Just when you think that you had seen it all in the automobile business, Volkswagen makes you wonder if there will ever be a level below which manufacturers will not go in order to sell cars. The world’s top-selling car maker recently made headline news when it issued a stunning admission that some 11 million of its diesel vehicles worldwide were fitted with software designed intentionally to deceive U.S. emissions tests. Volkswagen’s admission came only after others had discovered the deception, and after admitting what would become public anyways. In response, they simply set $7 billion aside to cover the fallout from the scandal that is tarnishing its reputation. In actuality, the scandal will likely be even bigger and will likely exceed $10 billion.
The admission came after the U.S.’s Environmental Protection Agency revealed that VW rigged nearly half a million cars to defeat U.S. smog tests. The company then admitted that it intentionally installed software programmed to switch engines to a cleaner mode during official emissions testing, and apologized for it. The software then switches off again, enabling cars to drive more powerfully on the road while emitting as much as 40 times the legal pollution limit.
In its statement Tuesday, Volkswagen gave more details, admitting that “discrepancies” related to vehicles with Type EA 189 engines and involved some 11 million vehicles worldwide. The U.S. Justice office has opened a criminal probe into the automaker’s actions. The EPA has an investigation, and foreign regulators are expected to launch their own probes.
This incident is likely to trigger a recall and a flurry of consumer lawsuits. It may prompt the company to compensate individual car owners or other measures. EPA officials have pledged to punish Volkswagen.
Well at least we know that professional wrestling is still real.
Thank you,
Michael K. Gillis, Esq.
GILLIS & BIKOFSKY, P.C.
1150 Walnut Street
Newton, MA 02461
Phone: 617-244-4300
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E-mail: mgillis@gillisandbikofsky.com