What was Volkswagen thinking?
On
September 18, 2015, not even one week ago, perhaps what could be the biggest automotive scandal of all
time was revealed. Volkswagen, one of
the most popular and powerful companies in the world, has been accused – and
thus has admitted – to deliberately cheating emissions standards on close to 11
million of their cars worldwide.
One may think that an
automotive scandal that involves loss of life would most definitely be worse
than one that only involves faulty emission reports. For example, Toyota received a significant
amount of bad press regarding failing breaks in their Prius model. It caused serious injury and even death to
some drivers. However, that was not a deliberate
attempt to circumvent authorities and standards in order to sell more cars, or to falsely advertise to the public and gain a competitive advantage over other companies.
In order to falsify emissions,
Volkswagen fitted some of their production models with software that was
designed to fool emissions tests. The
engines of said models were designed so they could sense when tests were
occurring by measuring factors such as speed, air pressure, the positioning of the
steering wheel and engine operation.
Although this “defeat device” has
only been discovered in Untied States thus far, Italy, South Korea and France
have already opened their own investigations into Volkswagen models being sold
domestically.
For Volkswagen, aside from the
enormous PR crisis and the tremendous damage to their company image, they are facing
potentially massive fines by the Environmental Protection Agency (EPA). Deceit of this magnitude can result in fines
of up to $37,500 per car, and with Volkswagen recalling almost 500,000 cars in the
United States alone, fines could be as high as $18 billion, and this does not
include the costs of recalling vehicles, just fines.
To make matters worse, company
CEO Martin Winterkorn has resigned. He
had run the company since 2007. To read
more about his resignation, click here.