Reputational risks: Volkswagen Case
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Today we decided to switch to an unusual topic - analysis of the project’s reputational risks. To do this, we briefly consider the case of Volkswagen, which has already managed to make some noise.
/ photo davidd CC
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The essence of the story with Volkswagen lies in the fact that journalists have become aware of reliable information that the automaker has underestimated emissions. The scale of this scandal is difficult to overestimate - such stories can become a point of no return for any company. Let's try to analyze the situation.
The economic losses from the scandal can be estimated at several tens of billions of euros - the company lost about € 25 billion in capitalization in a matter of days, and besides it is facing billions of dollars in fines and legal proceedings.
An investigation by journalists revealed that Volkswagen had developed a special software that regulated emissions while working on a test bench. Outside the test complex, emissions could be several times higher than the norm.
The fact of the work of the special software was revealed by experts of the International Council on Clean Transport (ICCT). They themselves checked the cars with diesel, but the result surprised them. Diesel engines, which for a long time were considered as a more environmentally friendly option, turned out to be more harmful.
The burning scandal forced the company to recognize the fact of installing a special software, which lowered the level of emissions during the official tests. The company itself said that the problem may be characteristic of more than 11 million cars that were sold worldwide.
Volkswagen said it was ready to solve this situation and sends more than 7 billion euros to fix a technological problem. It is not yet known what exactly will happen - the reprogramming of engines or the installation of an additional air purification system for each car. Both options will cost. At the same time, it will be necessary to review all the processes for the production of new cars.
The scale of the history forced the shareholders of the company to remove the head. He resigned and issued an appeal, in which he gave his assessment of what is happening. The Board of Directors stated that Winterkorn was not aware of software manipulations.
PS We try to share not only our own experience in the service of providing virtual infrastructure 1cloud , but also to talk about various research and news in related fields of knowledge.
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Today we decided to switch to an unusual topic - analysis of the project’s reputational risks. To do this, we briefly consider the case of Volkswagen, which has already managed to make some noise.
/ photo davidd CC
')
The essence of the story with Volkswagen lies in the fact that journalists have become aware of reliable information that the automaker has underestimated emissions. The scale of this scandal is difficult to overestimate - such stories can become a point of no return for any company. Let's try to analyze the situation.
The economic losses from the scandal can be estimated at several tens of billions of euros - the company lost about € 25 billion in capitalization in a matter of days, and besides it is facing billions of dollars in fines and legal proceedings.
Special software
An investigation by journalists revealed that Volkswagen had developed a special software that regulated emissions while working on a test bench. Outside the test complex, emissions could be several times higher than the norm.
The fact of the work of the special software was revealed by experts of the International Council on Clean Transport (ICCT). They themselves checked the cars with diesel, but the result surprised them. Diesel engines, which for a long time were considered as a more environmentally friendly option, turned out to be more harmful.
The burning scandal forced the company to recognize the fact of installing a special software, which lowered the level of emissions during the official tests. The company itself said that the problem may be characteristic of more than 11 million cars that were sold worldwide.
Response
Volkswagen said it was ready to solve this situation and sends more than 7 billion euros to fix a technological problem. It is not yet known what exactly will happen - the reprogramming of engines or the installation of an additional air purification system for each car. Both options will cost. At the same time, it will be necessary to review all the processes for the production of new cars.
The scale of the history forced the shareholders of the company to remove the head. He resigned and issued an appeal, in which he gave his assessment of what is happening. The Board of Directors stated that Winterkorn was not aware of software manipulations.
PS We try to share not only our own experience in the service of providing virtual infrastructure 1cloud , but also to talk about various research and news in related fields of knowledge.
Do not forget to subscribe to our blog on Habré, friends!
Source: https://habr.com/ru/post/294794/
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