100%(6)6 out of 6 people found this document helpful
This preview shows page 1 - 4 out of 8 pages.
VOLKSWAGEN GROUP CASE STUDY ANALYTICSBUS 5112MARKETING MANAGEMENTWRITTEN ASIGNMENT WEEK 3VOLKSWAGEN GROUP CASE STUDY ANALYTICS Page 1
IntroductionVolkswagen is one of the largest car manufacturers in the world. The Volkswagen Group'splans and action strategies have made certain changes based on the actual situation of thecompany. Especially the 2025 strategy compared to 2018 to deal with the emissions scandal in2015. The paper will analyze why and how Volkswagen Group's strategy has changed to help thecompany survive and grow through the crisis.Company BackgroundVolkswagen Group is a German multinational automotive manufacturing companyheadquartered in Wolfsburg, Lower Saxony, Germany. Volkswagen currently owns 12subsidiaries which make up the Volkswagen Group. Base on Volkswagen AG (2019), theseinclude Volkswagen Passenger Cars, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini, Porsche,Ducati, and Volkswagen Commercial Vehicles, Scania and Man. Currently, the global automakerhas 120 production plants spread over 4 continents with the majority of manufacturingoperations in Europe and China (Volkswagen AG, 2019). And its vehicles are sold in 153countries.Emissions Scandal Crisis ChallengesBase on Magadia, Hanno, Kadoo, Akinsaya & Carlson (2019), In September 2015, theEPA concluded that certain Volkswagen cars being sold in America had a "defeat device," a typeof software in their diesel engines that could detect when they were being tested, altering theperformance emissions readout accordingly to enhance results. In fact, engines that emit nitrogenoxide 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. Morespecifically, Volkswagen recalled 8.5 million cars in Europe, including 2.4 million in Germanyand 1.2 million in the UK, and 500,000 in the US as a result of the emissions scandal. Over $7billion was set aside to cover costs. This resulted in the company posting its first quarterly lossVOLKSWAGEN GROUP CASE STUDY ANALYTICS Page 2
(~$2.7 billion) in 15 years. Just two months following the scandal, the company’s shares hadfallen by about a third. To overcome the crisis. Volkswagen Group has made changes in its strategy and vision.