The VW group is still wading through the issues that arose from its use of bypass devices for its diesel cars. Porsche, which is a VW umbrella company, was also caught up in the scandal for its diesel-powered SUVs. The fine for Porsche has now been handed down, and while not as large as VW’s, it’s a hefty bunch of money.
German prosecutors have fined Porsche 535 million euro, or about $598 million. The fine is for lapses in supervisory duties that allowed the emissions cheating to happen. The fine follows a 1 billion euro penalty against VW and a fine of 800 million euros against Audi.
The Scope of the Scandal
The emissions cheating scandal, often referred to as “Dieselgate,” came to light in September of 2018 and is still ongoing. The scandal revealed that several car manufacturers, including VW, Audi, and Porsche, had installed software in their diesel vehicles that could detect when the car was undergoing emissions testing. This software would then activate equipment that reduced emissions to legal levels during the test, but once the test was over, the car would revert to a mode that produced higher emissions. This deception allowed the cars to pass emissions tests while actually emitting pollutants far above legal limits during normal driving conditions.
The ramifications of this scandal have been widespread, affecting not only the companies involved but also their customers, shareholders, and the environment. The financial penalties are just one aspect of the fallout. The companies have also faced numerous lawsuits from consumers and environmental groups, and their reputations have taken a significant hit.
Individual Accountability
German prosecutors have also pursued individual engineers and managers for lack of oversight that would have prevented the cheating vehicles from hitting the roads. This move underscores the seriousness with which the German legal system is treating the scandal. By holding individuals accountable, prosecutors aim to send a clear message that corporate malfeasance will not be tolerated.
For example, Rupert Stadler, the former CEO of Audi, was arrested in June 2018 as part of the investigation. He was accused of fraud and false advertising, among other charges. Similarly, several other high-ranking officials within the VW group have faced legal action. These individual cases are still making their way through the courts, and the outcomes could set important precedents for corporate accountability in the future.
The scandal has also prompted regulatory changes aimed at preventing similar issues in the future. Governments around the world have tightened emissions testing procedures and increased scrutiny of automotive manufacturers. In the European Union, for example, new regulations require real-world emissions testing in addition to laboratory tests, making it much harder for companies to cheat.
The financial impact of the scandal on the VW group has been enormous. In addition to the fines mentioned earlier, the company has had to set aside billions of euros to cover the costs of recalls, retrofits, and legal settlements. The total cost of the scandal is estimated to be in the tens of billions of euros, making it one of the most expensive corporate scandals in history.
Despite these challenges, the VW group has been working hard to rebuild its reputation and move forward. The company has made significant investments in electric vehicles and other green technologies, positioning itself as a leader in the transition to a more sustainable automotive industry. While it will take time for the company to fully recover from the scandal, these efforts are a step in the right direction.
The emissions cheating scandal has had far-reaching consequences for the VW group and its subsidiaries, including Porsche. The financial penalties are substantial, but the impact on the company’s reputation and the broader automotive industry is even more significant. As the legal proceedings continue and regulatory changes take effect, the hope is that such a scandal will not be repeated in the future.
via Autoblog
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
