br />

total oil use and related CO 2 emissions <strong>of</strong> new European cars. 38<br />

<strong>The</strong> sheer scale <strong>of</strong> <strong>Volkswagen</strong>’s carbon footprint means<br />

that any changes it makes have a big impact on European<br />

vehicle emissions as a whole. Yet despite the company’s<br />

claims to leadership, its performance to date has been poor.<br />

FigURE 1: ESTIMATED EMISSIONS OF NEW CARDS SOLD IN EUROPE IN 2009<br />

<strong>Greenpeace</strong> calculation based on T&E data.<br />

23%<br />

Between 2006 and 2009, <strong>Volkswagen</strong> managed to reduce<br />

its fleet’s average per-kilometre emissions by 7.8%, whereas<br />

rivals BMW and Toyota achieved reductions <strong>of</strong> 18% and<br />

14% respectively. Preliminary figures for 2010 show that<br />

<strong>Volkswagen</strong> slightly accelerated progress during 2010, lowering<br />

the CO 2 emissions <strong>of</strong> its European fleet by about 5%, but the<br />

company still lags behind most <strong>of</strong> the other volume brands. 39<br />

Whilst this progress should be recognised, it is important to<br />

remember that the company has reacted late and only moved<br />

Fiat<br />

Toyota<br />

PSA Peugot-Citroen<br />

Renault<br />

Hyundai<br />

Suzuki<br />

Ford<br />

Honda<br />

General Motors<br />

Mazda<br />

BMW<br />

VW Group<br />

Nissan<br />

Daimler<br />

©Langrock/Zenit/<strong>Greenpeace</strong>


©Langrock/Zenit/<strong>Greenpeace</strong><br />

to do the absolute minimum necessary to comply with EU<br />

legislation, <strong>of</strong> which the company was a powerful opponent<br />

before it was agreed. 40 <strong>Volkswagen</strong> only stepped up its<br />

game on CO 2 reductions once a legal framework was put in<br />

place that forced all companies to make cleaner cars. When<br />

compelled to improve its technology, <strong>Volkswagen</strong> proved that<br />

its own objections to current standards were unfounded.<br />

VOLKSWAGEN GROUP: THE BIG PLAYER<br />

11<br />

VolKSwAgEn onlY STEppEd<br />

Up To REdUCE Co 2 REdUCTionS<br />

onCE A lEgAl FRAMEwoRK<br />

wAS pUT in plACE ThAT FoRCEd<br />

CoMpAniES To do So.<br />

FigURE 2: CAR MANFACTURERS’ PROGRESS IN REDUCING AVERAGE FLEET EMISSIONS<br />

Reduction in CO 2 emissions between 2006–2009 (%)<br />

20<br />

18<br />

16<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

PSA Peugot-Citroen<br />

Toyota<br />

Fiat<br />

BMW<br />

Hyundai<br />

Renault<br />

VW Group<br />

Daimler<br />

0<br />

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30<br />

Distance from 2015 emissions target in 2009 (g CO /km) 2<br />

<strong>Volkswagen</strong>’s position in figure 2 shows it is both further away from its 2015 emissions target and has made less progress in reducing emissions than other volume brands<br />

Source T&E.<br />

Ford<br />

Bubble size refers to amount <strong>of</strong> annual sales.<br />

Honda<br />

Suzuki<br />

General Motors<br />

Mazda<br />

Nissan<br />

©Langrock/Zenit/<strong>Greenpeace</strong>


12 THE DARK SIDE OF VOLKSWAGEN<br />

FigURE 3: VOLKSWAGEN GROUP EUROPEAN CAR SALES IN 2009 BY EFFICIENCY RATING<br />

Percentage <strong>of</strong> car sales<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

11%<br />

Less than 121g/km<br />

2. gREEnwAShing ThE FlEET<br />

<strong>Volkswagen</strong> may have been slow at reducing its fleet’s<br />

emissions, but it’s not slow to boast about its supposed<br />

green credentials. <strong>The</strong> company claims it wants to be ‘the<br />

world’s leading automaker in terms <strong>of</strong> both economy and<br />

ecology’, 41 and its 2009 Sustainability Report went so far<br />

as to say: ‘We aim to be the most eco-friendly automaker<br />

in the world!’ 42 According to the same report, this will be<br />

achieved by ‘setting new ecological standards in automobile<br />

manufacturing in order to put the cleanest, most economical<br />

and at the same time most fascinating cars on the road.’ 43<br />

Yet these words are not matched by actions. Official EU<br />

Commission figures for 2009 show that 88% <strong>of</strong> their vehicles<br />

emitted over 120g CO 2 /km, and that the company sold over<br />

twice as many cars emitting over 160g CO 2 /km than they<br />

did <strong>of</strong> cars emitting under 120g CO 2 /km (see figure 3).<br />

<strong>The</strong> <strong>Volkswagen</strong> Group’s models which regularly feature<br />

in top ten ‘green car’ lists, 44 and are used in company<br />

advertising to emphasise its commitment to environmental<br />

protection 45 are limited versions <strong>of</strong> standard models –<br />

not representative <strong>of</strong> the bulk <strong>of</strong> its actual sales.<br />

In its 2010 Sustainability Report, the company itself admits<br />

that ‘(b)etween 2007 and 2010, worldwide sales <strong>of</strong> efficiency<br />

models <strong>of</strong> the Group’s Audi, <strong>Volkswagen</strong>, <strong>Volkswagen</strong> Commercial<br />

Vehicles, SEAT and Škoda brands rose by a factor <strong>of</strong> 12, from<br />

32,500 to 402,400 units’. 46 <strong>The</strong>se brands make up 99% <strong>of</strong> the<br />

company’s global sales, which means that even with this increase,<br />

only 5.6% <strong>of</strong> the total sales for these five brands (and 6% <strong>of</strong> its<br />

total global sales) were <strong>of</strong> models incorporating its most efficient<br />

technology and standards. 47 Currently, the <strong>Volkswagen</strong> Group<br />

does not apply its most efficient technology and standards to<br />

all its vehicle models. Only particular models are available as<br />

‘efficiency models’, and these are sold under additional brands.<br />

26%<br />

>160g/km<br />

62%<br />

>121–160g/km<br />

More than 121g/km<br />

Unknown<br />

CO emissions<br />

2<br />

EU commission, 2009, Monitoring <strong>of</strong> CO emissions, http://ec.europa.eu/clima/documentation/transport/vehicles/cars_en.htm Source EU Commission.<br />

2<br />

For example, the most efficient Škoda models are badged as<br />

‘greenline’ models, whilst particular models <strong>of</strong> <strong>Volkswagen</strong> cars<br />

can be bought with added ‘BlueMotion’ technologies which make<br />

them more fuel-efficient. <strong>The</strong>re are nearly 70 different variations<br />

<strong>of</strong> the <strong>Volkswagen</strong> Golf. Its most efficient ‘BlueMotion’ model<br />

has an efficiency rating <strong>of</strong> 99g CO 2 /km (3.8 L/100km, diesel).<br />

But the majority <strong>of</strong> the Golf models without BlueMotion emit<br />

more than 130g CO 2 /km (petrol) and 120g CO 2 /km (diesel),<br />

with some variations emitting as much as 199g CO 2 /km<br />

(8.5 L/100km, petrol). <strong>The</strong> cheapest and most basic model <strong>of</strong><br />

the Golf emits 149g CO 2 /km – emitting 50 grams more CO 2 per<br />

km than the most efficient BlueMotion version on the market. 48<br />

<strong>Volkswagen</strong>’s ‘efficiency’ versions <strong>of</strong> their cars are also sold at<br />

a much higher price than the standard models. In Germany, the<br />

Golf BlueMotion 1.6 TDI 77 kW is sold at ¤21,850, whereas<br />

the comparable Golf 1.6 TDI 77 kW without BlueMotion costs<br />

¤20,825, a discrepancy <strong>of</strong> nearly ¤1,000. Comparing costs<br />

for the <strong>Volkswagen</strong> Polo, this discrepancy is even bigger.<br />

<strong>The</strong> Polo 1.2 TDI (99g/km) is sold at ¤15,050 where as the<br />

1.2 TDI BlueMotion version (87g/km) is sold at ¤16,675 – a<br />

difference <strong>of</strong> ¤1,625. 49 <strong>The</strong> actual cost <strong>of</strong> the technology<br />

package, according to leading technology consultants PA<br />

Consulting, would only be ¤260, suggesting that <strong>Volkswagen</strong><br />

is adding a considerable mark-up for the BlueMotion brand. 50<br />

JUST 6% oF ThE VolKSwAgEn<br />

gRoUp’S globAl SAlES in<br />

2010 wERE oF iTS MoST<br />

EFFiCiEnT ModElS.


Rolling out BlueMotion standards across all the models <strong>of</strong> these<br />

brands would considerably decrease oil consumption and CO 2<br />

emissions. According to <strong>Volkswagen</strong>’s own numbers the full<br />

implementation <strong>of</strong> the existing BlueMotion package in the Golf<br />

saves almost one litre <strong>of</strong> fuel per 100km or 20g CO 2 /km. 51 This is<br />

a dramatic difference in oil consumption, and would save drivers<br />

significant amounts <strong>of</strong> money on the cost <strong>of</strong> fuel, particularly at<br />

a time when fuel prices are high, and expected to get higher.<br />

If <strong>Volkswagen</strong> incorporated the efficiency technology and<br />

specifications <strong>of</strong> its current greenest cars ‘as standard’<br />

rather than <strong>of</strong>fering it only as an add-on and charging a<br />

premium for it, the company could dramatically reduce<br />

the carbon footprint <strong>of</strong> its vehicles, help consumers to<br />

reduce their motoring costs and the oil dependence <strong>of</strong><br />

the economy. Continued innovation and investment in the<br />

development <strong>of</strong> cleaner car technology and new hybrid and<br />

electric engines can cut oil use and reduce emissions much<br />

further. Other car companies are already demonstrating this.<br />

Instead <strong>Volkswagen</strong> penalises consumers wanting smarter,<br />

cleaner vehicles and makes them marginal to its fleet.<br />

In comparison, Ford has said that one <strong>of</strong> its principles is<br />

to provide ‘near-term solutions that are affordable for<br />

our customers and available in high volumes.’ 52 Ford’s<br />

new Focus model, the main competitor to <strong>Volkswagen</strong>’s<br />

Golf, will come at less than 95g CO 2 /km in 2012. 53<br />

VOLKSWAGEN: A HISTORY OF GREENWASH<br />

<strong>Volkswagen</strong> has a history <strong>of</strong> diverting attention from its poor<br />

overall environmental performance by developing super-efficient<br />

prototype car designs that result in the production <strong>of</strong> more<br />

headlines than actual vehicles.<br />

<strong>The</strong> most prominent <strong>of</strong> these was the 3-litre Lupo, launched in<br />

1998. With fuel consumption <strong>of</strong> 2.99 litres <strong>of</strong> diesel per 100 km<br />

and emissions <strong>of</strong> 81g CO 2 /km, it was a genuinely efficient car.<br />

Two years earlier <strong>Greenpeace</strong> had helped to demonstrate that<br />

affordable, efficient cars were possible by developing the SmILE<br />

(Small, Intelligent, Light, Efficient) concept car, which emitted only<br />

75g CO 2 /km. <strong>The</strong> SmILE project showed that the then existing<br />

technology could be used to halve the fuel consumption <strong>of</strong> a<br />

car without any loss <strong>of</strong> power, performance and comfort, and<br />

importantly, without additional cost. 54<br />

Yet <strong>Volkswagen</strong> marketed its efficient vehicle at such a high price<br />

that it simply didn’t sell. Today the failure <strong>of</strong> the Lupo is <strong>of</strong>ten<br />

cited by <strong>Volkswagen</strong> to argue that customers don’t want to buy<br />

fuel-efficient vehicles, but it is reasonable to argue that they<br />

set it up to fail.<br />

In 2005 at the Frankfurt International Motorshow, <strong>Volkswagen</strong><br />

then presented its version <strong>of</strong> the SmILE concept. But instead <strong>of</strong><br />

halving consumption, the new vehicle maintained the same fuel<br />

consumption, using the efficiency savings <strong>of</strong> the new technology<br />

to double the car’s performance in terms <strong>of</strong> horsepower,<br />

VOLKSWAGEN GROUP: THE BIG PLAYER<br />

VolKSwAgEn pEnAliSES<br />

ConSUMERS wAnTing<br />

SMARTER ClEAnER VEhiClES<br />

And MAKES ThEM MARginAl<br />

To iTS FlEET.<br />

acceleration, and speed. Thus the <strong>Volkswagen</strong> TSI, mass produced<br />

from 2006, used cutting-edge efficiency technology to make no<br />

carbon savings whatsoever.<br />

In 2002 <strong>Volkswagen</strong> had presented the 1-litre CCO which needed<br />

1 litre <strong>of</strong> fuel per 100km driven. Company chairman Ferdinand<br />

Piech arrived at that year’s AGM in one <strong>of</strong> the concept vehicles.<br />

It never entered into mass production.<br />

At the 2009 Frankfurt motorshow <strong>Volkswagen</strong> exhibited the<br />

1-litre CCO’s successor, the L1. Piech claimed that it was this car,<br />

with a consumption according to <strong>Volkswagen</strong> <strong>of</strong> 1.38 litres <strong>of</strong><br />

diesel per 100km that was intended to be the basis for a mass<br />

production vehicle in 2010. Again, the car never made it to the<br />

mass market.<br />

At the Qatar motorshow in January 2011, yet another new<br />

version <strong>of</strong> the car was unveiled: a plug in diesel hybrid rated at<br />

0.9 L/100 km or 24g CO 2 /km. This time the concept was called<br />

‘near to series’ and <strong>Volkswagen</strong> claimed that this model would<br />

enter mass production in 2013. According to reports however,<br />

this is not the case and only a limited number will be produced. 55�<br />

It remains to be seen whether <strong>Volkswagen</strong> will ever become<br />

serious about bringing genuinely high efficiency cars to the mass<br />

market, and rolling out its BlueMotion standards across its fleet,<br />

instead <strong>of</strong> only at the margins.<br />

©Dott/<strong>Greenpeace</strong><br />

13


14 THE DARK SIDE OF VOLKSWAGEN<br />

3. lobbYing AgAinST pRogRESS<br />

<strong>The</strong> EU is committed to reducing its GHG emissions by<br />

20% below 1990 levels by 2020. This year, European<br />

governments will consider whether to strengthen<br />

this by moving to a 30% reduction target.<br />

A growing movement <strong>of</strong> leading European businesses, the<br />

European Parliament and Environment Ministers from Denmark,<br />

UK, Portugal, Sweden, Greece, Germany and Spain, have called<br />

for a move to a 30% domestic emissions reduction target<br />

for Europe, arguing that it will boost the European economy,<br />

keeping it competitive, drive investment in new technology<br />

and help improve global efforts to prevent dangerous and<br />

damaging climate change. Over 90 major companies such as<br />

Google, Ikea, Sony, Unilever and Philips support a 30% target,<br />

many <strong>of</strong> whom have signed public statements in support <strong>of</strong> this<br />

more ambitious target. 56 Companies, politicians and academics<br />

say the targets can set the right incentives for businesses<br />

to spur innovation and investment and create millions <strong>of</strong><br />

new jobs in a low carbon economy. Many <strong>of</strong> the businesses<br />

have described a stronger target as a ‘win-win-win’. 57<br />

A 30% doMESTiC EMiSSionS<br />

REdUCTion TARgET FoR<br />

EURopE CoUld booST<br />

ThE EURopEAn EConoMY,<br />

dRiVE inVESTMEnT in nEw<br />

TEChnologY And hElp<br />

iMpRoVE globAl EFFoRTS To<br />

pREVEnT dAngERoUS And<br />

dAMAging CliMATE ChAngE.<br />

<strong>The</strong>se companies are acting with the support <strong>of</strong> their<br />

customers. According to the latest Eurobarometer opinion<br />

poll, a majority <strong>of</strong> Europeans consider that not enough is being<br />

done to fight climate change and almost two-thirds think that<br />

fighting climate change can have a positive impact on the<br />

European economy. 58 Several studies, including the European<br />

Commission’s own analysis, demonstrate that Europe’s unilateral<br />

commitment to reducing emissions by 30% by 2020 is not<br />

only possible and affordable, it is necessary to create new<br />

green jobs, guarantee Europe’s energy security, improve air<br />

quality and ‘avoid stranded costs and very steep reductions to<br />

be needed later on’ 59 which would be much more costly. 60<br />

©Cobbing <strong>Greenpeace</strong>


Campaigning against change<br />

Yet despite this clear popular and business demand, <strong>Volkswagen</strong><br />

has been actively lobbying against this crucial policy through<br />

the European Automobile Manufacturer’s Association<br />

(ACEA). 61 In another letter dated 1 February 2011, replying<br />

to a <strong>Greenpeace</strong> request to explain <strong>Volkswagen</strong>’s stance on<br />

the 30% proposal, the company described it as a policy which<br />

‘puts jobs at risk and results in de-industrialisation in Europe’,<br />

reminiscent <strong>of</strong> language it used when lobbying against the<br />

current vehicle efficiency standards. <strong>The</strong> company were<br />

wrong about efficiency standards then, and their position<br />

now on a future 30% target contradicts the findings <strong>of</strong> many<br />

<strong>of</strong> the most respected bodies that have conducted extensive<br />

analysis into the impacts <strong>of</strong> the target. <strong>The</strong> mainstream view<br />

makes the case that benefits <strong>of</strong> the target could include new<br />

jobs, increased investment, as well as increased GDP. 62<br />

<strong>Volkswagen</strong> seems increasingly isolated in its stance, however,<br />

as other car companies appear to take a different view. For<br />

example, General Motors (GM), despite stating that they<br />

were ‘not in a position to speak for other industries and<br />

as a consequence has no position on the 30% reduction<br />

ambition level as such’, say that they, ‘agree with the need<br />

to further reduce GHG emissions in road transport and are<br />

involved in EU policies and legislation aimed to develop a<br />

strategy to decarbonizes [sic] transport by 2050’. 63<br />

VOLKSWAGEN GROUP: THE BIG PLAYER<br />

oVER 90 MAJoR CoMpAniES<br />

SUCh AS googlE, iKEA,<br />

SonY, UnilEVER And philipS<br />

SUppoRT A 30% EMiSSionS<br />

REdUCTion TARgET.<br />

Left: Clean graffiti by the European<br />

Parliament demands more efficient cars.<br />

©Reynaers/<strong>Greenpeace</strong><br />

Above: <strong>Greenpeace</strong> activists accuse car<br />

companies <strong>of</strong> driving climate change.<br />

©Beentjes/<strong>Greenpeace</strong><br />

Renault meanwhile has said it ‘brings its support to the European<br />

Commission, in order to evaluate the possibilities, the benefits<br />

and the different impacts on the competitiveness <strong>of</strong> an EU<br />

30% emission cut’. 64 <strong>The</strong> Renault-Nissan alliance is a member<br />

<strong>of</strong> the Prince <strong>of</strong> Wales EU Corporate Leaders Group on Climate<br />

Change (EU CLG) whose mission is to ‘communicate the support<br />

<strong>of</strong> business for the European Union to move to a low carbon<br />

society and low climate risk economy and to work in partnership<br />

with the institutions <strong>of</strong> the EU to secure the policy interventions<br />

that are needed to make this a practical reality’. 65 Renault have<br />

signed a joint statement in support <strong>of</strong> a higher 2020 target, 66<br />

but haven’t yet openly supported a 30% reduction target.<br />

Even BMW (a high end premium brand) says it is making the<br />

changes to its fleet so that it will ‘contribute substantially<br />

to the European Union’s existing 20% CO 2 reduction target.’<br />

It also says that ‘the 30% target under discussion for Europe<br />

... might be attainable, but only as long as other industry<br />

sectors pull their weight in equal measure and provided that<br />

the policymakers <strong>of</strong> the individual member states strengthen<br />

their efforts to work together in a more integrated way.’ 67<br />

15


©Langrock/Zenit/<strong>Greenpeace</strong><br />

16 THE DARK SIDE OF VOLKSWAGEN<br />

But <strong>Volkswagen</strong> is not only opposed to the 30% emissions<br />

reduction target – the company also argues that the EU’s existing<br />

CO 2 reduction target for new cars sold by 2020, set at 95g<br />

CO 2 /km, is too challenging. This target was adopted in 2009<br />

as part <strong>of</strong> Europe’s climate and energy legislation. Again, two<br />

<strong>of</strong> <strong>Volkswagen</strong>’s major competitors, BMW and GM, appear to<br />

accept this target as a legal obligation that should stay in place. 68<br />

But the <strong>Volkswagen</strong> Group describes the target as ‘not based<br />

on sound impact assessment nor on a realistic appreciation <strong>of</strong><br />

the costs and technical progress necessary to meet the goal<br />

within the timescale.’ 69 It is not inconceivable, given its past<br />

record, that <strong>Volkswagen</strong> is lobbying, or will lobby, to get this<br />

target weakened in the upcoming review <strong>of</strong> its implementation.<br />

Yet research shows that the shift to tighter fuel economy<br />

standards can create jobs, drive innovation and foster<br />

high-tech industries supplying additional manufactured<br />

components, as well as reducing consumption <strong>of</strong> expensive<br />

and polluting oil. As chairman and CEO <strong>of</strong> Cummins, the US<br />

diesel engine manufacturer explains, ‘tighter regulations are a<br />

fact <strong>of</strong> life. Back in the ‘90s we saw this as burdensome, but<br />

we now see this as an advantage. If we have the advantage,<br />

either in fuel economy or emissions or both, we’re going<br />

to gain market share, we’re going to be able to enter new<br />

markets. As a result, we secure employment and grow the<br />

business.’ 70 Former Vice-Chairman <strong>of</strong> General Motors, Bob<br />

Lutz, argues that part <strong>of</strong> the reason why GM failed in the<br />

US was because <strong>of</strong> poor US fuel economy standards. 71<br />

Right: Former chancellor Gerhard Schroeder and<br />

VW Board Chair Ferdinand Piech admiring the VW Phaeton<br />

at a production factory in Dresden.<br />

VolKSwAgEn iS opEnlY oppoSEd To An ExiSTing<br />

dEMoCRATiCAllY ESTAbliShEd STAndARd ThAT bEnEFiTS<br />

MoToRiSTS, ThE EConoMY And ThE EnViRonMEnT.<br />

<strong>The</strong> European Commission for Industry and Enterprise, in a report<br />

about European industries post-recession, recently reported that<br />

the car sector is structurally unprepared for the future. <strong>The</strong>y<br />

said, ‘demand is increasingly shifting towards more fuel efficient<br />

vehicles and vehicles with alternative power trains […] <strong>The</strong> issue<br />

<strong>of</strong> further restructuring in favour <strong>of</strong> more fuel efficient vehicles<br />

and vehicles with alternative power trains still needs to be faced.<br />

Existing capacities thus feature significant structural weaknesses.<br />

[…] Growing competition from third countries producing cheaper<br />

cars and limited access to emerging markets are key issues<br />

as well. <strong>The</strong> need to continually improve the environmental,<br />

energy and (active) safety performance <strong>of</strong> vehicles leads to<br />

both new challenges and new opportunities for the sector.’ 72�<br />

<strong>The</strong> truth is that the <strong>Volkswagen</strong> Group has lagged behind<br />

its competitors for years. It only stepped up progress on CO 2<br />

reductions once a legal framework was put in place that forced<br />

it to do so. It has shown no ability or willingness to voluntarily<br />

deliver the innovation or technology changes required. Now<br />

<strong>Volkswagen</strong> is openly opposed to the agreed 2020 standard that<br />

would benefit motorists, the economy and the environment.<br />

In taking this stand, the company not only betrays the fact<br />

that it would rather keep its own vehicles’ emissions high, but<br />

also threatens to undermine the framework which will help<br />

the whole car manufacturing sector to clean up its act.<br />

©Langrock/Zenit/<strong>Greenpeace</strong>


THE 30% TARGET: POWERING INVESTMENTS<br />

By 2050, Europe has committed to reduce its climate<br />

emissions to close to zero, by cutting them by between<br />

80 and 95% below 1990 levels. Currently, it has a legally<br />

binding mid-term target <strong>of</strong> a 20% reduction by 2020. EU<br />

leaders are now discussing whether this should be tightened,<br />

to drive investment into the vital clean technology sector,<br />

and ensure that Europe is on the most cost effective<br />

and secure pathway to achieve its long term goals.<br />

This discussion is taking place against the backdrop <strong>of</strong> an<br />

economic and energy crisis. Spiking fuel prices, energy<br />

risks, climate change, resource constraints and increasing<br />

competition with emerging economies should mean that<br />

‘business as usual’ is not an option for the European economy.<br />

To secure our future energy security, and build a prosperous<br />

and resilient European economy, we need policies that will<br />

drive investment into green technologies, goods and services,<br />

including renewable energy and efficient, and ultimately zero<br />

carbon, transport. Europe’s current climate target is not strong<br />

enough to deliver that investment. Instead, the mountain <strong>of</strong><br />

unused emission allowances in the EU’s Emissions Trading<br />

Scheme, the result <strong>of</strong> a weak target and too many free<br />

allocations to polluters, means that at present there is little<br />

reward for efficiency, action and innovation. Only a tougher<br />

climate target – a minimum 30% domestic emissions reduction<br />

by 2020 – can restore confidence in Europe’s clean technology<br />

sector, and create the industries and jobs <strong>of</strong> the future.<br />

Findings from a study 73 in March 2011 commissioned by the<br />

German environment ministry and conducted by researchers<br />

from across Europe found that a climate target <strong>of</strong> 30%, if<br />

accompanied with adequate and consistent policies, could:<br />

©Picture Alliance<br />

VOLKSWAGEN GROUP: THE BIG PLAYER<br />

P Boost European investments from 18% up to 22%<br />

<strong>of</strong> Gross Domestic Product (GDP);<br />

P Create up to six million additional jobs;<br />

P By 2020 increase European GDP by ¤620 billion<br />

or by 0.6% above business as usual trends;<br />

P Help European industry to maintain and enhance<br />

its competitiveness.<br />

<strong>The</strong>se gains would come irrespective <strong>of</strong> an international climate<br />

agreement, and show that the green economy is more than<br />

another fashionable phrase. In fact, in 2010 the clean energy<br />

sector grew globally by 30% and delivered a record ¤168 billion<br />

in investments. 74 In addition, the EU Commission has calculated<br />

that stepping up to a 30% target would save the EU about ¤40<br />

billion in oil and gas imports by 2020, and this is assuming a<br />

very conservative oil price projection <strong>of</strong> 88 USD by 2020. 75<br />

On the international stage, it is also vital that Europe is seen<br />

to be implementing and benefiting from the climate policies<br />

it advocates globally. Demonstrating commitment to a<br />

green economy, and showing leadership in supporting low<br />

carbon technologies, is the surest way to restore trust and<br />

confidence in negotiations on climate change. Ultimately,<br />

the success <strong>of</strong> these negotiations remains vital if we are to<br />

ensure that action keeps pace with the risks posed by rising<br />

temperatures, and that this action is transparent, effective<br />

and just. In the run up to the next round <strong>of</strong> climate talks in<br />

Durban in South Africa in December 2011, a new European<br />

target would be a significant step towards a functioning<br />

and constructive global dialogue on climate change.<br />

17<br />

©Dott/<strong>Greenpeace</strong>


18 THE DARK SIDE OF VOLKSWAGEN<br />

<strong>Volkswagen</strong> has an ongoing close relationship with<br />

the German government:<br />

Above: Chancellor Angela Merkel poses for cameras in a<br />

VW UP at the International Automobile Trade Fair in Frankfurt.<br />

©Frank May/Picture Alliance<br />

Right: Former chancellor Gerhard Schroeder awards<br />

VW Board Chair Ferdinand Piech a state medal.<br />

©Holger Hollemann/Picture Alliance<br />

AS onE oF ThE MoST powERFUl CoMpAniES in EURopE,<br />

VolKSwAgEn SpEndS AT lEAST ¤2.3M pER YEAR on EU<br />

lobbYing AlonE.<br />

lobby groups and revolving doors<br />

<strong>The</strong> <strong>Volkswagen</strong> Group is not just a big economic player in Europe,<br />

it is a political player too. Its executives are warmly received in<br />

European halls <strong>of</strong> government, particularly in their home country,<br />

Germany, where <strong>Volkswagen</strong> is part-publicly owned by the state<br />

<strong>of</strong> Lower Saxony, which has a 20% share <strong>of</strong> the company’s voting<br />

rights and two places on its supervisory board. As Prime Minister<br />

<strong>of</strong> Lower Saxony, this meant that Gerhard Schroeder sat on<br />

<strong>Volkswagen</strong>’s board before he became Chancellor.<br />

<strong>Volkswagen</strong> demonstrates a classic example <strong>of</strong> a revolving door<br />

arrangement, in which the relationship between government<br />

and business is extremely close. Government members and<br />

<strong>of</strong>ficials are hired at <strong>Volkswagen</strong>, while former <strong>Volkswagen</strong><br />

employees go on to work in politics. For example, a former<br />

spokesman for the German Federal Ministry <strong>of</strong> Transport,<br />

Hans-Christian Maaß, is now the Head <strong>of</strong> <strong>Volkswagen</strong>‘s<br />

Representative Office in Berlin, while Reinhold Kopp, a former<br />

Minister <strong>of</strong> Economy in the federal state <strong>of</strong> Saarland, then<br />

became Head <strong>of</strong> Government Relations for <strong>Volkswagen</strong>. <strong>The</strong><br />

former Head <strong>of</strong> <strong>Volkswagen</strong>’s Liaison Office in Brussels, Elisabeth<br />

Alteköster, went on to become the Director <strong>of</strong> Transport<br />

Policy at the General Secretariat <strong>of</strong> the Council until 2010.<br />

As one <strong>of</strong> the most powerful companies in Europe, <strong>Volkswagen</strong><br />

spends at least ¤2.3m 76 per year on EU lobbying alone. Due to<br />

the restricted nature <strong>of</strong> the information, it is hard to know the<br />

full extent <strong>of</strong> their lobby efforts, but <strong>Volkswagen</strong> has a history<br />

<strong>of</strong> lobbying against climate legislation both independently and<br />

through the European Automobile Manufacturers Association<br />

(ACEA), the car industry’s manufacturers’ association.<br />

European car companies are supposedly unified behind one<br />

industry-wide lobby group: ACEA, which is one <strong>of</strong> the most<br />

powerful lobbying forces in the EU. Of the 16 companies that<br />

are members <strong>of</strong> ACEA, three belong to the <strong>Volkswagen</strong> Group,<br />

and each <strong>of</strong> them – <strong>Volkswagen</strong>, Porsche and Scania – have a<br />

place on ACEA’s Board <strong>of</strong> Directors. <strong>Volkswagen</strong> Group therefore<br />

has more positions on ACEA’s board than any other company.<br />

ACEA says that all companies pay ‘a standard fee’ to join,<br />

but would not disclose the exact figures. We have therefore<br />

assumed that, because it has three companies involved,<br />

<strong>Volkswagen</strong> contributes three times the amount <strong>of</strong> money to<br />

ACEA’s lobbying work compared to other member companies.<br />

If so, we have calculated that last year the company spent<br />

more than ¤2m on its contributions to ACEA alone. 77 As the<br />

biggest contributor, we can assume that <strong>Volkswagen</strong> has a<br />

powerful influence over ACEA’s activities. In addition, the<br />

Group, being part <strong>of</strong> ACEA’s ‘A members’ (as opposed to<br />

non-European companies who are classed as ‘B members’<br />

like GM, Ford and Toyota), also regularly seconds its staff<br />

to the ACEA secretariat in Brussels. Peter Kunze from Audi<br />

is currently Director <strong>of</strong> Environmental Policy for ACEA.<br />

ACEA has consistently opposed CO 2 emission targets for the<br />

car industry. When, after years <strong>of</strong> voluntary targets being<br />

ignored by car companies, the EU Commission decided in 2007<br />

to propose mandatory targets, ACEA made a case that their<br />

failure to meet their voluntary targets was caused by external<br />

factors: bad regulation on recycling, low demand for efficient<br />

vehicles and poor car sales. 78 In other words, it was not the fault<br />

<strong>of</strong> their members. <strong>The</strong>y also suggested that politicians should<br />

seek emission reductions elsewhere other than the car sector. 79


ACEA lobbied hard against the introduction <strong>of</strong> the standards<br />

and the Commission then decided to water down the proposed<br />

target from a maximum <strong>of</strong> 120 to 130g CO 2 /km for EU average<br />

CO 2 emissions. ACEA called even this lenient target ‘arbitrary and<br />

too severe’. 80 In the negotiations with the EU Member States and<br />

Parliament, the standard was eventually delayed by three years.<br />

After it successfully managed to weaken proposals to reduce<br />

CO 2 emissions from cars, ACEA set to work trying to water<br />

down new CO 2 emission targets for vans, which were proposed<br />

by the European Commission in October 2009. 81 When the<br />

proposal was put forward, ACEA called for a delay to the<br />

proposed introduction <strong>of</strong> the new rules. 82 <strong>The</strong>y complained<br />

that the Commission’s proposal ‘does not ensure sufficient<br />

industrial lead-time and proposes an unfeasible 2020 limit<br />

value’. 83 Eventually the proposed legislation was delayed<br />

and the 2020 limit value watered down substantially.<br />

In fact, none <strong>of</strong> ACEA’s complaints have been borne out in<br />

reality. In 2009, when the finally agreed car targets were known,<br />

manufacturers reduced average CO 2 emissions from cars by over<br />

5%, 84 and new figures show they have been equally successful in<br />

2010. 85 On vans, major manufacturers including <strong>Volkswagen</strong> had<br />

already made good progress on individual van models by the time<br />

the CO 2 standard for vans was proposed. <strong>The</strong> new T5, launched in<br />

2009 had about 10% lower CO 2 emissions than its predecessor. 86<br />

ACEA, like <strong>Volkswagen</strong> itself, has also taken an obstructive<br />

position on the proposal to increase the EU carbon emissions<br />

reduction target to 30%. In January 2010, ACEA joined other<br />

industry lobby groups in calling on EU bodies to make no further<br />

commitments to emission reductions until ‘it is certain that<br />

VOLKSWAGEN GROUP: THE BIG PLAYER<br />

<strong>Greenpeace</strong> calls on MEPs to vote for cleaner,<br />

more efficient cars and stronger targets.<br />

©Reynaers/<strong>Greenpeace</strong><br />

19<br />

other major economies have also made substantial and binding<br />

commitments’. 87 <strong>The</strong>y argue that ‘Copenhagen has demonstrated<br />

that [other countries] are not willing to take comparable or<br />

equivalent actions to those proposed by the European Union.<br />

It is, therefore, evident that any increase in the European Union’s<br />

proposed target will not have any impact on the decision <strong>of</strong><br />

other countries to reduce their own emissions.’ Evidently,<br />

ACEA are downplaying or ignoring evidence <strong>of</strong> the benefits<br />

to the European economy and European competitiveness <strong>of</strong> a<br />

stronger climate target, that would be gained independently<br />

<strong>of</strong> an international post-2012 climate agreement, and do not<br />

consider it important for Europe to adopt a cost effective<br />

pathway to meeting its commitment to an 80–95% cut by 2050.<br />

<strong>Volkswagen</strong> also has a history <strong>of</strong> opposing fuel economy<br />

standards outside <strong>of</strong> Europe. <strong>The</strong> US equivalent <strong>of</strong> ACEA, the<br />

National Automobile Dealers Association, <strong>of</strong> which <strong>Volkswagen</strong><br />

is a member, have vigorously opposed congressional efforts to<br />

pass legislation to curb GHGs from cars, and other industrial<br />

sources, saying it would harm the economy. But a recent<br />

challenge by the Association against California’s right to<br />

bring its own strong CO 2 standards to car emissions recently<br />

failed when the court ruled that the car makers had failed<br />

to prove the standards would result in economic harm. 88<br />

In contrast, it has been reported that Toyota has commended<br />

the Obama administration’s preliminary proposal to increase<br />

fuel economy standards, 89 which could be set at 62mpg for<br />

2025 vehicles if the most fuel-efficient proposal is adopted. 90


20 THE DARK SIDE OF VOLKSWAGEN<br />

ConClUSion:<br />

CApAblE OF bETTEr<br />

<strong>Volkswagen</strong> likes to boast <strong>of</strong> operating ‘binding global<br />

environmental principles’ by which each model <strong>of</strong> car produced<br />

must outperform its predecessor in all environmental<br />

areas, including fuel consumption and CO 2 emissions.<br />

Moreover, the company’s stated aim is to ‘lead the field in<br />

terms <strong>of</strong> fuel consumption in every class <strong>of</strong> vehicle’. 91 Yet<br />

despite these claims the company has been slow <strong>of</strong>f the<br />

mark to make necessary changes to drastically reduce its<br />

fuel consumption and CO 2 emissions. It has developed the<br />

technologies to produce more fuel-efficient vehicles, but<br />

it has not yet made these widely available at an affordable<br />

price. And it has lobbied hard against necessary change.<br />

But it has the capacity to do so much better. If <strong>Volkswagen</strong><br />

made the most fuel-efficient cars it produces as standard<br />

rather than <strong>of</strong>fering efficiency technology as an expensive<br />

add-on it would be able to reduce its fleet emissions dramatically.<br />

If it rolled out its best technology across the fleet it would<br />

be transformational, not just to its own performance but to<br />

the European vehicle fleet as a whole. As the single biggest<br />

car player in Europe, what <strong>Volkswagen</strong> chooses to do has a<br />

significant impact across the whole European economy.<br />

<strong>The</strong> European climate footprint <strong>of</strong> new cars being produced<br />

should be zero before 2040. This would ensure that by 2050,<br />

GHG emissions from car use will be almost zero, as new cars<br />

powered by renewable energy replace existing oil-powered<br />

ones on the roads. To achieve this, car companies must<br />

fast-track efficiency increases on conventional vehicles, and<br />

turn to alternative propulsion technologies that will permit<br />

the use <strong>of</strong> sustainable renewable energy in the long term.<br />

Large companies like <strong>Volkswagen</strong> can and should exploit<br />

economies <strong>of</strong> scale to improve faster than others. While<br />

the company has begun to develop and make marketing<br />

for their first serial electric car, the e-up! which they say<br />

will enter the market in 2013, this cannot be a substitute<br />

for drastically reducing the oil consumption across the far<br />

larger segment <strong>of</strong> its conventional fleet in the short term. If<br />

the <strong>Volkswagen</strong> Group really is aspiring to be the leader in<br />

environmental performance that it claims it wants to be, the<br />

company must push the EU to establish the most ambitious<br />

climate change policies in the world, to stimulate the market<br />

in efficient and low carbon technology. It must also support<br />

tougher car standards to ensure that all car manufacturers<br />

have to improve their fleets together to the highest shared<br />

goal rather than staying at the lowest common denominator.<br />

<strong>Greenpeace</strong> is calling on <strong>Volkswagen</strong> to live up to its stated<br />

ambition and become a genuine leader in both policy and<br />

practice – supporting policymakers who want to move<br />

the wider economy forward with higher standards, and<br />

changing its own technology to meet those standards.<br />

In doing so it will bring innovation and competitiveness<br />

back into the European economy, help reduce European<br />

oil dependency, cut the cost <strong>of</strong> motoring and play a huge<br />

role in reducing Europe’s climate changing emissions.<br />

Specifically <strong>Greenpeace</strong> is calling on the <strong>Volkswagen</strong> Group to:<br />

P Stop lobbying to oppose key European energy laws designed<br />

to reduce our dependence on oil and:<br />

. Publicly support the EU target <strong>of</strong> 30% emissions<br />

reductions by 2020.<br />

. Publicly support the agreed vehicle efficiency fleet<br />

average target for new cars <strong>of</strong> 95g CO 2 /km by 2020,<br />

and go further to support even stronger targets for cars<br />

<strong>of</strong> 80g CO 2 /km by 2020 and no more than 60g CO 2 /km<br />

by 2025.<br />

P In line with this stronger target, commit to making significant<br />

year-on-year reductions so that its average fleet emissions<br />

are no more than 80g CO 2 /km by 2020.<br />

P Roll out full BlueMotion across its <strong>Volkswagen</strong> fleet and fit<br />

its best efficiency technologies as standard across all other<br />

brands, without increasing weight or power <strong>of</strong> the vehicles.<br />

P Ensure the next best-selling Golf (VII) consumes less than<br />

78g CO 2 /km (3 litre/100km, diesel).<br />

P Set out its plan to make its entire fleet oil-free before 2040.<br />

<strong>Volkswagen</strong> has the ability and the size to make a difference.<br />

It has the responsibility to do better. It has the responsibility<br />

to help lead Europe and the world away from oil.


AS ThE SinglE biggEST CAR plAYER in EURopE,<br />

whAT VolKSwAgEn ChooSES To do hAS A SigniFiCAnT<br />

iMpACT ACRoSS ThE wholE EURopEAn EConoMY.<br />

©Cobbing/<strong>Greenpeace</strong>


22 THE DARK SIDE OF VOLKSWAGEN<br />

1 www.guardian.co.uk/business/2011/jan/24/toyota-world-number-onecarmaker<br />

2 Statement by Martin Winterkorn, CEO, October 2010. http://timesnewsworld.<br />

com/072119/volkswagen-car-maker-plans-to-be-number-one-in-the-worldby-2018<br />

3 <strong>Volkswagen</strong>, Audi, SEAT, Skoda, <strong>Volkswagen</strong> Commercial Vehicles, Bentley, Bugatti,<br />

Lamborghini and Scania.<br />

4 VW report, Looking back to the future, p26. www.volkswagenag.com/vwag/<br />

vwcorp/info_center/en/publications/2011/04/looking_back_to_the.-bin.acq/<br />

qual-BinaryStorageItem.Single.File/110421_VW_TE_engl_BRO_DINA4_lowres.pdf<br />

5 For example, <strong>The</strong> Green Car Website currently lists the VW POLO DIESEL<br />

HATCHBACK 1.2 TDI BlueMotion 3dr within the top 10 green cars.<br />

www.thegreencarwebsite.co.uk/top-10-green-cars.asp<br />

6 www.volkswagenag.com/vwag/vwcorp/info_center/en/themes/2010/02/<br />

think_Blue.html<br />

7 In terms <strong>of</strong> CO 2 averages only Nissan, which has much lower sales, performed<br />

worse out <strong>of</strong> the non-premium volume brands in 2009. ‘How Clean are Europe’s<br />

cars? An analysis <strong>of</strong> carmaker progress towards EU CO 2 targets in 2009’. Transport<br />

& Environment, November 2010. www.transportenvironment.org/Publications/<br />

prep_hand_out/lid/610 Figures for 2010 suggest VW is still lagging behind other<br />

volume brands despite modest progress. ‘Rich nations falling behind Europe on car<br />

CO 2 emissions’. JATO. March 2011. It is important to note that JATO figures do not<br />

include figures for the entire VW Group. www.jato.com/PressReleases/Rich%20<br />

Nations%20Falling%20Behind%20Europe%20on%20Car%20CO2%20Emissions.<br />

pdf<br />

8 IPCC, ‘Key findings and uncertainties contained in the Working Group contributions<br />

to the Fourth Assessment Report’, 2007, p5. www.ipcc.ch/pdf/assessmentreport/ar4/syr/ar4_syr_spm.pdf<br />

9 Jaeger, Carlo C. et. al. A New Growth Path for Europe – Generating Growth<br />

and Jobs in the Low-Carbon Economy. Synthesis report. March 2011.<br />

www.newgrowthpath.eu/<br />

10 DG TREN, 2008, European Energy and Transport: Trends to 2030 – Update 2007.<br />

This anticipates that in 2010 the EU would consume 674 million tonnes <strong>of</strong> oil.<br />

This is consistent with recent actual figures from BP which estimated the EU’s oil<br />

consumption in 2009 to be 670.8 million tonnes. BP 2010a. BP Statistical Review<br />

<strong>of</strong> World Energy, June 2010. www.bp.com/statisticalreview<br />

11 2010 figures, CIA factbook. www.cia.gov/library/publications/the-worldfactbook/fields/2174.html<br />

12 DG TREN, 2008, European Energy and Transport: Trends to 2030 – Update 2007.<br />

13 European Commission www.vwec2010.be/notulen/VWEC2010_sessie_3_Tom_<br />

Van_Ierland.pdf ; European Environment Agency (EEA) www.eea.europa.eu/<br />

data-and-maps/indicators/transport-emissions-<strong>of</strong>-greenhouse-gases/transportemissions-<strong>of</strong>-greenhouse-gases-7<br />

14 EEA, 2010, Annual European Union greenhouse gas inventory 1990–2008<br />

and inventory report 2010. www.eea.europa.eu/publications/european-uniongreenhouse-gas-inventory-2010<br />

15 IEA, 2009 World Energy Outlook, 2009; DG TREN, 2008. (IEA 2009 says 91% by<br />

2030, and DG TREN 2008 says 95% by 2030).<br />

16 Skinner, I., 2010, Steering clear <strong>of</strong> oil disasters. www.greenpeace.org/raw/<br />

content/eu-unit/press-centre/reports/steering-clear-<strong>of</strong>-oil-disaster.pdf<br />

17 <strong>The</strong> United States Geological Survey estimates that there are 90 billion barrels<br />

<strong>of</strong> technically recoverable oil in <strong>of</strong>fshore reservoirs in the Arctic. Gautier, D.L. et<br />

al. 2009. Assessment <strong>of</strong> Undiscovered Oil and Gas in the Arctic. Science 29 May<br />

2009 324: 1175-1179. Global oil consumption is approximately 85 million barrels<br />

a day.<br />

18 IEA 2010 World Energy Outlook 2010. Paris.<br />

19 IPCC, Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution<br />

<strong>of</strong> Working Group II to the Fourth Assessment Report <strong>of</strong> the Intergovernmental<br />

Panel on Climate Change (M.L. Parry, O.F. Canziani, J.P. Palutik<strong>of</strong>, P.J. van der Linden<br />

and C.E. Hanson, Eds.), ‘Ecosystems and biodiversity, Assessing Key Vulnerabilities<br />

and the Risk from Climate Change’ Schneider, S.H., S. Semenov, A. Patwardhan, I.<br />

Burton, C.H.D. Magadza, M. Oppenheimer, A.B. Pittock, A. Rahman, J.B. Smith, A.<br />

Suarez and F. Yamin.<br />

20 Nature 470, 316. 2011. Increased flood risk linked to global warming, February<br />

2011, doi:10.1038/470316a ; IPCC (2007). ‘5.2 Key vulnerabilities, impacts<br />

and risks – long-term perspectives’. In Core Writing Team, Pachauri, R.K and<br />

Reisinger, A. (eds.). Synthesis report. Climate Change 2007: Synthesis Report.<br />

Contribution <strong>of</strong> Working Groups I, II and III to the Fourth Assessment Report <strong>of</strong> the<br />

Intergovernmental Panel on Climate Change.<br />

21 IEA 2010 World Energy Outlook 2010. Paris. 450 Scenario.<br />

22 Transport & Environment press release, ‘Carmakers exaggerated time needed for<br />

CO 2 cuts’, 4 November 2010. www.transportenvironment.org/news/2010/11/<br />

carmakers-exaggerated-time-needed-for-co2-cuts<br />

23 Skinner. Op Cit. This assumes that no additional policy interventions are<br />

implemented in the EU to reduce CO 2 emissions or the consumption <strong>of</strong> oil.<br />

24 US Energy Information Administration. www.eia.gov/countries/index.cfm?view=<br />

consumption#countrylist In 2009 Austria consumed 0.27 million barrels <strong>of</strong> oil per<br />

day, Denmark 0.17, Portugal 0.27, Norway 0.22 and Finland 0.20, which in total<br />

was 1.13 million barrels.<br />

25 Skinner. Op Cit. This assumes that no additional policy interventions are<br />

implemented in the EU to reduce CO 2 emissions or the consumption <strong>of</strong> oil.<br />

26 ICCT, <strong>The</strong> Regulatory Engine: How Smart Policy Drives Vehicle Innovation, January<br />

2011. www.theicct.org/2011/01/the-regulatory-engine/<br />

27 Qatar Holding owns 12.3 % <strong>of</strong> the <strong>Volkswagen</strong> AG and has 17% <strong>of</strong> voting rights<br />

in the board. <strong>The</strong> company is a ‘fully owned affiliate <strong>of</strong> Qatar Petroleum’. Qatar<br />

Intermediate Industries Holding Co. Ltd., ‘Qatar Intermediate Industries Holding<br />

- Welcome page,’ 2011, www.qh.com.qa/qh/index.aspx (accessed February 10,<br />

2011). <strong>The</strong>ir vision is ‘to become the Middle East’s leading manufacturer and<br />

marketer <strong>of</strong> intermediate petrochemical and non-hydrocarbon products.’ Qatar<br />

Intermediate Industries Holding Co. Ltd., ‘Qatar Holding - Vision And Mission,’<br />

2011, www.qh.com.qa/qh/content.aspx?secid=5&parentid=1 (accessed February<br />

10, 2011). Qatar Holding said ‘the state is set to take a seat on its supervisory<br />

board, underlining the more active role Gulf states are playing in the German auto<br />

industry.’ ArabianBusiness.com, ‘Qatar becomes major shareholder in <strong>Volkswagen</strong> -<br />

Energy,’ December 19, 2010, www.arabianbusiness.com/qatar-becomes-majorshareholder-in-volkswagen-9923.html<br />

(accessed February 9, 2011).<br />

28 www.volkswagenag.com/vwag/vwcorp/content/en/the_group.html<br />

29 www.volkswagenag.com/vwag/vwcorp/content/en/the_group.html<br />

30 ACEA, ‘New Vehicle Registrations by Manufacturer’, passenger cars. www.acea.<br />

be/images/uploads/files/20110221_07_2010_vo_By_Manufacturer_Enlarged_<br />

Europe.xls<br />

31 www.kba.de/cln_015/nn_124384/DE/Statistik/Fahrzeuge/Bestand/<br />

Segmente/2010__b__segmente__kompakt.html<br />

32 www.kba.de/cln_015/nn_124384/DE/Statistik/Fahrzeuge/Bestand/<br />

Segmente/2010__b__segmente__kompakt.htmlKBA Mit 3,8 Millionen Einheiten<br />

trägt jeder 3. Wagen in dem Segment das Wolfsburger Emblem.<br />

33 www.kba.de/cln_015/nn_124384/DE/Statistik/Fahrzeuge/Bestand/<br />

Segmente/2010__b__segmente__kompakt.htmlKBA Die Kompaktklasse wird auch<br />

gern als ‘Golfklasse’ bezeichnet.<br />

34 German carmakers’ letter to the European Commission, 26 January 2007.<br />

35 This restructuring had nothing to do with environmental measures and came at a<br />

time where <strong>Volkswagen</strong>’s pr<strong>of</strong>its continued to rise.<br />

36 Transport & Environment press release, ‘Carmakers exaggerated time needed for<br />

CO 2 cuts’, 4 November 2010. www.transportenvironment.org/news/2010/11/<br />

carmakers-exaggerated-time-needed-for-co2-cuts<br />

37 For simplicity, this notion <strong>of</strong> ‘climate footprint’ is based solely on the CO 2 emissions<br />

that are caused by the use <strong>of</strong> the companies’ products. It excludes emissions from<br />

the production and disposal <strong>of</strong> cars, and from the production <strong>of</strong> the fuel used, which<br />

typically adds another 30% to the emissions from the ‘use phase’ (EEA 2010).<br />

38 <strong>Greenpeace</strong> calculation based on T&E data, ‘How Clean are Europe‘s cars? An<br />

analysis <strong>of</strong> carmaker progress towards EU CO 2 targets in 2009.’ Transport &<br />

Environment, November 2010. www.transportenvironment.org/Publications/<br />

prep_hand_out/lid/610<br />

39 Ibid. Figures for 2010 suggest VW is still lagging behind other volume brands despite<br />

modest progress, JATO, ‘Rich nations falling behind Europe on car CO 2 emissions’,<br />

March 2011. It is important to note that JATO figures do not include figures for the<br />

entire VW Group. www.jato.com/PressReleases/Rich%20Nations%20Falling%20<br />

Behind%20Europe%20on%20Car%20CO2%20Emissions.pdf<br />

40 German carmakers’ letter to the European Commission, 26 January 2007.<br />

41 <strong>Volkswagen</strong> report, Looking back to the future. Op Cit.<br />

42 <strong>Volkswagen</strong>, Sustainability Report 2009, p9 www.volkswagenag.com/.../<br />

sustainability_report0.../VW_Sustainability_Report_2009.pdf<br />

43 Ibid, p10


44 For example, <strong>The</strong> Green Car Website currently lists the VW POLO DIESEL<br />

HATCHBACK 1.2 TDI BlueMotion 3dr as within the top 10 green cars.<br />

www.thegreencarwebsite.co.uk/top-10-green-cars.asp<br />

45 www.volkswagenag.com/vwag/vwcorp/info_center/en/themes/2010/02/<br />

think_Blue.html<br />

46 Sustainability Report 2010, p47. www.volkswagenag.com/vwag/vwcorp/info_<br />

center/en/publications/2011/05/Report_2010.-bin.acq/qual-BinaryStorageItem.<br />

Single.File/VWAG_Nachhaltigkeitsbericht_online_e.pdf<br />

47 VW Annual Report 2010, p154. www.volkswagenag.com/vwag/vwcorp/info_<br />

center/en/publications/2011/03/<strong>Volkswagen</strong>_AG_Geschaeftsbericht_2010.-bin.<br />

acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf <strong>The</strong> total sales <strong>of</strong> those<br />

five brands in 2010 were 7.134 million whilst the company’s total global sales<br />

were 7.203 million.<br />

48 www.volkswagen.de/konfigurator<br />

49 VW Konfigurator. www.volkswagen.de/de/CC5.html<br />

50 PA Consulting group, cited according: E.Wimmer/M.Schneider/P.Blum, ‘Antrieb fuer<br />

die Zukunft’, 2010, Schaeffer-Poeschel- Verlag. <strong>The</strong>y have estimated that adding<br />

BlueMotion would cost the company 260 EUR per car, on the basis <strong>of</strong> the Golf 1,4<br />

TSI.<br />

51 <strong>Volkswagen</strong> Konfigurator. www.volkswagen.de/de/CC5.html <strong>The</strong> Golf 1,6 TDI 77<br />

kW (Blue Motion Technology or full Blue Motion) = 119 grams; Golf 1.6 TDI 77<br />

kW ‘Blue Motion Technology’ = 107 grams; Golf 1,6 TDI 77 kW ‘Blue Motion’ =<br />

99 grams. (As a comparison: <strong>The</strong> basic Golf 1.4 Gasoline 59 kW needs 6,4 Liters<br />

gasoline and emits 149 grams <strong>of</strong> CO 2 ).<br />

52 ICCT, <strong>The</strong> Regulatory Engine: How Smart Policy Drives Vehicle Innovation, January<br />

2011. www.theicct.org/2011/01/the-regulatory-engine/<br />

53 www.telegraph.co.uk/motoring/news/8432669/80mpg-Ford-Focus-for-2012.html<br />

54 www.greenpeace.de/themen/verkehr/smile/<br />

55 www.independent.co.uk/life-style/motoring/volkswagen-to-power-up-newhybrids-from-2013-2281799.html<br />

56 See for example, Joint Declaration <strong>of</strong> 3 business leaders’ groups:<br />

www.theclimategroup.org/_assets/files/JointBusinessDeclaration-June-3.pdf<br />

(<strong>Greenpeace</strong> has no association with <strong>The</strong> Climate Group and does not endorse<br />

all <strong>of</strong> its policy positions). Also: FT: Business backs higher emissions goals. 20 July<br />

2010.<br />

57 <strong>The</strong> Climate Group, EU 30 per cent initiative, statement by businesses,<br />

‘Increasing Europe’s climate ambition will be good for the EU economy and jobs’.<br />

www.theclimategroup.org/EU-30-per-cent-initiative<br />

58 Eurobarometer: Climate change the second most serious problem faced by the<br />

world today. http://tinyurl.com/33gacpp majorities from 55% to 72% think that<br />

not enough is done to fight climate change.<br />

59 Communication <strong>of</strong> the European Commission (2010): Unlocking Europe’s potential<br />

in clean innovation and growth: Analysis <strong>of</strong> options to move beyond 20%.<br />

(‘Stranded Costs’ describes existing investments which may become redundant in<br />

a competitive environment).<br />

60 <strong>The</strong> International Energy Agency estimates that in the energy sector each year <strong>of</strong><br />

delay will cost an extra ¤336 billion globally. International Energy Agency, World<br />

Energy Outlook 2009.<br />

61 ACEI (<strong>The</strong> Alliance for a Competitive European Industry) letter, 21 January 2010.<br />

<strong>The</strong> letter called on the Council, Parliament and Commission to stick to a 20%<br />

target. ACEA is a member <strong>of</strong> ACEI, and ACEI lobbies on their behalf.<br />

62 Jaeger, Carlo C. et. al. Op Cit.<br />

63 Letter to <strong>Greenpeace</strong>, 21 December 2010.<br />

64 Letter to <strong>Greenpeace</strong>, 26 January 2011.<br />

65 www.cpsl.cam.ac.uk/Leaders-Groups/<strong>The</strong>-Prince-<strong>of</strong>-Wales-Corporate-Leaders-<br />

Group-on-Climate-Change/EU-CLG.aspx<br />

66 www.cpsl.cam.ac.uk/Leaders-Groups/<strong>The</strong>-Prince-<strong>of</strong>-Wales-Corporate-Leaders-<br />

Group-on-Climate-Change/~/media/Files/Resources/Press_Releases/8th_<br />

March_EU_CLG_Press_Release.ashx<br />

67 Letter to <strong>Greenpeace</strong>, 3 May 2011.<br />

68 Letters to <strong>Greenpeace</strong>: BMW, 8 July 2010; GM, 20 August 2010.<br />

69 Response to <strong>Greenpeace</strong>, 14 June 2010.<br />

70 ICCT, Op Cit.<br />

REFERENCES<br />

71 www.autonews.com/apps/pbcs.dll/article?AID=/20110523/OEM02/30523996<br />

1/1432#ixzz1NBkqyFJV<br />

72 DG Industry & Enterprise, ‘EU Manufacturing Industry: What are the Challenges<br />

and Opportunities for the Coming Years?’, April 2010. http://ec.europa.eu/<br />

enterprise/policies/industrial-competitiveness/economic-crisis/files/eu_<br />

manufacturing_challenges_and_opportunities_en.pdf<br />

73 Jaeger, Carlo C. et. al. Op Cit.<br />

23<br />

74 <strong>The</strong> PEW Charitable Trust. Who’s Winning the Clean Energy Race? 2010 Edition.<br />

www.pewenvironment.org/uploadedFiles/PEG/Publications/Report/G-20Report-<br />

LOWRes-FINAL.pdf<br />

75 CEC, 2010, Analysis <strong>of</strong> options to move beyond 20% GHG emission reductions<br />

and assessing the risk <strong>of</strong> carbon leakage. COM (2010) 265. Brussels, 26.5.2010.<br />

76 This figure is the estimated VW Group spend on ACEA (ACEA’s yearly income is<br />

¤10,112,343, divided by 15 members – there are now 16 members, but Volvo<br />

only joined in October 2010 - plus their declared spend on lobby interests, which<br />

for 2009 was ¤200,000– ¤250,000 for VW itself, excluding contributions<br />

to groups like ACEA. https://webgate.ec.europa.eu/transparency/regrin/<br />

consultation/displaylobbyist.do?id=6504541970-40. This does not include<br />

any internal figures, or fees to Weber Shandwick, the lobby company they use in<br />

Brussels. According to an industry insider, it is highly likely that contributions were<br />

much more than this, but ACEA refuse to give <strong>Greenpeace</strong> actual figures. ACEA<br />

themselves refused to tell <strong>Greenpeace</strong> the exact spend <strong>of</strong> each company, but said<br />

each member pays ‘a standard fee’.<br />

77 See above.<br />

78 Committed to reducing CO 2 , ACEA website, accessed 15 March 2007.<br />

79 ACEA stated: ‘Reducing further CO 2 emissions through vehicle technology only is<br />

the most expensive and least cost-effective option for society. (…) More can be<br />

done for the environment, at lower costs’. ACEA press release, ‘Car industry wants<br />

fact-based policy on CO 2 reductions’, Brussels, 26 January 2007.<br />

80 Ibid.<br />

81 European Commission. http://ec.europa.eu/clima/policies/transport/vehicles/<br />

vans_en.htm<br />

82 ACEA press release, ‘Auto industry pushes hard to reduce CO 2 emissions and needs<br />

supportive, realistic legislative framework to succeed’, 28 October 2009.<br />

www.acea.be/index.php/news/news_detail/auto_industry_pushes_hard_to_<br />

reduce_co2_emissions_and_needs_supportive_real<br />

83 ACEA press release, CO 2 proposal for light commercial vehicles must be modified,<br />

Hanover, 21 September 2010. www.acea.be/index.php/news/news_detail/<br />

co2_proposal_for_light_commercial_vehicles_must_be_modified<br />

84 European Commission, 2010, Monitoring the CO 2 emissions from new passenger<br />

cars in the EU: data for 2009.<br />

85 JATO Consult, Rich Nations Falling behind Europe on Car CO 2 Emissions. Op Cit.<br />

86 www.volkswagen.co.nz/media/country/nz/x/company.Par.0054.File.pdf/<br />

vwmr0909_new_generation.pdf<br />

87 ACEI letter. Op Cit. www.eur<strong>of</strong>er.org/index.php/eng/content/<br />

download/8541/44459/file/2010-01-21ACEIOpenLetter.PDF<br />

88 See http://latimesblogs.latimes.com/greenspace/2011/04/california-auto-cleancar-standards.html<br />

and www.edf.org/article.cfm?contentID=4192<br />

89 www.autospies.com/news/Toyota-s-Jim-Colon-praises-US-government-sproposal-on-fuel-economy-standards-61281/<br />

90 EPA/NHTSA Notice <strong>of</strong> Upcoming Joint Rulemaking to Establish 2017 and Later<br />

Model Year Light-Duty Vehicle Greenhouse Gas Emissions and CAFE Standards.<br />

www.epa.gov/oms/climate/regulations/420f10051.htm<br />

91 VW sustainability report 2010, Op Cit.<br />

Das Problem.

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