Punishment
If a CEO is thinking of bending or breaking regulatory rules, he should think about this. Volkswagen has already paid out $34.69 billion as a result of its diesel cheating. That’s billions that didn’t go to R&D, to maintenance , to shareholders, to development of new models. The company won’t soon forget what it had done, and it will continue paying out cash until 2021 as if to remind its executives of the mistake they made. Volkswagen is a big company but not so large that billions fail to dent its armor and competitiveness. The company is now moving away from diesels and toward electrical powertrains. This is the exact opposite of what it had done, which was “bet-the-farm” on diesel technology. It will take decades for people to forget what the company had done. It should take much longer than that for its managers to move past the scandal.
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