Defeat Devices: The People's Car Company

Firstly, from the view of company, Volkswagen scandal is result from the misuse of CSR that the company regarded it as a marketing tool. Although Volkswagen promised to persuade CSR as their corporation culture, the reality turns out to be opposite. Volkswagen equipped defeat devices on cars deliberately to pass environmental tasks and actually the defeat device emitted nitrogen oxide approximately 40 times of standard (Dans, 2015). This behaviour can be explained as "green-washing", which means the real performance is different from the test results (Eric, 2015). The motivation of deception largely depends on corporation’s aggressive goal called “Strategy 2018” , which aim to increase annual sales to ten million cars by 2018 (Volkswagen, 2014). Therefore, Volkswagen needs to lower the price to be competitive to its competitors and one task is to reduce cost of production. Volkswagen used CSR concept to cover unethical actions. It demonstrates that Volkswagen focused on persuading the short-term target rather than its customers, long-term reputation and environment (Bansal, King & Seijts,

The mistrust between the Volkswagen Company and their customers developed after the scandal associated with the incorrect emission of data and cheating of the system unfolded.  The scandal occurred on the eighteenth of September 2015 when it was found that the company had made a car with a turbo that released emission directly into the real word atmosphere. The allegations were genuine and were proved by the Environment Protection Agency in the United States (EPA) (Hotten, 2016).The chief

Volkswagen company put sensors in the emission component, so when tested, the examiner sees that the car meets emission standards. But because the sensors are to meet U.S emission standards, the car itself can be modified to ignore the sensor’s override and make the car believe it was in use. TFL motors was curious about the scam, so they decided to put a Jetta TDI turbo diesel on an AWD Dyno, to confuse the car into thinking it’s on the street, not being checked for emissions. Being in emissions mode, the AWD dyno lost horsepower and torque, but without the sensors active the car produced excess diesel exhaust, going over the EPA regulated limit. The car itself was able to perform at a higher level without the sensors active, proving reason to hide the fact that excess exhaust is produced. Certain companies realize the regulations hold their products back, so to promote the fuel efficiency and or horsepower of the car, they would gladly hide the fact that their cars are emitting excess diesel exhaust. Some ways to prevent excess exhaust would be to install EGR coolers, or to buy tuners for your engine’s valves. But many professional truckers tend to stick with rolling coal. “Rolling coal” can happen by making a smoke switch, or removing emission controls on truck models, and adding a tuner to produce fine smoke build ups. Diesel exhaust is actually less harmful then a

Volkswagon was caught cheating on their diesel emissions by a man named Daniel Carder and his small research team at West Virginia University in late 2012 through May 2013. The team consisted of a research professor, two graduate students, a faculty member and himself. Their team originally wanted to investigate emissions to help the diesel cars in Europe. There has been much data suggesting vehicles in Europe have high nitrogen oxides and dioxides. The goal was to look at emissions in the U.S. where the emission standards were very strict. It was thought that if the cars were found to be clean, then they could take the data results to Europe, and say “why can’t you do the same in Europe?” The small research team had been granted $50,000

As a multinational corporation, the implication of the scandal determines the fate of numerous stakeholders both internal and external. Internal stakeholders comprise of the board, managers and employees while external stakeholders subsume shareholders, customers and suppliers. The economic, political and social impacts of the dishonest practices would shape the fate of Volkswagen and affect the future prospects of the automotive industry. Common shareholders whilst not involved in the day to day running of the business placed faith and belief in the firm by providing capital had suffered severe economic loss as share prices (get something for stat). Despite the callous deception in advertising the defeat device displayed no signs of disturbing vehicle performance, however, customers of Volkswagen and its subsidiary vehicles suffer from lower resale value. In addition, even though the scandal was global, European consumers were the most affected with diesel cars accounting for 41% of all European cars (Fontaras, 2016). This high percentage in respect to other nations is a result of incentives provided by the European Union for the purchase of diesel vehicles such as subsidies towards the production process resulting in lower premiums compared to petrol counterparts (Vidal, 2015) In additional with sales falling suppliers of Volkswagen would likely lose future contracts or have current contracts downgraded as less parts are required. Thus, this loss of future

Companies betrayed their employees, consumers, supplies, shareholders, and the government by using unethical techniques and being dishonest to keep their company on top. For example, Volkswagen Company is now in a business ethical dilemma, because the company wanted their latest cars to pose as a diesel friendly. In 2015, “the Environmental Protection Agency (EPA) found that many Volkswagen cars being sold in America had a defeat device or software in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the U.S. VW has had a major push to sell diesel cars in the U.S, backed by a huge marketing campaign trumpeting its cars’ emission. The EPA’s finding cover 482,000 cars in the US only, including the VW-manufactured Audi A3, and the VW models Jetta, Beetle, Golf and Passat. But VW had admitted that about 11 million cars worldwide, including eight in Europe, are fitted with the so-called “defeat device” (Russell Hotten).” “Volkswagen had been intentionally and scandalously cheating on their nitrogen oxide (NOx) emissions for

In light of the Volkswagen diesel scandal, GM has managed to undergo extra scrutiny of its new-to-the-US-market turbo-diesel engine and has emerged with both its reputation and its mileage claims intact.

VW has a very expensive, hard lesson to learn and an even harder task trying to regain the trust they lost with the ineffective apologies and lack of truthful communication at the beginning of the emissions scandal. Many people still love and trust VW, but many are angry, hurt, and very distrustful of anything VW says or does. VW will need to become a very strong and open communicator to survive this scandal, and rebuild lost relationships…if possible. Rebuilding these lost relationships with sincere, open communication might save a once great company that has fallen from its

Now while diesel prices have averaged 14 percent more per gallon than gasoline over that last decade (Staff @ WorkTruckOnline, 2011), there is an equalizer in this whole situation. The diesel’s fuel economy advantage over the gasoline powered version actually balances out the cost of the two fuels with each’s relative fuel economy. A diesel vehicle emits more greenhouse gas emissions when burnt than gasoline, but its higher energy content per gallon results in higher fuel efficiency for the vehicle. So, as a result, the diesel can go further on a single gallon than a gasoline truck, meaning it produces very similar greenhouse gas emissions as the gasoline powered engine, while running nearly the same cost for fuel per mile as a gasoline powered

Many years ago we succumbed to the idea that Diesels are polluting, dirty, and noisy. This may have been true back then, but we are now in a new era of Diesel engine performance. Advancement in Diesel engine technology was mandated by stricter new emission standards by the Environmental Protection Agency (EPA). The EPA requires that newer Diesel engines have TIER 3 compatibility. This meets and exceeds EPA 2010 model year certification. After the 2015 model year

Volkswagen committed an atrocity, worse even than making tanks for Hitler. They (or at least someone) willfully allowed toxic NOx (Nitrogen Oxides) gases to dissipate into the atmosphere. They no doubt need to recompense, but $48 Billion is just too much. That is an insane precedent to be set, and wildly unnecessary. No company in history could survive a hit like that, $48 Billion is over 75 percent of the Volkswagen’s market capital (all of the outstanding stocks multiplied by their value).

Gesellschaft zur Vorbereitung des Deutschen Volkswagens simply renamed to Volkswagenwerk, or “The People’s Car Company” is a German founded car company originally developed by Hitler. Volkswagen states that their morals include being responsible for people, the economy, society and the environment. These morals are quite contradicting due to the 2015 emission scandal where they have abandoned their values by hindering the economy, society, their consumers and the environment. Volkswagen used a software called defeat device on millions of diesel run cars. The software is able to determine when a car is going through an emissions test, making the vehicle appear more environmentally friendly. Volkswagen was caught when the EPA issued a notice

The people at the West Virginia had tested vehicles as well as the EPA (Patel). Volkswagen chose to include rout programming device to cheat the system to pass the testing laws. Volkswagen as a corporation was basically trying to cut the cost of engines to be built by limiting the NOx emission system that controls how much dirty chemicals that goes into the air (Patel).By the company putting this device in their cars they were trying to cut down the cost that they would have to spend, at the same time Volkswagen cars had better performance. The ethical question would be is it really worth it to CHOSE to overlook the laws to save money on cash (Patel). "We expected better from Volkswagen," said Cynthia Giles, the E.P.A's. colleague manager for the Office of Enforcement and Compliance. She called the automaker's activities "a danger to general health of our

It is not hard to see that the scandal would cause a horrid blow to VW’s image. Until the incident, VW had, like many other German companies, the reputation of “German engineering” (Robertson, 2013). However, instead of using that innovation to develop diesel-fueled cars compliant with U.S. standards, it decided to try to scam its way in the market. Not only did the company admit to having 11 million cars with software intended to cheat tests (Gates, Ewing, Russell & Watkins, 2017), it also plead guilty to “destroying evidence in an elaborate cover-up” (VW Admits Emissions Cheating and Cover-up, 2017); building further distrust among its consumers.

There are more than one billion cars in the world right now and this number is increasing everyday due to the demand of the cars. Most of the cars in the world have big engines right now. What a big engine means is the eight cylinder V8, ten cylinder V10, or twelve cylinder V12 engines. Those types of engines have been used for many years in the car industry. All the car manufacturers prefer to use those engines because people like them and thinking that more cylinder means more power. For many years those car manufacturers have not realized one thing that big engines emission rates are really bad and those engines are actually creating tons of carbon monoxide because they have more cylinders. Basically more