Lessons From The VW Cheat

It appears to be a one-off case of bald deception, but is there something other companies can learn from it? Yes, says Thomson Reuters writer Casey C. Sullivan. One is that well-resourced independent or  private entities, not just government regulators, may be taking a close look at your company. Another is that with any corporate activity that potentially raises a regulatory issue, it’s worth taking note of which agencies might become interested. In the Volkswagen matter, it was the EPA enforcing the Clean Air Act, where the potential fine is thousand of dollars per vehicle – which for VW apparently could amount to as much as $18 billion. In contrast, GM’s faulty ignition switches – which unlike the VW deception caused immediate and proximate loss of life – fell under the aegis of the National Highway Traffic Safety Administration, which for a given safety problem can’t fine an auto manufacturer more than $35 million.