VolksWagen Scandal Volkswagen has been highly praised for its high fuel economy with its TDI diesel power cars. They were one of the most highly sought after cars, until recently being beaten by Toyota, due to the latest scandal with Volkswagen. Volkswagen has created and sold vehicles that cheated on their emissions tests while also, lying on their low emissions claims. The company was able to do this without adding any physical device, they did it by simply adding code to the on board computer. This scandal reinforces the idea that car manufacturers need to be more closely monitored and regulated.
Porsche was founded in 1931 by Ferdinand Porsche. The Porsche company is headquartered in Stuttgart, Germany and it is one of the market leaders in the global high end automobile industry. It produces luxury high performance sports cars and is primarily owned by the Porsche family. 70% of all Porsche cars are still on the road today. Porsche's entire identity and business model is subject to change, as they shuffle executives across product lines and implements new strategies to become the world's leading automotive group. By 2011, the company produced five models with a combined total of 40 different trim levels. Their Boxter, Cayman, and 911 models target sports car enthusiasts, whereas Panamera and Cayenne target luxury vehicle and SUV market segments, respectively. Each model not only meets but with additional sports performance, exceeds the standards of their respective automobile class.
By the reading of it, Volkswagen management expressed what seemed like genuine shock when the EPA and California’s Air Resources Board revealed their joint findings regarding the automaker’s manipulation of US emissions testing for diesel cars outfitted with a particular 2.0-liter, four-cylinder engine.
This paper will illustrate the moral, social, and factual implications of the Volkswagen scandal regarding the case dealing with emission standards of the diesel Volkswagen vehicles. The reader should note that this analysis will be given from two different philosophical points of view. Namely from the Kantian and Rule-Utilitarian perspective. The paper will attempt to demonstrate the moral implications of the case at hand, and how this applies to Mr. James Liang’s actions. As the reader may know Mr. James Liang worked for the Volkswagen Company for more than 30 years. He and his colleagues worked on creating a low emission diesel engine. In the course of this project, it became apparent that the emission goal could not be achieved with respect
These activities are not exclusive, and most of them overlap. “For example, a car manufacturer has both an ethical and legal responsibility to produce safe automobiles” (Toliver, 2013, p. 7). In September 2015, Volkswagen was all over the news about their emissions scandal. The software was created to sense when the vehicle was being tested, during testing the software would adjust the results to show a lower emission output. When the vehicle was not being tested and running during regular driving, the software turned off, allowing the vehicle to have emission output levels far above legal levels. Volkswagen has been fined and will have to pay almost $15 billion in settlements in the United States. They must also pay to repair or buy back all affected models by December 2018. This scandal has cost the company a recorded loss in 2015 of $6.2 billion. The company is facing civil and criminal investigations in the United States and Germany as well as other countries (Gates, Ewing, Russell, & Watkins, 2016). Purchasing a Volkswagen now would not give the consumer that “feel good feeling” they want to feel after purchase. Customers see that Volkswagen has been lying to the client and have been negligent in environmental
In the Fall of 2015, Volkswagen was accused and found guilty of cheating on emissions tests that were put in place by the United States government in order to regulate the amount of harmful gases released when driving vehicles. In the aftermath of the scandal, their CEO Martin Winterkorn was replaced by Matthias Muller who found himself in need of drastically changing the corporate culture in order for VW to once again be a reputable automobile manufacturer. In order to understand why the scandal occurred in the first place an analysis of the historical culture that had dominated the company until recently. Volkswagen was established by the Nazi’s with help from Ferdinand Porsche and the majority of the company continues to be held by his descendants. Nazi Germany is infamously known to have been extremely authoritarian with orders being strictly followed coupled with a unparalleled sense of self-righteousness. This culture inevitably influenced how VW operated and led to it’s CEOs demanding perfection, setting
Volkswagen participated in an intentional fraudulent act. There may be violations of the Federal Trade Commission Bureau of Consumer Protection which stops unfair, deceptive and fraudulent business practices by collecting complaints and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their rights and responsibilities. (FTC, 2016)
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,
Beginning in 2006, Volkswagen began designing a new version of diesel engine for future cars it planned on producing. The engineers tasked to this job quickly realized that they could not meet customer needs and emission standards at the same time . The engineers decided to use software known as a “defeat device” that allowed the car to sense when it was going through an emissions test and reduce its pollution output .
The ownership of the company is as follows: FAW around 51%, Volkswagen 20%, Volkswagen (China)19% and Audi AG 10% (FAW-Volkswagen International cooperation, 2015)