American Scandal - Volkswagen Diesel Scandal - Whatever It Takes | 1

Episode Date: January 28, 2020

In 2006, Volkswagen executive Martin Winterkorn hatches a plan to boost auto sales in America. The way to do it? Clean diesel cars. But VW's engineers run into a wall, and so they take a troubling shortcut—one that a group of graduate students will inadvertently expose.Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit https://wondery.app.link/rUic7i1hMNb now.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You're listening to the first episode of this American Scandal season. With Wondery+, you can binge the remaining episodes, listen to new episodes early, and explore more exclusive seasons completely ad-free. Start your free trial of Wondery Plus in the Wondery app, Apple Podcasts, or Spotify today. It's September 18th, 2015. Martin Winterkorn is standing across the crowded floor of a convention center. All around him are pristine cars shining like polished gems. Stage lights illuminate them, suggesting a future rich with possibility. Today, Winterkorn

is attending the International Motor Show in Frankfurt, Germany. It's the largest automotive event in the world, and this year, over the course of 10 days, over 900,000 people will attend. For people like Winterkorn, this event is a major highlight of the year. It feels like the Olympics. Automakers unveil their newest and most eye-catching cars, many of which will soon go on sale to the general public. Vinterkorn is the CEO of Volkswagen International. He runs the biggest carmaker on Earth, and so he's accustomed to being treated like a champion.

But this year, something feels different. Something feels wrong. Vinterkorn makes his way across the vast showroom floor and notices that people are staring at him. This in itself is nothing new. People stare at Vinterkorn all the time. Silver-haired and scowling, he maintains the stout yet muscular build of the athlete he once was.

He's well aware that many view him as physically intimidating. It's actually how he likes to be seen. But as he walks past the gleaming vehicles, he can tell everyone is shooting him angry looks. They even seem disappointed. Journalists, auto enthusiasts, car makers, they're usually among his biggest supporters. But now he sees that others are turning away from him.

They look down at their smartphones and murmur as he passes. He feels his pulse quicken. Inside, the anger is beginning to rise, but he won't let it get the better of him. They look down at their smartphones and murmur as he passes. He feels his pulse quicken. Inside, the anger is beginning to rise, but he won't let it get the better of him. He won't fixate on the story everyone's talking about. As of today, Volkswagen is infamous, and so is Martin Winterkorn. The company has just been accused of cheating air pollution tests for its vehicles, of deceiving customers and governments. He still can't understand how it happened. He stops to admire a Porsche 991. Vinterkorn always dreamed of making cars with cunning-edge technology, breathtaking designs, like this Porsche. It's a truly beautiful

car, and Vinterkorn is grateful for the distraction. But just then, an aide appears at his side and breaks Vinterkorn's reverie. His reality and the unfriendly throng at the car show rush back at him. Vinterkorn barks a question. What is it? I received an interview request? No. Sorry, sir. Whoever it is, tell them no. I have no interest in granting an interview at this time. They're American, sir. And tell the Americans, no. Winterkorn turns back towards the Porsche. He senses the aid is still there, rocking back and forth on his tiptoes. Winterkorn sighs. That was a dismissal, by the way. I'm sorry, sir, but it's not coming from me. Well, I've been sent to inform you that the board is concerned. Many here at the motor show have complained. Oh, and what are their complaints?

The aide hesitates. Tell me what exactly you've heard. People say that if Volkswagen falls, it may very well take down the German economy and global trust in the auto industry. So, given recent developments, some question if it was wise for us to even present at this year's show. Fincher Corn turns away. He gazes at the dazzling coupes, luxury sedans, SUVs, convertibles, the cars he helped bring into existence. They're the cars that helped cement Volkswagen as a dominant force in the market. They're his legacy.

And now his legacy is endangered. The aide leans forward, his voice low and urgent. Sir, how would you like to respond? It's in this moment that Martin Winterkorn has a terrible realization. This is probably the last international motor show he will ever attend. He's nearly 70 years old. In his life, he's managed to mostly avoid the kind of mistakes that have failed lesser men, and he's reached heights few could imagine.

But now it appears he's made his first serious error, a miscalculation that could very well cost him and Volkswagen everything. Everything. and what, if anything, can save the company's reputation. Make sure to listen to Business Wars wherever you get your podcasts. From Wondery, I'm Lindsey Graham, and this is American Scandal. Every one of us buys things. TVs, cell phones, furniture, cars. We buy a lot of products. And when we buy them, we place a large degree of trust in the companies that make these products. We expect our microwaves to be safe. We trust that our food is free of dangerous chemicals. This is the basic contract between

consumers and companies. We buy their goods, and they're honest about what they're selling. But sometimes companies breach this trust. In 2008, Volkswagen began selling a new kind of car. They ran on diesel fuel, and Volkswagen billed them as an environmentally friendly alternative to regular gas-powered vehicles. It called them clean diesels, and customers fell in love with their style, functionality, and environmental friendliness. But there was more to these clean diesels that met the eye. A tenacious group of researchers and clean diesels that met the eye. A tenacious group of researchers and government regulators would stumble on the truth. The cars were far dirtier than Volkswagen had promised. When Volkswagen was ultimately exposed, the public learned that the company had misled regulators and consumers. It broke the trust it had established

for decades. The ensuing scandal would raise profound questions about Volkswagen and large companies in general. Why would a successful company take such a massive risk? And how did Volkswagen's maneuvers go undetected for so long? This is Episode 1, Whatever It Takes. It's November 2006, nine years before the International Motor Show at Frankfurt. Today, Martin Winterkorn is at the world headquarters of Volkswagen in Wolfsburg, Germany. He sits in the executive boardroom at the head of a long and polished wooden table. Closed blinds keep out the early morning sun, and fluorescent bulbs light the room. Winterkorn watches as people file in, taking their seats.

They're engineers, board members, and the so-called marketing experts. They're his soldiers at his command. Vinterkorn came to Volkswagen 14 years ago. With discipline and ambition, he climbed the corporate ladder and impressed then-CEO Ferdinand Pietsch. Pietsch is a legend,

a descendant of Volkswagen's founders. He steered the company to new heights. Vinterkorn currently holds the position of board management CEO and has every intention of following in his predecessor's footsteps. He aims to become CEO of the entire organization, and he's confident he knows what to do in order to take Volkswagen to the next level. This is how he'll live up to Pietsch's example and build a new legacy. Finchikorn looks down at his watch. This meeting will start at 9 a.m. precisely, and not one moment behind schedule. Finchikorn turns to his secretary and issues the command.

Shut the door. Finchikorn flicks a stray piece of thread from his sleeve. Then he begins, his voice filling every corner of the room. We have a new goal. By the end of the decade, we will push sales of cars and trucks by 10 million. Vinterkorn peers at the individuals seated at the conference table. He hears the nervous throat clearing, sees their anxious looks. One executive dares to speak. If I may, what you're proposing, such a dramatic increase in sales, would result...

Result in us surpassing GM and Toyota, yes. We'd become the number one carmaker in the world. With all due respect, sir, how? Vincicorn is ready for the question and happy to answer it. Diesel. Diesel? Yes, diesel. Our sales in America are a disgrace. The time has come for us to change our approach. A new American consumer has emerged. They're young. They care about the environment. They're not ashamed to drive a Prius. We'll sell cars to them, but not with a hybrid, with a diesel. It's practical and it's clean. Diesel produces far less carbon dioxide. A marketing executive speaks up. It's an

excellent idea, sir, and I agree with you. There's a potentially huge market for diesel in America. Finchcorn smirks. I sense you were about to say, but. Well, yes, sir, but. You can't make a diesel clean and efficient and high-performing. The engineers will figure it out. I don't know that it can be done given the time frame you've set. What if they can't deliver? Then I'll find engineers who can. Everybody, Volkswagen is going to dominate global sales, and we're going to do it with diesel fuel. That's something I need everyone to understand. Vincicorn's underlings nod. They understand perfectly well. Days later, an engineer is in a spotless Volkswagen lab in Wolfsburg.

He's surrounded by various car parts and the hum of large computer processors. He notices that it's 1 p.m. Normally, he and his colleagues would be taking a lunch break, but not today. Because today and every day this week, he and his team intend to work through lunch and late into the night if necessary, whatever it takes to find a solution that will please Martin Winterkorn. The engineer's colleagues surround his desk.

They pore over charts detailing the latest findings, but the data is not encouraging. The team must develop a new kind of diesel engine. It has to be compact enough to fit in a regular passenger car. But the engine must also meet U.S. air pollution standards. Pinchacorn is fond of saying that diesel produces less carbon dioxide than gasoline, and that makes it cleaner. It is true, but the engineer knows that's only half the story.

Because diesel engines produce a high amount of nitrogen oxides, which are arguably even worse than carbon dioxide. Nitrogen oxide gases can be devastating to human health. They trigger asthma attacks, heart disease, cancer, chronic bronchitis, and a host of other cardiovascular problems. And the engineer can't figure out how to reduce these pollutants in diesel engines. He thought they had a solution, an exhaust gas recirculation

system, otherwise known as the EGR. Their EGR seemed promising until the test results came in. The test showed that yes, the system slashed nitrogen oxides, but it also quickly wore down a key filter. Consumers would have to replace that filter every couple of months. It's something that Volkswagen can't reasonably ask from any car owner. The engineer shakes his head and turns to his team. They have to find a solution, because in the U.S., limits on nitrogen oxides are far more strict than in Europe. If they can't solve this problem, then the U.S. Environmental Protection Agency won't certify Volkswagen's new diesels. That means they can't be sold in America. And if that happens,

Vinterkorn certainly won't make his sales targets. And every last head in this room will roll. The engineer faces his stony-faced colleagues. He announces that what they have is a physics and logistics problem, but it is solvable. The question is, how are they going to do it, given their time frame and budget? He looks around the room. He silently pleads for someone, anyone, to offer an idea. But the room stays silent. It's mid-November, 2006. Rudolf Krebs sits in a dimly lit boardroom surrounded by engineers. He squints at the projection screen with a PowerPoint presentation. Schematics, explanations, data on

the EPA and its methods, it's dizzying. And at this moment, Krebs is uncomfortably aware that as the head of motor development, he is the highest ranking executive at this particular table, and soon he'll need to make a decision, a hard decision. Krebs understands that the engineers have hit a wall with the diesel engine. They can't design an engine that's both clean and performs well. It's a problem that can't be surmounted. Though it turns out there may be a workaround. It's simple, it's elegant, and it's risky. They can modify the engine in a way that's technically illegal.

But he believes government officials will never know the difference, and neither will consumers. The projector shuts off. But he believes government officials will never know the difference, and neither will consumers. The projector shuts off. The lights come on, and Krebs realizes that it's his turn to speak. Now is the moment. He must make a decision. Do it, he says. He orders the engineers to take the risk.

Just do it. Don't get caught. On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers. This heart-stopping incident was just the latest in a string of crises surrounding the aviation manufacturing giant, Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation. At the center of it all, the 737 MAX, the latest season of business wars, explores how Boeing, once the gold standard of aviation engineering, descended into a nightmare

of safety concerns and public mistrust. The decisions, denials, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mom's life. You can listen to Finding Natasha right now exclusively on Wondery Plus. In season two, I found myself caught up in a new journey to help someone I've never even met. But a couple of years ago,

I came across a social media post by a person named Loti. It read in part, three years ago today that I attempted to jump off this bridge, but this wasn't my time to go. A gentleman named Andy saved my life. I still haven't found him. This is a story that I came across purely by chance, but it instantly moved me. And it's taken me to a place where I've had to consider some deeper issues around mental health. This is season two of Finding, and this time, if all goes to plan, we'll be finding Andy. You can listen to Finding Andy and Finding Natasha exclusively and ad-free on Wondery+. Join Wondery in the Wondery app, Apple Podcasts, or Spotify. It's March 2007 in Southern California.

Alberto Ayala is walking down a long hallway in a government building. Beside him is a delegation from Volkswagen. The Volkswagen officials, most of whom are German, are excited and chatty. They talk through a translator and rave about their new diesel engine. Supposedly, Volkswagen engineers have developed a diesel that's both low on air pollution and high on performance. They're making it sound like a breakthrough for the industry. They're a talkative bunch, Ayala thinks to himself. Then again, if I thought I'd just reinvented the diesel engine, I'd be chatty too. All in all, it's been a very pleasant day here at the offices of the California Air Resources Board, or CARB as it's known. Ayala would rather be doing his actual work, running the emissions testing labs. It's his responsibility to make sure that every new car

sold in California pollutes at or below legal limits. He performs elaborate tests and gets to see what exactly is coming out of cars' tailpipes. Ayala, though, doesn't consider himself an environmental crusader. But as he sees it, cars do pollute, and the world needs experts like him to make sure such pollution doesn't get out of hand. And so part of his job means spending time on meet-and-greets like this one. It's critical that CARB impresses upon Volkswagen the importance of meeting air pollution limits. Ayala stops outside an open doorway alongside the representatives from CARB and Volkswagen. They're standing outside one of Ayala's labs.

There's a Ford SUV inside. It's here that Ayala and his staff test air pollution coming out of tailpipes. As they enter the lab, a CARB official turns to Volkswagen's staff and explains what's about to happen. He points at a set of four metal rollers built into the concrete floor. The Ford SUV sits on these rollers. And when the time comes, CARB staff will put Volkswagen's new diesel-powered car on these very rollers.

They'll start the car and hit the acceleration. But of course, the car won't go anywhere. Instead, the tires will just spin on the rollers. Large fans are set up on both sides of the car, and hit the acceleration. But of course, the car won't go anywhere. Instead, the tires will just spin on the rollers. Large fans are set up on both sides of the car. They'll blanket the car with air to simulate real driving on a highway. And then comes the key part. A steel tube connected to the tailpipe would collect the exhaust gases, allowing CARB staff to analyze the air pollution coming from the tailpipe. And that's the test.

Ayala watches as the Volkswagen representatives nod thoughtfully. And then the CARB official issues a warning. Remember, he says, we know that a lab can never completely recreate real-world driving conditions, but we expect all of your emission control systems to work once outside the lab. Understood? Ayala watches the Volkswagen group intently as they absorb the warning. One man says something in German. Ayala looks to the translator, who smiles politely and answers in English. Volkswagen agrees.

Ayala's eyes narrow. The Volkswagen team acts polite and neutral, but Ayala is quite certain that they know what he knows. According to environmental experts, nitrogen oxide levels are much higher in Europe than they ought to be. And nitrogen oxide comes from diesel cars. Ayala has a PhD,

but he doesn't think you need one to see the link. So if Volkswagen wants his help putting a diesel engine in every American garage, they'll have to prove beyond any doubt that their cars are as clean as advertised. to prove beyond any doubt that their cars are as clean as advertised. It's April 2008 in Vienna, Austria. Martin Winterkorn strides down a carpeted walkway towards a podium.

Today, he's in the cavernous main hall at the Vienna Motor Symposium, an annual event for the auto industry. The crowd is applauding, and Winterkorn is soaking it up. Winterkorn sat patiently as his competitors stood at the podium and boasted of the changes they'd bring to the auto industry. But he knows he has them beat. He's looking forward to seeing

the jealous looks on their faces as he explains why his company, and not theirs, will soon conquer America. Vinterkorn steps up to the microphone and launches into it. He tells the audience that Volkswagen has a new diesel car. Not only is it turbocharged, it also meets the most stringent

air pollution standards. Vinterkorn previews his hot new product in a room full of his competitors, but he also speaks about Volkswagen's broader socially responsible goals to protect the environment, to bring down air pollution. And when he finishes his speech, he gets even more applause, even a few cheers. Vinterkorn can tell they truly believe what he has just told him. And that's a very good thing because now, as he steps down from the podium, his damage control is complete. Vinterkorn knew that he had to deal with some recent remarks from one of his employees in charge of engine development.

As Vinterkorn remembers it, the employee was speaking at a tech event in San Francisco. There, the man told the crowd that California's air quality guidelines were too restrictive. We have to be realistic, he had said. From our company, from our industry, we will do what's possible. We can do quite a bit, and we will do a bit. But impossible, we can do quite a bit, and we will do a bit, but impossible, we cannot do. When the employee returned to Wolfsburg, Winterkorn gave him a stern lecture. He warned the man never to do that again, never to publicly undermine Volkswagen.

But here in Vienna, as Winterkorn returns to his seat, he thinks back on his employee's mistake, and he mutters to himself three words, a motto he believes. Impossible doesn't exist. It's 2012 in Wolfsburg, Germany. Heinz Jakob Neusser opens the window of his spacious corner office at Volkswagen headquarters. He returns to his desk and allows himself a moment to take in the summer air. Neusser's space is neat and organized, just like him, with his close-cropped gray hair and thin-rimmed glasses. Neusser reflects on how far he's come in his time with Volkswagen Group. It's been several years since Martin Winterkorn vowed to launch the company to new heights

on a wave of clean diesel engines. Volkswagen finally began selling the cars, and so far, sales have been very promising. As the head of engine development, it looks like Neusser has a bright and prosperous future ahead of him. In his office, he leans back in his chair. There's nothing pressing at the moment. Maybe he'll even go home early. That's when he hears an urgent rap at his door. The door opens and two engineers enter.

They have a number of documents in their hands. They look worried. Neusser doesn't hesitate. What's wrong, he asks. They begin trying to explain. They found something. Something in the U.S. Motors. Neusser stiffens. U.S. Motor is an in-house term for Volkswagen's miraculous clean diesel engines. One of the engineers swiftly closes the door and continues to describe his recent findings. Something isn't right with the diesels. They're not performing like they're supposed to. There's a huge difference between what Volkswagen says these engines do and what they actually do.

If anyone outside the company discovers the truth, if anyone sees what Volkswagen has hidden, there will be a lot of explaining to do. When the engineer is done, Noiser takes several moments to think. There's only one opportunity to get this right, to make the correct choice. Noiser is quite certain that he knows what the correct choice is. I want you to leave now, he tells the engineers, and take all of this data with you. I don't want it in my office. One of the engineers asks what they should do with the data. Calm and measured, Neusser orders them to destroy it. In late 2012, 4,000 miles from Wolfsburg,

it's a quiet, humid night in Morgantown, West Virginia. Hamath Kampana straightens his glasses and thoughtfully strokes his beard. He cranks up the volume on his iPod. The louder the music, the more he stays awake. Capanna likes music. He moved to this southern college town with its old red brick buildings and its gently flowing river,

and all he could think about was Take Me Home, Country Roads by John Denver. That song was written as an ode to West Virginia. Capanna used to sing it in the bars back home. In those days, he never imagined that he'd one day actually live in West Virginia, andanna used to sing it in the bars back home. In those days, he never imagined that he'd one day actually live in West Virginia. And he definitely didn't imagine himself awake at 2 a.m. in this apartment complex

working on a grant proposal. He rubs his eyes. The proposal must be in by 9 a.m. before class. Capanna is a graduate student and engineer. He moved to the States from Bangalore, India, and soon he'll get his doctorate from West Virginia University. His fingers fly over his laptop

keyboard. He has to get every word right. What he puts on paper could be the difference between his research center getting thousands of dollars or nothing. Kupana is very appreciative of what the university research center does for the world. He wants to do his part to bring in the money that will help it thrive. And if he succeeds, the benefit to his

career and education will be enormous. When he types the final period at the end of the final sentence, he immediately picks up the phone and makes a call. Greg Thompson, the man at the other end, answers on the first ring. If he was sleeping or bothered by this middle-of-the-night call, he doesn't show it. Thompson, an associate professor at WVU, asks if Kupana is done. And if he is, then they should go over the key points of the proposal right now. Kupana does a rapid recap. A major non-profit is looking for projects to fund. Kupana thinks he's got one. He's requesting $200,000 to road test an assortment of European diesel cars and their emissions technologies. The analysis would take place at WVU's Center for Alternative Fuels, Engines, and Emissions, or CAFI as it's called.

CAFI is all about alternative fuels. It's in the name, after all. And diesel certainly qualifies as an alternative to gasoline. It would be a good idea to study the latest diesel engines getting shipped over from Europe. Clean diesels are new to American roads, and road tests will be new for Caffey. The center doesn't have much experience road testing passenger cars, and that must change if Caffey is to have a comprehensive understanding of emissions technology. Capanna is proud that Thompson, his mentor, trusts him with taking the lead in getting Caffey the money. Capanna finishes reading. Thompson says the proposal sounds good and gives the okay to submit it. Capanna hangs up and collapses at his desk. He's been writing for 13 hours straight.

You'll find out if his hard work paid off in about four weeks. Until then, all he can do is clean his apartment, catch up on his sleep, and cross his fingers. Kupana is walking across campus when he gets a call from Greg Thompson. Hello? Hey, Muth. What are you doing? Not much, Dr. Thompson. Just walking to class. Then come to my office as soon as you can. It's time for phase two. Right. Phase two of what?

The grant proposal you can. It's time for phase two. Right. Phase two of what? The grant proposal you wrote. Kupana stops dead in his tracks, suddenly feeling jittery. What? It was approved. Kupana feels relief coursing over his body. Caffeine never has enough money. This is a win, and a big one.

Every true scientist dreams of doing pioneering work in their field, and Kupana's no different. He nearly leaps for joy. Really? They went for it? The whole 200,000? Well, no, not exactly. I mean, it wouldn't be Cappy if we had exactly what we needed, but, you know, we'll make it work. Kapan can't lie to himself. He's disappointed, but only a little bit. Whatever they got, it is better than nothing. He asks the all-important question. Okay, so how much are they giving us? 70. 70K.

I mean, well, okay, I'm not complaining, but we may want to test Audis, BMWs, maybe a Mercedes. Any one of those can easily run 70,000. You think we can really pull this off? No, well, 70 isn't even close enough, no. But what are we going to do? I know you can make it work, you and your team. My team?

Yes. Congratulations, Hamath. You're about to become the foremost expert on diesel fuel in America. Maybe start with a Volkswagen. I hear their new engines are the cleanest, and they may be a little cheaper. When Kampana hangs up, he's nervous, but excited. He starts to formulate a plan. He's going to find a Volkswagen clean diesel car.

He's going to put together some emissions testing equipment and hit the open road. He can't wait to see the new Volkswagen engines up close and get a real look at how they perform. He was hip-hop's biggest mogul, the man who redefined fame, fortune, and the music industry. The first male rapper to be honored on the Hollywood Walk of Fame, Sean Diddy Combs. Diddy built an empire and lived a life most people only dream about. Everybody know ain't no party like a Diddy party. But just as quickly as his empire rose, it came crashing down. Today I'm announcing the unsealing of a three-count indictment,

charging Sean Combs with racketeering conspiracy, sex trafficking, interstate transportation for prostitution. I was f***ed up. I hit rock bottom, but I made no excuses. I'm disgusted. I'm so sorry. Until you're wearing an orange jumpsuit, it's not real. Now it's real.

From his meteoric rise to his shocking fall from grace, from law and crime, this is The Rise and Fall of Diddy. Listen to The Rise and Fall of Diddy exclusively with Wondery Plus. It's early spring 2013 in Morgantown, West Virginia. Hamath Kupana makes his way past a variety of tools and home improvement equipment. Kupana's used to feeling focused and methodical, but tonight, he feels like a mad scientist. He races past an irritated employee who reminds him that this hardware store is closing in five minutes. Kupana offers a polite yet quick wave in reply.

He's on a mission, and he can't leave until he gets everything he came for. He turns the corner to find his fellow West Virginia University students running toward him with a full shopping cart. One of them is holding the last piece of the puzzle, a flexible tube about the width of a tailpipe. Inside the cart is a pile of pipes and hoses, brackets, clamps, and a plywood slab, everything that Capanna and his partners need to begin their work.

Auto pollution tests are nothing new. CARB out in California has been doing them for years. But CARB's never looked like this. The government agency takes cars and tests them in a laboratory. Instead of putting their car in a lab, though, Capanna is going to put the lab in the car. He's rigging together a mechanism that can fit inside a vehicle and stay put while that car drives on an actual road. The device will then show just how much the car is polluting in real time. What Kapano is about to do with the help of these hardware store supplies and young college students is unprecedented. And so, with the right teammates and the right gear, now all Hamath Kapano needs is the right car.

gear. Now all Hamath Capanna needs is the right car. A week later, Capanna and his fellow grad students are in a Los Angeles suburb. They're standing in the driveway of a renovated two-story home looking at a car they've acquired. It's not so easy to find cars like this in West Virginia, but it's a different story in LA because here there are a lot of cars. And it didn't take long to find a driver willing to part with his 2012 Volkswagen Passat, all for the benefit of science. The Passat is perfect for the experiment. It's a station wagon, which means more room for the equipment, and it's only been driven 15,000 miles. That means it's been broken in, but not so much that its emissions equipment is worn out. Capanna smiles and asks for the keys. It's time to see what this car and their new equipment can do.

From the back of the Passat, Capanna shouts out to his colleague doing the driving. Keep speeding up. You're doing great. Capanna monitors the equipment as the car accelerates. The driver shouts back at him. If I speed up, I'm not going to blow up the car, right? Because the way that thing's going, I seriously think I'm about to blow the car up. That thing is their homemade emissions test device. It clanks along, barely holding itself together. Clamps jut out at odd angles. Cables and wires spring from the box in aggressive loops.

The tube snakes from this contraption out through the side of the car and down where it's connected to the tailpipe at the other end. This homemade laboratory is loud. The portable generator that powers it belches fumes and stinks. But so far, everything works. Capanna shouts over the racket. Just keep going.

The machine's working. At least, I think it is. What do you mean you think it is? Do I need to pull over? I'm getting some really weird looks from these other drivers, man. Capano frowns as he analyzes the data he's getting. Well, yeah, these numbers are really weird too. What's wrong with them? It just can't be right. What can't be right? What's wrong is that the nitrogen oxide coming out of this vehicle is off the charts. Off the charts. We tested this car in

the lab at CARB. They were just fine then. I know. I can't explain it. The levels are even worse now than before. I keep expecting them to average out over time, but they don't. Something's either wrong with this car or there's something wrong with our equipment. I don't think it's our equipment. What could it be? The car. The driver looks back. Tell me that's not for me. Kapanis sees the cop. Yep, definitely for you. Pull over. Well, you can be the one to explain. I'm tired of doing it.

The research crew pulls off to the side of the road. It's not the first time they've been pulled over by a curious police officer. Capanna's not worried, though. Police actually tend to find this experiment intriguing, at least once it's explained to them. What he is very worried about is this data. Because if accurate, if Volkswagen's cars are polluting this much, and this isn't an isolated incident, well, Volkswagen has a serious problem on its hands.

an isolated incident? Well, Volkswagen has a serious problem on its hands. One year later, in March 2014, Capanna is in San Diego in a coat and tie, attending the Real World Emissions Workshop. Here in the largest meeting room of the Hyatt Regency, Capanna listens as one of his WVU colleagues gives a presentation. He's detailing his team's findings about diesel engines. Capanna's been looking forward to this day for some time. At this conference are air pollution professionals and regulators. Looking out at the crowd, he sees nearly 200 concerned faces, and concerned because of what his team discovered last year while driving the Passat and other Volkswagen clean diesels.

Capanna's colleague goes over the data and underscores key conclusions from the research paper the team put together. It was 117 pages, and as is customary, they did not identify the makes and models of the vehicles they assessed by name. Kapanahir's audible gasps when his colleague points to a projected chart. The chart confirms that the diesel-fueled Vehicle A was found to have emitted nitrogen oxide at 35 times the legal limit. Vehicle B was 20 times over the limit. Kupana also hears the whispers. He knows that he's surrounded by experts and professionals,

and they can easily interpret these numbers and cross-reference them with other clues. He's not surprised when he hears one regulator whisper to another, vehicle A is a Jetta and B is a Passat, both Volkswagens. You know what that means? The other nods and replies with a single word, recall. Capanna takes a sip of his drink and turns his attention back to the presentation. The man he overheard was

absolutely correct. Somehow, somewhere, Volkswagen must have made an error when constructing these engines. They're not clean diesels at all. They'll have to get all these cars off the road, and fast. They probably didn't even know there was a problem. But now, thanks to West Virginia University, they do. Capanna is satisfied that he and his fellow students did what they could to make air just a little more safe. Now it's time for Volkswagen to do their part, and he hopes they'll do the right thing. Days later, at the California Air Resources Board headquarters

in Southern California, Alberto Ayala sits at the head of a conference room table. He speaks rapidly. The news came out of San Diego about Volkswagen's diesels, and it's bad. It's time for CARB to step up. Every second that those diesels are on the road spewing nitrogen oxides is one more moment that American public health is at greater risk. Ayala looks at the specialists he's gathered. Here's how it will go. CARB is going to initiate what they call a Volkswagen Compliance Project. They're going to perform an analysis of Volkswagen's diesels that is in-depth and rigorous, more than the students at West Virginia could ever afford to do.

They'll pay Volkswagen owners to borrow their cars. They'll collect a fleet of them. Then they'll test and test again until they're absolutely sure that the engines must be recalled. It's not a small thing to ask, but if Ayala's hunches are correct, he's about to cost Volkswagen tens of millions of dollars. And that's a conservative estimate. As he adjourns the meeting, he informs his specialists that the work they're about to do must be done in secret, complete confidentiality. This is a major investigation, and they cannot risk outside meddling or unwanted publicity. Ayala asks himself what could have gone wrong.

Seven years ago, when he spoke to Volkswagen executives, they seemed so sure that they had found a way to scrub nitrogen oxides from diesel engines. And Ayala was happy for them, and happy for the health of the planet. He believes there's no way Volkswagen could have done this on purpose, and yet he can't fathom what could possibly explain a car that meets legal limits in the lab but not on the road. Well, there is one possibility, he thinks, but he's not willing to go there yet. He's not yet willing to believe that Volkswagen would go that far and stoop that low simply to make a profit.

Because if they did do that, then they'd just put their entire company at risk. And the result could be one of the biggest scandals in auto history. Next on American Scandal, Volkswagen winds up in the crosshairs of American regulators who make one troubling discovery after another, and the car company fortifies itself against a major confrontation to come. From Wondery, this is American Scandal. You've just finished Episode 1 of the Volkswagen Emission Scandal, but the story is far from over.

As you continue the series, the shocking extent of Volkswagen's deception comes to light. The powerful CEO of Volkswagen faces the weight of a global investigation as regulators close in on the company's illegal defeat device designed to cheat emissions tests while poisoning the environment. As the stakes rise, will Volkswagen's carefully constructed empire collapse under the weight of their lies, or will they escape accountability for one of the largest corporate scandals in history? To listen to the rest of this season of American Scandal, start your free trial of Wondery Plus in the Wondery app, Apple Podcasts, or Spotify.

With Wondery Plus, you can listen to other incredible history podcasts like American History Tellers, History Daily, Tides of History, and more. Download the Wondery app today. Just a quick note about our reenactments. We can't always know exactly what was said, but everything in our show is based on historical research. American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Sound design by Derek Behrens. This episode is written by Hannibal Diaz, edited by Hannah Kingsley Ma, produced by Gabe Riven.

Executive producers are Stephanie Jens, Jenny Lauer Beckman, and Hernán López for Wondery.