The auto industry has been barraged with one scandal after another in recent years, just as new players are poised to enter the market. In the same week that Apple announced that it plans to ship its electric cars in 2019, Volkswagen AG is embroiled in an emissions scandal that may impact more than 11 million vehicles across the globe.
Auto Industry Stumbles
As has been widely reported in the media, the U.S. Environmental Protection Agency (EPA) has charged VW with violating the Clean Air Act by installing an emissions “defeat device” on several vehicle models. When installed, the device disengages the emissions control systems during normal driving. However, VW systems are programmed to come back online during lab testing in order to meet pollution standards.
Unlike its predecessors, VW is taking a proactive approach to the emission scandal by accepting liability and pursuing its own criminal complaint. However, the company will still take a significant financial and public relations hit. In fact, the automaker is expected to face fines of more than $18 billion, in addition to any damages resulting from private litigation.
In the wake of its own scandal, General Motors recently agreed to pay $900 million to resolve criminal charges related to its failure to recall defective ignition switches that are now linked to more than 100 deaths. The American auto manufacturer was already hit with a hefty civil fine from the National Highway Traffic Safety Administration.
High-Tech Threats in Vehicles
From automatic braking to lane departure warnings to voice-controlled navigation, technology plays an increasingly important role in today’s vehicles. Given Apple’s proven track record of entering new markets and quickly raising the bar, the established automakers have reason to be concerned. Google, Tesla, and other high-tech companies also pose threats, as they continue to fine-tune on their electric and self-driving vehicles.
Of course, not everyone is convinced that Tim Cook and company can make the leap into the auto industry. “When it comes to actually making cars, there is no reason to assume that Apple, with no experience, will suddenly do a better job than General Motors, Ford, Volkswagen, Toyota, or Hyundai,” Bob Lutz, the former chairman of General Motors, told CNBC. “So I think this is going to be a giant money pit.”
Over the next several years, the auto industry is poised for a significant shift, as electronic and other high-tech vehicles look to become the norm rather than the exception. It will be interesting to see if the traditional automakers can put their scandals behind them and keep pace with the tech companies.
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
