There is no point to have a gov-t emission req's for new cars if in real world the cars will be up to 40x dirtier than claimed by the MFGs. So it seems the cars need to be tested independently in real world under every possible engine load and temperature. Also it maybe necessary to lower the NOx threshold for 1-2 years to avoid the industry collapse BUT on the other hand, as the article states, 5 out of 200 tested diesel cars were within the test parameters. So, there is nothing wrong with the expected NOx levels and most likely, as JM says, the cars were tuned for the test but not for daily driving. You can't really blame the car makers here. Their engineers were told: here's what's gonna be on the test, make sure our cars pass. And they did and would do so for number of years to come if VAG were not caught cheating and now they roll up everyone's sleeves for notes.
In related news, VW Phaeton is announced to be a battery electric car