The VW Emissions Scandal Could Cost Them Billions
Volkswagen, one of the biggest names in the automotive business, is facing a backlash from consumers after it was revealed that they found a loophole to get around emissions tests.
It’s believed that the revelations could cost the company more than $18 billion with shares in the company, who also produce the likes of Audi, Lamborghini, Bentley, Bugatti, Porsche, Seat and Skoda vehicles, dropping by around 20% as the news began to filter around the world, with experts believing that British drivers could be driving around in illegal vehicles.
It was revealed this week that the company had installed a form of software aimed at deceiving the emission tests into their VW and Audi diesel cars since 2009, showing that the cars were producing less emissions than they actually were in order to ensure that they met the guidelines set out by the authorities.
In an article in the Telegraph this week, it was announced that just one in ten new diesel vehicles complied with the Euro 6 emissions standard in relation to the amount of Nitrous Oxide produced, and in fact one particular unspecified BMW model was producing “ten times the legal limit.”
Over in the United States, Volkswagen have been ordered to recall around 500,000 diesel models and to adapt them until they meet the required standards – which is likely to have a huge knock-on effect for customers and the company share price on this side of the Atlantic too.
When a company the size of Volkswagen, with a loyal following and such a huge range of models that have sold so well because of their styling and their fuel economy over the years, makes such a huge mistake it could be detrimental in the long-term, not the short.
Customers are likely to take offence with what the company have done in terms of rigging the emissions, causing them to emit huge amounts of harmful gas into the environment without their knowledge with many choosing the VW brand – and range – because of their perceived low emissions.
The CEO of Volkswagen, Martin Winterkorn, has apologised to customers and ordered an internal investigation into the scam – although he may soon have to apologise to other manufacturers and consumers too if it starts to affect people’s trust in car manufacturers.
Rather than buying a brand new car, customers may decide that it’s not worth the risk because of VW’s deception and this could affect the economy across the UK as a whole with the new and used car market proving to be one of the biggest in the country.