You must have heard of the fact that companies are contributing to environmental degradation , though they don’t want to do that but no one can deny to the fact that they are indirectly into it. But their are many greedy companies who , without even taking concern of the environment are contributing to degradation of it . Volkswagen is one among such companies , let’s see what they have done .
VOLKSWAGEN AG , known internationally as the Volkswagen group is a German multinational automotive manufacturing company headquartered in Wolfsburg , Germany . In the early 1930s, cars were a luxury – most Germans could afford nothing more elaborate than a motorcycle and only one German out of 50 owned a car. Seeking a potential new market, some car makers began independent “people’s car” projects – the Mercedes 170H, BMW 3/15, Adler AutoBahn, Steyr 55, and Hanomag 1.3L, among others. The Volkswagen emission scandal began in September 2015 when the US Environment Protection Agency issued a notice of violation of clean air act to Volkswagen group . According to the agency Volkswagen intentionally developed a software named TURBOCHARGED DIRECT INJECTION (TDS ) diesel engines , to active their emission control only at the time of testing in the labs which causes vehicles Nitrogen output to met US standards , BUT in reality emits 40 times more nitrogen in air in the real world .
They developed this software in 11 million cars of which 500,000 were in US only . Research were done & a group of scientists detected that there is additional emission in road test . Within the first day of investigation the stock price of VOLKSWAGEN fell in value by one by one third . Its CEO Martin Winterkorn resigned from his post & many officials were suspended .
In April 2016 , Volkswagen announced to spend $18.32 billion to rectify the emission issue & in January 2017 , Volkswagen pleaded guilty to criminal charges & after investigation process , in April 2017 , US government ordered the company to pay $2.8 billion as criminal fine for breaking rules of nitrogen emission . The total cost of the scandal costed $33.3 billion in fines , penalties , & financial settlements & buyback cost of VOLKSWAGEN .
This proves that the greediness of one company can bring harm to whole ecosystem . As business is a part of society , business should perform function to bring peace in the environment by not polluting it . It should serve the mankind & society as well. Volkswagen by realizing their mistake pleaded themselves guilty shows that one the mistake is done you should work to rectify it instead of hiding it .