2016 VW Emissions Scandal After Effects

We have following the after effects of the VW emissions scandal in early 2016 and some of the consequences that have been arising for the billion dollar company. Nicknamed “dieselgate” this multi million dollar mistake affects the C02 output on a variety of different VW cars produced from as early as 2010. After years of promoting “Clean Diesel” the company is in a big trouble for cheating on diesel-emissions tests. Volkswagen is stewing in its own poisonous vapors. Around 11 million vehicles may be affected worldwide. Later it is disclosed that Volkswagen’s so called “defeat device” as it was designed to beat NOx particulate emissions in the USA, is seen as a cheat, not a solution to NOx emissions. The problem was not identified in day to day driving. But later the emissions discrepancies between European and US models of vehicles by International Council on Clean Transportation (ICCT) summed up the data from different sources of vehicles. A group of 5 scientists at West Virginia University detected additional emissions during road tests in two out of three diesel cars. This data was provided to the California Air Resources Board (CARB) in May 2014 and then Volkswagen became the target of regulatory investigation in most of the countries. The scandal caused awareness over the higher level of pollution being emitted by these vehicles.


About eleven million cars were affected throughout the world. This includes 5,00,000 cars in US; 70,00,000 cars in Europe. Environmental consequences: The nitrous oxide pollutants emitted by the engines were 40 times more than what is permitted in the US. This has resulted in 1 m tones of pollutions every year. Financial and Legal consequences: Because of this, the company suffered its first quarterly loss for 15 years of about $1.84 billion. As a result of this VOLKSWAGEN has recalled the millions of cars throughout the world from Jan 2016 for which it has to cover the cost about $7.3 bn. The EPA has power to fine a company up to $37,500 for each vehicle that has violated the standards. As a result of this the costs of the possible legal actions incurred on the car owners and shareholders can be calculated. The prices of the affected cars have reduced to roughly a third of what they were new, this has caused a huge loss of $ 30 billion in the market. On top of the fines being laid onto VW some other concerns include Health consequences: This emission caused non-fetal health impacts like respiratory problems like asthma, bronchitis. Nitrogen oxide leads to heart problem.

The new CEO OF Volkswagen Mr. Matthias Muller is leaving no stones unturned to regain the trust for this group. He is doing his best to maintain the integrity in order to recover the brand image. A number of programs are being accelerated to enhance the efficiency and profitability of this group. Various plans are being applied to equip all cars very well. The cars are manufactured according to Adblu technology and with the selective catalytic reduction. This group is focusing on plug-in-hybrids and electric vehicles. This group is making new and stricter emission tastings which will be verified by the third party. In U.S. Volkswagen has made the commitment the owners $500 in cash added with the gift cards of $500 at a cost of about $250 million.


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