Volkswagen: Trouble in Germany

      So, the CEO steps down after an embarrassing revelation: yes, his company made an attempt to evade pollution rules in the USA by programming onboard computers to feed bogus data to pollution control tests.  11 million diesel autos will have to be recalled in the US alone.   The company has set aside 7 billion dollars to cover costs.  That may not cover the fines that are sure to follow.  And this comes at a time when drivers were beginning to think diesel was the answer.  Wrong.
       Perhaps in their pursuit of worldwide markets, the management of Volkswagen thought they could pull this off.  Wrong.  The entire country of Germany has egg on its face.  The iconic Volkswagen is symbolic of German engineering and business success.  How does this happen?  Is competition so taxing that ethics and morality are both victims?
      The Justice dept. is investigating.  The hammer will fall sooner rather than later.  Volkswagen does not want this situation to linger in the minds of future buyers.  Does this spell trouble for diesel engines?  Big trouble, especially now that the engines as designed do not meet EPA standards.  If modifications required reduce power and mileage numbers, buyers will flee.
      American auto makers are smiling.   Schadenfreude: the feeling of enjoyment that comes from seeing or hearing of the troubles of others.   This is a text book or dictionary definition of the term as it applies in this case.   Even the french are laughing at their neighbor.  Angela Merkel is probably not going to say much at all.  Why bother?  The CEO is gone.  Martin Winterkorn will be looking for work.   Maybe he'll ask Mr. Marchionne at Fiat/Chrysler for a position.  Maybe not.  Other European carmakers are worried that the fallout could affect their ability to sell diesel cars in Europe where about half of sales are  cars with diesel engines.  Diesel car sales in the US are negligible, although auto makers are promoting trucks with large diesel engines.
     Earlier this year, the mayor of Paris, France, Anne Hidalgo, called for an outright ban on diesel powered vehicles in the capitol.  This latest flap with the US and Volkswagen will help her position.