Ramani
Thanks for visiting our blog.
I think one of the worst aspects of such a scandal is that it erodes trust in general, not just in the culprit organization/individual.
The less trust we have, the less business we are likely to do, the more time and money we spend on monitoring and worrying. Other auto makers are already under scrutiny because of VW. A scandal creates powerful negative externalities, affects many.
Regards
Usman