Why the Volkswagen Scandal is a big deal?

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September 17, 2015

Why the Volkswagen Scandal is a big deal?


Welcome to our latest car blog! We simply love cars and the latest vehicle development news. With the latest Volkswagen scandal making waves in the vehicle manufacturing sector, we thought we simply had to base this article on the scheme and how it was uncovered.  For those car fanatics that have not been keeping up to date with the VW saga, we hope this is an interesting read.


Most car fans will know that Volkswagen is the world’s largest automaker and the company has shockingly been found to have rigged its diesel engine emissions tests in Europe and America.


How was this Scheme uncovered?

A West Virginia laboratory was initially commissioned by a clean energy advocacy group. The advocacy group had questions about various emission levels in diesel vehicles. Volkswagen had insisted to officials from the United States that they were not doing anything wrong and that their emissions data was accurate and true. Volkswagen Group was found to have indeed falsified U.S. pollution tests on 500 000 diesel engine vehicles.


How did Volkswagen do this?

The vehicle manufacturer was found to have installed specialised software known as “defeat devices” which made the vehicle appear cleaner whilst being tested for emissions levels.  It was then discovered that once these vehicles were on the road, they would pump out as much as 40 times the allowed level of nitrogen oxides. VW has come clean and admitted that they had indeed installed these devices in order to pass emissions tests.

Which vehicle models have been affected?

Vehicle models affected in the U.S. include the VW Jetta, Golf and Beetle from 2009 – 2015 as well as the Passat from 2014-2015 and Audi A3 models in the years 2009-2015. It is estimated that roughly 5 million VW brand vehicles (including some Tiguan models) and 1.8 million light commercial vehicles are affected worldwide. Other brands such as Audi, Seat and Skoda are apparently also involved.

What Is Volkswagen doing about the situation?

The company has begun preparations to correct the emissions of approximately 11 million diesel vehicles in the near future and will also present important technical findings to the appropriate authorities in October. VW will recall the 500 000 affected vehicles cars in the U.S. and it has also suspended sales.


How has this affected Volkswagen?

Other than Volkswagens reputation as a world class vehicle manufacturer being ruined, the company is bracing itself for hefty fines and penalties from U.S. and German authorities. There will also be extensive costs involved for the recall of affected vehicles. Investors, dealers and vehicle owners will more than likely also demand compensation. Employees that are found to be responsible or involved in the scheme may be prosecuted for fraud and if found guilty could face fines and/or imprisonment. Approximately a third of the company’s market value has been wiped out and dominant shareholders such as Qatar and Porsche will possibly face huge losses. The company’s former CEO Martin Winterkorn is being investigated and has resigned despite denying any knowledge of the scandal.


Will Volkswagen be able to come back from this? A quote from Warren Buffet comes to mind “It takes 20 Years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”


SACARS4SALE will continue to follow the latest developments and keep you posted.


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