The Volkswagen case is an eye-opener for the regulators and the consumers: N Chandramouli

Volkswagen’s dramatic fall from grace began on September 18, 2015 after the Environmental Protection Agency (EPA) in the United States accused Volkswagen and Audi of using ‘defeat device’ or an illegal software in approximately 4.8 lakh vehicles for cheating official emission tests.

N Chandramouli, CEO, Trust Research Advisory (TRA), a business efficiency advisory firm shared his views on the Volkswagen emission scam. The top-official is of the opinion that the Volkswagen case is an eye-opener for the regulators and the consumers. He states that consumers are conditioned to believe what corporate say until they have a very strong reason to disbelieve. The larger the corporate, the more is the intrinsic trust.  

The Chief Executive of the business efficiency advisory firm believes that corporate houses are machines designed to make money.  He feels that in this process of money making these corporate firms falter or even cut corners. He cites the example of the 2008 US financial system collapse which was a result of scams of a gargantuan proportion.

Chandramouli opines that not only has Volkswagen violated the Clean Air Act showing blatant disregard for law, but it has also shown callousness towards the trust placed in the brand by the consumers. The top official feels that such transgressions will definitely negatively impact the trust which the brand has built over decades.

He further states that such action unfortunately extends its impact on the entire automobile industry.  Chandramouli is also of the opinion that this incidence should become a wakeup call for the entire automotive industry so that scams as such can be prevented in future.