Monthly Archives: September 2015

Many were shocked by the revelation in recent news that one of the world’s largest automakers, Volkswagen, purposefully cheated both their American and European auto emissions tests. Devices were inserted into the engines of numerous vehicles that could sense at what times they were being checked and simultaneously altered how the engine performed in order to appear more efficient. Coincidentally, what’s worse is that the main marketing strategy of the German car titan was to boast of its exceptionally low emissions. Unfortunately for Volkswagen, the rise in vehicle sales due to the marketing plan will by no means make up for the losses in reparations that are now piling up. On top of several customer lawsuits, and probable fines, Volkswagen will unquestionably have to pay for the cost of 11 million vehicle recalls. Currently, the car company has allowed for 8.7 Billion dollars of capital to be used towards covering the lofty costs of this mishap. Mainly this money will be allocated towards the refitting of vehicles with the not so efficient current software, into cars that will at least pass the present regulations.

http://www.cbc.ca/news/business/porsche-exec-likely-to-take-the-wheel-at-volkswagen-amid-emissions-scandal-1.3242965

Not only did this bombshell abruptly halt the sale of most Volkswagen vehicles, it also brought a question to the consumers on whether they even want to continue purchasing diesel in general. This could potentially bring a drop in sales for not only Volkswagen, but other diesel sellers as well, such as Mercedes Benz. In a forecast for the future, it seems as though diesel sales will continue to plummet, as a large base of consumers in search of more efficient options. Though the discovery of these faulty emission tests sheds a bad light on Volkswagen, it could also create the final surge for companies to move away from fossil fueled vehicles altogether. A result of this catastrophe, could quite possibly be the start of an electric car revolution.

http://www.businessinsider.com/ap-volkswagen-faces-major-legal-trouble-in-emissions-scandal-2015-9

http://www.cbc.ca/news/business/volkswagen-emissions-1.3248230

Now that Apple has conquered both the mobile-phone, and personal computer industries, many have been wondering what is next for the tech mogul. Well, the answer to the looming question on everyone’s minds is finally here! Apple has constructed substantial plans to enter into the automobile industry. Following the consumer’s lacklustre response to the recently released Apple Watch, it comes as no surprise that apples next launch needed to be big. Contemplating the movement of other tech firms into the car business, such as Google’s venture into self driving cars, it makes sense that to remain relevant Apple would choose to join in the race as well. Not only would this new endeavour please the “ever wanting more” customers of the tech company, it could also potentially lead Apple into an entirely new profitable market.

However, all things considered, I’m not sure stepping into the automobile business is the best move for the company as a whole. As recently discovered by Volkswagen and their emission crisis, it is difficult for even experienced automobile companies to abide by the strict vehicle regulations. With Apple being completely unpracticed in the field, it is challenging to imagine that they would launch a successful product right off the bat. Along with this, it is well known that Apple tends to test their newest products, through actual consumer use. For instance, being a customer purchasing the latest version of the iPhone, it is typical to expect several glitches, and small issues that are likely to be fixed in the next release. If Apple continued to use this method when entering the realm of the auto industry, it could result in potentially disastrous effects, especially regarding customer safety. Despite the excess capital Apple currently holds to put towards a new product, entering a market as large and regulated as the automobile industry looks like a mistake. One wrong turn or accident, and Apple could potentially be chipping away at their own consumer base due to a new bad reputation. In the long run, Apple is much better suited to revolutionize new vehicle software, while leaving the hardware to the seasoned professionals

http://hexus.net/ce/news/automotive/80590-apple-rumoured-working-car-rival-tesla-electric-vehicles/

http://www.economist.com/news/business/21667923-apple-entering-auto-business-road-ahead-could-be-rough-iphones-icars

Recent attention put towards lowering elevated rates of obesity across the globe has caused a major drop in sales for beverage company Coca-Cola. In response to several campaign’s targeting bad diets (including sugary drinks) as the route cause of obesity, Coca-Cola allocated lofty funds towards research that sought to put the blame elsewhere. Included in these funds, was a contribution towards starting the Global Energy Balance Network (GEBN), a non-profit that aims for the reduction of disease and obesity due to “unhealthy lifestyle”. The message of this organization worked in the beverage companies favor by suggesting that obesity is more related to lack of exercise than to unhealthy diets. However, critics were quick to question whether the statements made were true, or just an effort by Coke to sustain consumer loyalty. By donating to obesity lowering research, not only does Coca-Cola rehabilitate their unhealthy image, they also have an opportunity to skew the “scientific research” being publicized. As a result the soft drink company can maintain high sales and continue to rake in a healthy profit.

The ethical dilemma here is whether or not Coca-Cola should even be allowed to support health research when their products are by definition unhealthy. It appears hypocritical to permit a company with products at the root of so many health issues, to make face that they support motivations to create a healthier society . During a period of urgent health risk it is unfortunate to see that large businesses still putting profit above global well-being. Perhaps, Coca-Cola should first gain initiative to create a healthier product, before throwing money at research that omits them from the problem.

(http://www.huffingtonpost.com/dana-radcliffe/is-it-ethical-for-coke-to_b_8009304.html)

(http://well.blogs.nytimes.com/2015/08/09/coca-cola-funds-scientists-who-shift-blame-for-obesity-away-from-bad-diets/?_r=1)

Images

(http://www.coca-colacompany.com/press-center/image-library)

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