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What will be the future of Volkswagen post the emission scandal in the USA?

Volkswagen Passenger Cars

Automotive car major Volkswagen was just recently found to be cheating emission tests in the USA. According to the California Air Resources Board (CARB), the German car maker has agreed to all the allegations put against it which includes the involvement of 4.82 lakh, 2.0-litre four-cylinder diesel engine powered vehicles that have been sold in the country since the last seven years.

When a vehicle with the engine in topic undergoes emission tests, it emits permitted levels of nitrogen oxide. However, under normal city driving conditions, the vehicle releases somewhere between 10 to 40 times more toxic smog than permitted, in order to offer better performance and more fuel economy. This has resulted in a major blow for Volkswagen, as a result of which its share prices fell by 20 percent and the affected models’ include the Audi A3, Passat, Golf, Jetta and Beetle whose sales have been stopped.

The concerned authorities have proved that Volkswagen has rigged its emission tests and the company could be fined $37,500 for each car. This comes out to a total amount of almost $18 billion. In addition to this, the company also has to sort out the issue at the earliest in order to keep the affected vehicles on the streets.

However, Volkswagen would not be able to fix the massive blow to its character statement, which is already on a downward trend. Sales in international markets will also take a major detour if customers worldwide start losing their trust in the company. But there is another side to all of this, VW might be able to get away by clearing out all the financial woes associated with this case and get back to its normal functioning, much like what Toyota was able to do around six years back. So let’s see how this pans out for Volkswagen in the long run.