Norway’s state fund, one of VW’s largest shareholders threatens to sue VW for ~680 million euros, while fines and compensation payments to the US amounts to ~13.3 billion euros. In September 2016, a VW engineer personally comes out and testifies to the US court that emission test manipulation dates back to 2006. Once a settlement is reached between retailers/customers in US, liability fees reach 15.2 billion euros. More proof emerges of supplier Bosch’s involvement with affair, US documents show manipulation in emission tests had been an “open secret” between VW and the subcontractor. Immediately we can see multiple breaches. This open secret is a violation of their Anti-trust code. This code stands for the protection of fair competition. For example, employees cannot not disclose private information with competitors that could interfere with production or sales of a product. There is also a code of being fair with all contract partners i.e. not showing favoritism to any one of them. On the business side, it is their job to safeguard fair competition in the market. This open secret between VW and Bosch exposes a secret relationship between the two companies. One, Bosch knew of the faulty tests and kept the secret hidden from the general public and two, VW chooses Bosch and continues to prioritize business with them because of this secret and their need to keep it between a limited amount of parties. Not only do they break the standard code of not showing favoritism, they are also disclosing private information with another company and they are giving this company more business because of their vulnerability of doing business with other companies. They have made the dynamics of a competitive market unfair by showing favoritism and they are definitely not safeguarding any competition by choosing to have a secret and exclusive business relationship with Bosche that protects their personal agenda. After discussion, my peers and I decided the best way to resolve this would be to redesign their business model, take out all unethical behavior, and split the business evenly with multiple contractors versus allowing one company to monopolize all of VW’s contracted work.
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