By now most people are aware that Volkswagen came to a crossroads, having to balance performance with
emissions requirements, and keeping some of its diesel cars affordable for consumers and profitable for VW. In 2005 Wolfgang Bernhard, former Daimler Chrysler President and COO, was newly appointed president of the VW brand. Early in his VW tenure he had an idea to fix the emissions problem and comply with the required EPA diesel-engine standards. The problem with Mr. Bernhard’s idea was that it would cost approximately 300 euros per car in 2005 euros.
VW engineers were concerned that Mr. Bernhard’s solution would decrease the mileage and performance
benchmarks that they felt were necessary to make their diesel cars perform (drivability, and performance)
like a gasoline car, while offering the consumer much better fuel economy.