Volkswagen's problems go from bad to worse

09 October 2015 6:48 pm

Another horror day for Volkswagen.

It started with dawn raids by German police who swooped on the VW headquarters and employees' homes out at the home base of Wolfsburg in Germany. All part of the criminal investigations into Volkswagen.

Then the company's CEO for its American operations Michael Horn told Capitol Hill that a tiny group of software developers in Germany was responsible for the computer code that enabled the cars to trick U.S. government emissions tests. He blamed it on them, it had nothing to do with the company he said. He apologised but said it had nothing to do with him or the company. Needless to say, that went down with Congress like a brick parachute.

At the same time, there's a report in Bloomberg that Volkswagen reported lower death and injury claims than any major automaker in the U.S. over the last decade. The numbers are so good that industry experts are now wondering if they add up. Volkswagen has blotted its copybook so much that no one believes the company any more.

Added to that is the report from the Dallas Morning News that the City of Dallas is filing a lawsuit against Volkswagen, alleging that the automaker violated air quality emission standards.

Volkswagen will get through this. The cars will be fixed and the business will continue. But the signs are there that the damage to its brand is irreparable.