MGT437H5 Lecture Notes - Lecture 4: Vertical Integration, Finished Good
Document Summary
Since 2009 volkswagen has been selling clean diesel cars which are supposed to emit low nitrogen in the air through a combination of lower sulfur fuel, advanced engines and new emission control technology. Volkswagen cheated the officials by making sure the car emits low nitrogen when it"s tested in the lab. They inserted a code into its software that automatically turned the pollution controls on when it was being tested and the rest of the time the pollution controls were switched off. The problem was discovered by an independent group, the international council on clean transportation who saw major discrepancies between the lab test and real road performance for several vw diesel cars in. Vw has sold some 11 million clean diesel cars worldwide with europe being its major area of sales. Clearly vw had been cheating the researchers for years. vw now faces criminal prosecution and billions of dollars in fine. This has led to the resignation of ceo martin.
