In September 2015, the Environmental Protection Agency accused Volkswagen of violating the federal Clean Air Act by cheating the emissions tests on its diesel powered vehicles. The German carmaker has since then admitted to installing "defeat devices" in their diesel-engines and has agreed to cooperate fully with the EPA as well as lawmakers and regulators.2. The software installed in Volkswagen’s diesel-engines was programmed to detect when the cars were being tested for nitrogen dioxide emission levels. The “defeat devices” were then able to switch the engines to a cleaner test mode and adjust the engine’s performance to improve and optimize test results. The EPA has ordered a recall of 482,000 Volkswagen diesel cars in the US and an estimated …show more content…
We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case.”4. Volkswagen's North American boss Michael Horn was more direct in his ownership of the problem saying, "We have totally screwed up."4. The former CEO gave his resignation statement September 23, 2015 where he clearly stated that he accepts responsibility for the problem, but he also then went on to add his claim of innocence saying: “I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part.”2. Despite his initial resist to step down from his leadership role at Volkswagen, Winterkorn did eventually resign and Matthias Mueller, the former boss of Porsche, has since then stepped in as his …show more content…
The first business day after the EPA’s public announcement of the emissions scandal Volkswagen stock was down 20%. But that is just the beginning of the financial impact on the company as a result of the emissions scandal. The EPA has the power to fine a company up to $37,500 for each vehicle that breaches industry standards, the maximum fine running up to about $18 billion.1. In addition, the German automaker has set aside $7.3 billion to cover the costs of recalling millions of cars worldwide, resulting in the company’s first quarterly loss in 15 years of around $2.7 billion accompanied by another stock decline of
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
Ever since the Environmental Protection Agency otherwise known as the EPA, and the Clean Air Act were enacted into law in 1970 the American Auto Industry has been inundated with many environmental challenges such as brake debris/tire particles, paint and coating, auto shredding residue, battery content, smog, and gasoline. For the first time in 14 years, cost reduction ranked 32% compared to environmental issues such as emissions and fuel economy which ranked 53% in consumer reports.
The cheating Scandal at Volkswagen sparked many debates and wide spread complaints on the acts itself, and how these acts are/were handled by the justice system. Among most of these complaints, one topic that was common was that most of frauds/cheatings having major effects are getting more and more frequent and are somehow getting by with almost no major moral consequences. There were also some rather interesting take on honesty that were presentenced on some of the article.
Driven in large part by global initiatives and the potential for stringent regulations, the past decade or two has seen a marked increase in the importance of improvements with respect to environmental standards, including emissions and increases in fuel economy. In 2002, Cummins Emissions Solutions was launched after the need was identified for an emission solution that would help engines meet future regulations. In 2006, Cummins pioneered a hybrid diesel-electric bus which reduced fuel consumption and greenhouse gasses by more than 30 percent and me...
Vasilash, Gary S. "VW's Clean Diesel (no. That's Not an Oxymoron): the 2009 Jetta TDI Is Clean Enough to Be Sold in All 50 States as It Meets the Demanding Tier 2, Bin 5 Emissions Requirements." Automotive Design & Production Nov. 2008: 46+. Vocations and Career Collection. Web. 12 May 2014.http://go.galegroup.com/ps/i.do?id=GALE%7CA200563825&v=2.1&u=mlin_n_great&it=r&p=PPVC&sw=w&asid=76e0...
Laws are often changing. A law needs to keep up with the changing views and values of a society. Things like events and technology are just two examples of what may produce a law or a change to a law. A law would need to accommodate a technology to regulate it for safety and how it’s used. Events also need to be regulated by law for safety and if it was a terrible event (9/11), then a law, or laws, are needed to prevent it from happening again. Laws pertaining to the environment are always changing because human interaction with the environment is always changing, whether its pollution, hunting, or overusing resources, these things need to be constantly regulated. This paper describes how the Clean Air Act developed and changed. The
This case focuses on corporate obstacles to pollution prevention. Pollution prevention can complex especially for large corporations. There are many different forms of pollution prevention including emissions control devices and incremental changes in existing technology. The author reviews the impact of emissions controlled devices, however the focus of the case study is on incremental changes in existing technology. Incremental changes include substituting one or two steps in a production process or relationship changes between production steps. One example of incremental changes that was provided by the author was eliminating chlorofluorocarbons and saving energy by replacing a refrigeration process with a heath exchanger that can exploit waste cooling from another part of the process. There are three critical decision-making stages for incremental changes; identifying a pollution prevention opportunity, finding a solution appropriate to that opportunity, and implementing that solution. The author discusses the three aspects of an organization (culture, ability to process information, and its politics) and how they impact the decision-making stages.
In an effort to improve the lives of Americans, the United States Congress has enacted several legislative acts to reduce environmental pollutants. The motivation to take serious environmentally protective public policies came after 1948 when thick heavy smog covered the streets of Donora, Pennsylvania. The incident resulted in the death of 20 people with thousands more falling ill from the respiratory effects of the smog which carried yet unknown environmentally hazardous air pollutants from two factories in the city. This tragedy made the United States government aware that they needed to be concern about air pollution, and before the United Sates Congress passed the Clean Air Act, as we know it today, there were two previous acts that began to shape what now is a truly comprehensible Clean Air Act.
"This is why the market keeps going down every day - investors don't know who to trust," said Brett Trueman, an accounting professor from the University of California-Berkeley's Haas School of Business. As these things come out, it just continues to build up"(CBS MarketWatch, Hancock). The memories of the Frauds at Enron and WorldCom still haunt many investors. There have been many accounting scandals in the United States history. The Enron and the WorldCom accounting fraud affected thousands of people and it caused many changes in the rules and regulation of the corporate world. There are many similarities and differences between the two scandals and many rules and regulations have been created in order to prevent frauds like these. Enron Scandal occurred before WorldCom and despite the devastating affect of the Enron Scandal, new rules and regulations were not created in time to prevent the WorldCom Scandal. Accounting scandals like these has changed the corporate world in many ways and people are more cautious about investing because their faith had been shaken by the devastating effects of these scandals. People lost everything they had and all their life-savings. When looking at the accounting scandals in depth, it is unbelievable how much to the extent the accounting standards were broken.
The Volkswagen emissions scandal is a series of choices made by the company and the people employed by Volkswagen to install a "cheat" button to alter the amount of emissions produced only under testing situations. Ordinarily, all vehicles on the road that run off of gasoline have a set about of CO2 and other harmful emissions produced by the burning of gasoline. Violation of these rules can result in fines and recalls. Due to an increased attention on car companies to fight global warming and air pollution a number of emissions have lowered in the over the year for tighter regulation on the amount of CO2 produced. Consequently, this reduction in the amount of CO2 produced is the source of the scandal. This change may come across as minor,
In 2014, researchers from West Virginia found out that recent models of Volkswagen vehicles were emitting up to 40 times the allowed levels of nitrogen oxides (2). These vehicles had a special software that would determine when the vehicle was in laboratory testing conditions, and the software would then alter the vehicle 's functionality to emit the legal amount of nitrogen oxides allowed by the EPA. The software was found in around half a million vehicles in the United States. In addition to the bad publicity, the Volkswagen scandal will cost the company at least $15.3 billion dollars in compensation to the owners of the affected vehicles (3). In 2016, Volkswagen engineer James Liang pleaded guilty for being a crucial part in developing the illegal software (3). The software was created because Volkswagen was unable to meet the rigorous EPA emission standards. Therefore, a small team of engineers including James Liang decided to cheat the emission exams to allow Volkswagen vehicles to be sold in the U.S.
Audi, one of Germany’s first automobile producers, has been designing and building cars since August Horch, its founder, completed his first car in 1901. Over the years following, a series of innovations and mergers have led Audi to the position it is in today. Audi’s subsidiaries include companies to facilitate international operations, part manufacturers, a vehicle customization company, a technology research company, and Lamborghini Corp, a successful sports car manufacturer. Audi’s current developments include its holding the EU Seal of Environmental Protection, and a number of technological advancements, including new car designs and a “seeing car” technology that has been nominated for the German Future award for Technology and Innovation.
Last Sunday, the company’s then CEO, Martin Winterkorn, issued a brief statement declaring that the Board of Management at Volkswagen AG “takes these findings very seriously.” The findings revealed that the automaker used “defeat devices” to fool emissions testing, effectively concealing the reality that certain cars spew emissions some 10 to 40 times the legal limit.
with little the government can do to limit the use of cars, the production of
In this modern era, the level of pollution worldwide has been increasing consistently which in turn has brought harm to humans via many different ways. Consequently, the government must find a solution to solve this problem as speedily as possible. However, banning the ownership of private vehicles is not the only and definitely not the best way to decrease pollution. Although carbon emissions from vehicles do contribute towards a significant amount of pollution, banning the ownership of private vehicles in modern day society is unnecessary because pollution can also be caused by many other factors such as bad lifestyle choices on humanity’s part, lack of stricter or enforcement of environmental laws by governments as well as the fact that vehicles are an essential part of modern city life.