Wade Law Group April 2018

In 2017, the Volkswagen Group boasted record sales numbers. These numbers followed a tumultuous two years of dealing with the fallout of “dieselgate,” when the company cheated on regulatory emissions testing. The company posted positive numbers across their many brands, including Audi, Porsche, and VW. They sold a record 10.74 million vehicles around the globe in 2017, and 6.23 million of those were VW-branded cars. Volkswagen cites an increased demand in the Americas and China for their success. Following the scandal, sales did drop slightly in Europe and in VW’s home turf, Germany, but those sales eventually rebounded. The emissions scandal began in September 2015 and made headlines for several months. In fact, it continues to make headlines well into 2018 as more details emerge, including the revelation that they tested emissions on humans and monkeys in order to prove their diesel motor technology was cleaner. The company did face repercussions for cheating. In the U.S., they received a $2.8 billion criminal fine and $1.5 billion in civil penalties. They also received fines and penalties in several other countries. Additionally, a number of former executives and employees were convicted of crimes related to the scandal. One former executive, Oliver Schmidt, who oversaw VW’s emissions testing in Michigan, was sentenced to seven years in prison. Bloomberg reported that he admitted to helping to conceal VW’s cheating. Before dieselgate, VW had advertised their diesel cars as environmentally friendly due to their greater efficiency, using the term “clean diesel.” However, their vehicles’ emissions were significantly higher in the real world than during lab WHY DID VOLKSWAGEN POST RECORD SALES IN 2017? IN THE DAYS AFTER DIESELGATE

testing. Studies following dieselgate found that some cars produced as much as 40 times the allowed amount of nitrogen oxide, a major pollutant.

Despite the highly publicized scandal, the Volkswagen Group managed to turn things around. In the months surrounding the scandal, many industry observers expected the automaker to take a hit to sales, but that didn’t happen. In a recent statement, Volkswagen Group’s CEO, Matthias Mueller, said, “We are thankful for the trust of our customers.” And they do have the trust of their customers. The brand successfully weathered the storm. “Some of our critics thought the diesel crisis would block our view,” Audi CEO Rupert Stadler told reporters in December 2017. “Instead, we have — undeterred by the crisis or rather fired by it — developed our digitization and electrification strategy.” It seems most of the outrage came from government officials, while the scandal didn’t resonate with consumers. Many observers chalk it up to brand loyalty — which Volkswagen and its associated brands have cultivated over several decades — coupled with marketing campaigns that shifted attention to their many vehicles. People simply love VW’s products, and a scandal isn’t going to change that.

SUDOKU

ROASTED ASPARAGUS WITH LEMON BREADCRUMBS

Spring is the height of asparagus season. This dish, which features the crunch of breadcrumbs and a refreshing splash of lemon, is the perfect way to highlight the natural flavors of the vegetable without overwhelming them.

INGREDIENTS

2 garlic cloves, minced

2 pounds asparagus

1 cup panko breadcrumbs

1/3 cup plus 2 tablespoons extra-virgin olive oil

1 tablespoon flat-leaf parsley, chopped

Kosher salt

2 teaspoons lemon zest

Freshly ground pepper

Juice of one lemon (not packaged lemon juice)

DIRECTIONS

1. Heat oven to 425 F. Toss asparagus with 2 tablespoons olive oil and season with salt and pepper. Place on baking sheet and bake for 20–26 minutes, turning asparagus halfway through. 2. When asparagus is nearly done, heat remaining olive oil in a small skillet over medium heat. Add garlic and cook for 1 minute. Add breadcrumbs and cook for 5 minutes, stirring frequently. Remove from heat and fold in parsley and lemon zest. 3. Transfer asparagus to serving platter, drizzle with lemon juice, and top with breadcrumb mixture.

Recipe inspired by Food and Wine Magazine

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