On January 5, 2016, The US Department of Justice sued Volkswagen AG (Volkswagen), Europe’s leading automobile manufacturer, on behalf of the United States Environmental Protection Agency (US EPA), for installing ‘defeat devices’ on almost 600,000 diesel passenger vehicles. According to the US EPA, around 499,000 diesel cars with 2.0 liter engines and some 85,000 cars with 3.0 liter engines were found to have defeat devices fitted on them. Moreover, the Department of Justice also accused the automaker of misleading federal regulators. According to the lawsuit, ‘the Volkswagen Group must pay civil penalties of US$32,500 per affected car made before 2009 and US$37,500 per affected car made after 2009 for each of two violations of the Clean Air Act, as well as between US$2,750 and US$3,750 for each defeat device found on the affected cars’. Commenting on the lawsuit, Volkswagen Group of America said, “Volkswagen will continue to work cooperatively with the EPA on developing remedies to bring the TDI [turbocharged direct injection] vehicles into full compliance with regulations as soon as possible. In addition, we are working with Kenneth Feinberg to develop an independent, fair and swift process for resolving private consumer claims relating to these issues. We will continue to cooperate with all government agencies investigating these matters.” ..

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

PayPal (9 USD)

ABOUT VOLKSWAGEN - Next Page>>