• Latest
  • Trending
  • All
  • BUSINESS
  • ENTERTAINMENT
  • POLITICAL
  • TECHNOLOGY

VW Customers Don't Give a Monkey's About Diesel Cheating

January 29, 2018
Indices: Already not extreme fear

Indices: Already not extreme fear

April 24, 2025
Eurozone: Tariff reversal is some relief, but no game changer – ABN AMRO

Eurozone: Tariff reversal is some relief, but no game changer – ABN AMRO

April 24, 2025
US: The US has already lost the trade war – ABN AMRO

US: The US has already lost the trade war – ABN AMRO

April 24, 2025
Predictive Analytics Promise the End of ‘Gut Feelings’ in Construction

Predictive Analytics Promise the End of ‘Gut Feelings’ in Construction

April 24, 2025
First Border Wall Contracts of Second Trump Term Awarded in Texas, San Diego

First Border Wall Contracts of Second Trump Term Awarded in Texas, San Diego

April 24, 2025
Construction Economics for April 28, 2025

Construction Economics for April 28, 2025

April 24, 2025
AI startups backed to boost construction productivity

AI startups backed to boost construction productivity

April 24, 2025
Why is building safety litigation on the rise?

Why is building safety litigation on the rise?

April 24, 2025
Severfield to cut 6 per cent of staff despite ‘solid’ order book

Severfield to cut 6 per cent of staff despite ‘solid’ order book

April 24, 2025
Bovis promotes operations head to board

Bovis promotes operations head to board

April 24, 2025
China expresses condolences over death of Pope Francis, World News

China expresses condolences over death of Pope Francis, World News

April 24, 2025
Pope Francis’ body taken in procession to St Peter’s for lying in state, World News

Pope Francis’ body taken in procession to St Peter’s for lying in state, World News

April 24, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Sunday, May 18, 2025
No Result
View All Result
  • HOME
  • BUSINESS
  • ENTERTAINMENT
  • POLITICAL
  • TECHNOLOGY
  • ABOUT US
  • Login
  • Register
  • HOME
  • BUSINESS
  • ENTERTAINMENT
  • POLITICAL
  • TECHNOLOGY
  • ABOUT US
No Result
View All Result
Huewire
No Result
View All Result
Home BUSINESS

VW Customers Don't Give a Monkey's About Diesel Cheating

by huewire
January 29, 2018
in BUSINESS
0
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

[ad_1]

A bizarre incident involving the testing of diesel exhaust fumes on a group of cartoon-watching monkeys, and possibly humans too, has catapulted the Volkswagen AG emissions scandal back onto newspaper front pages. But public outrage, though warranted, may well ring hollow this time.

When Volkswagen admitted rigging about 11 million vehicle engines in 2015, I assumed the German carmaker would pay dearly, not only in terms of fines, repair costs and compensation, but also in terms of damage to its brand and thus lost sales. I was wrong.

What Scandal?

Volkswagen Group sales surged to the highest ever in 2017

Source: Bloomberg, the company


While VW has incurred more than 25 billion euros $31 billion) of diesel scandal costs, so far only two managers have been imprisoned and the company hasn’t offered European customers the same compensation U.S. buyers received. No matter, its global vehicle sales rose 4 percent to 10.7 million vehicles last year. Remarkably, though U.S sales of VW’s namesake brand declined in 2015 and 2016, they rebounded strongly last year. The share price is higher now than in September 2015.

Bouncing Back

VW shares have recovered all the ground lost since the diesel scandal erupted

Source: Bloomberg


The only sensible conclusion from these data is that VW’s customers and investors don’t care much about its emissions cheating — or at least not enough to buy a different brand of vehicle. Human and animal-testing is clearly an emotive issue but there’s no reason think consumers will behave any differently this time. 

The diesel emissions scandal is hardly the only example of public outrage about corporate wrongdoing being worse than its bite. Uber Technologies Inc. has lost market share to Lyft Inc. following a string of scandals, but its sales haven’t fallen off a cliff. In Britain, about 850,000 people have signed a petition for London to reverse a decision not to renew the company’s operating license. Uber’s plans for an IPO as early as next year remain on track. So far Equifax Inc. has also suffered remarkably few financial repercussions related to its massive data breach.

The scandal provoked broader concern about the risks of diesel in several European governments, and diesel sales have since declined in the region as consumers worried a ban from cities or the loss of fuel-tax incentives could undercut the resale value of new purchases. It would be a stretch to argue that a consumer’s decision to switch from a diesel to a petrol car was retribution for the car industry’s collective environmental shortcomings — there are plenty of carmakers with vehicles that emit far higher levels of dangerous nitrogen oxide in real-world driving conditions, compared to the laboratory. 

The lesson here seems to be that entrenched companies aren’t easily dislodged, providing they make some show of public contrition and continue to offer a product customers actually want. The latest revelations also contain a bitter irony: the exhaust fumes the monkeys are said to have breathed in came from a VW Beetle whose emissions had been rigged to be cleaner than usual under those laboratory conditions. Unfortunately, VW didn’t bother extending the same pollution protections to millions of people who breathed excessive levels of nitrogen oxide fumes from its vehicles in our cities. And nobody cares.  

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

[ad_2]

Source link

Share196Tweet123
huewire

huewire

Recent Comments

No comments to show.

Recent Posts

  • Indices: Already not extreme fear
  • Eurozone: Tariff reversal is some relief, but no game changer – ABN AMRO
  • US: The US has already lost the trade war – ABN AMRO
  • Predictive Analytics Promise the End of ‘Gut Feelings’ in Construction
  • First Border Wall Contracts of Second Trump Term Awarded in Texas, San Diego
Huewire

Copyrights © 2024 Huewire.com.

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • HOME
  • BUSINESS
  • ENTERTAINMENT
  • POLITICAL
  • TECHNOLOGY
  • ABOUT US

Copyrights © 2024 Huewire.com.