Hold bosses responsible but allow VW to make amends

WHEN 6 000 refugees a day arrive at your front door you are involved in the crisis.

Involved means far more than working out how to house and integrate the 500 000 people who have fled to Europe since January. It also means working out how to stabilise the region so people can go home and rebuild their lives. Or, at the least, end the fighting so those unaffected may remain so.

Now we have Volkswagen and its selfinflicted scandal related to its cheating on US emissions tests. Since the story broke a week ago, VW’s share price has dropped $30 billion, its chief executive has resigned, and it is to recall 500 000 cars in the US. About 11 million vehicles worldwide use the software implicated in the scandal.

US regulators are threatening to impose about $18bn in fines, and more if similar cheating is found elsewhere. European regulators are still to get involved.

If recent history is our guide, the US enjoys stripping international companies of as much cash as possible following such disasters. Banks supposedly involved in mortgage-backed bond disputes were fined $50bn. BNP Paribas was fined $9bn for breaching US sanctions against Sudan and Iran. BP was fined $13bn for the Deepwater Horizon oil spill.

Although it is true that company principals responsible for fraud or crime must be held accountable, it is also true that companies are greater than the sum of their parts.

The US will begin its proc ess of roughing up VW. The result will probably mean the collapse of the company in the US and it will suffer greatly in Europe as customers abandon the brand.

How does this affect South Africa, and why should our president pay attention? After all, we’re not involved, are we?

About 6 000 people in South Africa work at VW’s motor-manufacturing plant in Uitenhage, the MAN plant in Pinetown, and Scania in Aeroton. Thousands more work for downstream manufacturers.

South Africa’s economy is in bad shape and those jobs are critical. None of these workers has done anything wrong, and the bulk of VW’s operations has nothing to do with the diesel fraud. VW has 22 percent market share. “Deciding” the entire company should be punished into oblivion will destroy these jobs.

Those 6 000 people will not work again and given the global issues with production overcapacity, no one will build a new plant. South Africa is involved in decisions being taken in the US and Europe. It is critical our voice be heard. Hold the executives to account, but let the rest of the firm do its best to make amends, recover, and move on.