Scandal Of Volkswagen Scandals

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The Volkswagen emissions scandal began on 18 September 2015 when the United States Environmental Protection Agency (EPA) issued a Notice of Violation of the Clean Air Act to German automaker Volkswagen Group. The company had programmed their model year 2009 through 2015 turbocharged direct injection (TDI) diesel engine so that the United States standards nitrogen oxides (NOx) emissions were met only during laboratory emissions testing. Nitrogen oxides emissions during driving were up to thirty five times higher (Wikipedia, 2015). The Volkswagen scandal has far more concerning consequences than most people think. It will cost the automobile-maker in terms of legal fines, investors and customer backlash, class action suits, possible criminal investigation, and loss of futures sales. Forbes estimated that the total cost the company will have to bear would be up to 30.25 billion Euros, which includes in fines and settlements from the government and from the private sectors, recall expenses and also future loss of sales. However, Volkswagen currently only has 21.5 billion Euros in cash which is still insufficient for a worst case scenario. The market capitalization of world 's third biggest car maker plunged 15 per cent in two days in the wake of the scandal and is exacerbating problems in the benchmark DAX index which s battling with a bear market (Sydney Morning Herald, 2015). The scandal will also affect other fellow automakers who makes cars which runs on diesel,

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