The automobile industry has drastic changes on the daily basis. Everyday some good news and some bad news comes into the market about various automakers. The latest news in the market is about Volkswagen’s emission scandal which is giving them a lot of problems in the financial front, along with that, its impacted their reputation substantially. Volkswagen, Europe’s biggest automaker has gotten themselves in to a really bad fix, which has hindered their sales and the European economy.
But! VolksWagen tried to play it smart and sold the outdated vehicles in UK after the news broke in US. they tried to sell as many of these outdated vehicles and hoped that the customers would not find out. According to VW sold new cars with defeat devices in UK even after scandal broke in US, VW was selling their outdated vehicles for almost two weeks after the scandal began. VW was been caught cheating by selling outdated diesel powered vehicles to customers, which are not up to date with the current emissions law.
Volkswagen has set aside €6.5bn to fix the outdated cars. But on top of that, it also has to face penalties in the US that could lead to a total cost of $18bn, out of which $7.4bn was charged as a fine by US, which is a huge amount of money. This will majorly set them back in their finances and their overall reputation has also been impacted majorly.
Volkswagen has to gain it’s reputation now and increase sales somehow, by attracting the customers, but this will be hard for them after this major scandal.
