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[return to "FedEx Accused of Largest Odometer Rollback Fraud in History with Used Vans"]
1. crhull+0y[view] [source] 2023-06-27 15:18:24
>>cwwc+(OP)
I'd encourage a bit more skepticism to this article. While this accusation could possibly be true, there are two things to keep in mind, which I am sharing having experience as a founder/CEO who has gone from startup to IPO:

1) This is taken from a complaint in a class action lawsuit. Class action lawyers are very similar to patent trolls whereby they can spin almost any story they want. And journalists go for clicks, so they amplify the sensationalism. It doesn't mean this is one of those, but a class action complaint should not just blindly be trusted.

2) There is a strong theme of "of course execs lie cheat steal at every turn" and I also think this narrative should be questioned. Ethics aside, the level of compliance in a public company is insanely high. Execs are already rich. To risk jailtime, which fraud can lead to, you'd need to see something more existential than slightly increasing margins on used van sales.

I felt inclined to comment as I've been on the other end of articles like this, and it is astounding the level of mind reading people have done into my intent and actions on things that were factually just not true at all. I also truly would find it very difficult to commit a broad organizational fraud even if I wanted to and my company is only 500 people.

If I had to make a prediction, the case is less black and white than it appears, and if there was fraud, it was probably committed at a non-executive level by the person whose P&L was directly tied to these resales. Or, it was done independently by the much smaller leasing company where this was more existential to them. It is highly unlikely to be a Fed Ex executive-level conspiracy.

I'm sure there are a few counter examples, such as say the VW emissions scandal, but I would counter these were the exceptions that proved the rule and in general when the C-level was involved was much higher stakes.

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2. Alupis+l01[view] [source] 2023-06-27 17:14:30
>>crhull+0y
> VW emissions scandal

VW is in the business of selling vehicles, and has a real interest there to push the envelope as much as possible.

FedEx is not in the business of selling used vehicles. These vehicle sales likely don't impact their core business in the slightest - making an organization-wide scandal just silly to even think about.

Looking online, these types of "vans" sell for anywhere between $5,000 and $30,000 (with 4 digit miles)[1]. Seriously... FedEx isn't going to blink at any of this.

These class actions are always brought by bottom-feeding lawyers that use serial-plaintiffs. The reality is the class action bit will be retracted, and the lawyers, err, plaintiff will receive a "go the hell away please" payment. That's the game here...

[1] https://www.auctiontime.com/listings/trucks/auction-results/...

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3. CWuest+ye1[view] [source] 2023-06-27 18:24:19
>>Alupis+l01
> VW is in the business of selling vehicles, and has a real interest there to push the envelope as much as possible.

As I understand it (sorry, I don't have a citation handy) was that VW was gaming the tests, but in order to make their vehicles' operations MORE efficient. That is, the tests are dumb because they concentrate on start-up emissions with less attention to warm running. VW wanted to also optimize the warm running, but to do that they had to game the software to still appear to optimize only for the cold start.

That is, aside from the ethical problem of cheating the regulation (a big aside to be sure), they were acting more responsibly than most.

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4. humani+Nk1[view] [source] 2023-06-27 18:52:47
>>CWuest+ye1
> As I understand it (sorry, I don't have a citation handy)

This is so irresponsible of you to just assert without evidence, and is so out of context to portray VW as the good guys here. They did not break the rules and flaunt regulations to make their system more efficient. They did so to cover up their failure to deliver on a new generation of "clean diesel" tech. VW thought they could do it, they invested billions in it, and they couldn't figure out how to do it without emitting way too many other pollutants. So they built their cars to lie to regulators.

The tests cover an extensive range of use cases, mostly warm running. There were two modes, one that was more fuel efficient but emitted NOx above regulations, and one that was less fuel efficient but was within NOx regulations. They detected when the tires were on suspension that simulates real-world driving for testing. They got caught by academics who wanted to test real-world vs simulated suspension.

Here is actual source, Bloomberg, which isn't some kind of environmentalist or anti-business publication: (https://web.archive.org/web/20160312181801/https://www.bloom...):

"The road tests captured a variety of conditions: high elevations up Mt. Baldy; stop-and-go urban errand-running in San Diego; freeway driving around Los Angeles. The two Volkswagens’ emissions exceeded standards by 5 to 35 times. The BMW’s didn’t. [...] The Lean NOx Trap is a system of concessions. To get cleaner exhaust, you’d need to use a squirt of fuel every few seconds to burn up nitrogen oxide. Or, in the other direction, to get better fuel efficiency, you’d need to spew out dirtier exhaust. Managing this trade-off requires a complex calibration of the onboard computer, the engine control unit, so it can adjust constantly to variables like temperature and speed and optimize both emissions and fuel usage. The trouble was, Volkswagen hadn’t been able to get its new engines to comply with the stringent U.S. standards."

The reason is they had invested in a "clean diesel" engine tech that was supposed to be their market differentiator. VW invested billions into it. Yes, it was more fuel efficient, but it was supposed to also stay within existing pollution emissions regulations. Nobody else made such big investments in clean diesel because they couldn't figure out how to make it more efficient without also emitting pollutants at much higher levels. But everybody was so bought into it that they felt they had to cover it up.

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