12. Volkswagen’s Dieselgate
In 2015, Volkswagen was the biggest car company in the world. But unfortunately, this position was severely shaken by the EPA’s legal action and alleged violation of the Clean Air Act. Apparently, Volkswagen was cheating on their emissions testing by installing special software in the diesel cars they sold on the North American market.
The software was on when they tested their cars for emissions, but it automatically shut off during normal use. Volkswagen marketed diesel cars as a cleaner fuel alternative, but in fact, they were polluting the environment more than regular gasoline-powered cars.
Soon, people called the scandal Dieselgate. It caused car dealers to put Stop Sale signs on all Volkswagen diesel products. There were also millions of angry buyers and a severe drop in sales. Currently, the Dieselgate situation is costing Volkswagen close to $15 billion in the U.S. market alone.