VW’s compliance scandal

   Volkswagen is in a heap of financial and legal trouble over recent revelations that the company used software code to defeat U.S. Environmental Protection Agency emission requirements for diesel engines. VW has touted for years that new diesel technology is much cleaner than its predecessor and many people bought the company’s diesel Jettas, Passats, Golfs and Audi A3s thinking they were doing something good for the environment, all while getting great fuel economy and driving performance.
   Apparently it was too good to be true. The software was designed to switch to low emissions when in a test mode in a lab or inspection station, and then return to normal pollution levels under real driving conditions. The purpose was to keep drivers from losing any of the power and performance they expected.
   VW finally admitted it cheated with 11 million cars after an independent lab verified that emissions were five to 30 times the legal limit under real-world driving conditions.
   One of the takeaways from this situation is that agencies like the EPA often don’t have the resources to thoroughly monitor industry compliance with regulations.
   In the United States, automakers conduct their own emissions tests and submit the results to the government, while in Europe, automakers pick who conducts the tests and where they are done. And these two regulatory systems are considered the world’s gold standards.
   There are many international trade programs that involve companies policing themselves. U.S. Customs and Border Protection’s Importer Self-Assessment and the Customs-Trade Partnership Against Terrorism are two that come to mind.
   They make sense. Trade enforcement and cargo security need to involve risk-based enforcement because it is impossible to inspect all shipments.
   But one should bear in mind that despite the merits of trade and business facilitation, some companies will try to game the system.

This column was published in the November 2015 issue of American Shipper.
Upcoming FreightWaves Events
Compliance

Brokerage Compliance Symposium

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Awards

F3 Awards Dinner

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Compliance Brokerage Compliance Symposium Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Awards F3 Awards Dinner Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now