VOLKSWAGEN UNETHICAL

PRACTICE IN DIESEL EMISSION

TEST”

HIMANSHI
MBA SEM4th(H.R)
21421245
 ➢Volkswagen group, also called Volkswagen AG,
major German automobile manufacturer, founded
by the German government in 1937 to mass-produce
a low-priced “people’s car”. Headquaters are in
Wolfsburg Germany.
INTRODUCTION ➢ Volkswagen brand is one of the largest
manufacturers in the world for more than 70 years.
➢ Volkswagen production expanded rapidly in the
1950’s. the company introduced the transporter van
in 1950. sales abroad were generally strong in most
countries of export.
VOLKSWAGEN EMISSIONS
SCANDAL

• Volkswagen has been cheating in emission tests by making its

cars appear far less polluting then they are. The US
Environmental Protection Agency discovered that 428,000 VW
diesel cars on American roads were emitting up to 40 times
more toxic fumes than permitted- and VW has since admitted
the cheat affects 11m cars worldwide.
 VOLKSWAGEN EMISSION TEST SCANDAL
•The Volkswagen emission scandal sometimes known as diesel gate
or emission gate began in September 2015, when the United States
Environmental issued a notice of violation of the clean air act to
German automaker Volkswagen group.

• The agency had found that Volkswagen had intentionally

programmed turbocharged direct injection diesel engines to activate
their emissions controls only during laboratory emissions testing,
which caused the vehicles nitrogen oxide output to meet US
standards during regulatory testing.

• The vehicles emitted up to 40 times more nitrogen oxide in real world

driving. Volkswagen deployed this software in about 11 million cars
worldwide, including 500,000 in the United states, in model years 2009
through 2015
 PARTICIPANTS IN VOLKSWAGEN
EMISSION SCANDAL
•In October 2015, it was stated that the group of employees
participated in diesel scandal is small. CEO of Volkswagen
announced to United States lawnmaker that for whatever reasons
a small group of software engineers embedded the device in cars.

• The scandal was not corporate decision. The external

investigator of Volkswagen conducted internal investigation and
later revealed that 50 members of staff mostly in Wolfsburg
confessed that they were completely aware of emission scandal
activities.

• In November 2015 the number of participated managers,

technicians and engineers in the emission test scandal to operate
the defeat device dramatic.

• There have been various levers in this scandal. The one

individual is able to write codes of defeat device program, and on
the other hand implementation of this program to function with
engine and other elements requires more workforce to be
involved.
• The suspended managerial group consists of nine managers from
supervisory board, quality control and assurance, engine designers,
plant managers and managers of sub-companies such as Porsche
and Audi.

• There are approximately 100 million lines of codes are included in

each car. The defeat device was embedded amongst millions of
codes which are definitely far challenging to detect. There is a
possibility that a third part programmer has written the codes of
cheating program.
 WHY VOLKSWAGEN CHEATED
• The chairman of the company revealed to the public that a group
of Volkswagen engineers made decisions to rig diesel emission
test in 2005 when the united states EPA imposed the toughest
emission standards to automobile industry.

• The significant reasons forced them to take this decisions at that

time was in virtue of technology shortcoming.

• The Volkswagen engineers find out the solutions to face

emission standards they continue rigging rather than
implementing the method. The unethical scandal is not one off
mistake but it is a whole chain of mistakes taking place without
any disruption.

• The another reason fueling Volkswagen deception is unique

corporate culture of the company.

• Rewarding system of Volkswagen is another reason enforcing

employees to prefer keeping quiet about rigging in emission test
for a long time even if they preffered to reveal.
 IMPACT OF VOLKSWAGEN
DIESEL SCANDAL
.
The primary consequences
of this unethical scandal are below
❑ Threatening
i.e People’s Health.
❑ Slump in Workforce’s Bonus.
❑ Drop in Volkswagen Sale.
❑ Plunge in Volkswagen Shares.
❑ Creating Hassel for Volkswagen Dealers.
❑ Brand equity.
 SOLUTION FOR FINALIZING VOLKSWAGEN SCANDAL

• On 21 April 2016, Volkswagen has offered to concrete plan which has

been supported by united states government agencies and
environmental protection agency to solve and finalize the case which
Volkswagen cheated in emission test by installing a defeat device car’s
engine to game emission standards of EPA in the united states.

• In end of 2015 Volkswagen admitted that in eleven million cars globally

the deceptive software has been installed and 600,000 of those cars are
on the united states.

• The deal will given to the Volkswagen companies.

• There is a proposal for Volkswagen emission scandal that is:-

1. It is estimated that a giant amount of money is about to be spent in

seeking to penalize Volkswagen for its deception.

2. Instead of imposing additional financial burden to punish Volkswagen,

there are other ways such as green way to panelize Volkswagen rigging
in emission test.

3. Rather than squandering huge amount of money on penalties, it is more

favourable to spend this amount of penalty to advance traditional
technology.
 CONCLUSION
Volkswagen deceptive scandal is an overwhelming complicated
case having created dramatic hassles for its direct and indirect
stakeholders. Volkswagen cheating in diesel emission test was an
unethical action resulting in series of disastrous consequences, the
proposal of green punishment is a suitable solution to finalize this
case. Electronics cars enable environment protection agencies to
save cost and time for finding out new systems for controlling
emission tests. Volkswagen is not only penalized but also
compensates its scandal. In conclusion since this is an ongoing
case, there is a chance to lodge the proposal of green punishment
to judge to solve the issue in a win win method.