Archive for September, 2015

Volkswagen Emissions Scandal Rocks the Globe

By admin

Wednesday, September 23rd, 2015

This week, automobile company Volkswagen admitted that they intentionally designed vehicles to evade environmental regulations. The news began last week when the EPA accused the company of installing software on nearly 500,000 U.S. vehicles to manipulate emissions tests. The software fools regulators into believing that a four-cylinder diesel car complies with emission standards. In reality, the cars were letting out harmful pollutants at alarming rates, which some say are over 40 times the required standards.

After the EPA called out Volkswagen, their CEO admitted to the deception. As a result of the gaft, the EPA can fine the company up to 18 billion dollars for their actions. Many are also predicting that this will trigger recalls of the affected vehicles as well as a bevy of consumer lawsuits.

The full ramifications of the manipulation are unclear at this time, but one thing is for sure, this is another clear example of a company putting profit before consumer safety. We’ve seen this script before. Such historical examples like the Ford Pinto of the 1970’s or the Ford Explorer of the 1990’s remind us that car companies don’t always get it right and often put greed ahead of safety.

Volkswagen’s stock has plummeted and their CEO is on his way out but the company may need the EPA to set a tone for this behavior and put other companies on notice that this behavior will not be tolerated. But, something tells me no matter what happens, this is just another business expense for Volkswagen and car companies like them.