Guest post by SHRINIVAS DHARMA

News of Volkswagen’s systematic cheating in emission tests by making its cars appear far less polluting than they are, has proved to be a bolt from the blue for the Global Automobile industry, financial markets, European politicians and German society at large. VW is more than just another car company. For German society, it is a heritage brand with iconic status. In a reputed poll last month, two-thirds of Germans named Volkswagen as the country’s number one national symbol, putting it before Merkel, the national football team and Goethe. No wonder, this news destroyed 10% of market value of the VW brand in a single trading day.

VW’s so-called “defeat device”  a piece of software in the car’s computer is already there on 11 million cars on the road which are emitting up to an extra 1m ton of a toxic gas responsible for killing tens of thousands people in various countries. With this insidious deception, VW has not only let down Germans but the entire Global Society by showing sheer contempt typical of a Big Business towards the continuing environmental degradation. No wonder, the news wiped out billions of dollars off the market value of entire car industry providing credence to the suspicion that emissions test rigging may be more widely practiced art, than what has come to light so far. Continue reading Volkswagen, Deutsche Bank and Ordoliberalism: Shrinivas Dharma →