The History of Volkswagen’s Economic Downfall

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4 days ago

In the car industry, German automakers Volkswagen are known as a powerhouse. In the economic industry, however, they’re known for their scandals, paying off fines left and right. The car company has been criticized many times for using technology employed in their vehicles to cheat emissions test. Let’s take a look at how much this has cost the car company.

The U.S. has strict laws on emissions in order to protect the environment from fossil fuel emission. When VW broke these laws and were found guilty in a 2017 lawsuit, they agreed to pay out $4.3 billion in total fines for civil and criminal penalties. This payout was the largest criminal fine in U.S. automotive history.

Now, Germany is following suit, imposing a 1 billion euro fine on the company for similar reasons. That equates to 1.2 billion U.S. dollars and is, once again, one of the highest fines ever imposed by German authorities.

Volkswagen has had to recall so many cars that have failed to pass diesel emissions tests that there are now “automotive graveyards” that contain over 300,000 units sitting untouched. The fraud, scandals, and evasion of federal regulation has cost the company billions, hopefully forcing them to rethink their strategies.

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