Emission Scandal
What is the biggest scandal that has ever faced the Volkswagen automatic company?
How did the scandal impact the business performance of Volkswagen?
What measures did the company use in solving the scandal?
Volkswagen, prior to the scandal, was considered to be one of the most recognized companies globally for producing high-end cars that were purchased highly. However, in the U.S., all vehicles have to pass the pollution test set by EPA. As you must be aware, these conditions are stringent as climate change issues are becoming more important all across the world. Diesel cars pollute a lot more compare to petrol but still preferred widely as you get more mileage, and the cost is lower (Volkswagen emissions scandal, 2019). Due to this, the demand for diesel cars is high in some countries. To give comparable driving experience and still pass the emission test, what Volkswagen has done is that they have put software in the car that detects emissions in vehicles as well as reduce pollutant emission. But this did not go far as the firm was caught. Volkswagen has accepted this and said sorry. Most cars have been affected due to this Mand they are facing a lawsuit. Volkswagen’s CEO was getting forced to step down. Diesel is more lucrative in terms of its fuel economy. Additionally, with better mileage, they tend to emit lesser carbon dioxide, but on the flip side, they are responsible for higher emission of nitrogen oxides. Such nitrogen oxides have come under scrutiny for their tendency to produce smog and other health hazards. Under such circumstances, it is the government agencies that put regulations in place to facilitate automotive growth and taking measures to curb the consequences arising due to these emissions.
Most of its customers were left devastated by such an act as it was not only unethical but also tarnished the reputation that it had taken a lot of time to build. It was through selfishness, laziness, and the dishonest act of the CEO and all other heads that cost the company much more, starting from reputation and losses upon being sued (Mill, 1863). The company started laying blame towards each other; however, the top officials have to carry the blame since it happened on their watch, or they took part and tried to protect other people’s interests. The fear is that the spreading V.W. scandal is damaging the vehicle industry as a whole. How severe the damage will be is impossible to say at the moment, since more and more bad news are coming in. The main effect is that it damaged the V.W.s reputation in the U.S., and I think that this was the whole purpose. Volkswagen was improving its place in the U.S. market as one of the most competitive diesel brands, and this scandal is certainly slowing down or even destroying its growth. So this slowed down Germany’s expansion in the U.S. market, as well. Volkswagen has a strong reputation so I wouldn’t say that it got affected; however this incident surely adds up to some other previous incidents, mentioned by another user, which certainly creates a series of incidents that make consumers and citizens as regards Germany’s reputation and role (Wright, 2012). Volkswagen had to pay the hefty fine since it used a defeat device to falsify emission data. The device recognizes when the car is being tested and cuts emission to a level that is much lower than the normal and unsustainable under usual driving condition. Because of this, the Volkswagen shares fell by almost a fifth on Monday after the carmaker issued a public apology.
The primary solution the company could employ in restoring its reputation is by acknowledging their fault and guilt publicly. People got angry with the company since it misled regulators through using special software in cheating on diesel emission tests. V.W. should ensure that Volkswagen is not hiding anything else. It has to come clean and communicate to its customers what transpired (Kant, 1785). This will be a start for repairing its reputation. Additionally, the company has to employ compensation measures. Compensate customers that bought the impacted diesel cars since their value definitely will decrease in the future. This can help the high Milan Volkswagen in restoring its reputation with the angry drivers. In compensation, the company has to recall all of the vehicles from the affected parties at a preferable price, and the owners provided with damage settlement. Moreover, as part of the compensation, the company has to provide instant gifts to its customers to lessen their frustrations and questions towards the firm. In as much as the strategies aim at regaining trust from the customers, it also will reduce the chances of being sued by the affected parties. The entire issue is considered to be a crime; thus, whatever action the government can decide to pursue, Volkswagen will need to face. However, Volkswagen ought to try and decrease the impacting nature of the issue. Furthermore, the company has to run a campaign to reduce pollution. Through running campaigns such as developing pollution-free cars, waste reduction, tree plantation can help in improving the environment. The initiative necessitates commitment within the long run. This will at least help in compensating the created pollution by violating the norms of emission. Volkswagen has suffered many consequences other than just cheating with loyal customers and government but with the environment also.
References
Wright, C. C. (2012). Plato’s Just State. Retrieved from https://philosophynow.org/issues/90/Platos_Just_State
Mill, J. S. (1863). Retrieved from https://www.utilitarianism.com/mill1.htm
Volkswagen emissions scandal. (2019, April 27). Retrieved from https://en.wikipedia.org/wiki/Volkswagen_emissions_scandal
Kant I. (1785). Fundamental Principles of the Metaphysics of Morals. Abbott.