In a Nutshell: The VW Scandal
The VW scandal has shaken up the world! The automobile industry, the stock market, the share bazaars, and the loyal customers are all in a fix! The recent VW fraud case was an unexpected revelation and something the German makers were not expected to do. In a nutshell, VW cars have been found to be fitted with a ‘cheat’ device and software that does not allow actual results to show when put through an emission test. The US authorities, first to find the software, stated that the VW cars, in reality, emitted 40 times higher Nitrogen Oxide than the legally permitted level. Now that is a figure that cannot go unnoticed!
What is Being Done?
The Volkswagen Recall plan has recalled around 400,000 cars to be fixed. These figures are primarily from the US, but many other countries are also following suit. VW is a popular brand name worldwide and has a huge pool of customers around the world. With a popular brand like VW, it is unimaginable to think about the number of faulty VW cars being used every day around the world!
The Environmental Protection Agency (EPA) is said to charge the company with a hefty fine. The Volkswagen Recall is also a huge financial pressure for the carmaker. To add to the misery, several private lawsuits from individuals and companies have also been charged against VW. To top it all, many countries have stopped the sale of VW cars and if trends continue, their new products do not have a bright future. Basically, financially VW is in big trouble! With around 89 federal lawsuits already charged against VW, it just seems to keep growing. Many car owners have filed these cases as they say that the fraud by VW has greatly affected the value of their car. The suits ask for class action status and the verdicts in hundreds of millions of dollars!
The US shareholders of VW have also filed a suit against VW. The VW stock has dipped by more than 30% since the EPA first publically announced the VW hoax. With about 482,000 diesel cars found to be faulty in the US itself, imagine the actual number of cars running on the fraud! This VW scandal is public and many VW customers and drivers are filing a lawsuit against the company. The customers are feeling duped and cheated! Many Volkswagen cars are popular and marketed on the terms of being environmentally friendly and ‘Clean Diesel’, this was a big factor for many drivers. This recent scandal is completely contrary to that promise! Additionally, many are filing a lawsuit against the manufacturer and distributor.
The Fall Out
After so many years of the software being in use, it’s surprising that no one noticed it earlier or did something about it. Many lawsuits and cases against VW are yet to determine the German Auto maker’s fate. Lawsuits are being filed by many private law firms against VW. VW had been able to create a mark for itself in the automobile industry but that seems to have been shaken up completely. Also, considering the amount of financial obligation on VW at the moment, it is very difficult for them to make their business stand at profit. It’s a case of fraud, having broken several legal regulations. The environmental effect of these vehicles is major and thus being the highest concern.
For a brand like VW, there are innumerable customers and it can be difficult to build such a pool of clients and customers again. While the final implications are yet to be decided, as of now, VW seems to have lost all its credibility. The brand has lost the trust it had managed to create over the years. VW has definitely given some excellent automobiles to the industry but the future seems varied at the moment. With such a huge scandal to their name, it will take time to get back into the market. It’s a big name and has been a trusted brand for years, but this mark on the reputation is not easily to be ignored. The lawyers say it’s a clear case of fraud where VW has intentionally deceived individual consumers. The consumer-rights law firm, Hagens Berman, in Seattle, has filed two class-action lawsuits, also against Volkswagen Group of America. Car owners are furious, hurt and angry. In Southern California, the firm McCuneWright, along with another firm, filed a class action complaint against Volkswagen Group of America, calling it ‘ the most deliberate and blatant frauds’. The story is similar in Indiana, Chicago, New York, and many many more!! So lawsuits are being filed by consumers across the world every day.
When Do You Know You Have a Lawsuit?
If you are a VW driver and you feel you need to be compensated for the fraud against you, go ahead! Get in touch with an attorney who will handle the case for you and guide you through the lawsuit. Even as a shareholder or someone who has invested in VW stocks, you are entitled to file a lawsuit and get compensated. The VW market has dipped and the vehicles are at a great depreciation. It’s something that could have significant implications on your future, and filing a lawsuit give you a voice to express your concerns. It’s normal to be angry and hurt at the moment, but you need to take charge; like they say- ‘hit while the iron is still hot!’