University of Greenwich: Volkswagen Dieselgate Case Study Report

This report presents a case study on the Volkswagen Dieselgate scandal, examining its impact on international business. The introduction defines international business and its importance in global trade. The main body delves into the details of the scandal, including the intentional use of "defeat devices" to cheat emission tests, the violation of the Clean Air Act, and the subsequent legal and financial repercussions. The report outlines the involvement of various countries, the affected vehicles, and the consumer lawsuits. The conclusion summarizes the impact of the scandal on Volkswagen's market value, emphasizing the importance of ethical conduct and regulatory compliance in international business. References to academic sources are also provided.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Case study: “Dieselgate scandal” of Volkswagen......................................................................1
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
An international business is basically refer to the transportation of goods and services,
capital, technological advancement over cross boarders as in form of international scale. In this
suitable study about different programs is considerate by which suitable preparation is addressed
by which advanced level of engagement towards global scaling is increases (Hamilton, L. and
Webster, 2018). It is used by business to enhance capabilities of revenue potential as by
accessing effectual learning and accessing of talent. The report below is based on the case study
of Volkwagen that describes about the “Dieselgate scandal” against company.
MAIN BODY
Case study: “Dieselgate scandal” of Volkswagen.
Volkswagen is an German auto-mobile industry and it is known for its iconic Beetle with
having a headquartered and founded in 1937. The company is facing a scandal of emission and
“dieselgate” that is began in the year 2015 as when US environmental protection agency consider
an issue of the company. It is basically noticed as per violation of clean air act towards
Volkswagen group. It this it is found that company has intentionally processed a program and it
is related to turbocharged direct injection (TDI). It is actually be activated as on the basis of
control towards carbon emission emission. It is tested in the laboratory as its vehicle caused Nox
outcome that is meet up with US standards as per its regulatory testing but originally it cause
four times nitrogen oxide in the real world of driving. In support of its deployed 11 million car is
circulated all around worldwide including 500,000 as in between 2009-2015 (Buckley, P.J.,
Enderwick and Cross, 2018). It cause an issue related to clean air violation to German auto-
maker group. It is a cheating that is devised within vehicles and it cost around $33 billion vehicle
that refits and regulates the finest company. The federal court of justice has ruled its judgements
of about diesel scandal of car manufacturer. As a resultant business has to pay its compensation
to the owner as per of “defeat device“ that is developed by meant to bypass of vehicle emission.
It promotes the crucial benchmark as there is about 60,000 pending cases that is bought by
German consumer as in order to seek emission compensate on test drive. It actually admit
cheating of carbon emission and its footprint as that is dubbed into a biggest scandal.
“Dieselgate scandal”
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In September 2015, US Environmental protection agency (EPA) noticed that there is
about 590,000 motors that is founded as being violated the clean Air Act. In this vehicle is
equipped in a format of computer software and on the basis of federal emission it is counted as
cheated. It actually renders and bypass the in-operatives and control system of vehicle emission.
The control towards emission is presented during testing period and at the course of normal
driving the effectiveness of driving is reduced. It is alleged that in 2015 these devices are
installed within the two litre diesel vehicles and it is done in 2009-2015. It is also be
acknowledged that around 40 times higher pollution is emerged as per the perceived level of
pollution. In this not only Volkswagen but its competitors such as Audi, Porsche has noticed a
violation and counted under clear air act (Chi and et. al, 2019). In addition they have also sell
and produce SUVs within its 3-4 litre diesel cars and it is directly meant to be circumstances of
emission standards. It subsequently informed that better level of existence is defeated. In January
2019 Justice department has filled a complaint against Volkswagen as on behalf of EPA.
Furthermore, Volkswagen Group of America Chattanooga operations allege a violation and in its
revert in the year 2017, company pleaded its guilty at three criminal felony court along with this
also pay $2.8 billion as in terms of penalty. In addition to this Volkswagen also agreed to pay
$1.5 billion as per concern towards civil resolution, environment, financial claims and customs
as well.
The court also ruled and passed a statement as by following EPA allegation 2015 and it is
dependent on regulatory investigations which is carried forward within various countries and
includes Italy, France, South Korea, Germany, UK and Canada. It is also be revealed that around
1.2 million of vehicle get involved within the scandal of diesel emission and carbon footprints.
As per concern of this scandal around 11 million vehicle get affected over worldwide and 2.8
million in is Germany only. The federation of German consumer organisation (VZBV) has
brought a case to the company and it is progressed on behalf of consumers (Hannibal, M. and
Knight, G., 2018). Moreover, the concern of case it get involved plaintiff Herbert Gilbert and he
is the one who bought in approx €31,000. In relation to this case he stated that company take full
purchase and interest by which suitable concern is maintained so that customers didn't suffer any
cost of damage as from manipulated cars of diesel. After the processing of case Gilbert ruled a
compensation which is tuned to €26,000 as with the less of depreciation and it is resulted with
the drive of few kilometres.
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It is essential prospect under which other ruled cases are remain pending and in process
of case court is expected to ruled in favour of plaintiffs. After that company also maintained a
offer under which they have maintain a payment for its consumer and that would be less than a
judgement that is passed by court. As the customers get settled with the business functions that
they get keep with support of its vehicles. So that adequate delay within legal positions has
uncleared for the longer period of time (Kahiya, E.T., 2020). Thus it has direct impact over the
limitation of plaintiffs and also has prominent impact that manipulates overall scale of fraud. As
the more time passes one thing get more clearer and on that basis entitled on the basis of full
purchase price and in addition to usual litigation and default interest as well.
The emission rate that is installed within the software more of the cars as around half of
million cars within US and of about to develop an adequate sense which is blended with perfect
parameters by which suitable drive is emitted within the set of environmental protection agency.
In this defeated device get detect on the basis of steering, throttle and detection that is stored to
switch the test which is operated within distinct modes of operations. In this significant
modification is induced that actually permits heavier Nitrogen as which is smog forming
pollutant which promotes several diseases such as lung cancer. It basically delivers higher milege
and power that is more than 40 times to federal limitation. It usually pumps 40 times higher
amount of oxide within which car emission get emit fewer limitation which completely
dependent on load and driving style. There is no recall admit violating emissions laws as it also
state basically in California and fewer part of Partial Zero standard of emission vehicle and it is
prevented in support of registration (Cherunilam, F., 2020). It produces higher exception and
after that pre owned and diesel oriented cars that is certified only gets committed in terms of
electric cars.
It is also be considered that in 2016 about 340,000 of owners and lesser get registered
themselves by filling a form that basically drive by indicating buy backing which is negotiated
by government. If owner didn't sold their vehicles that they have receive in between $5100 and
$10,000 that is used to compensate the diminished value of reselling. In this eligibility to get
receive adequate settlement by which emission of corresponding EPA is announced with support
of department of Justice and Federal trade commission. There is about three generation that is
incorporated with 2.0 litre diesel and four cylinder that is installed as a second sensor of nitrogen
oxide and induce as a replacement of oxidation catalyst.
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CONCLUSION
It has been concluded from above report that international business is supported by the
business as in order to promote and intensify the working capabilities in effective manner. It has
higher impact over the productiveness and working capabilities by which ability to gain higher
heights in terms of market share, profit and sales generation is increases over regular period of
time. In addition to this it is summarised that Volkswagen has suffered a claim that is related to
the excess carbon emission and for this company has alleged as well that has huge impact over
the market value and share of business.
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REFERENCES
Books and Journals
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018.International business. Oxford
University Press.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chi, T and et. al, 2019. Real options theory in international business. Journal of International
Business Studies. 50(4). pp.525-553.
Hamilton, L. and Webster, P., 2018.The international business environment. Oxford University
Press.
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business Review.
27(6). pp.1116-1127.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization from a
distant small open economy.m International Business Review. 29(1). p.101621.
Rialp, A., and et. al, 2019. Twenty-five years (1992–2016) of the International Business Review:
A bibliometric overview. International Business Review, 28(6), p.101587.
Zhao, H., Zhang, F. and Kwon, J., 2018. Corporate social responsibility research in international
business journals: An author co-citation analysis. International Business Review .27(2).
pp.389-400.
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