What could vw have done differently

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Problem

One of the world's largest car manufacturers, Volkswagen (VW), admitted to criminal wrongdoing in 2017. The firm confirmed that it systematically cheated on emissions tests related to its two-liter diesel engines. These engines were designed in 2005 to meet more rigorous U.S. emission standards taking effect in 2007. The new engines did not perform as planned and the company then designed a software feature to artificially pass the emissions testing process. Road testing in 2014 uncovered a large difference between EPA-measured emissions and the actual output of the vehicles. This was then further investigated by several legal entities. In September 2015 the CEO of VW lost his job over the scandal. The financial cost to the firm is currently more than $20 billion and could go above $25 billion in fines and consumer compensation for nearly 11 million vehicles with this "defeat device" software. Get the instant assignment help.

The external environment of the global automobile industry is quite complex. Regulations vary from country to country and in the United States even from one state to another. Firms must be prepared to anticipate and respond to these external forces. In this case, VW's response to the design issue was neither ethical nor legal. Why do you think VW made the decisions regarding this emissions problem in the late 2000s? What could VW have done differently?

Reference no: EM133857007

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