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Case Study Analysis: Volkswagen

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Added on  2023/01/10

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This paper provides a deep analysis of the Volkswagen scandal, discussing the ethical and political issues involved. It explores the impact on the company, market share, and the environment.

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Running head: CASE STUDY ANALYSIS: VOLKSWAGEN
CASE STUDY ANALYSIS: VOLKSWAGEN
Name of the Student
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Author Note

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CASE STUDY ANALYSIS: VOLKSWAGEN 1
Introduction:
The purpose of this paper is to do a deep analysis of the case study of Volkswagen.
The Volkswagen scandal is a famous case of how organizations may shape the ethical as well
as political problems of the environment. In the month of September, this has been found that
many cars that are manufactured by Volkswagen that had been sold in America was having a
defected device. The Volkswagen company that has the headquarter in the Wolfsburg,
Germany claims that Bugatti, Bently, Lamborghini, Porsche, Audi, SEAT, as well as Skoda.
The presence of Volkswagen company as one of the worldwide based company has made this
company a huge association, not only the lawful as well as the monetary incidents that was
happened from several countries, but at the same time this was so much harmful that is for
the society as well as that situation which cannot be looked down upon completely. Recently
the Volkswagen company was having a goal for going to be the biggest carmaker company of
the world by the year 2018, but this scandal has caused the company for losing about 33% of
the market share of the organization. The company Volkswagen was having a primary push
for selling that cars whose engine was based on diesel in the united states of America. In the
month of November, it was said by Volkswagen that this was found irregularities in the
testing for measuring the levels of the CO2 which may affect about eight lakhs cars in the
Europe that are also including the vehicles that are based on petrol. The organisation has been
also accused through the EPA of the software that are modified on the three litre diesel
engines that have been fitted to some of the Audi as well as Porsche and also the Volkswagen
models.
Case description:
VOLKSWAGEN has been having a major push for selling the cars that are diesel
based in the United Sates, supported by an immense for that effort that is for the promoting of
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2CASE STUDY ANALYSIS: VOLKSWAGEN
the trumpeting of the cars which has been running on the Emissions that are low. The
discoveries that are belonged to the EPA have been spread about 482,000 numbers of the
vehicles in the United Sates that are including the VOLKSWAGEN made Audi A3, as well
as the models of the Volkswagen that are Beetle, Jetta, Golf as well as Passat. However, it
has been conceded by Volkswagen that around eleven million of the vehicles that are around
the world, that was also incorporating eight million in Europe, has been fitted with the
"defeated device" that can be considered as alleged. The organization that has been blamed
also by the EPA for changing the system on the three litter diesel motors fitted for some
Porsche as well as Audi as well as the VOLKSWAGEN models. The International Council
on Clean Transportation (ICCT) suspected that Volkswagen was introduced a destruction
device that can harm the nature. The developer who was composing code that tells the
personal car that is going through the tests of the official test cycle as well as takes into the
changes in that the Emissions control system. Fundamentally, diesel engines have an issue
between power, eco-friendliness, as well as clean discharges as well as the vehicle can just
pick two out of three. Nonetheless, the gadget can just do as such much. Someone who is
belong from the inside of the the company must have played out purposely the approvals
inaccurately. The ICTT has taken up the data as well as the information that is about 15
vehicles which are from three unique sources, at that point turned its discoveries to the EPA
as well as the California Air Resources board. On the 18th September 2015, the EPA have
declared that Volkswagen had disregarded the Clean Air Act by illicitly introducing
programming into diesel based cars to swindle discharges tests that radiated lethal gases up to
an amazing multiple time above allowed levels. Volkswagen has pastly long turned into the
objective of the testing that are official in several countries. The Investigators who are from
the United States, South Korea, Italy, France, Germany, Canada as well as the UK attempted
to discover what number of the people knew about the misleading which was happened inside
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3CASE STUDY ANALYSIS: VOLKSWAGEN
of the organisation. One German paper have even mentioned the scandal as one of the most
costly demonstration of idiocy in the history of the vehicle industry. As updates on the
scandal started for releasing, Volkswagen's stock market share promptly started to fall.
Volkswagen conceded that about eleven million of the vehicles from the worldwide that has
been settled with the harmful device. At the point on November 2, 2015, the EPA also found
a similar annihilation gadget on extra Volkswagen, Audi, as well as even Porsche models. In
any case, the greatest disaster of this whole outrage is the arrival of colossal measures of
nitrogen oxide into the environment. NOx gases cause exhaust cloud, corrosive downpour, as
well as the development of the ground level ozone that are related with the wellbeing impacts
that are unfriendly, as an example it can be said that, the aggravation of the routes that are
aviation as well as respiratory issues including asthma, bronchitis, emphysema, etc. The High
dimensions of the NOx has additionally been caused harm for the vegetation that are
including the growth that can be considered as diminished. The EU distributed also the report
of the stock in 2011 that expressed most of NOx gases originates from the road transport
where the number of percentage is 40%. This is imperative for the understanding that the
harmful effect for the ecology that is as a result from the scandal will have an unmistakably
all the more from this project as well as effect that is harmful on the biological system.
VOLKSWAGEN CEO Martin Winterkorn founded that five days after the scandal broke in
2015, demanding anyway that he knew nothing of the trick. He was supplanted by Matthias
Mueller; him self’s identity presently being researched. In April, Mueller was out of the blue
supplanted as CEO by VOLKSWAGEN brand boss Herbert Dieses. VOLKSWAGEN's
heartfelt request to the United Sates criminal case in March 2017 settled its lawful
ensnarement’s there, including $4.3 billion in criminal as well as common fines to $17.5
billion it had officially consented to pay in pay to proprietors as well as sellers as well as for
ecological tidy up. Volkswagen never again faces lawful activity in the United Sates, yet

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4CASE STUDY ANALYSIS: VOLKSWAGEN
eight previous as well as current administrators as well as an Audi authority have been
charged, including Winterkorn. Out of the nine two have just been given jail terms.
Cybercrime:
In one strange corporate the offence that has been committed by Volkswagen, about
eleven million of the vehicles has been set to be recalled as well as the organisation is going
to face $37500 dollars of penalty for each of the cars for the fail in emission norm. The CEO
has surrendered obviously. The market share of the company is down over 40% as well as the
whole Stock markets crosswise over Europe as well as even India has plunged making
overwhelming misfortunes a large number of speculators. The organisation is accounted for
to have put aside US $6.5 billion for review of autos however may miss the mark regarding
meeting the obligation that was estimated to be over $18 billion. Except if some of the
compromises is worked out, the organization can go into liquidation causing misfortunes to
numerous moneylenders and value financial specialists. It is intriguing to investigate the
reason for this disastrous occurrence as well as whether it fits into a meaning of a Cyber
Crime. The issue includes a product that the Company has introduced in the vehicle. This
product perceives when the vehicle has been put through an "Emission Test". On the off
chance that it perceives the Emission test, it changes the emanations so it falls inside the
allowed dimensions. In different occasions, the discharge levels are at ordinary dimensions
which is said to be multiple times past as far as possible.
Case analysis:
Volkswagen ought to be considered to be more responsible to the activities of them,
yet the major issue which has been discovered by which the control system has been gone
undetected for such a significant number of years. On the other side it can be found that that
it was not for the presence of NGOs, for example, the ICCT has described that this scandal
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5CASE STUDY ANALYSIS: VOLKSWAGEN
may have never been revealed as well as Volkswagen would have continued to produce the
harmful gases that can be allowed by the laws of a particular nation. In the month of
September, this has been found that many cars that are manufactured by Volkswagen that had
been sold in America was having a defected device. The Volkswagen company that has the
headquarter in the Wolfsburg, Germany claims that Bugatti, Bentley, Lamborghini, Porsche,
Audi, SEAT, as well as Skoda. The presence of Volkswagen company as one of the
worldwide based company has made this company a huge association, not only the lawful as
well as the monetary incidents that was happened from several countries, but at the same time
this was so much harmful that is for the society as well as that situation which cannot be
looked down upon completely. Recently the Volkswagen company was having a goal for
going to be the biggest carmaker company of the world by the year 2018, but this scandal has
caused the company for losing about 33% of the market share of the organization. The
company Volkswagen was having a primary push for selling that cars whose engine was
based on diesel in the united states of America. In the month of November, it was said by
Volkswagen that this was found irregularities in the testing for measuring the levels of the
CO2 which may affect about eight lakhs cars in the Europe that are also including the vehicles
that are based on petrol. The organisation has been also accused through the EPA of the
software that are modified on the three litre diesel engines that have been fitted to some of the
Audi as well as Porsche and also the Volkswagen models. This car maker company also
intends the Volkswagen Natustrom energy supply that is for the households for coming from
the sources that are renewable as well as verified by TUV. The discoveries that are belonged
to the EPA have been spread about 482,000 numbers of the vehicles in the United Sates that
are including the VOLKSWAGEN made Audi A3, as well as the models of the Volkswagen
that are Beetle, Jetta, Golf as well as Passat. However, it has been conceded by Volkswagen
that around eleven million of the vehicles that are around the world, that was also
Document Page
6CASE STUDY ANALYSIS: VOLKSWAGEN
incorporating eight million in Europe, has been fitted with the "defeated device" that can be
considered as alleged. The organization that has been blamed also by the EPA for changing
the system on the three litter diesel motors fitted for some Porsche as well as Audi as well as
the VOLKSWAGEN models. VOLKSWAGEN was having denied the cases, that can
influence at any amount for the 10,000 vehicles. In the month of November,
VOLKSWAGEN said they have discovered some of the techniques for the tests for
quantifying carbon dioxide levels that could influence around 800,000 cars in the Europe
country that also including petrol based vehicles. In any case, in December it has been said
that following tests, this was having the set up for the lone that was influenced around 36,000
of the cars that has been delivered by it each of the year. The ICCT suspected that
Volkswagen was introduced a destruction device that can harm the nature. The developer
who was composing code that tells the personal car that is going through the tests of the
official test cycle as well as takes into consideration changes in how the Emissions control
system. Fundamentally, diesel engines have an issue between power, eco-friendliness, as well
as clean discharges as well as the vehicle can just pick two out of three. Nonetheless, the
gadget can just do as such much. Someone who is belong from the inside of the company
must have played out purposely the approvals inaccurately. The ICTT has taken up the data
as well as the information that is about 15 vehicles which are from three unique sources, at
that point turned its discoveries to the EPA as well as the California Air Resources board. On
the 18th September 2015, the EPA have declared that Volkswagen had disregarded the Clean
Air Act by illicitly introducing programming into diesel based cars to swindle discharges
tests that radiated lethal gases up to an amazing multiple time above allowed levels. In any
case, the greatest disaster of this whole outrage is the arrival of colossal measures of nitrogen
oxide into the environment. NOx gases cause exhaust cloud, corrosive downpour, as well as
the development of the ground level ozone that are related with the wellbeing impacts that are

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Document Page
7CASE STUDY ANALYSIS: VOLKSWAGEN
unfriendly, as an example it can be said that, the aggravation of the routes that are aviation as
well as respiratory issues including asthma, bronchitis, emphysema, etc. The High
dimensions of the NOx has additionally been caused harm for the vegetation that are
including the growth that can be considered as diminished. The EU distributed also the report
of the stock in 2011 that expressed most of NOx gases originates from the road transport
where the number of percentage is 40%. This is imperative for the understanding that the
harmful effect for the ecology that is as a result from the scandal will have an unmistakably
all the more from this project as well as effect that is harmful on the biological system.
VOLKSWAGEN CEO Martin Winterkorn founded that five days after the scandal broke in
2015, demanding anyway that he knew nothing of the trick. He was supplanted by Matthias
Mueller; him self’s identity presently being researched. In April, Mueller was out of the blue
supplanted as CEO by VOLKSWAGEN brand boss Herbert Dieses. VOLKSWAGEN's
heartfelt request to the United Sates criminal case in March 2017 settled its lawful
ensnarement’s there, including $4.3 billion in criminal as well as common fines to $17.5
billion it had officially consented to pay in pay to proprietors as well as sellers as well as for
ecological tidy up. Volkswagen never again faces lawful activity in the United Sates, yet
eight previous as well as current administrators as well as an Audi authority have been
charged, including Winterkorn. The mobility that is sustainable with the electric vehicles, the
carbon di oxide neutral production as well as the energies that are from the sources that are
renewable, those are some of the concrete measures of the Volkswagen for making the
electric based vehicles as much clean as much possible. For achieving the climate neutral
mobility, all of the signs that are belong to the Volkswagen, have been pointing to the electric
based mobility.
Document Page
8CASE STUDY ANALYSIS: VOLKSWAGEN
Conclusion:
Thus, it can be concluded that Volkswagen recently had an objective of turning into
the world's biggest carmaker company by 2018, however the scandal caused the organization
to lose 33% of the organization's market share. This car maker company also intends the
Volkswagen Natustrom energy supply that is for the households for coming from the sources
that are renewable as well as verified by TUV. The mobility that is sustainable with the
electric vehicles, the carbon di oxide neutral production as well as the energies that are from
the sources that are renewable, those are some of the concrete measures of the Volkswagen
for making the electric based vehicles as much clean as much possible. For achieving the
climate neutral mobility, all of the signs that are belong to the Volkswagen, have been
pointing to the electric based mobility. The electric based cars already have been become the
most climate neutral means for the individual cars.
Document Page
9CASE STUDY ANALYSIS: VOLKSWAGEN
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10CASE STUDY ANALYSIS: VOLKSWAGEN
Siano, A., Vollero, A., Conte, F., & Amabile, S. (2017). “More than words”: Expanding the
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