Tuesday, 22 September 2015

Volkswagen emissions scandal 2015 :

Around 15 billion euros ($16.9 billion) was wiped off the market value of Volkswagen AG on Monday following revelations that the German carmaker rigged US emissions tests for about 500,000 diesel cars.

What the company did ?

VW used a device programmed to detect when the cars are undergoing official emissions testing. The software device then turns off the emissions controls during normal driving situations, allowing the cars to emit more than the legal limit of pollutants.

in  simple "they have done rigging in United States Emissions tests"

How this scandal got exposed ?
VW's U.S. head Michael Horn, who was attending a lavish event in New York to promote the 2016 VW Passat, admitted the company had "totally screwed up" and vowed to make amends.

"The company will have to recall nearly 500,000 affected cars, which will cost it millions of dollars, and that's even before the damage to its brand and potential fines," said Michael Hewson, chief market analyst at CMC Markets.

Impact ?

Globally 11 million cars have been effected from this!!

This news has been spread globally and south korea ordered for a probe.

The South Korean probe will involve 4,000 to 5,000 Jetta, Golf and Audi A3 vehicles produced in 2014 and 2015, Park Pan-kyu, a deputy director at South Korea's environment ministry, told Reuters.
The ministry will consider recalling those vehicles after conducting the investigation, he said.
"If South Korean authorities find problems in the VW diesel cars, the probe could be expanded to all German diesel cars," he said.
Volkswagen Korea declined to comment.
German rivals Daimler and BMW have said the accusations against VW did not apply to them.
The European Commission has said it is in contact with VW and U.S. regulators, but it was too early to say whether VW vehicles in Europe were also affected.
A VW spokesman in Australia said the company had contacted its head office in Germany asking for advice about how to proceed and whether it expected cars sold in Australia to be affected. He added that the Australian office had not been contacted by local police or government agencies.

Impact on india ?
  • Volkswagen car owners would be impacted along with Audi owners 
  • Mother son sumi indian listed company fell 6 % intraday on tuesday ,the company deals with ancillaries and account 40% profit from volkswagen 
Written By Sainath Gupta 

with some inputs from Reuters & BI

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