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The Most Expensive Act of Stupidity in the History of the Car Industry!

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28
Sep
2015
Cheating the Customers

The top executives of Volkswagen, the mightiest car manufacturer company, call for the emergency meeting to deal with the crisis.

The Volkswagen has manipulated emissions test of its diesel car in the US. And cheated the amount of pollutant coming from VW diesel engines. The automotive critics say, the possible legal actions against VW in the US could cause huge financial loss to the company. However top executives are sitting together to deal with the situation, they made the apologetic move by taking the responsibility of the crisis. The chief executive Mr. Winterkorn said in a fresh apology, “endlessly sorry” for the manipulation.

Background of the crisis in nutshell

  • Deceived US regulators in exhaust emissions tests
  • Installed a device to manipulate emission tests parameters
  • 11 million vehicles are affected worldwide
  • Manipulating pollution data to boost sales

The demand of legal actions against VW by following authorities;

  • The US Environmental Protection Agency (EPA)
  • The California Air Resources Board
  • The New York state’s top lawyers demanded for investigation
  • The news agency such as Bloomberg, AFP,
  • The department of Justice
  • EU-wide investigation into the affair, on demand of UK,

Possible outcome in the US

  • Possible criminal allegation against top executives at VW
  • Possible huge financial loss for the company
  • £ 4.7 billion to cover the costs of damage
  • $18bn Potential fines
  • Recall half a million cars in the US
  • Overall decline in global sales of cars
  • Loss the support of key investors

Cars and the environment are two things, most of the Germans are concerned about and it is like a “national character”, it was a complete shock for the Germans to know, VW was rigging emissions tests for its diesel cars in the US, One of the automotive journalists argued.

One of the leading German newspaper has used a beautiful analogy to describe this fraudulent dilemma, the newspaper wrote, “It’s as if the British suddenly found out that the Queen had a hand in fixing the horse races at Ascot.

The most shameful act of the car history, it has saddened the whole nation and stabbed in the back of its customers. It is even more than stupidity, when you play with the customers’ expectations and trust, just to increase sales, how it sounds, when you pay a premium price for a green car and get a slap on your face in return. The company share prices have dropped down significantly in just two days after the story broke out.

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