VW Scandal

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<p>BBC COVERAGE</p> <p>COVERAGE</p> <p>COVERAGE</p> <p>REPORTERSRussell Hotten, Business reporter, BBC NewsClive Coleman, Legal correspondent, BBC NewsRobert Plummer, Business reporter, BBC NewsDamien McGuinness, Berlin correspondentIan Pollock, Business reporter, BBC NewsTim Bowler, Business reporter, BBC NewsKevin Peachey, Personal finance reporter</p> <p>SOCIAL MEDIA</p> <p>6CRITICAL ANALYSISIn depth coverage of the issue.Critical about the Companys reputation. Different reporters, different aspects to the story. Reported it from divergent geographical dimensions. </p> <p>7COMPANYS RESPONSE</p> <p>THE TIMES OF INDIA</p> <p>9</p> <p>COVERAGE(September 22 October 2)</p> <p>COVERAGETotal number of coverage: 18Times Business: 10Front Page: 4Front Page jump: 2Times Global: 1Editorial: 1 Peak date (based on the number of articles): 29/09/2015</p> <p>ANALYSISTime period: September 22, 2015 October 2, 2015Reported by: Reuters, TNN &amp; Agencies, Bloomberg, Times News Network, AP, Pankaj Doval, Nandini Sengupta &amp; David Connett (Independent)Critical Analysis: Neutral, gets more in-depth from 25th September when the Govt. of India initiates probe into VW India"My most urgent task is to win back trust for the Volkswagen Group - by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." | Matthias MuellerTIMES VIEW: Volkswagen's admission to violating emission standards is a wake up call for Indian regulator.Pankaj Doval: Senior Assistant Editor - Corporate and Economy Bureau</p> <p>12</p> <p>ANALYSIS</p> <p>Pankaj Doval: Senior Assistant Editor - Corporate and Economy Bureau</p> <p>13</p> <p>ANALYSIS</p> <p>Pankaj Doval: Senior Assistant Editor - Corporate and Economy Bureau</p> <p>14</p> <p>VW Scandal : India likely to go for a probeDate-23 Sept.Indian counterparts of VW assured of a close follow-up and a probe was to ordered soon.CBI probe was demanded by Indian Foundation of Transport, an Indian body of vehicle users.</p> <p>Problems At VW Starts In BoardroomDate-25th SeptemberA German newspaper Suddeutsche Zeitung said autocratic leadership style has long been out of date and corporate governance is missing for VW.World's largest automaker by sales last year with 202.5 billion euros.A senior executive said company's isolation, its clannish board and a deep-rooted hostility to environmental regulations among its engineers mad its fall inevitable.</p> <p>Will VW Scandal Affect the Indian Operations?Date-25th Sept.Volkswagen Indiaexports 60% of its annual output and about 50,000 cars are shipped every year to Mexico.The outbound shipments may fall in the coming months, affecting the Indian unit's profitability and sales.The Indian government may be interested in taking a look at the working of the EA189 engine, responsible for the global mess and installed in 1.5-1.8 lakh Volkswagen cars in the country.</p> <p>Scandal unlikely to impact VWs finance arm rating: India RatingsDate-25th Sept.Domestic rating agencyIndia Ratingstoday said thescandalatVolkswagenis unlikely to affect its rating on the German carmaker's local finance arm,VWFSAG has no financing exposure to the US (to which the events mainly pertain) and its Indian operations, VWFPL forms less than 1 per cent of its global operations, are unlikely to be impacted</p> <p>The European Commission has proposed new legislation to narrow the gap and members of the European Parliament last week voted through an amendment to try to ensure it is approved on schedule and not diluted by lobbying.T&amp;Es analysis is based on work with the International Council on Clean Transportation, which helped to expose Volkswagen in the United States.The analysis found the gap between official test results for CO2 and the real world rose to 40% on average in 2014 from 8% in 2001 for EU cars.For some models it was higher. Mercedes cars had an average gap between test and real-world performance of 48% and their new A, C and E class models more than 50%.</p> <p>LiveMint Main OverviewQuestioning Companies EthicsComparinng the action plan to GM Mary Barra apologizing (the famous terrible things happened apology) on 17 March 2014. Martin Winterkorn, the chief executive 24th September.India cannot check due to lack of emission control norms testVolkswagen has said previously about 11 million vehicles were fitted with software capable of cheating emissions tests, including 5 million at its namesake brand, 2.1 million at luxury brand Audi, 1.2 million at Czech division Skoda and 1.8 million light commercial vehicles.</p> <p>Articles Published in TIME MagazineVolkswagen Rocked by Emissions Scandal as Prosecutors Come CallingFrank Jordans and Pan Pylas , Sept. 22, 2015Everything to Know About Volkswagens Emissions CrisisBen Geier, Sept. 22, 2015Volkswagen Scandal Sparks Huge Change in Emissions TestingBenjamin Snyder, Sept. 25, 2015German Prosecutors Open Investigation of Former Volkswagen BossAssociated Press, Sept. 28, 2015Volkswagen to Fix Emissions-Rigged Engines by OctoberAssociated Press, Sept. 29, 2015Volkswagen Subsidiaries Audi and Skoda Also Installed Deceptive SoftwareNash Jenkins, Sept. 29, 2015Volkswagen Is Already Facing Dozens of Consumer LawsuitsBen Geier, Sept. 29, 2015Heres Some Welcome News for VolkswagenJonathan Chew, Sept. 30, 2015Volkswagen Plant Cuts Shift, Financial Arm Freezes HiringAssociated Press, Sept. 30, 2015The Volkswagen Scandal Will Do Major Damage to GermanyIan Bremmer, Oct. 1, 2015Volkswagen Emissions Saga Continues as EPA Widens its ProbeBenjamin Snyder , Oct. 2, 2015</p> <p>Volkswagens ResponseMartin Winterkorn apologized, promised an internal investigation and acknowledged that his company had broken the trust of our customers and the public.German automaker Volkswagen admitted that 11 million of its diesel vehicles worldwide were loaded with software designed to trick the emissions testing process.The company said it would present authorities with its technical solutions and measures to fix the problem in October. Not all of the 11 million vehicles, however, would have had the software activated, according to new CEO Matthias Mueller.Newly appointed CEO Mueller said that the offending software was activated only in part of the cars fitted with the engine, so we expect that the number of vehicles actually affected will be smaller, according to extracts released by the company.Volkswagens ResponseVolkswagen brand chief Herbert Diess said only VWs with 1.6-liter and 2-liter engines are concerned, and for the latter we are quite sure we can fix the problem with software.Martin Winterkorn, Volkswagens CEO since 2007, said that he was going in the interests of the company even though I am not aware of any wrongdoing on my part.We will emerge from this crisis stronger, too. We learn from crises, Matthias Mueller, previously the CEO of the Porsche sports car unit, was quoted as saying in an interview with the RedaktionsNetzwerk Deutschland group of newspapers. However, in the end, VW will no longer be what it was a lot will change there structurally.VW recently released a statement on the issue: The affected customers will be informed in a first step that the emissions performance of their car can be improved in the near future. All the vehicles are technically safe and drivable.Critical Analysis and PerspectiveThe news reported by TIME is quite neutral and is just the reporting of the uncovering of the scandal and the investigation that is following.The U.S. Environmental Protection Agency will being testing diesel vehicles ability to meet emissions standards under real-world driving situations.VW could face billions of dollars in fines from the EPA (Environmental Protection Agency) and, potentially, other government agencies around the world. Theres also the chance of civil lawsuits launched by consumers who feel duped.But the biggest toll could be felt by Volkswagens consumer brand, particularly in the U.S. The company has been working hard to grab more of the U.S. auto market; these events could certainly be a roadblock towards that goal.Critical Analysis and PerspectiveVolkswagen scandal has a political aspect as well and is hence damaging to Germanys image and its leadership in Europe. The scandal is also one that reflects poorly on German politics. The countrys automotive industry dominates the German economy. It employs 750,000 people, and the combined revenue of Volkswagen, Daimler and BMW is considerably larger than Germanys entire federal budget. That gives the German auto industry exceptional political influence. The auto-industry lobby allegedly uses that influence to help German automakers avoid regulatory burdens and escape scrutiny.Meanwhile, Volkswagen has taken a big hit on the stock market, where VW shares have fallen about 38% in two days. Critical Analysis and PerspectiveEurope and the world need strong and steady German leadershipon reform of the euro zone, on the refugee crisis and on other challenges facing Europe. The brazen deception at the heart of the VW scandal will make it difficult for Germans to argue that they enforce tough choices for the common good. It will be harder for Germans to complain that other governments arent honest about their reform efforts, to cast Putin as an aggressive liar or Americans as duplicitous spies.After the U.S.s exposure of the scandal, Britain, France, Italy, Canada and South Korea announced investigations. All these countries have faced corporate scandals of their own, some with a political dimension. None have clean hands. But German industry was supposed to be above this sort of thing.</p>