The Volkswagen emission cheating case − The company installed a software that enabled the cars to run in a dual mode. In the test mode, the cars displayed compliance to the Environmental Laws, whereas in run-time mode, the cars emitted harmful nitrogen oxide that could lead to many health hazards. They also overinflated tires and mixed motor oil with diesel, to successfully pass in the tests. Characters in the case: Following are some of the prominent people involved in this case: Mr. Winterkorn, ex-CEO, Volkswagen Wolfgang Bernhard, In-charge of covering emissions Dailmer, Creator of Bluetech Wolfgang Hatz, In-charge of covering emissions Matthias Muller, Current CEO, Volkswagen Adequate information: The software to enable cars to operate in dual mode was installed in half a billion cars. The emissions were 40 times higher than the set limit. It was smog-producing gases which could lead to lung cancer. These cars could give a mileage of 40 miles per gallon. To determine: The common decision-making biases that play a role in how this case unfolded.

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Chapter 7, Problem 6MIA

Summary Introduction

Case summary:

The Volkswagen emission cheating case − The company installed a software that enabled the cars to run in a dual mode. In the test mode, the cars displayed compliance to the Environmental Laws, whereas in run-time mode, the cars emitted harmful nitrogen oxide that could lead to many health hazards. They also overinflated tires and mixed motor oil with diesel, to successfully pass in the tests.

Characters in the case:

Following are some of the prominent people involved in this case:

Mr. Winterkorn, ex-CEO, Volkswagen

Wolfgang Bernhard, In-charge of covering emissions

Dailmer, Creator of Bluetech

Wolfgang Hatz, In-charge of covering emissions

Matthias Muller, Current CEO, Volkswagen

Adequate information:

The software to enable cars to operate in dual mode was installed in half a billion cars. The emissions were 40 times higher than the set limit. It was smog-producing gases which could lead to lung cancer. These cars could give a mileage of 40 miles per gallon.

To determine:

The common decision-making biases that play a role in how this case unfolded.

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