Volkswagen has paid dearly for the ethical shortcomings that led to “Dieselgate.” But has VW learned from the scandal? With the FTC recently filing the final court summary on the case, Michael Toebe reflects on the crisis that leveled the company’s reputation.
Volkswagen’s good name has been tarnished regularly in the media in the last four years over its low-level decision-making and irresponsibility. Severe financial penalties have been meted out as punitive and corrective measures. There are lessons to be learned from VW’s errors.
In 2015, the company confessed to cheating emissions tests on 11 million vehicles across the globe. “Dieselgate,” as the scandal was called, was a punch to VW’s reputation. The financial hit, significant. The company has paid a whopping $9.5 billion in the last four years to American car owners.
That’s historical, with the Federal Trade Commission (FTC) calling it the “largest consumer redress program in U.S. history.”
The total penalties paid internationally has totaled $35 billion.
VW knew of the problems with its vehicles. As is common in developing scandals and the reputation crisis that accompany them, instead of responding ethically, leadership engaged in reckless decision-making. The needed corrections were deemed undesirable, and the financial…
