VW Volkswagen is unaffected in the Middle East and North Africa. The German car manufacturer known as Volkswagen started its operation in 1937, being at the top of their game until recently crisis struck when it was allegedly claimed that the diesel emission tests they conducted in America might all be wrong. This has been reported as fraud as the sales made were accompanied by manipulated emission data. VW Volkswagen is the second largest auto maker in the world and this crisis lowered its engineering credibility as it played against the regulations. There was also news about the illegal use of defeat devices that altered the diesel emission results at the time the cars were tested for toxic nitrogen oxides. This cheating of emission tests could lead to a loss of 25 billion Euros for VW Volkswagen in the United States including fines and cash back for VW owners. However, VW Middle East stays unharmed on sales because these emission tests are not the top priority in Gulf States. Car inspection is relatively low because there are various automobiles imported regularly.
There are 11 million vehicles that were fitted with these defeat devices all over the United States and Europe which became a huge concern for the car owners. There are various models, 2.1 million VW Volkswagen cars that were affected by this scandal in America leading to a fall of more than 40 percent per share. Volkswagen is a manufacturer that works with clean technology to keep the environment free from harmful emissions, which made them popular in the European niche market and is where half of their vehicles are sold. The same higher than permitted emissions crisis struck in the UK. Customers called for compensation as it is against the law to sell a vehicle with misleading testing data. The US actually has tougher emission standards as compared to VW in the Middle East. It was hard for them to grab the US market, but the sales in Middle East remain more or less the same because their regulations don’t specify fuel efficient cars with more stringent requirements, as are required in America or Europe.
Another reason that caused minimal reaction from the Middle East in this emission test crisis was that Volkswagen didn’t sell diesel engines to the Middle East, therefore no cars were recalled. However, Qatar as shareholders of Volkswagen had to suffer a few losses. This was damaging enough for the company’s reputation and if they fail to work on their regulatory standards within their manufacturing factories they might have to face strict action from different governments. They deviated from their road test evaluations which has led to financial losses. The Middle East remains open to investigations related to this incident but this won’t affect them as no Volkswagen cars were sold to them in this period of time. This crisis has no quick fix as it has taken down their shares in the stock market which has caused immense loss for the manufacturers, but they can still resume their operations provided that they do not market vehicles with defeat devices, so that future sales made are not recalled from the Middle East.
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