Measuring the Fallout From Volkswagen's Diesel Disaster

Volkswagen lost almost a quarter of its market value in a matter of minutes, but the fallout from its recent corporate crash over diesel emissions will go on for quite some time. After admitting that it cheated on U.S. air pollution tests for years, the German auto giant faces up to $18 billion in fines from the U.S. Environmental Protection Agency. European regulators, state regulators, criminal prosecutors, and consumer-rights groups are just starting to dig into the details of the case. Four issues, however, are becoming quite clear.

Volkswagen is a brand adrift, particularly in the crucial U.S. market. Its sedans–the Jetta and Passat–look pretty much the same as they did a decade ago. The SUVs are either too small and boxy (the Tiguan) or too expensive (the Touareg) for the tastes of U.S. drivers these days.