Why Vw╎s Emissions Deception Is Illegal in Europe and How To
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Fiat Chrysler Automobiles N.V., ) V.M
VIRGINIA: IN THE CIRCUIT COURT OF THE COUNTY OF HENRICO COMMONWEALTH OF VIRGINIA, EX REL. MARK R. HERRING, ) ATTORNEY GENERAL, ) ) Plaintiff, ) ) v. ) CIVIL ACTION NO. ) FCA US LLC, ) FIAT CHRYSLER AUTOMOBILES N.V., ) V.M. MOTORI S.P.A., ) AND V.M. NORTH AMERICA, INC., ) ) Defendants. ) COMPLAINT The Plaintiff, Commonwealth of Virginia, by and through its Attorney General, Mark R. Herring, brings this action complaining of FCA US LLC ("FCA") and Fiat Chrysler Automobiles N.V. ("Fiat N.V." and, together with FCA, the "Fiat Defendants" or simply "Fiat"); and VM Motori S.p.A. ("VM Italy") and VM North America, Inc. ("VM America" and, together with VM Italy, the "VM Defendants" or simply "VM"), and states as follows: I. INTRODUCTION The Commonwealth of Virginia seeks relief for the massive and deliberate deception of consumers and regulators perpetrated by the aforementioned Defendants (collectively "FCA") in relation to the certification, marketing, and sale to consumers of more than 100,000 model year ("MY") 2014-2016 "EcoDiesel" Ram 1500 pickup trucks and Jeep Grand Cherokee sport utility 1 vehicles (the "Diesel Vehicles" '), including more than 2,000 within the Commonwealth of Virginia (the "Virginia Diesel Vehicles"). 2. Defendants designed, deployed and then concealed from the public and regulators multiple auxiliary emission control devices ("AECDs") in the Diesel Vehicles' electronic control modules. Those AECDs, when used alone or in combination with another device, operated as illegal "defeat devices": software strategies that optimize emission controls during formal emissions test cycles so that emissions appear to be within legal limits while reducing emission controls outside of those test cycles ("off-cycle") in normal, real-world operations. -
Blockchain As a Solution for Certification in an Age of "Do-Good" Business
Vanderbilt Journal of Entertainment & Technology Law Volume 20 Issue 3 Issue 3 - Spring 2018 Article 6 2018 Linking the Public Benefit ot the Corporation: Blockchain as a Solution for Certification in an Age of "Do-Good" Business Margaret D. Fowler Follow this and additional works at: https://scholarship.law.vanderbilt.edu/jetlaw Part of the Antitrust and Trade Regulation Commons, and the Computer Law Commons Recommended Citation Margaret D. Fowler, Linking the Public Benefit ot the Corporation: Blockchain as a Solution for Certification in an Age of "Do-Good" Business, 20 Vanderbilt Journal of Entertainment and Technology Law 881 (2020) Available at: https://scholarship.law.vanderbilt.edu/jetlaw/vol20/iss3/6 This Note is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Journal of Entertainment & Technology Law by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. Linking the Public Benefit to the Corporation: Blockchain as a Solution for Certification in an Age of "Do-Good" Business ABSTRACT As part of its now-infamous emissions scandal, Volkswagen spent tens of millions of dollars on advertising geared toward environmentally conscious consumers. The scandal is an example of "greenwashing," which, along with the corresponding term "fairwashing," represents the information asymmetry present in product markets that involve claims of social and environmental responsibility in companies' production practices. As consumers and investors demand responsible production practices from both traditional corporations and entities organized under the newer corporateform known as public benefit corporations(PBCs), it becomes even more important to verify that those entities' supply chains are, in fact, meeting standards for the social or environmental responsibility that they purport or strive to have. -
Senate Vote on Trump Trial Signals an Acquittal Is Likely
P2JW027000-6-A00100-17FFFF5178F ****** WEDNESDAY,JANUARY27, 2021 ~VOL. CCLXXVII NO.21 WSJ.com HHHH $4.00 DJIA 30937.04 g 22.96 0.1% NASDAQ 13626.06 g 0.1% STOXX 600 407.70 À 0.6% 10-YR. TREAS. unch , yield 1.039% OIL $52.61 g $0.16 GOLD $1,850.70 g $4.20 EURO $1.2162 YEN 103.62 In India, Farmers’ Protest Over New Law Turns Violent Microsoft What’s News SalesRise 17%Amid Business&Finance Covid-19 icrosoftposted record Mquarterly sales under- pinned by pandemic-fueled Pandemic demand forvideogaming and accelerated adoption of itscloud-computing services Demand for cloud during the health crisis. A1 services, videogaming Walgreens Bootsnamed Starbucks operating chief fuels earnings during Rosalind Brewerasits next work-from-home era CEO,making her the only Black woman leading a BY AARON TILLEY Fortune 500 company. A1 CK J&J said it expectstore- TO MicrosoftCorp. posted re- port pivotal resultsofalarge cord quarterly sales under- clinical trial of itsCovid-19 SHUTTERS pinned by pandemic-fueled de- vaccine by early next week, A/ mand forvideogaming and as the companyposted im- I/EP accelerated adoption of its AG proved quarterly sales. B1 TY cloud-computing services dur- ing the health crisis. GE booked $4.4billion Theremote-work erahas in fourth-quarter cash HARISH STREET CLASH: Indian farmers clash with police in New Delhi on Tuesday after breaking through barriers to escape po- been a boon for Microsoft. In flow,beating itsown pro- lice-approved routes for a tractor rally that coincided with a military parade celebrating India’s Republic Day. -
Lessons from the Volkswagen Diesel Emissions Scandal∗
Willingness to Pay for Brand Reputation: Lessons from the Volkswagen Diesel Emissions Scandal∗ Xiaogang Chey Hajime Katayamaz Peter Leex December 3, 2019 Abstract In this study, we use the announcement of the Volkswagen emissions scandal on September 18, 2015, as an exogenous shock to measure consumers’ willing- ness to pay (WTP) for brand reputation. Only Volkswagen diesel cars produced in 2009-2015 were announced as emissions violators. Using eBay car auction data, we estimate the impacts of the scandal on the prices of Volkswagen emissions non- violating cars. Our difference-in-differences estimates show that final bid prices decreased by 14% and 9% in diesel and gasoline car markets, respectively, which purely reflected a decline in consumers’ WTP for Volkswagen’s brand reputation. Additionally, the difference in price-drops between the violating and non-violating diesel cars is statistically insignificant. This may be due to the fact that consumers rationally adjust their WTP by expecting compensation which will almost surely be provided by Volkswagen for violating models. Keywords: Volkswagen emissions scandal, willingness to pay, brand reputation. JEL codes: D12, L62. ∗We thank Nejat Anbarci, Anurag Banerjee, Jingnan (Cecilia) Chen, Yiquan Gu, Tilman Klumpp, Georgia Kosmopoulou, Daniel Li, Tong Li, Jingfeng Lu, Justin Marion, Anastasiia Parakhoniak, Leslie Reinhorn, Henry Schneider, Nan Shi, Steven Tadelis, Angel Hernando-Veciana, Le Zhang, and Xiaoyong Zheng for helpful discussions and comments. Early versions of the paper benefited from discussions at the Auction Conference at Lancaster University 2017, the Durham Micro-Workshop 2018, APIO 2019. yCity, University of London, UK. E-mail: [email protected]. zWaseda University, Japan. -
An Inquiry Into How Company Culture Influenced the Volkswagen 2015 Emissions Scandal by Ahmad Ahbab and Matthew Yu Submitted To
An Inquiry into How Company Culture Influenced the Volkswagen 2015 Emissions Scandal by Ahmad Ahbab and Matthew Yu Submitted to Dr. D’Arcy Randall and Matthew Chovanec ChE333T Spring 2019 VOLKSWAGEN EMISSIONS SCANDAL 2 Table of Contents Introduction 3 Martin Winterkorn Outlines a New Plan, and a New Volkswagen 6 Volkswagen Launches Strategy 2018 6 Volkswagen Charms the Public to Expand and Gain Recognition Overseas 7 Implications on Corporate Culture 7 Volkswagen Steers Itself into a Precarious Situation 8 Volkswagen Discovered Cheating Emissions Regulations 8 Defeat Devices explained 10 Volkswagen Denies Allegations of Cheating 11 New Leadership Attempt to Chart a New Course for Volkswagen 12 Impacts of the Scandal on Both Volkswagen and the Public 13 Volkswagen Changes Policy and Develops a More Sustainable Organization 14 Ethical Analysis of the Actions by the Engineers and Management at Fault 14 Violations of IEEE Code of Ethics Tenet 1 and 9 15 Violations of IEEE Code of Ethics Tenet 3 and 7 16 Ethics at Volkswagen Post-Dieselgate 16 Conclusion 18 List of Abbreviations 20 Works Cited 21 List of Tables Table 1: A listing of all affected vehicles identified to contain “defeat devices” 9 Table 2: Tenets 1 and 9 of the IEEE Code of Ethics 15 Table 3: Tenets 3 and 7 of the IEEE Code of Ethics 16 List of Figures Figure 1: Diagram of How VW’s Switch Software Worked 11 Appendices Appendix A: Discussion of NOx Capture Systems (LNT and SCR) 25 VOLKSWAGEN EMISSIONS SCANDAL 3 Introduction Volkswagen is renowned as a global powerhouse in the automobile industry. -
SEC Complaint
Case 3:19-cv-01391 Document 1 Filed 03/14/19 Page 1 of 69 1 DANIEL J. HAYES (IL Bar No. 6243089) Email: [email protected] 2 MICHAEL D. FOSTER (IL Bar No. 6257063) 3 Email: [email protected] JAKE A. SCHMIDT (IL Bar No. 6270569) 4 Email: [email protected] KEVIN A. WISNIEWSKI (IL Bar No. 6294107) 5 Email: [email protected] 6 175 West Jackson Boulevard, Suite 1450 7 Chicago, Illinois 60604 Telephone: (312) 353-3368 8 Facsimile: (312) 353-7398 9 UNITED STATES DISTRICT COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN FRANCISCO DIVISION 12 13 UNITED STATES SECURITIES AND Case No. 14 EXCHANGE COMMISSION, COMPLAINT 15 Plaintiff, 16 vs. 17 Hon. VOLKSWAGEN 18 AKTIENGESELLSCHAFT, MARTIN WINTERKORN, VOLKSWAGEN GROUP 19 OF AMERICA FINANCE, LLC, and VW JURY DEMANDED 20 CREDIT, INC., 21 Defendants. 22 23 COMPLAINT 24 Plaintiff United States Securities and Exchange Commission (“SEC”) brings this 25 action against defendants Volkswagen Aktiengesellschaft (“VWAG”), Martin Winterkorn 26 (“Winterkorn”), Volkswagen Group of America Finance, LLC (“VWGoAF”), and VW Credit, 27 Inc. (“VCI”), and alleges as follows: 28 COMPLAINT Case No. xxxx Case 3:19-cv-01391 Document 1 Filed 03/14/19 Page 2 of 69 1 I. 2 SUMMARY 3 1. From at least 2007 through September 2015, VW perpetrated a massive 4 fraud.1 VW, including its CEO Martin Winterkorn and numerous other senior officials, 5 repeatedly lied to and misled United States investors, consumers, and regulators as part 6 of an illegal scheme to sell its purportedly “clean diesel” cars and billions of dollars of 7 corporate bonds and other securities in the United States. -
Volkswagen Emission Scandal: Reputation Recovery and Recall Strategy1
W17228 VOLKSWAGEN EMISSION SCANDAL: REPUTATION RECOVERY AND RECALL STRATEGY1 Rachna Shah, Gaganpreet Singh, and Sandeep Puri wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. Copyright © 2017, Richard Ivey School of Business Foundation Version: 2017-04-25 We have totally screwed up. Michael Horn, chief executive offer, Volkswagen USA2 The trust-shattering exposure of the Volkswagen Group (VW) emission scandal on September 18, 2015, left Matthias Müller, VW’s newly appointed chief executive officer (CEO), with a daunting management challenge—reputation recovery. Müller’s task was to draw the German multinational automotive manufacturing company out of the abyss of one of the worst reputation crises it had faced since its inception in 1937. The matter came to the fore when the United States Environmental Protection Agency (EPA) slapped a legal notice on VW for violation of the Clean Air Act.3 The EPA accused VW of manipulating nitrogen oxide emissions tests to ensure its EA 189 diesel engines, built during fiscal years 2009–2015, met EPA standards. -
Volkswagen Emissions Scandal: the Perils of Installing Illegal Software
R M B www.irmbrjournal.com March 2017 R International Review of Management and Business Research Vol. 6 Issue.1 I Volkswagen Emissions Scandal: The Perils of Installing Illegal Software PETER STANWICK Auburn University, Department of Management Email: [email protected] SARAH STANWICK Auburn University, School of Accountancy Abstract This paper presents a case study related to the negative impacts of Volkswagen installing illegal software in its automobiles in order to manipulate the emissions level of its diesel vehicles. The case addresses reasons why Volkswagen decided in install the illegal software and highlights the negative consequences of its actions. These negative consequences include significant financial and reputational costs to Volkswagen. Key Words: Volkswagen; Emission Levels, Environmental Standards, Corporate Reputation. Introduction In a stunning announcement on September 18, 2015, the Environmental Protection Agency (EPA) accused Volkswagen of illegally installing software in its diesel cars that manipulated the amount of emissions occurring during testing of the levels of emission. The EPA alleged that Volkswagen used the software to turn on the full emissions control systems for the vehicle only when the vehicle was being tested for emissions. During any other time the vehicle was operating, the full emissions control system was turned off. The software would turn on the control systems when the car was running in a stationary position since that would be the condition when the car was being tested for emissions. The EPA estimated that when the full emissions control system had been turned off, the vehicle could release up to 40 times as much of the pollutant nitrogen oxide than is allowed under the Clean Air Act. -
[2]Eric Schlosser, Command and C
大惨事と情報隠蔽 原注 Handbook for Communicating まえがき Environmental, Safety, and Health Risks, Battelle Press, 2004 [1]Scott D. Sagan, The Limits of Safety, [7]Regina E. Lundgren and Andrea H. Princeton University Press, Philadelphia, McMakin, Risk Communication: A 1995 Handbook for Communicating [2]Eric Schlosser, Command and Control, Environmental, Safety, and Health, Nuclear Weapons, the Damascus Accident, Wiley-IEEE Press, 2013 and the Illusion of Safety, Penguin Books, [8]Timothy L. Sellnow, Robert R. Ulmer, 2014 Matthew W. Seeger and Robert Littlefield, [3]Mikhail Gorbachev, Turning Point at Effective Risk Communication: A Chernobyl, Project Syndicate, April 14, Message-Centered Approach, Springer, 2006, http://www.project-syndicate.org/ 2009 commentary/turning-point-at-chernobyl [9]Peter Bennett, Kenneth Calman, Sarah [4]Dan Ariely, Predictably Irrational: The Curtis and Denis Smith, Risk Hidden Forces That Shape Our Decisions. Communication and Public Health, Harper Perennial, New York, 2010(ダン・ア Oxford University Press, 2010 リエリー『予想どおりに 不合理―行動経済学が [10]Robert L. Heath and H. Dan O'Hair, 明かす「あなたがそれを選ぶわけ」』熊 谷 淳 子 訳 、 Handbook of Risk and Crisis 早川書房、2008年) Communication, Routledge, 2010 [11]Pamela (Ferrante) Walaski, Risk and 第1部 リスク情報隠蔽はなぜ問題か Crisis Communications: Methods and Messages, Wiley, 2011 [1]Hedberg, B., How organizations learn [12]James E. Lukaszewski, Lukaszewski on and unlearn, in: Nyström, P.C. & Starbuck, Crisis Communication: What Your CEO W.H., Handbook of Organizational Needs to Know About Reputation Risk and Design, Oxford University Press, 1981 Crisis Management, Rothstein Associates [2]Mullins, L.J. and G. Christy, Inc., 2013 Management & Organisational Behavior, [13]Joseph Arvai and Louie Rivers III, Financial Times Management, May 2010 editors, Effective Risk Communication, [3]Lee Clarke, Mission Improbable: Using Routledge, 2013 Fantasy Documents to Tame Disaster, [14]Robert R. -
January 12, 1999 Lois J. Schiffer Assistant Attorney General
January 12, 1999 Lois J. Schiffer Assistant Attorney General Environment and Natural Resources Division U.S. Department of Justice Washington, DC 20530 Re: United States v. Caterpillar, Inc., Civil Action No. 98-2544 (HHK), D.J. Ref. 90-5-2-1-2255 United States v. Cummins Engine Co., Civil Action No. 98-2546 (HHK), D.J. Ref. 90-5-2-1-2136A United States v. Detroit Diesel Corporation, Civil Action No. 98-2548 (HHK), D.J. Ref. 90-5-2-1-2253 United States v. Mack Trucks, Inc., Civil Action No. 98-1495 (HHK), D.J. Ref. 90- 5-2-1-2251 and United States v. Renault Vehicules Industriels, Civil Action No. 98-2543 (HHK), D.J. Ref. 90-5-2-1-2251/1 United States v. Navistar International Corp., Civil Action No. 98-2545 (HHK), D.J. Ref. 90-5-2-1-2252 United States v. Volvo Truck Corp., Civil Action No. 98-2547 (HHK), D.J. Ref. 90-5-2-1-2256 Dear Assistant Attorney General Schiffer: The State and Territorial Air Pollution Program Administrators (STAPPA) and the Association of Local Air Pollution Control Officials (ALAPCO) – the two national associations representing the air pollution control agencies in the 55 states and territories and more than 165 major metropolitan areas across the country – are pleased to provide comments on the proposed Consent Decrees related to the above-referenced civil actions. These proposed Consent Decrees – announced in the Federal Register on November 3, 1998 (63 FR 59330-59334) – have been filed by the United States to settle civil complaints against seven manufacturers of motor vehicle diesel engines alleged to have sold, offered for sale or introduced or delivered into commerce, heavy-duty diesel engines equipped with "defeat devices" in the form of computer software that alters fuel injection timing when the engines are in use, thus adversely affecting the engines' emission control systems for oxides of nitrogen (NOx); such defeat devices are prohibited by the Clean Air Act. -
A Historical Review of the U.S. Vehicle Emission Compliance Program and Emission Recall Cases
WHITE PAPER APRIL 2017 A HISTORICAL REVIEW OF THE U.S. VEHICLE EMISSION COMPLIANCE PROGRAM AND EMISSION RECALL CASES Hui He, Lingzhi Jin www.theicct.org [email protected] BEIJING | BERLIN | BRUSSELS | SAN FRANCISCO | WASHINGTON ACKNOWLEDGMENTS The authors thank the internal and external reviewers of this paper for their guidance and constructive comments, with special thanks to Steve Albu, Charles Freed, Robert Maxwell, Margo Oge, Karl Simon, John Urkov, and Michael P. Walsh for the input they gave through interviews in the early stages of this paper. In addition, we also thank Tom Cackette, Robert Maxwell, Margo Oge, John Urkov, Michael P. Walsh, Yan Ding, Dagang Tang, John German, Fanta Kamakate, Rachel Muncrief, and Zifei Yang for their thoughtful reviews. Funding for this work was generously provided by the ClimateWorks Foundation, the Energy Foundation, and the U.S. Environmental Protection Agency. © 2017 International Council on Clean Transportation 1225 I Street NW, Suite 900, Washington DC 20005 [email protected] | www.theicct.org | @TheICCT TABLE OF CONTENTS Executive Summary .................................................................................................................. iv 1. Introduction ...........................................................................................................................1 2. Legal authority under the U.S. compliance program ......................................................4 3. Evolution of the U.S. compliance program .....................................................................6 -
Agenda and Meeting Material
Agenda Investment Advisory Council (IAC) Wednesday, September 11, 2019, 1:00 P.M.* Hermitage Room, First Floor 1801 Hermitage Blvd., Tallahassee, FL 32308 1:00 – 1:05 P.M. 1. Welcome/Call to Order/Approval Bobby Jones, Chair of Minutes (See Attachments 1A – 1B) (Action Required) 1:05 – 1:15 P.M. 2. Opening Remarks/Reports Ash Williams (See Attachments 2A – 2E) Executive Director & CIO 1:15 – 2:15 P.M. 3. Asset Liability Review Aon Hewitt (See Attachment 3) Phil Kivarkis Kristen Doyle 2:15 – 3:15 P.M. 4. Global Equity Asset Class Alison Romano, SIO Review Tim Taylor, SIO (See Attachments 4A – 4B) Mercer Jay Love Savannah Finney Investment Advisory Council – Agenda September 11, 2019 Page 2 3:15 – 3:45 P.M. 5. SIO Updates Katy Wojciechowski, SIO DC Programs Update Fixed Income Investment Programs & Steve Spook, SIO Governance Office Update Real Estate (See Attachments 5A – 5F) John Bradley, SIO Private Equity Trent Webster, SIO Strategic Investments Walter Kelleher, Director Educational Services Defined Contribution Programs Michael McCauley, Investment Programs & Governance Officer 3:45 – 4:00 P.M. 6. Major Mandate Performance Aon Hewitt Review Kristen Doyle (See Attachment 6) 4:00 – 4:15 P.M. 7. IAC Compensation Subcommittee Bobby Jones, Chair Update (See Attachment 7) (Action Required) 4:15 – 4:25 P.M. 8. Audience Comments/December Bobby Jones, Chair Meeting Date/Proposed 2020 Meeting Dates/Closing Remarks/ Adjourn (See Attachments 8A – 8B) *All agenda item times are subject to change. 2 APPEARANCES IAC MEMBERS: STATE BOARD OF ADMINISTRATION OF FLORIDA BOBBY JONES PETER COLLINS VINNY OLMSTEAD PETER JONES GARY WENDT CHUCK COBB INVESTMENT ADVISORY COUNCIL MEETING TOM GRADY (telephonically) SEAN McGOULD (telephonically) SBA EMPLOYEES: ASH WILLIAMS, EXECUTIVE DIRECTOR KENT PEREZ TUESDAY, JUNE 18, 2019 JOHN BENTON 1:05 P.M.