VW Diesel-Emissions Scandal
General Motors, as well as Toyota, had their huge scandals. Currently, Volkswagen has come to the limelight for its engineering faults that have increased pollution as well as legal consequences to its car owners. This company owns over 70 percent of the United States Passenger-car diesel market. The company has come under major trouble for cheating on diesel emissions tests. After some years of promoting and enhancing “Clean Diesel” as the alternative to hybrid as well as electric vehicles—the company went ahead to March on Washington with a squadron of Audi TDI models (Brunning, 2015). Currently, it is stewing in its toxic vapors. To know what happened, this article asserts that Volkswagen installed particular emissions software on over half-million diesel cars in the United States and approximately 10.5 million more globally. This software allows the cars to sense some unique parameters of emissions drive cycle which are set by the Environmental Protection Agency. According to the agency as well as the California Air Resources Board, who got tipped off by some researchers in 2014, these defeat devices was to detect steering, throttle as well as other inputs utilized in the test to switch between two operating modes (Phys.org, 2015). From the test mode angle, the cars appear fully compliant with entire federal emissions levels (Siegel, 2013). Contrary, during normal driving, the computer switches to a separate mode. This significantly changes the fuel pressure, exhaust gas recirculation, injection timing and in models with Ad Blue, the quantity of urea fluid sprayed in car exhaust. Despite the fact that this mode has the potential of delivering higher mileage as well as power, it permits stronger nitrogen-oxide emissions which are a smog-forming pollutant that has a close link to lung cancer. These emissions are above 40 times more than the federal limit (Chandler, Chandler & Chandler, 2015). This does not translate to every TDI pumping 40 times as much nitrogen oxide as it should. Other cars may emit just a few times above the limit, varying with driving style and load.
Ways to Solve the Problem
From the caranddriver.com article, it is evident that over one-third of Volkswagen’s market cap has been wiped out with its nose-diving stock price making the company abandon its goal of becoming the world’s largest automaker by 2018. Among the suggested efforts to deal with this situation is that Volkswagen needs to set aside money to cover recall costs. Despite the fact that Volkswagen’s profits, as well as cash reserves, will undoubtedly suffer from fines, lawsuits, and incentives, there is a need to order a strict review of all the 300-plus models in all VW Group’s nine brands. There is also need to carry out internal audits with inevitable firings, restructuring, as well as other corporate modifications. As an initiative of Customer Goodwill Package, Volkswagen need to hand out money to all owners of VW TDI that appeared in the EPA’ violation notice (Hamilton, 2016).The owners need to be given get prepaid Visa cards to use on anything and another cash card valid at all Volkswagen dealerships to use toward another car, service, and VW hats. There is also a need for owners to get free 24-hour roadside help for some period (Top, 2015). Current owners of any VW model need to get a cash rebate towards a new car. There is also a need for dealers to get “discretionary” cash to sweeten deals some well as guaranteed kickbacks for some models. There is also a need for Volkswagen to buy back its affected cars as a way of negotiating with the government. This article, therefore, provides some of the initiatives that this company can take to repair its image.
From my personal view, technically cheating on clients and regulators and succeeding to sell cars that exceed pollution limitation was one of the greatest mistakes of the company. Just like the control measures propose by the author of the article in reference, the company needs to recall all the affected cars for proper fitting of pollution controls. It cannot be disputed that some car owners have found themselves in courts because of the faultiness caused by the car manufacturers. In case owners got convicted, there is a need for the company to bear the responsibility and compensate the car owners. While the details haven’t been finalized, I propose that owners of Volkswagen- and Audi-brand 2.0-liter cars to receive “substantial compensation,” whether in form of a buyback or other reported option to have all the cars they own to be brought into compliance together with a cash payout. I also suggest that Volkswagen is forced to come up investments that must promote green automotive initiatives. In this respect, Volkswagen needs to explain all its repair plans.
VW Diesel-Emissions Scandal as an Issue
Volkswagen scandal for emission has become to be an issue from the fact that Greenpeace, as well as other environmental groups, lambaste VW, the obligatory news profiling angry TDI drivers have continued to pop up. Granted, many people are upset with the company for misleading them on car’s emissions levels. But as it is seen, many of the TDI buyers are informed enthusiasts in love with the sky-high fuel economy, durability, torque as well as low running expenses. Many frugal types change their TDIs to operate on refined vegetable oil or even biodiesel. These individuals are real diehards. It remains an issue of the fact that if any fix Volkswagen suggests ends up affecting performance either on high fuel consumption or power loss, the majority of TDI owners can easily ignore the recall. It I also a very tricky legal scenario, as neither the National Highway Traffic Safety Administration nor the EPA can force owners to update their cars. Some bills coming from the Congress have suggested the banning of registration renewals for all car owners who avoid completing the recalls. Unfortunately, they are a long far away from turning into law (News & Vergetis, 2016). It is, therefore, an issue of the fact that many TDI owners continue to putter about (Friedman & Friedman, 2015). It is also an issue of the fact that resale values can drop significantly leading to huge losses on owners. Companies need to have robust corporate social responsibility from all angles. It is critical the emissions are far away from the limit, and this situation can bring many health consequences in the country as well as other places where the company has sold its supplies. From the economic [perspective, owners may end up refusing to fix their cars, and this will translate to air pollution (WIRED, 2015). It is, therefore, a serious issue from the fact that the faulty engineering can cause more danger to the society.
Brunning, A. (September 30, 2015). The Chemistry of Car Emissions Reduction & The Volkswagen Scandal. Compound Interest, 2015-9
Chandler, M., Chandler, M., & Chandler, M. (September 25, 2015). Volkswagen and the Euro: Preliminary Thoughts. Marc to Market, 2015-9
Friedman, B., & Friedman, B. (October 01, 2015): Parallels between Volkswagen and EHR Vendors Regarding “Proprietary” Software. Lab Soft News, 2015-10
Hamilton, J. R. (February 26, 2016): Volkswagen Emissions Fiasco. Perspectives, 2016-2
News, S. G., & Vergetis, L. B. (January 05, 2016). Emissions scandal: US first to sue Volkswagen. Smart Grid News, 2016-1
Phys.org, (December 17, 2015): VW hires Kenneth Feinberg to handle emission-cheating claims. Phys.org – Science and Technology News, 2015-12
Siegel, R. (2013). Memoirs of a hack mechanic: How fixing BMWs helped make me whole.
Top, C. A. L. L. C. (November 06, 2015). Volkswagen Emission Scandal: TDI Diesel Engines Recalled. Top Class Actions, 2015-11
WIRED, (October 14, 2015): Dozens of Managers Were Involved in VW’s Diesel Scandal, Wired, 2015-1