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Recently, various news websites are all have the updated information about the scandal of VW that it cheated on emission. As the German car giant, VW should never have cheated on such essential function of the cars. Instead, VW sells diesel cars in the US by boasting that its cars are low emission.

According to the Milton Friedman’ s theory, VW disobeyed the social responsibility for it did not abide by the basic ethical customs. The reputation of VW becomes terrible now. Thus, VW is facing several threats such as the lawsuit by Texas county and losing trust of consumers. As Yuki said, “No one wants to drive a lie”. Company must pay  money for recalling and the demand must be shed recently. It is predictable that the shareholders’ equality of VW will shrink by decreasing of revenue and increasing of legal cost in several years in the future. The situation of VW warns the entire car industry. Other car manufacture testing result is suspected by the society. People start thinking tighten the European Union testing regulation, which is the threat for the European car manufacturers.

As far as I am concerned, VW suffers a large cost instead of getting profit from its cheating. A good manager of a company should not get around the regulation in order to get profit, but the CEO of VW is not a good manager. To save its reputation, VW should be responsible and promise that it will not cheat again in the future.

Reference

Hotten, Russell. “Volkswagen: The Scandal Explained – BBC News.” BBC News. 25 Sept. 2015. Web. 30 Sep. 2015. <http://www.bbc.com/news/business-34324772>.

Rascoe, Ayesha. “Texas County Sues Volkswagen over Diesel-emissions Scandal.” Reuters. Thomson Reuters, 30 Sept. 2015. Web. 30 Sep. 2015. <http://www.reuters.com/article/2015/10/01/us-volkswagen-emissions-texas-idUSKCN0RU2GI20151001>.