German automaker giant Volkswagen is under fire after the U.S. Environment Protection Agency learned about how the car manufacturer installed software devices designed to defeat standard emission tests. The software is so sophisticatedly designed to detect if it is being tested that there is possibly no way the car maker could argue that the issue was just a ‘bug.’
But criticisms against Volkswagen are coming not only from regulatory boards in the U.S. and outside the country, but also from its customers. Consumers who own newer line of Volkswagen diesel units believe that they have purchased a car that’s both powerful and eco-friendly, only to find out that it is emitting oxides more than what the federal limit permits.
In a report by Tech Times, the scandal has caused the company to lose $1.83 billion in this year’s 3rd quarter. This is not surprising, given the fact the Volkswagen has not been in a scandal as large and as massive as this since its conception in 1936. Also, Volkswagen would now have to defend itself against lawsuits filed by people seeking for compensation because of a significant decrease in the car’s resale value.
Apart from the revenue loss and lawsuit costs, Volkswagen has announced it will recall 11 million diesel cars equipped with the software, which would cost them an estimated $7.4 billion. These enormous expenditures will be capped by Volkswagen’s promise to offer cash cards worth between $1,000 and $1,250 to those affected by the ongoing scandal.