Unit 3 - Volkswagen Case study analytics - WA.docx - VOLKSWAGEN GROUP CASE STUDY ANALYTICS BUS 5112 MARKETING MANAGEMENT WRITTEN ASIGNMENT WEEK 3

Unit 3 - Volkswagen Case study analytics - WA.docx -...

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VOLKSWAGEN GROUP CASE STUDY ANALYTICS BUS 5112 MARKETING MANAGEMENT WRITTEN ASIGNMENT WEEK 3 VOLKSWAGEN GROUP CASE STUDY ANALYTICS Page 1
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Introduction Volkswagen is one of the largest car manufacturers in the world. The Volkswagen Group's plans and action strategies have made certain changes based on the actual situation of the company. Especially the 2025 strategy compared to 2018 to deal with the emissions scandal in 2015. The paper will analyze why and how Volkswagen Group's strategy has changed to help the company survive and grow through the crisis. Company Background Volkswagen Group is a German multinational automotive manufacturing company headquartered in Wolfsburg, Lower Saxony, Germany. Volkswagen currently owns 12 subsidiaries which make up the Volkswagen Group. Base on Volkswagen AG (2019), these include Volkswagen Passenger Cars, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, and Volkswagen Commercial Vehicles, Scania and Man. Currently, the global automaker has 120 production plants spread over 4 continents with the majority of manufacturing operations in Europe and China (Volkswagen AG, 2019). And its vehicles are sold in 153 countries. Emissions Scandal Crisis Challenges Base on Magadia, Hanno, Kadoo, Akinsaya & Carlson (2019), In September 2015, the EPA concluded that certain Volkswagen cars being sold in America had a "defeat device," a type of software in their diesel engines that could detect when they were being tested, altering the performance emissions readout accordingly to enhance results. In fact, engines that emit nitrogen oxide pollutants up to 40x the allowable limit would be able to pass emissions tests. Volkswagen Group has faced the biggest crisis in history. According to Magadia et al. (2019), the company had to recall over 11 million cars worldwide the following year. More specifically, Volkswagen recalled 8.5 million cars in Europe, including 2.4 million in Germany and 1.2 million in the UK, and 500,000 in the US as a result of the emissions scandal. Over $7 billion was set aside to cover costs. This resulted in the company posting its first quarterly loss VOLKSWAGEN GROUP CASE STUDY ANALYTICS Page 2
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(~$2.7 billion) in 15 years. Just two months following the scandal, the company’s shares had fallen by about a third. To overcome the crisis. Volkswagen Group has made changes in its strategy and vision.
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