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Source link : http://www.supplychain247.com/article/vws_appalling_clean_diesel_s

ID: 340462 • Letter: S

Question

Source link : http://www.supplychain247.com/article/vws_appalling_clean_diesel_scandal_explained

4. (4.80 pts) Learning Outside the Classroom. Experiencing the world beyond the classroom is an essential You might have frequently heard about the Volkswagen Scandal in 2015. But how much do you really know about it? Please read the article posted in LMS (titled "VWs Scandal") and answer the following questions with at least 2-3 sentences. (You can also access the article from the following link: http://www.supplychain247.com/article/vws_appalling clean_diesel_scandal _explained). . a. (0.8 pts) What is Volkswagen accused of? b. (0.8 pts) How widespread is Volkswagen's problem (e.g., how many cars, which models are How widespread is Volkswagen's problem (eg affected)? (0.8 pts) Is Volkswagen the first company to cheat on emission tests? What would be the effect of the scandal on demand for diesel engine cars? c. d. (0.8 pts) How does Volkswagen achieved to fool the regulators? Briefly describe the practice that helped the company to cheat. (0.8 pts) What is the problem with current emission tests? e. f. (0.8 pts) What are the financial consequences so far for Volkswagen?

Explanation / Answer

a.What is Volkswagen accused off

Volkswagen is accused of cheating in the regulation by rigging the software for showing satisfactory results in emission of gases, while in reality the engines emitted more gases that are beyond the permissible limit

b. How widespread is Volkswagen’s problem (How many cars , models are affected)

Volkswagen has mentioned close to about 11 Million devices are fitted with defeat devices that have manipulated emission checks . The range of cars include Passat , Jetta , Golf , Beatle and Audi A3.

c. Is VW the first company to cheat on emission tests ? What would be the effect of demand on diesel cars ?

Volkswagen is not the first company to cheat on emission tests . There have been cases of cheating that was found with companies like Caterpillar and Volvo involved in similar activities. The revelation is expected to decrease the demand for diesel cars .

d.How does VW achieved to fool its regulators ? Briefly describe the practice that helped the company to cheat

Volkswagen had inserted a intricate code that would switch on the emission testing to be recorded only when there is movement in the steering and pedaled movements in the car. Since the lab tests are predictable , the software’s are tuned for lab testing and hence would result in measuring lower than the actual emissions that are to be recorded.

e.What is the problem with current emission tests ?

The current emission tests are conducted inside the laboratory on a giant treadmill with predictable maneuvers that does not define the real world condition and hence it is easier for car companies to customize the system to avoid detection .

f.What are the financial consequences for VW ?

The clean air act allows a fine of $ 37,500 for a vehicle that is non compliant . This would mean that Volkswagen could potentially face a fine of $18 Billion .

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