Can consumers trust companies ?

[unclebulgaria67]

It is now being reported that Mitsubishi offices have been raided, after the company admitted that some of its vehicle performance statistics produced were not true. This follows on from the VW scandal, the latest of which is that apparently VW might have to buy back vehicles sold in the US at a cost of approx. $7 billion.

 

Can we presume that most vehicle performance stats produced by a company or on their behalf are unlikely to be true ? The stats are likely to be manipulated so they compare favourably with similar vehicles and have nothing to do with the performance drivers will experience.

 

In regard to totally different products, it has been widely reported in the media that many household appliances are now so poorly made, that they will not work for the lifetime expectancies previously experienced. And in the worst cases, some appliances now represent a serious fire hazard, as seen by the number of household fires caused by washing machines, tumble driers etc around the country.

 

Are some products now being made with very cheap parts, as companies look to sell them at a cheaper price, but maintain profit margins ? The products might pass any safety tests conducted after production, but can consumers trust that they are buying a safe product, that will last for a reasonable amount of time ?

[king12345]

Short answer: NO.

With regards to cars, I bought a Toyota Aygo 2014 new and it promised to do 60mpg.

I have never done more than 40mpg even on motorway at steady 60mph.

Dealer said it's normal.

I find it abnormal that a new car does a third less mpg than advertised.

[SabreSheep]

By the very nature, a company is there to make profits to its shareholders. nothing else matters,

[BazzaS]

By the very nature, a company is there to make profits to its shareholders. nothing else matters,

 

But the duty is to promote the long term success of the company.

Arguably, fiddling mpg or exhaust emission testing gives only a short term gain, as longer term it costs the company (in terms of reduced sales when the scandal breaks, fines, and compensation payable).

[SabreSheep]

But the duty is to promote the long term success of the company.

Arguably, fiddling mpg or exhaust emission testing gives only a short term gain, as longer term it costs the company (in terms of reduced sales when the scandal breaks, fines, and compensation payable).

 

Problem is, comapnies are also run by accountants reporting to share holders.

 

Unlike places like Japan, companies in the west only worry short term and by the P+L and Balance Sheet and return for shareholders

[BazzaS]

Problem is, comapnies are also run by accountants reporting to share holders.

 

Unlike places like Japan, companies in the west only worry short term and by the P+L and Balance Sheet and return for shareholders

 

VW more than doubles emissions costs to €16.2bn

http://www.bbc.co.uk/news/business-36112333

 

£12.6 billion is a pretty significant sum to explain.

[unclebulgaria67]

I was reading earlier what is going on in the US and it sounds like another financial crash is around the corner. When Wall Street crashed in 07/08, US Treasury bailed it out. The big 6 Banks in the US are holding huge liabilities due to gambling on financial instruments. There is widespread corruption going on and some of it is being investigated. It might make any wrong doing by UK Banks look pretty lightweight.

 

US authorities go after foreign companies agressively, but often turn a blind eye to the conduct of their own companies.

[san_d]

Of course we should trust companies! They have our best interest in their hearts!

 

They do god's work and we should feel privileged.

 

Those who doubt this should be locked up in jail (run by the companies!).