Posted by Amber Piskunov.
The well known German car maker, Volkswagen, has made headlines regarding a scandal involving software that cheats diesel emissions testing. This software has affected over 11 million diesel fueled cars creating many lawsuits. The cheating software covered up nitrogen oxide emissions and underestimated greenhouse gas emissions and also fuel consumption. This scandal has created many more lawsuits against the car maker regarding the violations of the US environmental laws. Volkswagen has admitted to installing the software due to the investigation which also involves whistle-blowers of the company. There has been a lack of progress with this lawsuit because there is not a valid explanation as to whom allowed the decision for the cheating software.
The investigation is still ongoing; the EPA has called for the employees of Volkswagen to come forward with any information regarding the matter. They have until November 30th to provide information regarding the truth to the scandal. A statement was made by US law firm Jones Day stating, “Those who come forward before the deadline have nothing to fear from the company in the way of repercussions on the job such as being fired or held liable for damages.” However, this offer is only for those protected by the collective bargaining pact. This is a way for workers to feel less threatened by the scandal and to help the law firm gain information to further reach a decision. Volkswagen has said they have no influence over decisions made by other employees who decide to come forward. Volkswagen is trying to cover up as much information as they can to prevent further actions against them.
Volkswagen has been under the spotlight since the scandal was announced. Following the announcement, Volkswagen has had a drop in sales from all around the world. The company also announced they will begin fixing the emissions problem in January. Not only is Volkswagen beginning to fix the problem, they are also offering gift cards as a form of goodwill in hopes to help maintain their reputation. Compensation to car owners is still being discussed as the lawsuit continues.
The impact this has had on the car maker should have been looked upon before the decision was made to install the software. Volkswagen clearly knew this was an issue and still decided to produce the vehicles in hopes of profits. Not only did they get caught with illegally installing software that goes against the Environmental Protection Agency, they now have a massive lawsuit causing bad publicity and a decline in sales. All in all, Volkswagen has affected many aspects of their company along with the public and environment.
Amber is an accounting major at the Feliciano School of Business, Montclair State University, Class of 2017.
http://www.theguardian.com/business/2015/nov/13/volkswagen-car-sales-fall-october-emissions-rigging-scandal
http://www.wsj.com/articles/volkswagen-to-offer-whistleblowers-impunity-on-emissions-cheating-scandal-1447317337