ANALYSIS OF THE VOLKSWAGEN SCANDAL’S INFLUENCE ON CAR VALUE

Open Access
Author:
Zimmerman, Daniel Howard
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Charles Theodore Murry, Thesis Supervisor
  • Russell Paul Chuderewicz, Honors Advisor
Keywords:
  • Volkswagen
  • Car
  • Vehicle
  • Recall
  • Scandal
  • Emissions
Abstract:
In this paper, I examine the impact of the Volkswagen emissions scandal. Volkswagen was caught in 2015 cheating on emissions tests, and the discovery led to public outrage as well as staggering financial penalties. Still despite this, Volkswagen remains today as a top global automotive producer. While Volkswagen was hurt by the scandal, the extent of the damage is examined in this paper in addition to how the rest of the industry was affected. Statistical and econometric tests are performed using car sale data as the basis of the event study.