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In September 2015, Volkswagen AG's crisis over allegedly cheating on U.S. emissions tests deepened, with the German auto maker halting American sales of popular diesel-powered

In September 2015, Volkswagen AG's crisis over allegedly cheating on U.S. emissions tests deepened, with the German auto maker halting American sales of popular diesel-powered cars and issuing a sweeping apology for violating customers' trust. It also launched an external investigation. Shares in the company slumped more than 20% in early trading Monday in response to the crisis. The U.S. Environmental Protection Agency (EPA) accused Volkswagen AG of deliberately dodging air-pollution rules on nearly half a million cars sold since 2008, furthering an Obama administration crackdown on auto makers suspected of flouting regulations intended to reduce tailpipe emissions. Within two days of the EPA disclosure, Volkswagen made an admission that it did in fact cheat on US emissions tests. The company could now face billions of dollars in fines and the crisis weakened Volkswagen Chief Executive Martin Winterkorn's position. Winterkorn initially narrowly survived efforts by a major shareholder to oust him earlier last year and was passed over for the chairman's job, the company's top post. Eventually the Board forced Winterkorn's resignation from his post with the company.

The United States Environmental Protection Agency (EPA), which on Friday September 18, 2015 unveiled the allegations with the California Air Resources Board, alleged the German auto maker used software in the cars to get around government emissions tests. EPA officials said the software, dubbed a "defeat device," made about 482,000 Volkswagen diesel-powered cars appear cleaner running than they were. The Clean Air Act requires vehicle manufacturers to disclose design information to receive certification that their products meet federal air-pollution standards. Officials alleged that Volkswagen used software that activates full emissions controls only during testing but then reduces their effectiveness during normal driving. The result is that cars can emit nitrogen oxides at up to 40 times the allowable standard, the agency said. Diesel-powered cars are a small part of overall U.S. car and light-truck sales. U.S. officials said Volkswagen violated two parts of the federal Clean Air Act and could face sizable financial penalties of up to $37,500 per car, or more than $18 billion. It remained unclear whether the government would seek such an onerous penalty. The EPA in November 2014 hit South Korean auto makers Hyundai Motor Co. and Kia Motors Corp. with a record $100 million penalty for overstating fuel-economy claims and forced the companies to cough up another $200 million in regulatory credits. It remains unclear who at Volkswagen ordered the software be installed on the engines, at what point in time, and who covered it up for so long.

Nonetheless, the company suspended nine managers who are suspected of being involved in the fraud, but Volkswagen asserts that it remains unclear if all or any of them were guilty of wrongdoing. Two of the top engineers amongst the group Ulrich Hackenberg and Wolfgang Hatz resigned after pressures from the board and stockholders. These two long-term senior VW engineers had been considered the best engineers in the global auto industry

"There was not one single mistake, but rather a chain of errors that was never broken," as reported by Mr. Ptsch, who until the crisis broke, was the company's chief finance officer. He insisted that the company still believed a small group of employees carried out the deception. The company's internal audit found no evidence to suggest that members of the executive board or supervisory board were involved in the diesel fraud. He said the roots of the deception were the "misconduct and shortcomings of individual employees," insufficient internal processes to detect such fraud, and "a mind-set in some areas of the company that tolerated breaches of rules."

1)How did VW cheat in the scandal?

2)Sort through and identify the ethical issues embedded in the case study

3)Analyze the case situation with purpose of identifying approaches to resolve the ethical dilemma and issues presented by the case.

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QUESTION 6 The solubility of Ar (g) in water at 25"C is 1.6x10M when the pressure of the Ar above the solution is 1.0 atm. The solubility of Ar at a pressure of 2.5 atm in a. 1.6 x 103 b. 8.4 x 104 C 4.0 x 10-3 d. 7.5 x 10-2 e. 1.6 x 10-3 QUESTION 7 In a saturated solution of a salt in water, the rate of crystallization > the rate of dissolution the rate of dissolution > the rate of crystallization b seed crystal addition may cause massive crystallization C. addition of more water causes massive crystallization d the rate of crystallization = the rate of dissolutionQuestion 7 5 pts What is the method(s) not used in assessing Project Risk? Sensitivity Analysis Break Even Analysis @. Scenario Analysis Cost Benefit Analysis Question 8 5 pts When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. True False D Question 9 5 pts Scenario Analysis usually does not consider; Worst Case Scenario Do Nothing Scenario Most Likely Case Scenario Best Case Scenario O1. Explain what evaluative criteria are in general and how they are used. Then define the criteria discussed in Chapter 6. 2. When is cost-benefit analysis used? How is it done? How is cost-effectiveness analysis different? 3. Define opportunity cost, discount rate, and contingent 1vraluation methods (all related to cost- benefit analysis). 4. How do analysts evaluate risks or potential impact of polio}.r proposals? 5. Explain how forecasting and projections are used in policy analysis. 6. What explains the narrow coastal band of Cs (mediterranean) climates at about 35" North and South along the west coast? 7. Why do the Cfb (marine west coast) climates, just poleward of the dry summer Cs cli- mates, receive rain all year? 8. Why do Cfa (humid subtropical) climates along the east coast receive rain all year, but at the same latitude along the west coast, the Cs climates have dry summers? 9. Why is the Dib (humid continental) climate in a band just north of the band of Dfa climate? 10. Why is the high latitude interior of the continent dominated by Dic and Did (subarctic) climates? 11. Why are no D or E climates shown in the Southern Hemisphere

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