2 The role of management in creating VWs software cheating problem played the

2 the role of management in creating vws software

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2.The role of management in creating VW’s software cheating problem played the biggest part due to the many poor decisions made by the management team leading the business. Abandoning a pollution-control technology developed by Mercedes- Benz and Bosch, Volkswagen decided to use its own internally developed technology in 2007 (K.Laudon & J.Laudon, 2018). As this took place, VW’s hard-driving chief executive, Martin Winterkorn, started pressuring his managers with much higher growth targets for the U.S. car market (K.Laudon & J.Laudon, 2018). However, it is not clear who in VW management was responsible for this decision. Lawsuits by New York, Maryland, and Massachusetts have charged that dozens of engineers and managers, and VW’s chief executive, were involved (K.Laudon & J.Laudon, 2018). Immediately following the cheating revelation, VW’s stock price fell in value by a third as they became the target of regulatory investigations in multiple countries (K.Laudon & J.Laudon, 2018). Chief executive Winterkorn resigned, and the head of brand development Heinz-Jakob Neusser,Audi research and development head Ulrich Hackenberg, and Porsche research and development head Wolfgang Hatz were suspended (K.Laudon & J.Laudon, 2018).
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