ProjectSix4th Draft_Revised recommendation (1).docx

The public responded by displaying a strong disregard

Info icon This preview shows pages 3–5. Sign up to view the full content.

The public responded by displaying a strong disregard for Volkswagen now viewing the firm as dishonest, misleading and irresponsible. Several management executives resigned because of the scandal, including the CEO. A devastating light was shed on the company culture as a whole because Volkswagen knowingly produced and installed six generations of defeat devices over the course of ten years. The scandal-raised awareness throughout the world because of the high levels of pollution being released into communities that were often economically disadvantaged, and whose residents were prone to asthma or other respiratory diseases (Irving, 2016). LEADERSHIP Although Volkswagen created an environment for teamwork amongst employees, leadership failed to follow the guidelines of working as a team with their subordinates. Like many chief executives, Martin Winterkorn was a demanding boss who did not like to fail. Critics say the pressure on managers at Volkswagen was unusual, which may explain the carmaker’s crisis. “The culture and organizational structure of Volkswagen are not comparable to Daimler or BMW, it is something specific,” said Professor Ferdinand Dudenhöffer, automotive expert at the
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

PROJECT SIX: THE 2015 VOLKSWAGEN SCANDAL 4 University of Duisburg-Essen. “All you hear when you speak to people is that there is a special pressure at VW” (Cremer & Bergin, 2015). There were six supervisors accused of lying to environmental regulators about the elaborate scheme to commit fraud and then cover it up. Volkswagen had insisted for over ten years the discrepancies were technical glitches before the outbreak of the scandal in 2015. The emission scandal included high-level executives who signed off on the deceptive equipment even after lower level employees warned them of the consequences. As a result, the US charged six high-level Volkswagen employees from Germany. The company plead guilty to criminal charges and agreed to pay fines of $4.3 billion — by far the biggest fine ever levied by the government against an automaker (Biesecker, Krisher, & Durbin, 2017). The investigation caused Volkswagen to lose 35% of its market share value when investors were first informed. Although the US only officially charged six managers, the Justice Department detailed an elaborate scheme to commit fraud by at least 40 employees who destroyed evidence. Chief executive, Martin Winterkorn, blamed "the terrible mistakes of a few people" whom he did not name, for the international scandal. Winterkorn resigned as CEO on 23 September 2015. He accepted responsibility for the scandal while asserting that he was "not aware of any wrongdoing on my part". Volkswagen’s Group of America CEO, Michael Horn, was more direct, saying, "We've totally screwed up." Horn added, "Our Company was dishonest with the EPA, and the California Air Resources Board and with all of you." (Wikipedia; WHERE DID THIS CITE COME FROM?) For some years, industry analysis has cited Volkswagen’s inability to grow sales in the United States primarily due to the leadership's ignorance and superior ideology.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '13
  • Dontremember
  • Volkswagen, Volkswagen Group, Volkswagen scandal

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern