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Emission problems of Volkswagen diesel vehicles

2019-04-04 来源: 51due教员组 类别: 更多范文

下面为大家整理一篇优秀的assignment代写范文- Emission problems of Volkswagen diesel vehicles,供大家参考学习,这篇论文讨论了大众柴油车的排放问题。最近,大众公司的柴油汽车排放测试失败丑闻造成了许多问题,给大众公司带来了很多声誉问题。所以大众公司要做的就是确保减轻危机和改善公司的成果,并向主要的受众伸出援助之手, 保证他们会支持或确认大众公司的计划。

Volkswagen,大众汽车,assignment代写,paper代写,北美作业代写

Recently, the diesel automobile emissions testing failure scandal has created many problems and called our reputation into question. As the head of government affairs for VW USA, I am obliged to detail the on-going initiatives and approaches in terms of governmental relations that can ensure crisis alleviation and better outcomes for the corporation. My suggestion is to go into the following areas and reach out to the key audiences and reassure that they give support or confirmation on what we plan to do next.

Background

In September 2015, the International Council on Clean Transportation (ICCT) found out that some VW diesel models used devices that inaccurately reported its emissions, and EPA started to investigate. Such devices, designed and provided by Bosch, are found to be flawed given the fact that it might deactivate or reduce functions of emission control systems of vehicles, but allowed them to pass testing in laboratories (Vincent, 2016). Since the US regulations have strictly forbidden the use of this kind of device, owners of VW diesel engines will suffer loss from the plummet of resale value, making them disappointed at the company. More than 475,000 vehicles in the US have been affected, with around 11,000,000 VW diesels worldwide (Vincent, 2016). When the news broke out, VW immediately suffered great reduction of sales and drop of stock price, resulting in obvious shrink of its marketplace in the U.S., which VW has fought over years to earn under an extremely competitive environment.

VW has quickly responded to the scandal with efforts and sincerity by establishing the website for settlement (https://www.vwcourtsettlement.com) and continuous service to those being affected. On Oct 25th, 2016, the U.S. District Court for the Northern District of California approved a nearly $15 billion settlement VW offered to its consumers concerning the diesel gate scandal, motioning a massive buyback of affected vehicles as well as environmental healing programs (Borney, 2016). The intention of the settlement is to replace the polluting vehicles while treating the affected consumers fairly as they can choose from buyback or free fix and compensation. However, due to the seriousness of the incident, VW is still facing potential criminal investigations by prosecutors in U.S and EU, plus additional financial penalties, criminal indictments, and lawsuits from customers who choose not to settle (Borney, 2016).

Key audiences

Regulators

United States Environmental Protection Agency (EPA)

The U.S. Environmental Protection Agency (EPA) is a federal government agency within the list of independent agencies. This means that the regulations of EPA have the power of federal law when in force. Working with state and local governments, EPA aims at controlling and alleviation pollution in air, water, soil and other substances within the nation by setting standards, enforcing regulation, and evaluating results. Its mission is to ‘protect human health by safeguarding the air we breathe, water we drink and land on which we live’ (EPA, 2016). To accomplish the mission, EPA develops and enforces regulations, gives grants to environmental programs and others, studies environmental issues, sponsors partnerships, teaches people about the environment, and publishes information (EPA, 2016). The EPA is one of the key audiences that VW need to keep approaching and lobbying because it is the federal agency which has been leading the investigation into VW about the 2.0 liter diesel vehicles that failed to meet standards.

California Air Resources Board

The California Air Resources Board (CARB) is an executive branch department of the cabinet-level California Environmental Protection Agency, the only one permitted in the whole country. As an important part of the California state government, CARB reports directly to the Governor’s Office on issues of clean air, emission, and air pollution (CARB, 2012). Its mission is to ‘promote and protect public health, welfare and ecological resources through the effective and efficient reduction of air pollutants while recognizing and considering the effects on the economy of the state’ (CARB, 2012). It is crucial to list CARB as one of the approaching targets on the issue and lobbying efforts must be carried out to avoid future loss of the corporation.

Federal Trade Commission

The Federal Trade Commission (FTC) is an independent agency of the federal government that ensures consumer protection, prevents wrongdoings in business, and promotes competition. In terms of protecting consumers, the FTC is responsible for stopping unfair and fraudulent business practices by conducting investigations, filing lawsuits, and developing regulations (FTC, 2016). Meanwhile, it promotes competition in the marketplace by ensuring the open and free environment based on antitrust laws and monitoring business activities so that no illegal actions are being done (FTC, 2016). The FTC closely cooperates with national and international law enforcement partners and agencies to realize its missions in consumer protection and competition promotion.

Members of Congress

The key audiences in the Congress and House should be members of the GOP. Democrats won’t support VW on this issue, and since GOP has won the general election and has taken majority both in House and Senate, it would be in VW’s favor to approach the Republicans. The Republicans proposed an enormous bailout for VW right after the scandal in Janurary, 2016, which was incorporated in the ‘Fairness in Class Action Litigation Act’ (known as the ‘VW Bailout Bill’) (Cronin, 2016). Experts say that this bill could cripple class action lawsuits against corporations, which is in favor of VW’s current situation. Once passed and becomes law, it would ‘nullify the thousands of “non-injury” class-action cases that have been filed by Volkswagen owners who are angry that they were lied to’ (Cronin, 2016). Therefore it is in VW’s interest to fully lobby the GOP members, especially those with backgrounds in business and law, with the possible means conducted by the lobby group VW has advantage in.

Other Interest Groups

U.S. Chamber of Commerce

U.S Chamber of Commerce is a business advocacy group that serves the lobbying purpose for political candidates, usually Republican. It takes position in issues discussed by the government and has quite strong influence in legislation making process. In the case of VW, U.S chamber of Commerce can serve as a key role because it is pro-Republican and pro-business. For example, the VW Bailout Bill’s leading lobbyist is the U.S Chamber of Commerce who claimed that it wants to ‘get rid of "non-injury" class-action cases, based on potential damages from defective consumer products or corporate actions that have yet to result in harm (McCarter, 2016)’.

National Automobile Dealers Assn

The National Automobile Dealers Association (NADA) is an association that represents the interest of automobile industry including car, truck, and other dealerships in both domestic and international setting. Besides providing industry information to interest groups, NADA also serves as an advocacy for automobile dealers before the Congress and government agencies (NADA, 2016). It can play a vital role in a lobbying campaign by speaking with one voice on particular issues towards a large customer base while representing a number of companies (Doorley & Garcia, 2011). Therefore it is obvious that NADA can use its lobby power again to speak for VW in this crisis and influence the decisions with its strong economic power.

Steps to take and key points

With representatives in D.C and other cities, VW’s lobbyists and consultants need to work for the company seeking for its own interests in government policy. They will push forward their policy issues before the Congress, the executive branch and other interest groups depending on which branch the issue falls under the jurisdiction. For VW’s current crisis of diesel emission violation, the major areas it will develop coordination would be with the Congress (House and Senate), the executive branch (EPA, CARB, and FTC), and other interest groups (U.S Chamber of Commerce, NADA).

Working with Congress

When working with the Congress, VW should take steps in securing the current bill that is in favor of the company – the ‘Fairness in Class Action Litigation Act’ by the GOP. On Janurary 8th, the bill was passed in the House, and on Janurary 11th it was received in the Senate and referred to the Judiciary Committee (Congress, 2016). Although some predicted that it was unlikely to pass Senate with a democratic government, now the situation might have changed. As a result of the election in November 2016, the Senate has a majority of Republicans now and it is more likely to pass this bill. Therefore it is crucial to lobby the Senate and push forward on making the bill into formal law.

The key person to approach to can be the Senator majority leader Mitch McConnell, who has been selected as a Republican in the Senate since 1984, and reelected recently for his term until 2021 (congress, 2016). Another key person to approach can be House Representative Bob Goodlatte, who sponsored the bill in the first place. He said ‘The Fairness in Class Action Litigation Act is a simple, one-page bill, that furthers a common sense principle that should apply to class action lawsuits in the future… I am introducing this legislation to supplement the protections afforded to victims in class actions, and further reduce wasteful litigation in our courts (Hood, 2016)’. House Representative Trent Franks can also be approached as he co-sponsored the bill (congress, 2016). These key Senators and House Representatives can sponsor bills in VW’s favor in the Congress and House for them to become bills, and they can also cast votes which decide the fate of the company. The ways to approach them can be PACs, political contributions, and other effective sponsorship that can win them over for VW without violating existing law and regulations.

Besides the above mentioned in approaching to Senators and House Representatives, VW lobbyists can also do the following. VW lobbyists can apply direct lobbying within the house and senate to these key persons and gain their continuous support on bills like this one and others that can relieve corporate liabilities. What is more, VW should also work with the Congress at all levels from the senior most levels to the career ranks by matching them to the appropriate level of VW executive or representative (Doorley & Garcia, 2011). Through this way, different lobby members can have contact with Congress and maintain the relationship to leverage our interests.

Working with Regulators

When working with regulators, VW should put its lobbying efforts mainly on the EPA, CARB, and FTC, as they are the key audiences that will have certain influence on this issue.

According to the announcement made by EPA, VW has violated the Clean Air Act which is under the regulation of the agency. In Sep 2015, EPA issued a Notice of Violation of the Clean Air Act to VW, announcing that the corporation has violated the law by installing defeat devices onto 2.0 liter diesel cars (EPA, 2016). Following that, EPA went on and issued a second Notice of Violation in Nov 2015 towards 3.0 liter diesel vehicles of VW (EPA, 2016). Since EPA has continuously been playing this important role in the VW diesel gate scandal, it is necessary to ensure to the EPA with proper program listing and follow-up actions that VW would never commit such violations again in the future. The key to cope with the EPA is to have lobbyists to convince those government officials that VW has come clean on all of its wrongdoings on the diesel gate and none of the problems will ever occur again. VW can also sign non-violation promises towards the Clean Air Act and donate its profits to support the agency-led programs in order to fully fix the problem.

Working with the EPA, CARB has regulating powers in the state of California in terms of air quality and emissions, not to mention its influences on other states in terms of standards on these issues. It had also issued Notice of Violation to VW in the state of California which required VW to propose recall plans for the affected models for both CARB and the EPA to review. On July 16th, 2016, CARB rejected VW’s call plan for 3.0 liter diesel passenger cars on the cause of its incompleteness and deficiency in several areas, and hasn’t reached for settlement yet on these models (Clegern, 2016). What is more, CARB will continue to work with the EPA to evaluate the upcoming VW proposals, determine penalties, and address mitigation on past and future harm of the environment. The key to cope with CARB is to act within the law of California and respect the local emission regulations. VW should also hand in timely reports on how it has progressed with the diesel clean-ups for the board to review.

In the case of VW, the FTC found the corporation to be violating the principle of not deceiving consumers by false advertisement. It investigated the marketing claims of clean diesel engines in VW cars that turned out to be emitting more than restricted. In March 2016, the FTC filed suit against VW America for deceitful advertising related to the campaign claiming ‘clean diesel’, looking for forceful court order that requires VW to compensate its consumers (Krok, 2016). The $15 million settlement reached in Oct 2016 is also a result of this suit together by regulators like EPA, CARB and FTC. Therefore, FTC serves as another key agency in the VW scandal and its must be ensured about the future plans of the company that such deceiving and fraudulent practice will never happen again. The key to cope with the FTC is to retract all deceitful advertising on the media that VW has invested before and no longer promote this line of products. VW can also file reports to the FTC on its marketing plans and actively respond to consumers’ questions given by the FTC.

Therefore the current priority is to ensure the prosecutors, including the EPA, CARB, and FTC, not to pursue further prosecutions or punishments. This is because of the huge negative influence on the company’s image and financial burden. VW should coordinate very closely with its U.S. government relations colleagues in Washington, D.C., fully applying the natural synergies and shared objectives between different groups (Doorley & Garcia, 2011). By lobbying these institutions and agencies in the government, VW can address policy and political issues actively that can be reflected in the government’s future policies. In return, lobbyists can contribute to the company’s thinking both in depth and width regarding public policy issues as well as challenges.

Working with other interest groups

When working with other interest groups, VW should put its efforts mainly on the U.S. Chamber of Commerce and National Automobile Dealers Association, as they can lobby towards the Congress and Executive Branch in favor of VW and gain support from Washington D.C.

The U.S Chamber of Commerce not only lobbies for business units, corporates, and other institutions, but it also has shown support for the Fairness in Class Action Litigation Act mentioned above as well as the Furthering Asbestos Claim Transparency (FACT) Act. Similar to the Fairness in Class Action Litigation Act, which limits corporate liability and can relieve VW from bearing further burden, the FACT Act requires the public to report their personal information of asbestos victims and therefore ‘prevent double-dipping mesothelioma sufferers who may have been exposed to multiple asbestos-lined products  (McCarter, 2016)’. Therefore working with U.S Chamber of Commerce is a fine way for VW to fully ensure that the legislation will protect its rights better in the future.

As the major automaker in the US and worldwide, VW has asked dealers to pressure the US Congress and government for accepting diesel as an important technology in the marketplace of automobile when it planned to offer diesels engine in the national across its product range back in 2003 (Kelly, 2003). VW can gain support from NADA to supplement its lobbying activities on accepting clean diesel again as a major technology and stop prosecuting VW after all settlement has been made, and such activities can be made to the executive branch to incorporate into its environmental policy. What is more, if VW does not wish to go public on lobbying this issue, cooperating with NADA would be an effective way as it can serve as the sole lobbying voice in this situation.

VW should remain in regular dialogue with the above interest groups and apply various advocacy tools such as studies and white papers, not to mention bringing in other third parties such as NGOs, think tanks, and civil society groups (Doorley & Garcia, 2011). The studies and white papers can be handed to the interest groups for discussion and lobbyists can make speeches at their meetings to earn support from members. It should also coordinates its internal affairs to best represent the company to these interest groups so that they would help more in political affairs. These include public speeches, press statements, strategies, and many more. With the support of these interest groups, VW can further back up its lobbying at the Congress and the Regulators with third party advocacies to ensure them that it has publicity and major influence. As a result, the collaboration with these interest groups will turn into powers that prevent VW from suffering the bad consequences.

Key points

While working with the Congress, the regulators in the government, and other interest groups, VW should take the following key points in reassuring the above audiences that it has a thorough plan to fully compensate the victims as well as that it would never do similar wrongs again.

First of all, VW should carry out its financial settlement plan and fully realized the promise it made to consumers. Recently, VW has announced the Settlements made regarding the 2.0 liter Volkswagen and Audi diesel vehicles with EPA, CARB, FTC and the California Attorney General to compensate current owners and some former owners of their loss on nearly 475,000 cars within the range of US (VW, 2016). According to the Settlement Program, VW has agreed to the following terms: ‘Buy back, terminate leases or provide approved emissions modifications for nearly 475,000 2.0-liter TDI diesel cars in the United States; Provide cash payments to owners/lessees; Pay for environmental remediation; Promote zero emissions vehicle technology (VW, 2016)’. In order to accomplish the above terms, VW has to arrange proper schedule in settlement and constantly update them on its public website as well as sending documents to the regulators for their information.

Secondly, VW should gradually shift its funding on diesel programs to electrical car programs. For the past decades, VW has struggled to open the US market by promoting its diesel automotives and it has gained a certain level of success. However, the recent scandal has exposed the deficiencies on the diesel models, and VW has to pay the price for ignoring the future trend of clean, renewable energy on the automotive industry. Instead of short-term profits, VW should focus on long-term development of the whole company. It is time to shift its major funding from diesel programs to clean energy models, such as electrical cars. It can also apply the $2 billion clean emissions infrastructure fine on some of its electrical car programs to improve the environment and show obey to regulators and the Congress.

Thirdly, VW should also announce to end purchasing from Bosch and change supplier. The whole incident happens in the first place because it was Bosch that provided flawed equipments and it wasn’t VW’s original intention to harm its consumers. Therefore, continuing to work with a cheating company would be unethical. An investigation should be conducted to discover why Bosch offered those flawed equipments to VW and those who are involved should be held responsible. Then, a news release to the public should inform them about the end of cooperation with Bosch, and changing to other major suppliers such as Johnson Electrics, or else. If VW changes its suppliers in emissions detection equipment in time, the audiences it tries to convince would have more trust in the company’s intention to improve the situation and its ethical principles.

Finally, VW should show its support and effort on protecting the environment. Since its wrongdoings have left regulators, the Congress and other interest groups the impression that it was so careless in environmental protection, VW should totally replace its former attitude and fully support pollution alleviation projects set by the EPA and other government regulators. This includes the ‘Supplemental Environmental Project’, which applied the money from settlement by VW to pollution remediation projects that improves air quality, water quality and many more. What is more, VW needs to clean up dirty diesel trucks and report for supervision to agencies. By funding this environmental initiative of cleaning up heavy duty trucks, VW can fully convince the regulators and the Congress that it is devoting efforts. For now, VW has already taken all diesel vehicles off sale in the US and no longer provide new diesel vehicles in Volkswagen, Audi, or Porsche (Edelstein, 2016). VW can also initiate projects in line with the Diesel Emissions Reduction Act and equip dirty truck drivers with emissions-reduction equipment.

Consequences if above strategies were not adopted

First of all, VW might suffer from serious and continuous financial loss. In 2013, VW had booming manufactures and sales in the automotive market, especially when it marched to success in the US. The diesel engine was its concentrate on marketing strategy that allowed VW to become one of the largest giants, such as GM and Toyota, with a 49% sales increase during 2008 to 2013 (Rouz, 2016). Currently, the diesel gate scandal has cost VW up to $7.3billion in market share, not to mention the $15 billion settlement to be made and loss of stock value (Voelcker, 2016). If prosecutors aren’t convinced that VW will not cheat on detective devices again, further prosecutions and fines might follow, resulting in bigger financial loss for this multinational company.

What is more, VW might experience major lawsuits from consumers, government prosecution, and related interest groups. The recent ruling from California State is a result from VW’s appeal in offering settlement, which it did not prefer at first. However, the proof of its deceptive behaviors on the diesel automotives are so strong that even VW did not bother much to argue. It is therefore predictable that VW will face even more lawsuits if it does not follow proper government relations strategies. The lawsuits will cost VW not only high amounts of financial offerings to the consumers, but also harm its reputation, and major lawsuits for any international companies will cause irreversible problems in its future strategies and development.

The scandalous crisis will also cost VW something it value the most – market share. VW has aspired to struggle for years and has launched many models in order to fully understand the US market. As a result of the scandal, a restriction on all diesel sales by VW, Audi and Porsche has been harming Volkswagen’s US sales in this particular market. What is more, those who have purchased non-diesel vehicles from Volkswagen are now very likely to turn away from the company due to its faults (Voelcker, 2016).  Since diesel cars takes up to 23% of its sales in 2015, VW would lose a giant market share if the government and consumer stop trusting the company. According to a research, VW performed worse than 72% its competitors in terms of ‘corporate behavior', which includes finance management, marketing efforts and else (Rouz, 2016). The emission test results will only expand the financial problem existing in VW’s performance, causing its market share to shrink.

The tanking of VW US might cause a wave of job loss. VW relies on its manufacturing and sales employees all over the world. Being an international company and automotive giant, VW has currently over 560000 employees worldwide. As a result of the emissions scandal, VW has already announced a 30000 job cut regarding the on-going profit loss, and there might be more (Newswires, 2016). The potential job loss not only harms workers for their benefits, but also harms VW for the potential class action of workers against the company, taking its public image down to a new low. Therefore the consequences must be considered and job loss at its factories and branches must be prevented.

Eventually, VW could be forced to leave the markets of several nations and lose to its major competitors. Currently in the US market, VW is facing strong competition by other giants like Toyota, Daimler, BMW, and even Tesla. Environmental lobby groups in those countries might use this opportunity to support other automotive companies instead of VW.

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