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Major auto maker engages in deceptive trade practices

Buying a new vehicle can be a fun process for a New Jersey resident. While many people consider a variety of factors such as their families' needs and the new vehicles primary functions before making purchases, the process of looking different body styles, colors and technical features can be exciting. A car is a big investment and many people hold onto their personal vehicles for a number of years before they sell or trade them in for new ones.

One international automaker that has strong popularity in the United States is Volkswagen. Volkswagen produces several different models of cars that can run on diesel or standard fuel. The company has been in the news, however, after allegedly producing vehicles that cheat environmental emissions standards by having their engines read emissions outputs much lower than the cars are actually producing.

The automobile maker admitted that some of its vehicles -- including around 500,000 sold in the United States -- had the problematic engines and that it knew the issues existed when they put the cars on the market for sale. Only vehicles that run on diesel fuel are affected, and the vehicles that may have the tampered with engines were sold in the late 2000s and early 2010s. Worldwide, around 11 million Volkswagen vehicles are said to be affected.

Through acting in bad faith and engaging in deceptive trade practices, Volkswagen has suffered significant financial setbacks. It has set aside several billions of dollars that it plans to use to fix the problematic vehicles and to settle business litigation claims lodged by Volkswagen owners who are upset by the company's deceit. In the end, only time will tell if Volkswagen is able to recover from this significant breach of trust with American and international consumers and if it will be able to survive in a very competitive automobile market.

Source: The New York Times, "Volkswagen Says 11 Million Vehicles Worldwide Are Affected in Diesel Deception," Jack Ewing, Sept. 22, 2015

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