I find myself simply scratching my head, wondering how a company could be so clever about being so stupid.

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I find myself simply scratching my head, wondering how a company could be so clever about being so stupid. 

Originally shared by Gideon Rosenblatt

VW: The Impact of Lying to Regulators and to Customers

Here’s what you need to know about _what” Volkswagen did: 

“The results showed the VW vehicles to be higher in real word emissions by 15 to 30 times,” said Dr. Arvind Thiruvengadam, a professor engaged in the study.

According to Thiruvengadam and others familiar with the technology, diesel engines emit substantial amounts of nitrogen oxide, which in combination with other pollutants causes smog and can be unhealthful.

Most diesel cars — including those built by VW, BMW, Mercedes, Porsche, Chevrolet and other companies — are equipped with devices or systems that eliminate most of that nitrogen oxide.

In Volkswagen’s case, those devices functioned properly only when the vehicles were being monitored in typical testing circumstances, such as on a dynamometer in a smog test station, as required by the DMV.

Thiruvengadam and his associates found, using their portable testing devices, that those devices stopped functioning when the vehicles were being driven in real-world situations.

The company has been caught in a tremendous, mind-numbingly large deception, perpetrated not just on government regulators, but also on customers, who thought they were buying vehicles that were less harmful in terms of the climate. 

The fallout is huge. So far, the stock has dropped from $255 a share before the outbreak of the scandal to $106 today. And, this just in, Volkswagen CEO Martin Winterkorn – has just resigned. 

All of this leaves me scratching my head, wondering “what the hell were these guys thinking!?!?”. The stupidity here is mind-boggling. It is also a critical reminder of just how important being a good corporate citizen actually is. Good business, business as a force for good in the world, starts with resisting the temptations to take shortcuts and to deceive. In the end, it usually catches up with us, as VW is learning, quite painfully, today. 

#volkswagen   #climatechange   #scandal   #ungoodbusiness  

http://www.latimes.com/business/autos/la-fi-vw-7.3-billion-emissions-scandal-20150922-story.html
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