In: Economics
Volkswagen’s Emissions Scandal
What ethical behaviors and consequences arose from the Volkswagen Emissions Scandal as related to the items in criticisms and questionable assumptions of capitalism?
What was Volkswagen accused of
What the company has done is called the "diesel dupe". In
September, the Environmental Protection Agency (EPA) found that the
cars being sold in America had a "defeat device" -a piece of
software in diesel engines that could detect when they were being
tested, changing the performance accordingly to improve results.
The German car giant was compelled to admit the charges . The
company has also been accused by the EPA of modifying software on
the 3 litre diesel engines fitted to some Porsche and Audi as well
as VW models.Buy VW has denied the claims, which may affect
thousands of vehicles
The detected 'defeat device' sounds like a sophisticated piece of
kit.
When the cars were operating under controlled laboratory conditions
, the device put the vehicle into a sort of safety mode
in which the engine ran below normal power and performance. Thus
the engines emitted nitrogen oxide pollutants up to 40 times above
what is allowed in the US on road .
Ethical issues
Mr Winterkorn resigned as a direct result of the scandal and was
replaced by Matthias Mueller, who was the former boss of
Porsche.But the ethical question posted is much higher . The trust
on the German gaint has gone , the fake advertisements that they
had given claiming least pollution rates . The pseudo environmental
tag which the company tried to wear has been shattered . Above all
it had ruined atleast some of the disease car markets especially in
Us . The decision of them to recall 8.5 million cars in Europe,
including 2.4 million in Germany and 1.2 million in the UK, and
500,000 in the US as a result of the emissions scandal shows how
the are being insulted by themselves at an international arena . It
raises a big question that to what extend can a buyer trust the
claims by these car manufacturing gaints. Mahindra in india have
launched Kuv , tagglining " the world smallest SUV . But the
frequency of road accident encountered by this particular model in
india was much higher compared to other models. So most of these
gaints across the world is making use of the information assymetry
to grab market .