Monthly Archives: September 2015

Some obvious and potentially not obvious questions about Volkswagen

The obvious:

1) If VW “did this,” how many other companies are responsible for similar or more egregiously harmful deceits?

2) I look forward to reading more about how the discrepancy was discovered. Was there a whistleblower or whistleblowers?

3) How many people must have been aware of such a deception? The number must be substantively higher than two (programmer and supervisor).

4) How can one calculate the benefit to VW’s bottom line of these lies? What is the market value of being able to claim low emissions while still maintaining 43 mpg in a diesel automobile?

Maybe less obvious:

5) Why the sharp decline in share value in the stock market? Would investors be likely to reward a company that is willing to deceive the public for the bottom line (see 4 above)?

6) Does the tumbling stock price reveal, then, a striking irrationality in the market valuation?

7) Could VW engage in discounted selling that would earn back some of the share decline on volume alone?

8) If buyers were to flock to VW would that reveal a fundamental rationality in the purchasers’ decisions in seeking deals?