Volkswagen Group : The Legal Issue

932 WordsJan 22, 20164 Pages
Volkswagen Group a German multinational car manufacturer headquartered in Wolfsburg, Germany has got itself into a major legal issue. In return, it has effected many different stakeholders throughout the world. The legal issue in this case is that the car company was exposed by the Environmental Protection Agency for installing a “defeat device” in diesel cars that lead the car to be able to emit toxic gases 40 times the legal limit. This device would recognize when the car was being tested and changed the emissions of the car so it would pass emissions tests. The company has admitted in September to installing this specific device in 11 million cars around the world, more specifically 500,000 in the United States and 8.5 million in Europe (Hakim). It is also important to note that Volkswagen owns the brands Audi, Porsche, SEAT, and Skoda. Class actions suites have already started pouring in from the United States and group litigations have also started in Europe, Netherlands, Ireland, with a shareholders suit in the company’s home of Germany. The legal issues in this case is that Volkswagen performed corporate fraud and environmental fraud. This is a huge deal because this may end up being the largest and longest case of corporate fraud in the auto industry’s history. And not only does it affect one country but it also effects other countries mentioned above. So far 10 Countries have opened investigations because of these findings. Just in the United States Volkswagen
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