By Khairul Khalid
The improprieties of one of the biggest carmakers in the world have shocked the corporate world. Although Malaysia is relatively untouched by the scandal, can we learn a thing or two from Volkswagen’s “dieselgate”?
Caught flouting US emission laws with fraudulent software, carmaker Volkswagen is under severe pressure. It is facing fines of potentially billions of dollars. About a third of its market value has been wiped out since the scandal broke. The company is under criminal investigations. Its chief executive officer (CEO) has been replaced. The much beloved Volkswagen brand is being seriously tainted by the saga.
Are there lessons to be learnt from Volkswagen’s “dieselgate” in a Malaysian context? As we face one of the worst spells of haze in recent memory, environmental issues have come to the forefront again. Here are a few quick takes from one of the biggest global corporate scandals in recent years.
Where are our environmental police? Forest fires are not the sole cause of air pollution. Despite existing laws, it is still not an uncommon sight to see cars, trucks and buses spewing thick black smoke on Malaysian roads and highways even in the midst of the haze.
We have authorities inspecting vehicles for roadworthiness but do they really pass muster in pollution testings? Why aren’t more errant vehicles being taken to task when they clearly are emitting clouds of toxicity?
Volkswagen was caught by authorities in the US enforcing clean air laws. Where is our version of the environmental cops? It would be hypocritical to pressure our neighbouring countries to combat forest fires if we are not doing our bit for clean air. As Malaysia has progressed economically, we seem to have regressed environmentally.
Quality can’t be lip-serviced. The Q-word is bandied about in the automotive industry like candy but unfortunately these sweet promises aren’t always kept, as many car buyers would readily admit.
Even Volkswagen, one of the biggest carmakers in the world, is not spared the sword for failing to keep up to its promised standards. And that is the way it should be. Adhering to strict quality standards and punishing manufacturers is vital for the industry. With regulators keeping carmakers on their toes, buyers would be more assured about quality of cars. The industry would flourish, not wither from tough enforcement.
Would our regulators come down hard on Proton or Perodua, for example, if they fail to deliver on environmental measures and quality benchmarks?
Accountability in leadership counts. Volkswagen CEO Martin Winterkorn stepped down soon after the scandal exploded and has been replaced with Matthias Mueller, the former head of Porsche. Winterkorn is being investigated for possible fraud in relation to selling cars with falsified emission data, although he has denied any wrongdoing.
The point is that Winterkorn took responsibility for a major mistake and stepped down fast enough before he could be accused of unnecessarily clinging on to power. Whether he is guilty of the charges or not is left to legal proceedings. That is up to the courts to decide. It won’t solve Volkswagen’s problems immediately but this swift change of leadership instills a sense of corporate accountability, continuity and stability under times of duress.
Would Malaysian leaders, corporate or otherwise, be equally and unequivocally responsible for similar improprieties?
GRRRRR!!!
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