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Volkswagen Diesel Scandal 20230915 194742 0000

Volkswagen was caught installing illegal software to cheat emissions tests, allowing vehicles to emit up to 40 times more pollution than allowed under US law. Over 11 million vehicles worldwide were affected. The scandal damaged Volkswagen's reputation, resulted in billions in fines and penalties, and increased health and environmental risks from excess nitrogen oxide and carbon dioxide emissions. Volkswagen has since taken steps to manage the risks by admitting wrongdoing, recalling vehicles, improving governance, and investing in cleaner technologies and sustainability practices. The scandal highlighted the importance of regulatory compliance, ethical culture, transparency and long-term sustainability for companies.

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27 views14 pages

Volkswagen Diesel Scandal 20230915 194742 0000

Volkswagen was caught installing illegal software to cheat emissions tests, allowing vehicles to emit up to 40 times more pollution than allowed under US law. Over 11 million vehicles worldwide were affected. The scandal damaged Volkswagen's reputation, resulted in billions in fines and penalties, and increased health and environmental risks from excess nitrogen oxide and carbon dioxide emissions. Volkswagen has since taken steps to manage the risks by admitting wrongdoing, recalling vehicles, improving governance, and investing in cleaner technologies and sustainability practices. The scandal highlighted the importance of regulatory compliance, ethical culture, transparency and long-term sustainability for companies.

Uploaded by

animesh.modi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Prestige Institute of Global Management

Topic
Volkswagen Emission Scandal

Submitted To: Submitted By:


Prof. Milind Joshi Group 4
VOLKSWAGEN
EMISSION
SCANDAL
ABOUT THE COMPANY
Volkswagen which simply means People's Automobile
in Germany.

Founded in 1937 by the German Labour Front under


the Nazi Party and revived into a global brand after
World War II.

Volkswagen is a major player in the global automotive


industry, and its products are sold in over 150
countries.

The company ranks fourth in terms of car


manufacturing and fifth in sales.

Turnover of Volkswagen group is around 279.2 billion


euros.

September 18, 2015: The EPA issues a notice of


violation to Volkswagen, alleging that the company
installed illegal software in its diesel vehicles.
ABOUT SCANDAL

The Volkswagen emissions scandal,


sometimes known as Dieselgate or
Emissionsgate.

A notice to German Automaker, Volkswagen by


US' EPA

The Agency found Turbocharged Direct


Injection (TDI) diesel engines.
ABOUT SCANDAL

The vehicles emitted up to 40 times more


NOx in real-world driving.

Deployed this software in about 11 mn cars


worldwide, including 500,000 in the US, in
model years 2009 through 2015.
IMPACTS OF
SCANDAL
Reputational damage to Volkswagen

Financial penalties

Recalls

Regulatory changes

Public health impacts

In addition It damaged the reputation of the


German automotive industry as a whole.
IMPACTS ON ENVIRONMENT & PERCEPTION OF RISK IN ENVIRONMENT:

Increased Air Pollution , Decreases Air Quality:


VW manipulation resulted in cars making up to 40 times more nitrogen oxides (NOx) in real-world
driving conditions.

Health Consequences Risk:


The excess nitrogen oxides (NOx) in the air had severe health consequences, including lung
function, asthma and heart disease.

A study published in Environmental Research Letters estimated that approximately 59 premature


deaths will be caused by the excess pollution produced by VW between 2008 and 2015 in US

Global Warming Risk:


While nitrogen oxides (NOx) emissions were the primary focus of the scandal, the excess emissions
also included carbon dioxide (CO2), contributing to climate change and global warming.

Ecosystem Damage Risk:


Air pollution , excess gases like NOx and CO2 could have indirect impacts on the ecosystem,
Harming Vegetation, Ocean Acidification, and Increased Risk of Wildfires.

1. Citation: "Volkswagen Emissions Scandal Causes 59 Premature Deaths in US, Study Finds." The Guardian, 30 June 2017, 2. Citation: "Air pollution linked to heart disease deaths." Harvard T.H. Chan School of Public Health, 2020, 3. Citation: "Volkswagen
Dieselgate Scandal Increases Global Warming." Scientific American, 22 September 2016, 4. Citation: "Air Pollution Impacts Ecosystems." National Park Service, U.S. Department of the Interior.
IMPACTS ON ENVIRONMENT & PERCEPTION OF RISK IN ENVIRONMENT:

For reference,
The US only has about

286
MILLION
Total Cars.
ENVIRONMENTAL MEASURES

Commitment to Environmental Increased


Electrification Certifications Transperancy

Cleaner Technologies Settlement and Sustainable


Fines Practices
GOVERNMENT MEASURES

CIVIL LAWSUITS CRIMINAL INVESTIGATIONS

ETHICAL AND
REGULATORY CHANGES. ENVIRONMENTAL INITIATIVES
HOW DID COMPANY
MANAGED THE RISK

Admitting to the Recalling millions Improving


scandal and of vehicles corporate
taking governance
responsibility

Paying billions of Investing in new


dollar in fines and technologie
settlements
TYPES OF RISK

Operational Risk

Financial Risk

Strategical Risk

Hazardous Risk
LEARNINGS
Regulatory compliance

Ethical culture

Risk assessment

Transperancy

Long term sustainability

whistle blower mechanism


THANK YOU

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