Auto giant Volkswagen candidly accepted pollution cheating storm, as chief resigned over diesel ca r emission. Volkswagen the world’s largest auto manufacturer by sales in the first half of this year casted doubt of falsifying pollution profoundly shaking its market share value. The scandal deteriorated Frankfurt share market and plummet share value of company. The resignations did not soothe investor, investor unable to resist price following 35% meltdown that wiped 25 billion euros of the company’s market value on Monday and Tuesday.
Volkswagen still has legal hurdles that as many as 11 million of its diesel cars worldwide are equipped with software capable of fooling pollution tests. The global empire own’s brands such as SEAT in Spain, Skoda in the Czech Republic, Audi and Porsche in Germany, Lamborghini in Italy and Bentley in Britain. The pollution scandal has sparked a U.S criminal investigation and international legal action with yet incalculable financial costs.
Volkswagen hapless quest for easy money while selling diesel car is leading its downfall of financial values and reputation. Such trustworthy and popular car company had to forge such fraudulent attempt for easy and quick money, How can customer trust that it was simple fault, if it was limited to few numbers it could be justifiable. But situation is equivocal and elusive in nature. Volkswagen should discern to move ahead and add new chief should be charged with restoring group’s reputation and handling mounting worldwide legal action over the pollution scandal.
Volkswagen has admitted that it equipped about 482,000 cars in U.S with sophisticated software that covertly turns off pollution controls when the car is being driven. It turns on when it detects that the vehicle is undergoing an emission test. The car liberates pollutant gases into air including nitrogen oxide in amounts forty times higher than emissions standard as said by U.S Environmental Protection Agency (EPA).
The EPA could charge fines more than $18 billion with its on going investigation. Private law firms are lining up to take on the German company with a class action. So road for Volkswagen is bumpy. Every step should be calculated and good home work is mandatory to regain back to track.