Volkswagen Diesel Emission Scandal: A Research Project on Unethical Practices and Environmental Impact

This research project delves into the Volkswagen diesel emission scandal, examining the unethical practices employed by the company to pass carbon emission tests. It analyzes the impact of these actions on human health and the environment, exploring the reasons behind the scandal and the consequences faced by Volkswagen. The study utilizes both primary and secondary data, including surveys of consumers and experts in the automotive industry, to provide a comprehensive understanding of the scandal's implications.

research project
Volkswagen diesel emission scandal

EXECUTIVE SUMMARY
The main focus of this research study is in determining the aspects which should be
considered by the organization for the environment protection (Armstrong, et al. 2015). In
addition to this, the process of passing the carbon emission test by Volkswagen is also
analysed in order to identify the loopholes in the system and also understand suitable
strategies for the effectiveness. Further, the consequences of applying the unethical practices
at the workplaces are also assessed in order to conduct better functioning in the
organization. There are different reasons due to which the unethical practices are conducted
by the Volkswagen in their workplace and it further possesses a huge influence on the
environment.
Hence, the initial phase of the project would be assessing the unethical practices which are
conducted in the Volkswagen for managing the carbon emission. The effects of the carbon
emission on the health of people are also evaluated. At last, the data from the research
would be utilized in future at suitable situations.
Also, the findings from the research would be helpful in developing suitable strategies for the
betterment of the environment through the operations of the company.
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Contents
EXECUTIVE SUMMARY...............................................................................................................1
1.0 INTRODUCTION....................................................................................................................4
2.0 LITERATURE REVIEW..........................................................................................................10
2.1 BACKGROUND................................................................................................................10
2.2 HOW VOLKSWAGEN PASSED THE CARBON EMISSION TEST AND REASON BEHIND THE
PRACTICE..............................................................................................................................11
2.3 SIMILAR CASES...............................................................................................................12
2.4 VOLKSWAGEN DEFEAT DEVICE......................................................................................13
2.5 VOLKSWAGEN RESPONSE..............................................................................................15
2.6 HOW WIDESPREAD ARE THE PROBLEMS FOR THE VOLKSWAGEN?..............................19
2.7 THE SETTLEMENT...........................................................................................................20
2.8 ARE OTHER CARMAKERS IMPLICATED?.........................................................................22
2.9 CONSEQUENCES OF THE UNETHICAL PRACTICE............................................................24
2.10 EXTENT OF VOLKSWAGEN CHEATING ON ENVIRONMENT.........................................24
2.11 EXTENT OF VOLKSWAGEN CHEATING WITH PEOPLE AND GOVERNMENT.................25
2.12 LEGAL AND FINANCIAL REPERCUSSIONS.....................................................................25
2.13 CONCLUSION................................................................................................................26
3.0 RESEARCH METHODOLOGY...............................................................................................27
3.1 INTRODUCTION..............................................................................................................27
3.2 RESEARCH PHILOSOPHY.................................................................................................30
3.3 RESEARCH APPROACH....................................................................................................30
3.4 RESEARCH STRATEGY.....................................................................................................31
3.5 CHOICE OF RESEARCH METHODS..................................................................................31
3.6 RESEARCH SAMPLING....................................................................................................31
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3.7 DATA COLLECTION.........................................................................................................32
3.8 RESEARCH DESIGN AND TYPE........................................................................................32
3.9 SAMPLING PROCESS.......................................................................................................33
3.10 VALIDITY, TIME FRAME, AND RELIABILITY...................................................................33
3.11 DATA ANALYSIS............................................................................................................33
3.12 DATA COLLECTION PROCEDURES................................................................................34
3.13 LIMITATIONS................................................................................................................34
4.0 ETHICAL CONSIDERATIONS................................................................................................35
5.0 FINDINGS AND DISCUSSION...............................................................................................36
5.1 SURVEY ONE...................................................................................................................36
5.2 SURVEY TWO.............................................................................................................45
6.0 CONCLUSION AND KEY RECOMMENDATIONS...................................................................53
REFERENCES.............................................................................................................................55
BIBLIOGRAPHY..........................................................................................................................61
Appendix A...........................................................................................................................61
Appendix B...........................................................................................................................62
Appendix C...........................................................................................................................64
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1.0 INTRODUCTION
This research study has been aiming on understanding the aspects due to which Volkswagen
has cheated the Environmental Protection Agency such that the company has programmed
turbocharged direction injection (TDI) diesel engines so that they could activate the carbon
emission control during the laboratory emission test that makes the vehicles’ NOx output as
per the US standards during the regulatory testing but the vehicles have been emoting 40
times more NOx in the world. The software has been deployed by Volkswagen in around 11
million cars at worldwide level in which only 500 thousand cars are operating in the US from
2009 to 2015 (Hotten, 2015). The study would be helpful in gaining substantial information
and knowledge about the methods through the carbon emission test could be passed
through false practices.
It has been evident that the automobile industry is considered as one of the biggest
industries at international level. In addition to this, it has played an essential role in the
growth and development of the economy at global level due to the rise in consumer
demands and high revenues. The major benefit of the automobile industry is that it assists
in fostering economic growth of the country such that it is considered as the prime
economic area. There are several kinds of companies in the automobile industry like
manufacturing of cars, marketing and distribution of automobile products, etc. The growth
rate of the business in the automobile industry has been gaining substantial growth and
development in the recent time.
Volkswagen is one of the major leading German multinational automotive manufacturing
companies that have been conducting their operations since 1937. The business operations
and functioning of the organization have been enhanced in the recent time. There are
several products and services which are delivered by the company to different market
segments in all over the world. The company has attained huge growth and market segment
through effective strategies and different range of products and services (Blackwelder, et al.
2016). In addition to this, they have understood the current trends and changes in the
business environment so that they could attain effectiveness in the business functioning.
The major demand in the current business environment is of green operations such that the
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automobile vehicles such as car should be environment-friendly and they must have low
carbon emission.
The green policy in the automobile industry has been helpful in healthy functioning of the
vehicles and it also possesses a substantial influence on the environment as no harm is
made by the vehicles. The prime reason for developing the green policies in the automobile
sector is that the carbon emission from the vehicles would be low which would help in
safeguarding the environment from any kind of harmful effect. The companies in the
automobile industry have been applying the green policies in their operations and
functioning. There are different companies who have applied several kinds of green
initiatives in their functioning. Tesla Motors have been introducing electric vehicles in order
to avoid consumption of fuel like petrol or diesel which further helps in less carbon
emission. In addition to this, there are companies like Nissan, BMW, Renault, and Daimler
along with other automobile manufacturing organizations have developed an initiative
called Green eMotion in Europe (Ewing, 2017). The focus of this initiative is on utilizing the
renewable sources of energy and the energy efficient technologies in the vehicles. This
initiative results in a huge increase in the use of electric vehicles in Europe.
Nissan has also developed a Green program that focuses on minimising the emission of
carbon dioxide so that they could effectively safeguard the air and water. In addition to this,
they also focus on recycling the resources. The General Motors has been first automobile
manufacturer who has manufactured the road-ready electric vehicles. The vehicles of the
General Motors have been manufactured by considering environmental aspects effectively.
Volkswagen has also developed a new fuel economy initiative which focuses on
safeguarding the environment from any damage. Honda has been involved in the green
initiative for a long time. They have been manufacturing the fuel cells, hybrid vehicles, and
super ultra-low emissions vehicles. In addition to this, Ford, Hyundai, Fiat, and Toyota have
also applied the green initiatives in their business for effective functioning and operations.
The major reasons due to which the companies in the automobile industry have been
applying the green initiatives are that the environment should be protected from the carbon
emission due to the vehicles. In addition to this, the manufacturing of the vehicles doesn't
result from a negative impact on the environment (Gates, et al. 2017). The companies have
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been considering the green policies and also applying suitable strategies for managing the
impact on the environment. The prime issue which is faced by the automobile industry is
the carbon emission from the automobile vehicles which possess a drastic influence on the
environment. The carbon emission from the vehicles has been high due to the use of non-
renewable sources which affect the environment such that the global automobile industry
has to consider suitable approaches for avoiding any negative influence on the environment.
The industry has been developing the policies which would help in minimising the
greenhouse gases, development of the highly efficient fossil fuel automobiles, and also
enhancing the automobiles by working on the sustainable mobility.
The issue of carbon emission arise due to the use of oil in the vehicles as huge amount of
CO2 is released due to the consumption of the oil. The companies in the automobile industry
have been regularly working on enhancing the internal combustion engine, introducing new
technologies like electric mobility, and strong policies for reducing greenhouse gases. The
following challenges were also faced by Volkswagen during their business operations and
functioning (Gates, et al. 2016). The company plans to enhance their functioning in order to
manufacture vehicles which are compatible with the environment and doesn’t possess any
negative impact.
This research study has been conducted to assess the applications of unethical practices by
Volkswagen in the business operations of USA. The company had introduced thousands of
cars in the USA during the year 2009 which worked on the diesel engine. The Volkswagen
emission scandal comes to light in 2015 when the United States Environmental protection
Agency (EPA) issued a notice against Volkswagen regarding the violation of Clean Air Act. It
was observed that Volkswagen was using programmed software called turbocharged direct
injection diesel engines which manages the carbon emission only during the laboratory test
while on the real-world drive it emits 40 times more carbon emission in the world. The
regulators in different countries further assess the vehicles of Volkswagen and find the same
issue which results in a negative impact on the business operations of the company. The
image of the company demolished and result in a decrease in the brand loyalty among the
consumers (Balto, 2017). There are several consequences on the basis of health as well as
environmental would be observed during 2009-2015 due to the excessive carbon emission.
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Approximately 100 premature deaths would be occurred due to the excessive pollution. In
addition, the health of the public would be influenced due to the carbon emission like
respiratory issues along with asthma, emphysema, and bronchitis. In addition to this, the
environmental consequences could be assessed in form of acid rain and smog by the NOx.
The unethical practice of using defect device in the engine result a huge impact on the
environment and people. This study would be helpful in gaining substantial information and
knowledge about the reasons due to which Volkswagen cheated the people and
environment. In addition, it would be utilized further in avoiding any kind of situation in the
future.
AIM
The prime aim of the research study is to assess how the automobile company Volkswagen
has passed the carbon emission test. It has been evident that the scandal of Volkswagen
regarding the carbon emission test has been huge as it possesses a huge impact on the
people as well as the environment. The findings from the study would be effectively utilized
in order to avoid any kind of malpractice by the organizations towards the environment or
another area. The research would be conducted in the time period of 10 weeks and the
location for the research study in the US. A research survey would be conducted in the
research for gaining substantial information and knowledge about the key areas. A
questionnaire would be developed in two phases such that in the first phase the customers
who use the vehicles of Volkswagen are considered for the survey while in the second phase
the experts in automobile industry would be considered (Bowler, 2015). The questionnaire
of each phase would possess ten questions so that required information for the study could
be gathered and collected effectively. The collected information through the survey would
be presented in form of graphics. However, an important question must be answered
before collecting the data which is - How could the carbon emission be minimised in the
environment?
OBJECTIVES
There are certain objectives which have been outlined below that further helps in acquiring
the answers to the research questions.
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 Objective 1 – To analyse the process through which Volkswagen has passed the
carbon emission test.
 Objective 2 – To effectively assess the consequences that would occur due to the
applications of the unethical practices.
 Objective 3 – To analyse the reasons and scenarios due to which the practices had
been applied.
 Objective 4 – To assess the extent up to which the Volkswagen had been cheating
on the environment through their unethical practices.
 Objective 5 – To analyse the impact on the environment through the applications of
the unethical practices.
RESEARCH QUESTIONS
The research questions have been developed in order to access the required information
and knowledge about the research study. There are five major research questions which
would be helpful in accomplishing the required objectives. The questions are:
Q1. At what extent the carbon emission from the vehicles affect the environment?
Q2. The emission of the NOx affects the human beings at what level?
Q3. What methods could be applied for managing the carbon emission?
Q4. Explain the methods through which the automobile companies should monitor
regarding the environmental laws?
Q5. What kinds of challenges are faced by the people through the carbon emission on their
health?
HYPOTHESES
H0 – The respondents who have been participating in the research possess adequate
knowledge and understanding of the carbon emission and its counter strategies.
H1 – The secondary sources which are used in the research study are reliable and they could
be utilized for progressing in the research study.
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LIMITATIONS OF THE STUDY
There are certain limitations which would be observed during the progress of the research
study. Initially, the data which would be collected through the survey cannot be completely
reliable as the opinion, views, and perception of the people might be different from each
other. In addition to this, the statistics are not completely trustable aspects because
different areas influenced the research study at the huge level. It is essential to effectively
manage the primary data and evaluate it effectively so that required knowledge and
information could be gathered adequately.
In addition to this, the sample size for the study might result from a methodological
limitation on the research as the small size results in obstacles during the progress of
research. The small sample size in a research study is small which would make difficult to
make a significant relationship from the collected data because the statistical tests require
large sample size in order to collect the required data. The lack of literature review also
possesses a huge influence on the research study as it is the foundation of the research. It is
essential to assess appropriate literature for the study so that adequate amount of
knowledge and information would be gain for conducting the research. Moreover, the other
limitations of the study are access and cultural bias as the research could not access the
huge number of population easily. In addition, the cultural bias could occur as the people
find the research study inappropriate. These limitations should be effectively overcome
through the application of appropriate methodologies and strategies.
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2.0 LITERATURE REVIEW
2.1 BACKGROUND
One of the biggest catastrophes in the automobile industry is the Volkswagen Emission
Scandal (2008 - 2015). In 2015, the US government officials have found that the company is
violating the Clean Air Act and polluting the environment of the country (Kollewe, 2015). It
has been found that the German Automaker company; The Volkswagen Group has
developed a direct turbocharged injection system for the diesel cars which helps in
activating a control over the emissions at the time of tests so that they can meet the output
emissions of the NOx in the USA (Hotten, 2015). After discovering the violation of the act, US
government has found that the cars are actually emitting 40 times more than the standard
limits allowed particularly in the US which has resulted in several concerns to the people
and the environment. in this particular time span, the company has deployed this system in
around 11 million cars in between 2009 and 2015 (Hankel, 2015).
In this scandal, there are several agencies and officials have found these types of practices
by the Volkswagen Group and hence this scandal is also termed as "Diesel Dupe". The
Environmental Protection Agency (EPA) has found that the VW cars in America have that
defeat device which controls the emissions at the time of the test. The company has huge
marketing campaigns to push the sales of diesel cars with the low emission rates (Jung, et al.
2017). After the strict actions on many of the accountable persons in this issue, the
company has admitted that they have fitted this so-called defeat device in around 11 million
cars sold all over the world from which 8 million are in Europe only (Ewing, 2015). This is
one of the biggest blunders in the automobile businesses all over the world and has created
a major concern regarding the environment and health issues of the people (McGee, 2017).
Further, this present literature review will be going to illustrate the scandal in detail and the
other concerns related to it with the help of various literature, research papers, expert
views from the automobile industry, news and many other sources (Krall, et al. 2015).
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2.2 HOW VOLKSWAGEN PASSED THE CARBON EMISSION TEST AND
REASON BEHIND THE PRACTICE
Before this one of the biggest scandal in the automobile industry of the world, Volkswagen
is a symbol of simplicity and prosperity (Cremer, 2015). According to the study and research
of Casasola (2016), the insight view and the market position of the company at that time
depicts that this is not a mistake rather it is the combined unethical practice of several
officials, company representatives or third-party people for maybe increasing the revenue of
the company, market share, gain more valuable position in the global markets etc. But,
considering the name of the Volkswagen, the company is a well-performing organization
that can easily turn the market situation and customers attraction towards the company and
its products and services (Bachmann, et al. 2018). At that time also, the company is
operating globally and is in one of the top automobile groups in the world (Ewing, 2017).
This is maybe for the reason to reduce the costs of the company in developing new engines
that emit low pollution according to the American standards (Blackwelder, et al. 2016).
While according to the Boston, et al. (2015), the spokesperson of the Volkswagen AG,
Germany blamed several series of mistakes for the damaging crisis of the emission disaster
(Kretchmer, 2015).
According to Schiermeier (2015), initially the VW uses the catalytic converter technology,
which is one of the best technology used by a company to reduce the emission rate
especially in the petrol engines while in case of diesel engines the exhaust takes high
amount of oxygen and hence it is not useful in them and since then the Volkswagen is trying
to resolve the issues in their cars (Barrett, et al. 2015). In 2005, the VW group tried to use
the Mercedes Blu Tech system to reduce the emission rate, but other collaborators and
parts of the business want to develop their own emission control system (Gates, et al.
2016).
In the starting of 2009, the company has implemented its turbocharged direct injection
system (TDI) in the light passenger vehicles diesel engines to a common rail fuel injection
system (Schmidt, 2016). The fuel delivery system is one of the best systems that deliver the
high precision fuel to the engine, which is electronically controlled by a system (Lane, 2016).
This model has actually been used since 2008 has been sold by the Volkswagen to the
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customers. The model developed by the Volkswagen is basically designed for the better fuel
efficiency, but actually, the system is theoretically a better fuel optimization model which is
controlled by the electronic systems with high fuel injection pressure and better emission
(Lynch, et al. 2016). The company claimed that the engines are as clean as required to US
and Californian standards made by the industry and the governments. In reality, the system
developed that is fitted in the engines of the Volkswagen cars is unable to combine the
economy and the required fuel efficiency with the NOx emission (Levin, 2015). The same
reason has caused the Volkswagen engines to emit more pollution, so they have to take a
fast decision which forced them to develop an intermediate and fast machine that can
handle and control the excessive emission according to the American standards (Makortoff,
2015). This lead to the development of the ‘defeat device’ for the diesel engines of the
Volkswagen cars in the US and other areas all over the globe (Jung, and “Alison” Park, 2017).
A defeat device is basically a computer software that is designed for sending the testing
situations and then it puts the vehicle in a safety mode and hence reduces the emission rate
which helps them in clearing all the tests of the American automobiles and government (Li,
et al. 2018). This device also takes the This is the reason why the cars of the Volkswagen are
outstanding in the tests which had actually dominated the actual reading of the emission
rates from the engines which is more than 40 times that the requirements in the US (Patra,
2016).
2.3 SIMILAR CASES
According to Gallucci (2015), Volkswagen is not the first automaker business to use this type
of defeat device in their vehicles as General Motors Co. in 1991 has designed a motor
control PC chip and introduced it in 500,000 Cadillacs. The gadget was intended to lessen
issues with motors slowing down, however, it additionally almost tripled the yield of carbon
monoxide when vehicles were in the normal running state, authorities said in 1995. The EPA
and Justice Department have eventually settled with General Motors for $45 million paid for
the environmental safety laws (Petroff, 2015). The biggest case landed three years after the
fact when the EPA came to a $1 billion settlement with seven diesel truck makers -
including, Mack Trucks Inc., Caterpillar Inc. and also, Volvo Truck Corp. for introducing
hardware that vanquished discharges and emission controls (Preston, 2015). At the time in
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1998, it was the biggest U.S. court’s punishment for abusing ecological law, the EPA said in
the article and news of Volkswagen Scandal 2015 (House of Commons Transport
Committee, 2016).
"The diesel motor industry has illegally decanted a massive amount of polluted
contamination into the air," Janet Reno, at that point the U.S. attorney general, said in a
1998 statement. Hence as a result of these organizations unnecessarily cost themselves a
huge amount of additional dollars by not complying with the law and regulations (Rhodes,
2016). The settlements demonstrate that following a few legislations of consistency is
justified regardless of a pound of punishments. Similarly, to this, there is another case that
the EPA has settled with American Honda and Ford Motor Co. Honda was found to have
impaired the failure to fire monitoring device in approx. 1.6 million cars and hence has to
settle with EPA with a large amount of $267 million (Ragatz, 2015). Whereas in Ford,
authorities found that 60,000 Econoline vans were allowed to make excessive pollution at
highways, bringing about a $7.8 million settlement. Hence, it can be said that the case of
Volkswagen is not the first one that has illegally fooled people and damaged the
environment but there are several others who disobeyed the rules and regulations of the
governments and then paid huge amounts at courts for case settlement (Mesch, 2016). The
companies have to be embarrassed on the global stages with their advanced devices,
technologies and techniques that not even affected the environment but are accountable
for several health problems in the states (Mansouri, 2016).
2.4 VOLKSWAGEN DEFEAT DEVICE
Gates, et al. (2017), showed how the device actually works and how it senses the laboratory
conditions. Since the company admitted that they have fitted that device in more than 11
million cars worldwide to cheat the tests according to the standards. The software is
designed such that it has the ability to sense the testing or laboratory situations which then
makes them feel efficient and low emission vehicles (Robertson, 2017). But this equipment
is unable to control those low emissions in the cars when the cars run in regular roads and
have emission rates of more than any legal limits (Holland, et al. 2016). The device consists
of the several catalytic converter or valves which basically have the work to recycle the
exhaust gases and hence it eventually reduces the emitting nitrogen oxide and several other
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pollutants which are very dangerous for the people as well as the environment which can
cause several diseases like emphysema, bronchitis and many respiratory diseases (Gates, et
al. 2017).
The exhaust systems of the Volkswagen Golf are based on the combined two technologies
of the automobile industry which control the high emissions of the nitrogen oxides
especially from the diesel engines (Moravcsik, 2017). The device reduces the emission rate
by absorbing or trapping the pollutants coming out from the engines of the Volkswagen
(Miller, 2016). Basically, if the device would have worked on passing the pollutants, then the
cars could have more fuel efficiency, but the US standards do not allow that. Where saving
fuel is also a primary and forceful legislation employed by the governments all over the
world (Schurr and Ritov, 2016). This phenomenon is described in detail by the International
Council of Clean Transportation.
Figure 1: Average emissions of nitrogen oxides in on-road testing
Source: [Gates, et al. 2017]
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2.5 VOLKSWAGEN RESPONSE
The former CEO of Volkswagen AG, Martin Winterkorn in 2015 made a statement in front of
full media that “he is shocked by the illegal events in the past made by the company and is
stunned that the massacre is made on such a big scale which has embarrassed the
organization on the global stage” (Siano, et al. 2017). As the CEO of the brand, he has taken
full responsibility of the irregularities done but he wants to go for the interests of the
company in future with completely legal and ethical practices, he also said that he is not
aware of the wrongdoing going on in the company (Boston, 2015).
According to the EPA, Volkswagen had wanted a year before the outbreak of the outrage
that variations and expert malfunctions made by the company. Volkswagen had found
completely familiar that they had controlled the vehicle emission tests for being stood up
ethical and good with prove in regard to the ‘defeat device’ (Stanwick and Stanwick, 2017).
The insignia or the initial sign that Volkswagen was prepared to tell the truth allegedly in
front of public has happened on 21st of August 2015 at a meeting on green transportation
in Pacific Grove, California. Formal confirmation of the complication has been made by the
executives of VW in US and Germany to EPA and Californian authorities on a telephone call,
when Volkswagen officials talked about collected materials gave to the members which
shows how Volkswagen's diesel motor programming of defeat device has avoided US
outflows and emission checking tests on a very high scale. The confirmation from the
company came after the EPA strictly undermined to withhold authorization for the
organization's 2016 Volkswagen and Audi diesel model cars not even in US, but all over the
globe. CEO Martin Winterkorn stated that "he is profoundly felt sad that they have broken
the trust of their clients and people in general. Winterkorn was the authority to control the
Volkswagen from 2008 to September 2015 which is the duration in which the Scandal has
happened. He admitted the bad behavior to ‘the awful slip-ups of a couple of individuals'.
Winterkorn initially had opposed the calls to left down from his position of authority at VW,
yet then surrendered and resigned as the CEO on 23 September 2015. But the CEO of
Volkswagen Group in America, Michael Horn has straightforwardly said that they have been
totally screwed up. Horn also added that the company was dishonest with the EPA, and the
California Air Resources Board and with all of the people. Olaf Lies, one of the Volkswagen’s
board member and economy minister of Lower Saxony, later told the BBC that the
15

individuals who allowed this to happen or those who made the decision to install this defeat
device in more than 11 million cars acted criminally and hence must be held personally
accountable with the appropriate punishments. In addition to this, he also gave a statement
that the board only found out about the glitches shortly before the media and the
authorities did. He expressed concerns over ‘why the board wasn’t being made
knowledgeable before about the problems when they already get to know the issue about
over a year ago in the US’.
Volkswagen clearly said that over 11 million vehicles were impaired with the altered
discharge reports of emission of nitrogen oxides all over the globe. Officials also found that
more than seven billion dollars would be kept reserved to manage the expenditures for
correcting the cars at the core of the contamination explanations (Hermans et al. 2016). The
newly appointed CEO of the company, Mathias Müller illustrated that the impairment
device was just installed on a part of those 11 million vehicles, which still can't seem to be
resolved as early as possible (Volkswagen, 2016). A German newspaper Bild guaranteed that
top administration and the management departments in the Volkswagen had known about
the fact that the device is being utilized to control the emissions in their cars and alter the
test results. Bosch gave the device for testing purposes and warned VW group management
that it is completely illegitimate to use the software to maintain a strategic distance from
outflows consistence amid typical driving emissions (Westerlund, 2016). Der Spiegel took
after the same issue as Bild with an article published on 30th September 2015 to express
that a group of people from the top management are aware of this impairment in a large
number of diesel vehicles in 2005 or 2006 (Bowler, 2015).
On 28 September 2015, it was suspected that the Volkswagen had adjourned Heinz-Jakob
Neusser, head of brand development from his duties. The head of research and
development department, Ulrich Hackenberg at one of the brand in the group, Audi and
Wolfgang Hatz at the sports automaker brand Porsche are aware of the use of the software
installed in the cars. Computerworld stated that a software evaluation trail and test logs
were approaches to explore what has occurred and when (Yu, 2017). In February 2016,
Volkswagen group has made contracts with the three advertising and marketing firms,
Hering Schuppener in Germany, the Kekst in the United States and Finsbury in the UK
16

(Swaminathan and Mah, 2016). In addition to overcoming and additionally assist the
embarrassment, company procured ex-FBI executive Louis Freeh, close by a German judge
Christine Hohmann-Dennhardt who is already recruited before by Daimler and VW's board
member as its chief director of the legitimate and legal affairs. The scandal has pushed the
organization to a huge financial loss in the three consecutive month sales with the first
quarterly loss that has never been occurred in past 15 years to the company. The company
has not only lost his financial funding resources but also the trust and number of customers
which are actually loyal to the company for years (Zhang, et al. 2016). The loss company had
due to this scandal is more than £4.8 billion in recalls only, the actual costs that have been
spent by the company is still a field to explore (Tan, 2015). Further, the confidence of the
company and the skilled employees wished to grow the business again and meet the sales
rate such that they can overcome the loss occurred. One of the officials at Tokyo said that
company is not willing to spend more on marketing and promotion rather on factories and
hence enhance the profits (Terry-Armstrong, 2016).
Figure 2: A car being tested for diesel emissions
Source: [Brignall, 2017]
With the advent of the scandal by unknown sources of the company, the company is being
one of the most hated ones and there is literally an axe hanging over the future high-tech
17

projects of the company for the Veyron and XL1 and the collaborative work of the VW and
Audi. After the recall, the company has found that they just need a software flash in their
impaired car models to fix the defeat device installed in diesel cars mostly in Europe (Zhou,
2016). But this is still an impossible task as there are more than 1.2 million cars in Europe
only or more than 1600 cars a day (Tuttle, 2015). The company has started working very
well as the cars repaired are not only free from any such device that controls the actual flow
of the mechanisms in the cars, but they also have some added advancements regarding the
technological aspects. The case is not easy as some of the cars require an expensive SCR
catalyst and bulky service which had led to a moment when they almost decided to buy
back the cars from the owners. Analysts of the industry have found that this recall might
cost more than £4.5 billion to the company and too when the customers or buyers of their
cars stop suing the company.
It is still not clear that how many people are suspended from the top management and the
normal staff of the company as the legislative investigation is ongoing. It has been also
speculated that the people and government in the US will completely turn down the sales of
the Volkswagen vehicles which has resulted in complete failure of the newly introduced VW
TDI's. So, the company has decided to first convey the new messages to the customers and
then go for the sales and marketing functions. Since the petrol and petrol hybrid vehicles
are performing well in the US which gave them the confidence to still spend their financial
resources in the US and they have faith that they can regain the trust of the customers. With
the good sales of the petrol cars, the diesel car sales are not collapsed completely but a little
reduction in the sales in US and UK and other southern European countries. Researches had
depicted that the defeat device implemented on the cars in the UK is almost similar to that
of US, and the software is capable to avoid the test conditions and run with high emission
on roads, but this is not considered a big mistake as there are several other companies
whose vehicles are emitting the same amount of pollutants and VW. Still, this can not be
considered as a value regaining strategy as the emission of the NOx is very dangerous for all
(Horrell, 2015).
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2.6 HOW WIDESPREAD ARE THE PROBLEMS FOR THE VOLKSWAGEN?
In the article of The Guardian by Brignall (2017), disclosed that more than the half of the
buyers of Skoda, Audi and VW who got their cars fixed after the diesel gate emissions have
seen a very poor performance of the cars with high fuel consumption and efficiency. Till
2017, more than 41,000 car owners have complained against the fraud and falsification by
the Volkswagen (Boston, 2015). Most of the people who got their car fixed are denying
getting it done again for free because of post problems and expenditure. According to the
Harcus Sinclair a research has been done which showed that 53% of drivers gave the same
statement that the cars are fuel efficient not anymore and gave worst performance. Cars are
suffering from low fuel efficiency, acceleration and power after getting fixed. The company
has declined to remunerate those influenced cars in the UK and has promised to battle the
legitimate activity. A month ago, it likewise confronted that the "fix" for influenced vehicles
may not have any kind of effect in reality (Hakim, et al. 2015).
Damon Parker, head of the suit at Harcus Sinclair UK, stated that these outcomes
demonstrate that the 'fix' proposed to decrease NOx discharges may, indeed, detrimentally
affect the execution and running expenses of the cars. It has been very nearly a long time
since the embarrassment was uncovered and the main thing that UK customers have been
offered is a supposed 'fix’. An overview of our customers recommends it has caused other
mechanical issues, prompting more noteworthy bother, uneasiness over their autos'
wellbeing and extra cost to them. the affected cars include the models of Audi, Skoda, Seat
and VW Gulf in between the 2009 and 2015 which basically requires a simple programming
update in the software to run correctly and pass the tests afterwards. The author also said
that there should be clear statements to sale the fixed cars in future or not after the
modification in the defeat device.
In September 2015, after getting caught in the massacre with the diesel or TDI cars by VW
which are actually sitting around 40 times emission than the standards making. In October a
treaty with the California and US has been made and has been approved by the federal
governing body of San Francisco. The agreement made has cost $15 billion to the company
in which $10 billion is for buybacks and modifications and $4.7 billion for meeting the
environment mitigations and the legislation with zero-emission. Still, after this, the company
19

is facing several cases of lawsuits by the authorities, people, governments and the company
investors all around the world with additional implications from the US government and
customers who are not agreed to follow the settlement made by the courts. Since the
proposed settlement just applies to Volkswagens outfitted with 2.0-liter diesel motors.
Clients owning Volkswagens, Audis, and Porsches with 3.0-liter motors still can't seem to see
an affirmed fix or settlement after the scandal. This lead to a heavy downfall of the stock
price of the company and even in September US government's Department of Justice is
planning to put a massive fine on the company in punishment after being caught and
pursuing wrong activities in the business. Somehow the company is able to regain the sales
and revenue slowly after a year with the strong sales in China which has de-crowned the
largest automaker Toyota from its position slowly and powerfully (Griggs-Hall, 2015). After
this scandal, the latest Volkswagen diesel is not much likely to be directly introduced in the
US in future as there is a need to fit a high-cost exhaust system in the cars before making
any action in the US. Further, the requirements are to reduce the costs and the mileage
difference between the gasoline and the hybrid car vehicles (Hakim and Bradsher, 2015).
Since in Europe, the diesel is still more famous than the petrol cars but now the sales have
dramatically reduced not only for Volkswagen but also for other automakers in the industry
working in Europe. according to most of the industry experts, the company will weather the
storm and again could emerge as a market giant.
According to BBC, Volkswagen has announced their new focus as a corporate business car
producer with around 30+ cars to be introduced in the markets and all working on electric
fuel engines. With this strategy it has been estimated that the company can regain its
revenue sources in between 20 – 25% sales rate, said by their CEO at that time. The US
might see one of the electric vehicles by Volkswagen which is a small electric van inspired by
Budd-e concept on the Consumer Electronics show 2016 (Ghose, 2015).
2.7 THE SETTLEMENT
The settlement anticipated that would be declared in October 2015 gives owners of around
475,000 2.0-liter Audi and VW TDIs in the U.S. The choice to have their vehicles get fixed
with a yet-to-be-affirmed emission rate settle or to have Volkswagen purchase their cars
from them with the prices just before the scandal/embarrassment broke out. Rent clients
20

will have the privilege to end their rent with no punishment (Ferrell, et al. 2016). Most of
the car owners all over the world are eligible to get the payments in between $5,100 to
$10,000 according to the decisions of the owners of the cars implanted with the defeat
device. With respect to the government’s decision, Volkswagen should repair the vehicles or
pay money to the customers till 2019 otherwise company will have to pay additional fines
(Vincent, 2016).
In addition to this, the company has to redesign the engines as per the America standards or
go for some other options if they are willing to operate the business in the US. Given that
the estimated value of the cars is solidified at its esteem only preceding the outrage
breaking, some have recommended keeping their car straight up to the due date, as per a
story by Green Car Reports (Fracarolli et al. 2016). While that might be the most monetarily
favourable way which furthermore enhances the natural harm caused by the cars over the
top discharges levels or above the standards. Almost 340,000 class individuals have officially
enrolled online. An amazing figure is given that the settlement has not yet been endorsed –
and far less than one per cent have quit, said Elizabeth Cabraser, lead director for the
customer offended parties in the Volkswagen "Clean Diesel" Marketing, Products Liability
Litigation and Sales Practices.
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Figure 3: Vehicles affected by the VW diesel scandal
Source: [EPA and Vincent, 2016]
2.8 ARE OTHER CARMAKERS IMPLICATED?
This is for the various regulatory bodies and the government investigations to investigate.
Since the scandal by the Volkswagen has opened the eyes of every individual aware of such
devices and is looking to put a lawsuit on the companies. California's Air Resources Board is
now evaluating other car makers for correct testing results. Renault-Nissan, Ford, BMW etc.
have mentioned they didn't use any kind of defeat gadgets or software. At the same time,
different corporations have either not stated or effectively recounted that they agree to the
law and comply forcefully with them internally and externally. The car trade body of UK, the
SMMT said, the EU operates a fundamentally exceptional process from US (Anenberg, et al.
22

2017). With all the European checks performed in severe conditions as required by means of
EU legislation and observed by using a government-appointed impartial approval company
found that the operations are ethical but also stated that the test systems have been so old
to determine the latest impairments which may have done by the other car makers.
This has to lead to make EU government active in developing more powerful scanning
methods and modes that can catch any implant done to reduce the emission of harmful
gases. The environmental activists and socially active bodies started exploring solutions to
their doubts. It has been found that the cars running in EU are in more worse conditions
than that of US said by the pressure group of Environment. They have actually found that
almost 90% of the diesel vehicles running on roads are not meeting the standards of the
government regarding the emission rates, the number is in millions. Regardless of US,
vehicles in EU are far more dangerous for the people's health and environment. There is not
needing to cheat on the people as if they were caught there are several other consequences
than those with the financial loss and degradation of the market value of the brands.
With these reports all over the media, the car makers are putting their every step very firmly
they are even searching for new diesel markets to sell their cars even if they have to impose
more costs to regain the spent values. Over the past decade, the car makers are focused on
finding their new fortunes in New markets and production for diesel vehicles. With the help
and support of the governments, only after the confirmation that they are safe for the
environment. With the decreased sales rate of the diesel cars all over the globe the car
makers even have several options to move their diesel cars in some big cities. The VW
scandal has fired up the questions that are dominated by the quality delivery of the
automobile industry. At present, the sales of the diesel cars are just 1% with respect to all
other cars which may increase in future for some time only. Whereas in Europe the scandal
has impacted more significantly which almost tranches the industry and forced people to
switch on petrol and electric vehicles.
2.9 CONSEQUENCES OF THE UNETHICAL PRACTICE
The scandal done by the Volkswagen is one of the worst massacres of the automobile
industry and has made several consequences on the health of the people, environmental
damage and many more. A full proof study made on the environmental impacts by the
23

scandal is even more severe as it accounts for the several deaths in the US by emitting
harmful gases in the environment (Oldenkamp, et al. 2016). According to the research
around 59 premature deaths with the excess pollution produced by the cars in the
environment in between 2005 and 2015. The defeat device developed by the company for
the US is primarily accountable for the 87% of air pollution in the country and 13% depletion
of ozone layer in nearby places. Earlier on the peer review by the experts in the industry and
media have found that the number is in between the 10 to 350 deaths in the US related to
the defeat device usage and the inhalation rate of the polluted air (Mouawad, 2015).
Since the nitrogen oxides are very severe precursor which is the cause of the several
respiratory problems including the asthma, bronchitis and many more. Nitrogen affects the
air with the heavy particulate matter that can even cause heart problems. The estimated
emission occurred by more than 11 million cars worldwide had emitted as much pollutants
which can cause deaths of more than 50,000 people (Berry, 2016). Since, the pollutants that
are talked about are the nitrogen oxide and nitrogen dioxide which if are collected would be
very dangerous for the health of the people and the environment as it also blocks the way of
air inhalation in trees and plants (Georgievski and AlQudah, 2016). After the scandal, in
Europe and Us only it has been estimated that the pollution level is being ranged from 1000
to 40000 tons of pollutants in air.
2.10 EXTENT OF VOLKSWAGEN CHEATING ON ENVIRONMENT
In the US, the Environmental Protection Agency has attested that breathing air with a high
convergence of NO2 can disturb aviation routes and cause respiratory issues (hacking,
wheezing or trouble relaxing). It has additionally announced that elevated amounts of
introduction to NO2 may bother respiratory conditions, for example, asthma and increment
helplessness to respiratory contaminations. In the UK, the Department for Environment
Food and Rural Affairs has asserted that introduction to 'particulate issue' from outflows has
been evaluated to decrease normal future in the UK by a half year. It has been estimated
that the UK emission rate is 4% higher because of NOx contamination, causing 23,500
additional passing’s for each year. The level of NOx poisons is evaluated to cost UK general
wellbeing administrations over £16 billion every year. The ground level ozone layer has been
24

damaged, it causes acid rain, degradation of the water quality and majorly the global
warming with the high emitting NOx gases.
2.11 EXTENT OF VOLKSWAGEN CHEATING WITH PEOPLE AND
GOVERNMENT
Carmakers like Volkswagen who have cheated with the people and the government have to
deal with the severe consequences and duties made against them (Ewing and Tabuchi,
2016). Company has admitted that they have million cars which are programmed to control
the pollution levels at the time of tests by sending the situations (Burki, 2015). Amid to the
scandal, the transport ministers and the other experts have claimed that the company is
accountable for severe punishment (Georgievski and AlQudah, 2016). The devices like diesel
gate is strictly prohibited since 1998 but denying this legislation, Volkswagen has sold over
1.2 million cars only in Europe (Bryant, et al. 2015). After finding the scandal, authorities
found that no other company is using this type of strategy after testing it on several other
diesel model cars (Davenport and Hakim, 2016).
2.12 LEGAL AND FINANCIAL REPERCUSSIONS
The news that Volkswagen has increased its reserves to make better results in future and
easily overcome from any such incidence but rather not practicing them. The legal claims,
penalties, lawsuits and recalls have cost the company a big amount which can be reduced if
the company openly admitted their installation of the defeat device much before they did.
In front of the government and the US authorities, there is a confusion that who should be
actually punished for the falsification in the emission tests (Cavico, et al. 2016). Paying out
the cash is most likely the least demanding piece of the determination for Volkswagen in
light of the fact that those expenses can be spread out finished the following year or two.
Besides, it can deduct a portion of the instalments from its assessments as a cost of doing
business too, padding the harm to its main concern no less than a tad (Caine, 2017). There
are several legal implications that the company has faced in overcoming from the
embracement of the scandal (Balto, 2017).
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2.13 CONCLUSION
The defeat device implanted by the Volkswagen people is still not confirmed that who is
actually responsible for the falsification of the tests for diesel car emission tests especially in
US. The company has sold around 11 million cars in US and Europe and has earned a huge
revenue by getting a clean certificate from the governing and scanning bodies. After the
scandal got opened in front of the world, there are several legislations, lawsuits and
penalties on the VW so that they can repay their money or make their cars fit again. But this
is not the only implication and damage caused, but health of several people, degradation of
the environment for more than 5 years with the highly poisonous nitrogen oxides which is
almost 40 times more than the standards made by the automobile industry and the
government.
This type of cases has ashamed the companies and it has also been found that VW is not the
only one which has used devices and software to control the emission rates in the vehicles
and has already paid huge lawsuit amounts as a penalty. The managers and the executives
of the company at that time even have taken the responsibility for this issue but this is not a
small issue that can be handled easily. The company has damaged the environment with
more than 10000 tonnes of oxides which can even cause deaths of over 50,000 people. Who
so ever has developed this implant and tried to reduce the emission rate so that the
Volkswagen cars can clear the tests is still a confusion but has definitely embraced the
company at the global stage and reduce the market value of the company. Hence this type
of issues should be strictly handled so that the post issues can be reduced for the welfare of
all.
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3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
The methodology is known as the methods that are utilized in order to analyse the required
area of the study. The prime focus of the research methodology is on discussing the range of
methods and activities so that they could acquire deep insights into the research study and
also accomplish certain objectives. There are several areas which need to be considered in
the research methodology such as selection of approach in order to conduct the research,
the philosophy of the research, approaches for the data collection which would be applied
in the research study, the appropriate sampling procedure which would be applied in the
study, and further analysis of the data which has been collected so that the required
information and knowledge would be gained. Hence, it could be stated that it is a blueprint
for the study such that the required stages would be conducted effectively.
This research study has been conducting in order to assess how the automobile company
Volkswagen has passed the carbon emission test (Caine, 2017). An adequate amount of
information and knowledge would be gained from the research study that would be utilized
in order to achieve the required outcomes effectively. There are two kinds of surveys which
would be conducted in the research study which are primary and secondary research. In
addition to this, the literature review has been conducted in order to identify the theoretical
hypothesis and also understand the concepts regarding the carbon emission, regulatory
boards, and environmental aspects which are further helpful in developing the conclusions.
In this research study, the positivist philosophy has been applied due to the use of an
existing theory that helps in developing strategies for the data collection.
RESEARCH ONION
The research model was introduced by the Saunders (2007) and it states that the researcher
should conduct the research by determining the research approach, research philosophy,
strategies, timescale, and collection of data along with the analysis approaches in an
appropriate manner. The process has been effectively explained in detail in the diagram
mentioned below. There are six layers which have been involved in the research onion such
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as objectivism, positivism, realism, constructivism, interpretivism and pragmatism. The
element objectivism explains the social phenomenon and also helps in understanding the
prime concepts and information of the report. It assists in gaining awareness and knowledge
regarding the research study. In addition to this, the positivism assists in explaining the
research questions thoroughly with help of hypothesis and the explanatory approaches. It
effectively improves the positivity and further applies the test of recognized information for
the research. The interpretation element suggests that general interpretation and
understanding of the information and concepts of several aspects that are involved in the
research. Further, the constructivism element is helpful in developing a potential influence
on the social phenomenon and it is generally responsible for the rationale regarding the
objectives and results. The element realism effectively explains about the continuity of the
research and the theoretical dynamics that are applied in the research. It is helpful in
enhancement of the knowledge regarding the theory and further revises it with help of
appropriate manner under the validation and verification processes. At last, the pragmatism
element is helpful in understanding different topics which have been conducted and studied
in the research. The prime motive in the research study is to effectively utilize the
objectivism so that the ideal objectives for the research study could be accomplished.
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It has been evaluated from the aforementioned layers of the research onion that there is
certain limitation guidance in the research study which could be handled through an
appropriate research structure. It is helpful during the process of data collection and the
analysis of the available information. In addition to this, it is comprehended that the
research onion is one of the effective tools that help in developing the framework for the
research methodology with help of an effective progression. There are several layers which
would be utilized in this research study like objectivism positivism, interpretivism,
constructivism, realism, and pragmatism, which further helps in accomplishing the required
objectives and conducting effective research methodology process.
HONEYCOMB MODEL
The honeycomb model has been shown below and it is one of the appropriate tools that
help in understanding the connection between the activities in a honeycomb form. It is
known that the honeycomb model is comprised of three prime areas in the research study
such as research philosophy, research strategy and research approach. In addition to this,
there are other areas also such as research design, data collection and data analysis
techniques. There are several implications and functionality which could be effectively
explained through the honeycomb model with help of key findings during the research
study (Nisen, 2012). The prime key findings of the research study comprised of
conversations, reputation, identity, relationship, sharing, presence and groups. The seven
areas are known as the key findings which are effectively explained with help of honeycomb
model that are explained in detail as follow. The identity in the research study is related to
the personal information of the required topic of study. The conversation element focused
on different areas of the research, for instance, the shared contests and results which have
been gathered with help of the participants.
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In the current research study, the most appropriate model is the research onion because it
helps in conducting the study in a sequential manner which further helps in analysing the
methods through the data collection approaches. In research onion model, the first stage is
involves the research philosophy which is further followed by the research approach,
research strategies, approaches for data collection, and the time frame.
3.2 RESEARCH PHILOSOPHY
Research philosophy is the first stage in the research methodology and it comprise of
several aspects in the research. The research philosophy could be any kind such as
positivism, interpretivism, and pragmatism. In the current research study, the first
philosophy which would be used is the opinion and perception of the consumers who are
car users as well as the experts who possess huge knowledge about the key study. The
negative impact of the Volkswagen vehicles on the health and environment could be
effectively assessed (Howell, 2013). In this research study, the perception of the consumers
and experts would be analysed so the interpretivism approach is appropriate.
3.3 RESEARCH APPROACH
There are two kind of research approach such as inductive and deductive research. The
prime focus of the inductive research is on qualitative aspects while the deductive research
focuses on the hypothesis testing like quantitative analysis (Cresswell, 2013). This research
study has been focusing on understanding the perception and opinion of the consumers and
experts regarding the Volkswagen emission scandal such that the inductive research
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approach would help in understanding the perception of the people effectively regarding
the harmful effects of Volkswagen vehicle on the human health and environment. The
hypotheses are not included in the research as prime objective is to assess the influence of
Volkswagen vehicles and understand the process through which Volkswagen cheated the
process.
3.4 RESEARCH STRATEGY
There are several research strategies such as survey method, interview, literature review,
and case study method. The research aim of this study is to assess the method through
which the Volkswagen has passes the carbon emission test. The perception of consumers
and views of experts would be helpful in accomplishing the required research objectives and
aims. The health of people has been majorly influenced due to the Volkswagen vehicles as
the carbon emission is huge which also affects the environment. When the carbon emission
is low it would benefit the society and environment from different kinds of consequences.
The company could prohibit the use of defect device in order to avoid huge carbon emission
through their vehicles.
3.5 CHOICE OF RESEARCH METHODS
The research onion helps in understand ding different kinds of research methods such as a
mono-method, multi-method, and mixed method. In multiple methods, the research is
conducted through qualitative and quantitative methods. The research study has been
aiming on understanding the method through which the Volkswagen has passed the carbon
emission test. The research study would be accomplishing their research objective with help
of questionnaire so that the perception and opinion of consumers and experts could be
collected. The survey method would be applied with help of questionnaire so that the
required data could be effectively.
3.6 RESEARCH SAMPLING
The research sampling is known as the process through which a small subset from a huge
population is selected for conducting the research. It is done in order to conduct the
research appropriately as the population is large and it is quite difficult to assess each
person so a small sample is taken for the research. There are two kinds of sampling such as
probability and non-probability sampling. During the probability sampling, the chances of
31

selection of a respondent are more or high the same while non-probability sampling
possessed the choice of sample on the discretion of the research study. There are huge
numbers of consumers of Volkswagen vehicles and around thousands of experts in the
automobile industry such that 200 consumers of Volkswagen vehicle and 100 experts of
automobile industry would be taken.
3.7 DATA COLLECTION
There are several methods through which the data collection in the research study could be
done however the primary data could be majorly collected with help of questionnaire and
interview method. The questionnaire comprises of certain questions which are open and
close-ended questions that are designed in order to conduct the research. In interview, the
respondents who are sampled ask about certain questions so that required data could be
collected. The interviews are conducted in structured and unstructured manner.
The data collection in this research study would be done through survey method where the
questionnaire would be provided to the consumers and experts that have certain influence
of the Volkswagen emission scandal (Cresswell, 2013). The survey would provide the clear
perception and opinion of the consumers and experts towards the cheating down by
Volkswagen in the carbon emission test.
3.8 RESEARCH DESIGN AND TYPE
The research is of different types such as qualitative, quantitative, and mixed method which
are used as per the research study. The quantitative research is done on the basis of
collected data and the major tools are SPSS, Z-test, etc. In qualitative research, the
perception and opinion of the humans are assessed. The mixed research is comprised of
both quantitative and qualitative research approaches. The data would be collected through
the primary and secondary approaches. In primary research, the questionnaire and
interviews are used for conducting the research so that the data could be collected. The
secondary research is conducted through the literature review of several documents,
journals, articles, and books that helps in developing the conclusion. In this study, the prime
focus of secondary research is to gain deep understanding of the research aim and assess
the method through which Volkswagen cheated the test.
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3.9 SAMPLING PROCESS
A simple random sampling would be used in order to select 200 consumers and 100 experts
for the questionnaire. It would be helpful in conducting the research and attaining the
required data effectively (Guettermann, 2015). The age of the respondents has been above
18 years and they have a stable mental state such that the reliability and validity of their
responses is high. The respondents who cannot fulfil these criteria would not be
participating in the research study. The consumers who have been using the fault
Volkswagen vehicles must be involved in this research and the experts who are scrutinizing
the Volkswagen emission scandal must also be involved for effective results.
3.10 VALIDITY, TIME FRAME, AND RELIABILITY
The time frame which would incur in the research study is around 3 months where the
major time would be incurred during the data collection process.
ELEMENTS TIME INCUR
Research design and selection of research
methods
Four days
Designing Questionnaire Five days
Sampling Three days
Data collection Sixty days
Data Analysis Sixteen days
Finalization Two days
It is essential for the researcher to assess the validity of the research tools at a different time
and ensure that the research is reliable as the data collection should be done through
appropriate sampling without any vague responses.
3.11 DATA ANALYSIS
The collected data should be analysed through the help of appropriate procedures so that
meaningful results could be accomplished in the research study. In this research study, the
data has been collected through the qualitative as well as the quantitative approach which
would help in accomplishing the objectives of the research study. The collected data is
33

regarding the perception and opinion of the consumers who are using faulted Volkswagen
vehicles and the experts who have critically scrutinize the process of Volkswagen passing the
carbon emission test. The data which is collected would be analysed through the help of
graphs and charts which are also arranged in percentage so that the perception and opinion
of the respondents could be understood. In addition to this, the prime objective which is the
method or reason due to which Volkswagen apply the unethical practices in the carbon
emission test would also be assessed.
3.12 DATA COLLECTION PROCEDURES
The questionnaire with a certain sample would be used for collecting the primary data in the
research. The survey would be conducted after getting consent from the respondents which
would be done through a phone call. After that, the respondents would be asked for filling
the responses which would further be assessed for the research study. The language of the
questionnaire would be simple so that the respondent could easily understand the
questions. The process is time-consuming but meeting respondents and collecting the data
would be helpful in getting accurate data for the research.
3.13 LIMITATIONS
It is evident that every research possesses certain kind of limitations which act as a barrier
to the research. The major limitations which are observed in this research are explained
below:
 There are huge numbers of consumers who have been using the Volkswagen
vehicles such that it is quite difficult to select the respondents for conducting the
research study.
 The experts which are participating in the research study possess huge knowledge
and information regarding the research topic.
 The questionnaire has been designed in such a manner that it might result in a
limitation of the research as some people might find it difficult to understand.
 There are various Volkswagen vehicles consumers in the world such that it is difficult
to cover all the areas which possess a huge influence on the research study.
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4.0 ETHICAL CONSIDERATIONS
The ethical considerations are known as the ethical aspects which need to be considered
during the research study so that any kind of disrespect or dishonour to anybody could be
avoided. In this research study, the data has been collected with help of primary and
secondary sources. The primary data sources comprise of the survey which would be
conducted through the questionnaire where several questions are asked to the consumers
and experts in order to accomplish the research aims and objectives. It is essential to
safeguard the identity of the consumers and experts in order to avoid any unethical action
towards them. The researchers should safeguard the identity of the respondents and avoid
sharing their information with anybody. In addition to this, the responses provided by the
respondent should not be shared with anyone and their views must be respected.
A secondary research is conducted for the data collected with help of literature review
where several journals, articles, documents along with internet blogs and comments have
been scrutinizing for gaining adequate knowledge and information about the research topic.
The author of every document, journal, article, or blog must be given appropriate
recognition of their work in order to utilize their studies in the current research study. The
proper recognition of authors in the research study will help in strengthening the research
and also assist in accomplishing the research aim effectively.
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5.0 FINDINGS AND DISCUSSION
There are two surveys which would be conducted for effectively understanding the
influence of Volkswagen vehicles on the environment and also the unethical practice due to
which they pass the carbon emission test. The first survey is for the consumers who have
been using the Volkswagen vehicles In addition, the second survey is for the experts who
are regularly monitoring the Volkswagen carbon emission scandal and possess brief
knowledge of the incident. Every question has been explained in a detailed table, graph, and
short discussion which help in understanding the data.
Survey One – The data has been collected by conducting the survey with help of consumers
who have been using the Volkswagen vehicles which are malfunctioned regarding the
carbon emission. There are around 500 consumers who have given consent form regarding
their participation in the research where only 200 consumers have been agreed to
participate in the research.
Survey Two – The data for the survey two has been gathered with help of the experts in
automobile industry who possess huge knowledge regarding the Volkswagen Emission
Scandal. There are 300 experts were selected for the research but only 100 experts agreed
for the research.
Further, the secondary data has been collected effectively through the survey questionnaire
in order to avoid any kind of bias and also increase the reliability of the collected data in the
survey.
5.1 SURVEY ONE
Table 1.1 Question1. What is your Gender?
Total Male Female
200 120 60% 80 40%
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60%
40%
Gender
Male
Female
The consumers who have been participating in the survey are both male and female. There
are 60% males and 40% females in the survey. The ratio of male and female is quite similar
in order to avoid any kind of bias in the research as the opinion of both male and female is
considered effective. This decision also helps in conducting the research study without any
kind of restriction from the society. The number of a male in the survey showed that they
have much experience than female.
Table 1.2 Question2. In which age group you belong?
Total 20 to 25 years 26 to 30 years 31 to 35 years Above 35 years
200 20 10% 80 40% 60 30% 40 20%
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10%
40%
30%
20%
Age Group
20 to 25 years
26 to 30 years
31 to 35 years
Above 35 years
The respondents which are participating in the survey belong to different age group and
they are classified into four groups. The majority of the respondents i.e. 40% belong to the
age group of 26 to 30 years while the 30% of the respondents belong to the age group of 31
to 35 years. There are 10% respondents who belong to the age group of 20 to 25 years while
only 20% respondents are above the age of 35 years. The aspect of age is considered in
order to assess the effectiveness of their experience and knowledge in the automobile
sector.
Table 1.3 Question3. Have many vehicles of Volkswagen you have driven from 2005 to
2012?
Total Only one Two to Three More than
Three
200 160 80% 20 10% 20 10%
38

80%
10% 10%
Volkswagen vehicles driven by people
Only one
Two to Three
More than Three
The respondents who are participating in the survey possessed an experience of driving the
Volkswagen vehicles. There are several respondents who have experienced driving
Volkswagen vehicles different time. It has been evaluated that 80% of the respondents who
have driven the Volkswagen vehicles only one time while only 10% of the respondents
driven the vehicle two to three times. Only 10% of the respondents have driven the
Volkswagen vehicle more than three times. The experience of respondents regarding their
driving Volkswagen vehicles is helpful in conducting the research study effectively.
Table 1.4 Question4. Have you felt any kind of issues with the vehicles of Volkswagen?
Total Yes No
200 160 80% 40 20%
39

80%
20%
Issues
Yes
No
There are different issues and challenges which are observed by the consumers while
driving their Volkswagen vehicles. The 805 of the respondents have faced issues during their
drive in Volkswagen vehicles while other 20% respondents never possess any issue
regarding their driving in Volkswagen vehicles.
Table 1.5 Question5. What kinds of issues are faced by you while driving the Volkswagen
vehicles?
Total Fuel
Consumption
Maintenance
Cost
Service Quality All of the above
200 40 20% 40 20% 40 20% 80 40%
40

20%
20%
20%
40%
Kinds of Issues
Fuel Consumption
Maintenance Cost
Service Quality
All of the above
The aforementioned graph would be helpful in understanding the challenges and issues
which are faced by the consumers during their drive in Volkswagen vehicles. The 20% of the
respondents face huge fuel consumption as a challenge and other 20% respondents face the
huge maintenance cost while the other 20% face low service quality. Moreover, 40% of the
respondents face all these challenges and issues which is quite a big question on the
reliability of Volkswagen. The ineffective system of Volkswagen vehicle results in several
challenges and issues.
Table 1.6 Question6. Have you possessed knowledge of Volkswagen Emission Scandal
regarding the carbon emission test?
Total Yes No At some extent
200 120 60% 20 10% 60 30%
41

60%
10%
30%
Knowledge of Volkswagen Scandal
Yes
No
At some extent
The Volkswagen emission scandal attracts the attention of the huge number of people in the
world. The respondents who are participating in the survey were asked about the
knowledge of scandal as it demonstrates their knowledge towards the issue they were
facing in their vehicles. There are 60% of the respondents possess a huge knowledge
regarding the Volkswagen emission scandal which means they understand the issues
effectively. Still, 30% of the respondents possess the knowledge to a certain extent while
10% of the respondents have no knowledge regarding the scandal.
Table 1.7 Question7. In your opinion, is it correct to cheat people for personal benefits
irrespective of the adverse effect on humans and environment?
Total Yes No Maybe
200 10 5% 180 90% 10 5%
42

5%
90%
5%
Cheating people for personal benefits
Yes
No
Maybe
In any business, it is essential for the company to be loyal towards their consumer. The
aforementioned graph is helpful in understanding the decision of company regarding
consumer which further results in an adverse effect on them. There are 90% respondents
who strongly agree that the company should not cheat the people as well as an
environment for their personal benefits. Still, the 5% respondents are in favour of cheating
while the other 5% are not sure about the opinion.
Table 1.8 Question8. Would you support such kind of unethical practice in the business
industry?
Total Yes No At some extent
200 10 5% 180 90% 10 5%
43

5%
90%
5%
Support to unethical practices
Yes
No
At some extent
The unethical practices in the business are unfruitful and ineffective for the business
functioning. It is essential for the company to understand the weak areas and apply
potentially strong strategies for betterment. Here, the 90% of the respondents are not in
favour of unethical practices at the workplace as it leads to reduce the consumer base of the
company and also affect their image in the market. The 5% of the respondents are in favour
of such practices for personal gain but the other 5% respondents support the unethical
practices to some extent.
44

5.2 SURVEY TWO
Table 1.9 Question1. What is your Gender?
Total Male Female
100 50 50% 50 50%
Male Female
0%
10%
20%
30%
40%
50%
60%
50% 50%
Gender
The ratio of male and female in the survey has been same in order to avoid any kind of bias
in the research study. The opinion of male and female are both respected and it also
demonstrates that they both possess adequate knowledge and understanding of the
research topic. It is evaluated from the aforementioned graph that 50% of the respondents
are male while the other 50% respondents are female.
Table 1.10 Question2. In which age group you belong?
Total 20 to 25 years 26 to 30 years 31 to 35 years Above 35 years
100 10 10% 20 20% 30 30% 40 40%
45

20 to 25 years 26 to 30 years 31 to 35 years Above 35 years
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
10%
20%
30%
40%
Age group
The experts who have been participating in the research survey belong to different age
group. The aforementioned graph has been helpful in effectively evaluating the age group of
the respondents. There are 40% of the respondents who belong to the age group of above
35 years while 30% of the respondents belong to the age group of 30 to 35 years. In
addition to this, there are 20% respondents who belong to the age group of 26 to 30 years
while the rest 10% of the respondents belong to the age group of 20 to 25 years.
Table 1.11 Question3. At what extent, the vehicles of Volkswagen possess an adverse effect
on the environment?
Total Low Moderate High Very high
100 20 20% 30 30% 40 40% 10 10%
46

Low Moderate High Very High
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
20%
30%
40%
10%
Adverse effect on environment through
Volkswagen vehicles
The carbon emission from the vehicles possesses an adverse effect on the environment. The
aforementioned graph is helpful in understanding the opinion of experts regarding the
adverse effect of Volkswagen vehicles on the environment. There are 40% respondents who
are highly in favour of adverse effect due to the Volkswagen vehicles while the 10% of the
respondents are very highly in favour of adverse effect due to the Volkswagen vehicles. The
30% of the respondents are moderately in favour of this effect while the 20% of the
respondent consider it as a low influence.
Table 1.12 Question4. What kind of challenges and issue are faced in the vehicles of
Volkswagen?
Total Efficient fuel
consumption
High emission
of carbon
Ineffective
maintenance
All of the above
100 20 20% 20 20% 20 20% 40 40%
47

Efficient fuel
consumption High emission of
carbon Ineffective
maintenance All of the above
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
20% 20% 20%
40%
Kinds of challenges and issues
There are various kinds of challenges and issues that are observed by the experts in the
automobile sector. The aforementioned graph has been helpful in understanding the
challenges and issues which are observed by the experts. It has been evaluated from the
aforementioned graph that the 20% of the experts consider that the fuel consumption of
the Volkswagen vehicle is not effective while the other 20% respondents think the carbon
emission of the Volkswagen vehicles is high. In addition, there are 20% of the respondents
who have issues regarding the ineffective maintenance of the Volkswagen vehicles.
Moreover, the 40% of the respondents are facing all these challenges and issues in the
Volkswagen vehicles.
Table 1.13 Question5. What is the prime reason due to which the engineers of Volkswagen
vehicles conduct such unethical practice?
Total Less time Low budget Inadequate
resources
All of the above
100 05 05% 05 05% 05 05% 85 85%
48

Less time Low budget Inaqequate resources All of the above
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
5% 5% 5%
85%
Reasons for unethical practices by Engineers
The Volkswagen emission scandal has been critically scrutinizing by several experts in the
automobile sector and all consider the three reasons for the unethical practice in business
which are low budget, less time, and inadequate resources. The aforementioned graph
would help in understanding the opinion and views of experts regarding the reasons due to
which Volkswagen conduct the unethical practices. The 5% of the respondents consider less
time as a reason while the other 5% of the respondents consider the low budget. In addition
to this, there are 5% respondents who consider inadequate resources as the prime reasons.
Moreover, 85% of the respondents consider all these reasons as the prime motive for
conducting the unethical practices.
Table 1.14 Question6. In your opinion, the Volkswagen Emission Scandal could be avoided
by the potential action by the management?
Total Yes No At some extent
100 80 80% 15 15% 05 05%
49

Yes No At some extent
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
80%
15%
5%
Management could avoid the scandal
Any issues and challenges in the company could be effectively managed and handled by the
management. In the current scenario, the management of the Volkswagen might take a
potential step for handling the situation. According to the aforementioned graph, there are
80% of the experts who think that the involvement of management in this situation might
change the outcome but there are 15% experts who considered that the involvement of the
management would not be helpful. In addition to this, there are 5% respondents who
considered that the involvement of the management might influence the situation ta certain
extent. Thus, the involvement of the management might result in a potential influence on
the situation of the Volkswagen.
Table 1.15 Question7. At what level the human health possess an adverse effect due to the
carbon emission by the Volkswagen vehicles?
Total Low Moderate High Very High
100 05 05% 15 15% 60 60% 20 20%
50

Low Moderate High Very High
0%
10%
20%
30%
40%
50%
60%
70%
5%
15%
60%
20%
Adverse effect on Human health
The carbon emission is very harmful to the human as well as the environment as it affects
the health of the human to huge extent. The aforementioned graph would help in
understanding the extent up to which the adverse effect of the Volkswagen vehicle
possesses on the human health. There are 60% of the experts who consider that there is the
high effect on the human health due to the excessive carbon emission from the Volkswagen
vehicles. In addition to this, there are 20% experts who are very high in favour regarding the
adverse effect of carbon emission on human health. Still, there are 15% experts who think it
has a moderate effect on the human health while the 5% experts think it possesses low
effect on the human health. Thus, it is essential to control the carbon emission in the
vehicles for a better environment.
Table 1.16 Question8. What kind of actions must be taken by the regulatory bodies in the
automobile industry for avoiding any unethical practice?
Total Effective
monitoring
Strict policies Huge fine All of the above
100 10 10% 10 10% 10 10% 70 70%
51

Effective monitoring Strict policies Huge fine All of the above
0%
10%
20%
30%
40%
50%
60%
70%
80%
10% 10% 10%
70%
Suitable actions
There are various actions which could be taken by the regulatory boards and authorities
towards the companies who have been using the unethical practices in their business. It is
essential for the authorities and boards to take appropriate action against such companies.
The aforementioned graph would be helpful in understanding the actions which might be
used by boards and authorities. The 10% of the experts are in favour of effective monitoring
and other 10% of the respondents are in favour of strict policies. In addition to this, there
are 10% respondents who are in favour of the huge fine. Moreover, 70% of the respondents
are strictly in favour of all the three actions. The application of these actions would be
helpful for the authorities and bodies in safeguarding the environment and prohibiting
companies to conduct any unethical practice.
52

6.0 CONCLUSION AND KEY RECOMMENDATIONS
The major objective of the research study was to assess the reasons due to which the
Volkswagen has conducted the unethical practices in the business. The objective has been
effectively accomplished due to the Question 5 in Table 1.13 which discussed the reasons
due to which the company has conducted the unethical practice in their operations. The
engineer and operational heads of the Volkswagen have conducted the unethical practices
due to three major reasons such as low budget, less time for the project, and inadequate
resources. According to the knowledge and information which have been gathered through
literature review and survey, it is evaluated that the engineers and operational heads of the
project by the Volkswagen require more time and money which was unavailable at that
moment. In addition to this, they also don't have the resources which are required for
conducting the project effectively. The project timeline was near so the engineers and
operational heads of the project apply a defect device in the vehicles of Volkswagen in order
to pass the carbon emission test. The defect device activates the carbon emission during the
regulatory test and emits 40 times more carbon during its real-world drive. The United
States environmental protection Agency (EPA) issued a notice against Volkswagen regarding
Clean Air Act which possesses adverse effect the effectiveness of the company in the global
market and reduces their share by millions.
The diesel engines which were developed by Volkswagen are programmed which result in
low carbon emission during the regulatory test. The unethical practice of Volkswagen is
identified when the carbon emission of their vehicles is compared in different countries and
it was evaluated that the UK has low carbon emission in comparison to the USA but the
number of Volkswagen vehicle in the UK is much higher than the USA. This aspect gain
attention of the environmental regulatory bodies and they further conduct an investigation
against Volkswagen. The engineer and operational head further accepted their mistake and
they were fired from their job and they suffer several charges. It has been comprehended
that the unethical practices of Volkswagen result in different consequences on the humans
as well as environment. The huge carbon emission in the environment results in the
increase of NOx which is harmful to the environment. In addition to this, the health of the
53

humans is also affected due to the huge carbon emission by the vehicles of Volkswagen.
There are huge numbers of death that occurred due to the health issues regarding
respiration, etc. The environmental regulatory bodies are strict regarding the emission of
carbon in the environment and they have made strict policies but such unethical practices
from Volkswagen affect their policies and functional elements at a huge level.
The major recommendations that have been identified with the help of the research study
are explained as follows. Initially, the management of the Volkswagen should critically
assess the functioning of the organization and take suitable action for any kind of unethical
practice in their company. In addition to this, it is essential for the environmental authority
and boards of every country that they strict the environmental acts and laws in order to
prohibit any automobile company to break the guidelines. The environment would be
safeguard by the strict policies of the environmental boards and the ethical considerations
of the company towards the society and environment. In addition to this, the huge fine
should be applied to the companies who break the guidelines regarding the safety of the
environment.
54

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BIBLIOGRAPHY
Appendix A
TIME SCALE
ELEMENTS 1st
Month
2nd
Month
3rd
Month
4th
Month
5th
month
6th
Month
Research design
and selection of
research methods
Designing
Questionnaire
Sampling
Data collection
Data Analysis
Finalization
61

Appendix B
RESEARCH QUESTIONS – SURVEY ONE
1. What is you Gender?
a) Male
b) Female
2. In which age group you belong?
a) 20 to 25 years
b) 26 to 30 years
c) 31 to 35 years
d) Above 36 years
3. Have many vehicles of Volkswagen you have driven from 2005 to 2012?
a) Only One
b) Two to Three
c) More than Three
4. Have you felt any kind of issues with the vehicles of Volkswagen?
a) Yes
b) No
5. What kinds of issues are faced by you while driving the Volkswagen vehicles?
a) Fuel consumption
b) Maintenance cost
c) Service quality
d) All of the above
6. Have you possessed knowledge of Volkswagen Emission Scandal regarding the
carbon emission test?
a) Yes
b) No
c) At some extent
7. In your opinion, is it correct to cheat people for personal benefits irrespective of the
adverse effect on humans and environment?
a) Yes
62

b) No
c) Maybe
8. Would you support such kind of unethical practice in the business industry?
a) Yes
b) No
c) At some extent
63

Appendix C
RESEARCH QUESTIONS – SURVEY TWO
1. What is you Gender?
a) Male
b) Female
2. In which age group you belong?
a) 20 to 25 years
b) 26 to 30 years
c) 31 to 35 years
d) Above 36 years
3. At what extent, the vehicles of Volkswagen possess an adverse effect on the
environment?
a) Low
b) Moderate
c) High
d) Very High
4. What kind of challenges and issue are faced in the vehicles of Volkswagen?
a) Efficient fuel consumption
b) High emission of carbon
c) Ineffective maintenance
d) All of the above
5. What is the prime reason due to which the engineers of Volkswagen vehicles
conduct such unethical practice?
a) Less time
b) Low budget
c) Inadequate resources
d) All of the above
6. In your opinion, the Volkswagen Emission Scandal could be avoided by the potential
action by the management?
a) Yes
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b) No
c) At some extent
7. At what level the human health possess an adverse effect due to the carbon
emission by the Volkswagen vehicles?
a) Low
b) Moderate
c) High
d) Very High
8. What kind of actions must be taken by the regulatory bodies in the automobile
industry for avoiding any unethical practice?
a) Effective monitoring
b) Strict policies
c) Huge fine
d) All of the above
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