If only everything in life was as reliable as a Volkswagen?
Well, it seems the manufacturers at Volkswagen aren’t reliable at all. It has emerged that the Volkswagen group of companies that also includes Audi, Skoda and SEAT have been caught violating vehicle emissions standards. As a result what was once one of the most trusted and reliable car brands in the world is being slowly ruined by the media after their involvement in what can only be described one of the largest corporation scandals of recent times.
What did Volkswagen do?
Volkswagen are reported to have been manipulating exhaust emissions tests with the use of a “defeat device” software algorithm. This has made the cars in question appear environmentally cleaner than they actually are. The software that allowed the cheating of the emissions test is reported, by Volkswagen, to have been installed in 11 million cars.
How much will this cost Volkswagen?
As well as the company’s brand value slowly diminishing as a result of the scandal, share prices took a sharp plummet too. If that was not cost enough Volkswagen have set aside a massive £4.7bn to deal with the years of costly litigation that lie ahead. However, the case being brought is likely to cost far more. The company are sure to be looking for further litigation funding to survive the lawsuits that are pouring after 10 different countries have launched investigations.
What will Volkswagen do now?
The German authorities have given the car giant until the 7 October 2015 to come up with a resolution to the scandal that is said to have caused almost 1 million tonnes of additional pollution to be released into the atmosphere.
Cars fitting with the cheat device are now being recalled to be corrected, although the process could take some time to complete. The company said: “Step by step, affected customers will be contacted, with details of a process to get their vehicles corrected in the near future. In the meantime, all vehicles are technically safe and roadworthy.” Many of the recalls are from the UK market.
Is this the end of the Volkswagen brand?
Although consumers of Volkswagen vehicles will have the problem corrected what will become of the company? The scandal goes further than the strong vehicle brand being damaged. The “made in Germany” brand could come under fire along with Germany’s reputation for being one of the most robust engineering countries in the World.
Will we ever look at Herbie and the beloved VW campervan in the same light again? Will the brand survive? What do you think of the Volkswagen emissions scandal? Tell us in the comments.