About 11 million vehicles were fitted with software capable of cheating emission tests, including 5 million at its VW brand, 2.1 million luxury brand Audi, 1.2 million at Skoda and 1.8 million light commercial vehicles, about 10.1 million vehicles was sold in 2014. But analyst predicted that the figure might not weight enough to offset the impending charges to face the company, as stated “The Company faces potential fines from regulators and prosecutors, as well as lawsuits from cheated customers”. Consequent to this, Volkswagen share noticeably to be dropping to about 4.1% to close at 95.20 euros in European trading market. What Is the Rationale behind Volkswagen Manipulating The clean Diesel? Since 2009, Volkswagen had been installing elaborate software in 482,000 clean diesel vehicles sold in the United State, so that the cars pollution controls only worked when being tested for emissions.
Introduction to Volkswagen The Volkswagen Group is a leading German multinational automobile manufacturing company with their main headquarter situated in Wolfsburg, Lower Saxony, Germany. It is one of the largest automobile companies in the world in terms of the number of vehicles production sold on an annual basis and also the largest valuable carmaker in Europe. As of 2016, The Volkswagen group had reached the companies’ history milestone with delivering over €10.3 million vehicles to customers worldwide, a rise of 3.8% in comparison with 2015 sales figure. (Volkwagenag, 2017) They currently employ 610,000 people making them one of the largest employers in Europe. They had been known to achieve worldwide global recognition for its reliability
1. Climate change. Volkswagen is facing sever environmental and climatic issues since its co2 emission scandal came into picture. The company using ‘defeat software’ to cheat the norms of emission was one thing that has led to many reparation losses as well as devaluation of the stocks of VW. Therefore the company now wants a sustainable climatic policy in line with EPA so that such kind of challenges are not faced in future.
The German based automotive company Volkswagen (VW) was recently involved in a scandal that went public in 2015 regarding the discrepancies in the NOx (Nitrogen Oxide) emission from the vehicles. This scandal was believed to be the biggest scandal of all times and have come in a critical moment of time when VW was declared the largest automaker in the world for the first season of 2015. Thus it is affirmative that Volkswagen was involved in evaluating business ethics in their organisational practice. This considered paper would discuss the importance of business ethics for Volkswagen and the relevant consequences of the scandal. The Scandal – Ethical lesson The scandal of Volkswagen was by far the biggest of many scandals that automotive history has seen from the Pinto to the Toyota’s self-acceleration, GM’s ignition switches; but all have not impacted the public policy of ethics.
Europe's largest car maker Volkswagen has decided completely to revamp its India strategy, after a big splash entry about five years ago. Initially, it posed a major challenge to market leader Maruti Suzuki. But lack of new products and an inability to price products competitively pushed it to the fringes. It has now altered its strategy. It has tweaked production, localized parts, concentrated on branding, sales, service besides planning in the coming years a new product portfolio.
Opportunities Firstly, the needs of customers changing from time to time. Volkswagen should introduce more hybrid or fuel-efficient models which produce less CO2 across the other automotive brand. In addition, the environment friendly cars are meeting the recent customer needs as well as enhancing the reputation of the brand. The goal of Volkswagen implemented Life Cycle Assessment for almost 10 years period is to provide clear information on the environmental effects of vehicles and its components for the consumers, shareholder and also for other parties who have interested on it. Volkswagen has developed a green product under the model of up!
One of the article about the subject claims that, brand manager Wolfgang Bernhard and engineer Rudolf Krebs were working on the new diesel engine to be used in the US [4-]. However, it is defined that it has $ 335 cost per vehicle to bring vehicles to US emissions standards. However, it is also asserted that head of Volkswagen 's finance department found this cost very high and for that reason they suggested another way to solve this important issue. Hence, they improved a new software or device that realizes that vehicle is in test condition. This dishonesty situation caused that VW to save nearly 4 billion € in total.
At year 2015, Volkswagen became worldwide number 1 car-producer, compare with former champion Toyota. However, the US-American Environmental Protection Agency (EPA) accused Volkswagen of cheating emissions tests in the US and EPA found many VW cars had a “defeat device” or software installed in diesel engines that could use to cheat on emissions tests; when not being tested, the cars emit up to 40 times the allowable levels of nitrogen oxide pollution. This emissions scandal is a disturbing case of systematic corporate fraud that has harmed customers, governments, and the health and well-being of citizens in the societies in which Volkswagen has been given the license to operate. So from the business ethics point of view, another area for analysis concerns the embeddedness of ethics in organizational policies and culture. The effective implementation of ethics and compliance