Diesel Scandals Could Decimate The Future Of Big Automakers

THE MOST IMMEDIATE impact of the emissions cheating scandal that has engulfed Volkswagen and may be spreading to automakers like Fiat Chrysler is an environmental and public health crisis. Worldwide, diesel vehicles are producing about 50 percent more nitrogen oxide than regulations allow, according to a new study, which links those emissions to 38,000 premature deaths in 2015.

But, in the long run, the diesel fallout could reach further, helping set up carmakers as the next industry to be upended by Silicon Valley. As shifts like autonomy, electrification, and shared ownership change the way people use and buy cars, these companies will have enough trouble navigating the coming decades.

Dedication to diesel adds to the challenge, chaining automakers to a losing technology. And for those caught breaking the rules, expensive legal settlements and fines, which for Volkswagen have exceeded $22 billion in the United States alone, will divert funds from research and development just as these changes in driving technology threaten to render traditional carmakers obsolete. read more »

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