http://www.ibtimes.co.uk/volkswagen-emission-scandal-4000-vehicles-suspended-sale-uk-1522044

Recently, controversy has arisen over Volkswagen after it admitted to cheating its diesel emission tests in the United States. The titan of the car industry has suffered a substantial blow to its stock as it made the announcement. The engines were fitted with computer software which allowed it to be able to sense when it was being tested so that it could use a secondary motor that was capable of passing. In reality, when the cars were being used for normal road use, they were emitting over 40 times the allowable amount of nitrogen oxide into the air. According to reports, over 11 million cars world wide were fixed to beat their emissions tests.

When the public discovered this, consumers lost faith in the company and its stock ended up dropping by a third of its previously recorded value. This massive blow will most likely also affect Germanys economy and the population as a whole as Volkswagen is the biggest car manufacturer in Europe and is linked very closely with the German people. Although major repercussions should occur, many consider Volkswagen to be “to big to fail” which would leave the government unable to act. Unfortunately, this is true, however natural recessions in stock and loss of shareholders could result in a devastating loss for the major company. Although large consequence should befall the car manufacturing company not much is likely to happen. Hopefully the natural karma of the situation will be able to dissuade future companies of following down the same track.

http://auto.economictimes.indiatimes.com/news/industry/why-did-volkswagen-admit-to-cheating-in-emissions-tests/49061240

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