Volkswagen scandal.

The scandal:

One of Germany’s biggest car dealerships that export cars worldwide were found cheating on their emissions tests. This was only found out when the cars had already been export to the USA and the EPA (Environmental Protection Agency) did a check up on the cars and found that emissions were way to high. The market for diesel cars in the USA has increased massively in recent years. 482000 cars in the USA were dubbed harmful to the environment and are being sent back to Germany. According to VW there are 11 million cars that have been transported worldwide have the “defect device.” The faulty car engines were missed or dismissed even though VW had the right equipment to check for it and fix it. The engines emitted nitrogen oxide pollutants up to 40 times above what is allowed in the US.

“We've totally screwed up," said VW America boss Michael Horn and chief executive Martin Winterkorn said his company had "broken the trust of our customers and the public." With almost 500,000 cars in the US alone, VW has set aside €6.5bn (£4.7bn) to cover costs. But according to EPA that wont cover it, they are expecting 18 billion US dollars. Shareholders are struggling to sell their shares for the cost and worth of shares as decreased so rapidly.

A crisis at Volkswagen is a crisis for Wolfsburg. They say one of the first things you see from Wolfsburg main station is the logo of Volkswagen. Seeing as it is not just Volkswagens image and economy on the line here, public faces are trying to keep the people of this town calm and keep there economic status under wraps. But to say that people and employees of this town and this company are calm is a complete fabrication. The outrage is being heard and scattered all of the media. 4 generations of people have worked at VW and in this town and the betrayal is not going to be forgotten at time soon.

The globalisation of this company has been compromised and major exports of cars from VW are put on hold until the trail and investigation are closed. 

http://www.bbc.com/news/business-34347741 

http://www.bbc.com/news/business-34365794