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Abstract
Volkswagen adopted strategies to gain market share for its cars manufactured across the world and in bid to overcome competition, the company installed chips to cheat the regulators. The chips effectively hid the emissions from the cars in the laboratories, whereas the same cars emitted carbon dioxide and other pollutants more than the prescribed norms. The scandal shocked the world as the customers of Volkswagen believed in the prowess and quality of the cars made by the German company.
The chief executive resigned and other heads rolled who were alleged to be associated with the scandal and the new chief executive promised the regulators to act in the most transparent manner and also assured the customers that the company would fix the problem of all those cars considered to be tainted with the manipulative chips.
The company took a huge beating from customers and shareholders. The buyers put off buying the company cars and the investors showed thumbs down to the scandal wiping off the market capital of the company. The regulators initiated proceedings against the company all over the world asked the company to come out with the plan to address the emission scandal. The company too started all the measures to ward off long term implications of the scandal and one such measure being the appointment of the new chief executive. After such severe drubbing, the question which remains unanswered is to 'what next for Volkswagen'?
Keywords
Volkswagen, Emission, Ethics, Trust, Regulator, Market Share, Leadership
Introduction
"Securing the trust of our customers and that of the public is and will remain of paramount importance to us! We sincerely and deeply regret that we have abused your trust. We will take care of all your concerns quickest possible. We at Volkswagen will do everything to fully regain the trust so many people put in us and do all necessary to avert further damage." - Volkswagen
We have lost trust; the trust of our customers, investors and employees as well as the trust of politicians - Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen AG
We are reviewing our structures. We are reviewing our mindset and the way we do things. We have a clear mission. We want to create a...