Essays on The Volkswagen Scandal: A Mucky Business Article

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The paper "The Volkswagen Scandal: A Mucky Business" is an outstanding example of a business article. This is the article by “ The Economist” journal on 26th September 2015. The article analyses the scandal that followed the discovery by the United States’ Environmental Protection Agency (EPA) that Volkswagen had deliberately installed software in its cars that cheated emissions tests. This meant that Volkswagen cars produce less harmful emissions during tests, but were actually big polluters on the roads. The implication of the discovery is that consumers were deceived into buying cars that they believed emitted less harmful gases than was actually the case.

The regulators were also led to believe that Volkswagen was an honest corporation that complied with minimum emissions standards. The scandal exposed Volkswagen to costly fines by regulatory bodies in the United States and the European Union. The company was also exposed to numerous class action lawsuits by consumers in North America and Europe. However, the greatest cost to the company is the loss of its reputation as a manufacturer of high-quality vehicles that can be trusted by its consumers.

Consumers can no longer have full trust in the company’ s claims regarding fuel efficiency and emission reduction in its cars (Lö hr, 2015). According to “ The Economist” , Volkswagen has invested heavily in diesel technology that has resulted in the production of cars that burn diesel fuel more efficiently. This type of car is to link high demand in Europe due to the fact that they produce less carbon dioxide and are cheaper to fuel for consumers. However, diesel cars burn the fuel at much higher temperatures resulting in the production of several oxides of nitrogen (NOx).

While the oxides do not contribute significantly to global warming and depletion of the ozone layer, they contribute to the generation of smog and damage to plants and animal lungs. These harmful effects have attracted the attention and concern of authorities, particularly in North America and Europe.  

References

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Reuters. (2017, January 7). FBI arrests Volkswagen executive on fraud charges: NYT | Reuters. Retrieved from Reuters : http://www.reuters.com/article/us-volkswagen-usa-idUSKBN14T0JA

The Economist. (2015, September 26). The Volkswagen scandal: A mucky business | The Economist. Retrieved February 6, 2017, from http://www.economist.com/news/briefing/21667918-systematic-fraud-worlds-biggest-carmaker-threatens-engulf-entire-industry-and

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