PowerPoint Presentation

Introduction to VW and GM case

Todays AgendaLarge automotive companies and ethics.Applying ethical principles to VW and GM. VW Case studyGM Case study Setting up Assignment 22https://flic.kr/p/8XLzCQ

Auto industry in trouble3

Applied Ethics ModelFollowing the above model will allow us to decide:What to doWhy you should do it (or not)4

4

VW in the newsVolkswagen to recall 11 million vehicles as emissions scandal expandsVolkswagen facing 'tsunami' of legal trouble in emissions scandalVolkswagen, Audi class action requests continue in QuebecVolkswagen announced plans on Tuesday to refit up to 11 million vehicles and overhaul its namesake brand following the scandal over its rigging of emissions tests.New CEO Matthias Mueller said the German carmaker would tell customers in the coming days they would need to have diesel vehicles with illegal software refitted, a move which some analysts have estimated could cost more than $8.7 billion.VW share price dropped more than 40% over the past two weeks5

VW extend recall due to emission scandal6

The VW Emissions Scandal http://sacramento.cbslocal.com/2015/09/22/university-that-found-volkswagen-emissions-problems-discovered-similar-issue-previously/http://www.bloomberg.com/news/articles/2015-09-22/putting-a-price-on-volkswagen-s-diesel-emission-fraud-liabilityhttp://www.huffingtonpost.ca/2015/09/22/vw-11-million-diesel-vehicles-fitted-with-suspect-software-setting-aside-7-3-billion_n_8175598.htmlhttp://www.reuters.com/article/2015/09/23/us-usa-volkswagen-idUSKCN0RL0II20150923http://www.cbc.ca/news/technology/how-emissions-tests-that-exposed-vw-scandal-were-done-1.3243461

7

What did VW engineers do?Why is this an ethical issue?What were the pressures that caused them to behave in this way?How did this break their contract with customers/dealers?Do you think the CEO knew about it?What will be the likely consequences for the company?

8VW - Questions to consider in class

It took General Motors more than 10 years to issue a recall for 2.6 million cars carrying an ignition switch now blamed for at least 124 deaths and 275 injuries.The firm admitted in September that it failed to disclose its small-car ignition switch could turnthe car off while being driven,lock thesteeringwheel and also fail to set off airbags in a crash. There are internal reports about the problem dating back to 2002in the Saturn Ion, Reuters reported.The deception cost the company more than $1 billion US and 15 people their jobs.The firmreached a $900-million settlementwith the U.S. government to avoid criminal charges. That figureis on top of $625 million that GM set aside as compensation for those injured or killed by the flawed ignition switch.Families of those who died will get at least $1 million.

9GM in the news

GM the switch from hell10

THE CASE OF THE GM IGNITION SWITCHhttp://www.wxyz.com/news/local-news/investigations/gm-employees-knew-of-faulty-ignition-switches-10-years-before-issuing-recall

http://www.cbc.ca/fifth/episodes/2014-2015/gm-recall-the-switch-from-hell11

What caused the original problem at GM?When did they become aware of it?Why did they ignore the initial information?What were the pressures that caused them to behave in this way?How did this break their contract with customers/dealers?Is there an ethical difference between the decisions of GM and VW?

12GM - Questions to consider in class