> to hold all (or the relevant) executives responsible, seize all their assets, prevent them from working in any administrative position ever again, limiting their income to a certain amount. Like really sanction them.
All for it, if it actually happened anywhere in recent history. I'm not being facetious, but I'm not aware of any examples or am failing to recall them. Do you have any in mind?
> the problem would have been corrected.
I'm not so sure. Suppose the company made massive profits (or avoided capital expenditure, or limited losses) by cheating at something like emissions. Then, the C-level execs get fired, their assets get seized and they're barred from holding administrative functions again. Did the company not still gain massive profits? Do you think it wouldn't be able to find another set of fall guys, if it pays them enough? Wouldn't the company do it again, if the risk is offset to a bunch of figureheads? Your suggestion would only rule out bad behaviour by those same actors in the future. In a more charitable reading: it would lead to better outcomes than today's rules.
Meanwhile, the damage through emissions and particular matter has been done. According to the WHO (0), about 25 people died of particulate and ambient pollution per 100k people in Germany in 2016. That puts it at 2000 people country wide that year. Did Volkswagen kill anyone by doing this? If so, how many of those could have been avoided had they not cheated on their tests? What about the impact on climate change? How were these problems theoretically addressed by seizing C-level execs' assets without giving them jail time?
> Would it make sense for Germany to punish Volkswagen by any of the means you mention, thus weakening the company in relation to foreign car makers
Yes, because the infractions were socially destructive. After all, the German government's first responsibility is towards the greater good for its citizens. According to Volkswagen's website (1), 44% of their employees or 292,378 people work for them in Germany itself. Directly, of course. Applying a fairly generous, tenfold knock-on effect, less than 4% of the total population - 2% of the active population - works for or with them. According to CNN (2), it represented 2.7% of Germany's GDP.
Also, it would hurt and stimulate competition. Not being able to pay out dividends for a year due to revenue caps, not being able to sell products in Germany that year due to cheating at exchaust measurements, etc might change shareholder voting and investment behaviour. It would damage the brand's image, reduce its ability to attract employees, etc. Maybe market forces would then finally be able to correct bad behaviours. Today's "cost of doing business" slaps on the wrist simply don't seem to have any corrective effect whatsoever.
> you also can't do the comparison you are making.
I was being hyperbolic for effect. When staying within the confines of pragmatism, surely some kind of revision to corporate/criminal law (or its enforcement) is warranted. Most people don't get the death penalty, either, or go to jail. Hell, apparently some people don't even get speeding tickets! The same would probably go for corporate actors even if the consequences were steeper.
[0] https://www.who.int/data/gho/data/indicators/indicator-detai...
[1] https://annualreport2018.volkswagenag.com/group-management-r...
[2] https://money.cnn.com/2015/09/22/news/economy/volkswagen-ger...