Volkswagen, The World's Best Selling Automotive Oem

Volkswagen is one of the largest automakers in the world and it has a global reputation as a high-quality German auto brand. Social responsibility is included in VW’s corporate culture and it seems that Volkswagen made some advances in Corporate Social Responsibility because the corporation was ranked 11th 2015 in the Global CSR Rep Track 100, which listed companies by reputation (Reputation Institute, 2015).However, the company has been threatened by an emission scandal which broke in September 2015, when the Environmental Protection Agency (EPA) disclosed that Volkswagen had installed defeat devices on diesel cars which were sold in the US. These devices equipped on VW cars cheated regulators in such a way that it could detect

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 is under investigation following reports from the EPA that they had installed software into their engines that deceived emissions testers. Furthermore, engineers updated this software in 2014, claiming that they were improving the vehicles. James Liang, a senior engineer who had worked for Volkswagen for 30 years, admitted to investigators in September of 2016 that he had designed the software in question. Further investigation has revealed that this conspiracy may have involved executives of the company. It is unknown to the public whether Liang was acting under orders when he designed the software or he decided to create it on his own to meet requirements his superiors gave him. Both rule utilitarianism and Kantian duty ethics

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

A “Green Police” eco check. They are rummaging through cars looking for all non-recycler, and making it their main priority. With canopies up, mopeds patrolling and k-9s sniffing for plastic and styrofoam, they are out to catch non-recycler and throw them in jail, where they rightfully belong. Not recycling and being “green” is a big crime these days. An Audi A3 TDI is passed up, and sent on its way, due to its “greenness,” and greatness. The Audi isn’t even looked at, or searched. The police already knew that it was eco friendly. Everyone in line wishes they could have the Audi A3 TDI right now, due to its eco friendliness, its slick looks, and save you two hours of sitting in traffic due to eco random eco checks. So what's so good about the Audi A3 TDI, it’s eco friendly

Initial purchasing costs of gas over diesel powered vehicles is usually a large factor that consumers take into account when purchasing a vehicle. Research has shown that on average, a diesel version versus gasoline version of the same vehicle, is $5,045 more than the gasoline version. (Vincentric, 2012) Consumers buying on a budget have to take these factors into consideration, which generally means that in more consumer-oriented cars and SUVs, the gasoline version sells much better than the diesel. Common reasons for this is that usually consumers associate diesel engines with the loud, smoke-blowing pickup trucks that smoke out an entire intersection. So people in the market for a vehicle that haven’t done their homework on the diesel powered version are more than likely to pick the gasoline version.

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

With great innovation, Chevrolet has revamped a multitude of its products to assist with branding and to deal with new environmental regulations. Furthermore, Chevrolet offers a collection of the following listed cars in 2017: Spark, Impala, Chevrolet SS, Corvette, Tahoe, and Suburban (Colias, 2015). Over the past decades, these models have met countless environmental and regulatory challenges. More specifically, unfamiliar fuel economy rules are in place that will require car manufacture to double the miles per gallon standards for the cars and light trucks (Tuttle, 2012). This brand-new rule would be considered a weakness of Chevrolet, since a few of the best selling brands of Chevrolet achieve low miles per gallon. Chevrolet has introduced

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.

After the announcement of the emissions scandal, Volkswagen is fumbling to figure out how to pick up the broken pieces of its brand image. Volkswagen had ruined the trust of all of its stakeholders. The announcement of the cheated emissions test has crushed Volkswagen’s stock price by almost 20%, which implies an almost $27 billion loss in market value. This scandal required the recall of 11 million cars with an expected cost of over $25 billion in penalty fees and the cost to fix recalled vehicles. This scandal of much higher than stated emissions directly contradicted with Volkswagen’s branding of a clean emission diesel vehicle. It could not have gotten much counter-intuitive. Volkswagen has spent 45% of its television advertising budget directly focusing on Volkswagen’s products’ low emissions. That marketing budget is now valueless. However, most importantly, Volkswagen upset its customer base. The owners of these recalled vehicles not only feel lied to and betrayed, they have to take time to bring their recalled car in to get fixed. But, one of the biggest complaints is the loss of resale value totalling nearly $5000. This may disrupt repeat customers and