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The Volkswagen No*Gate Case Solution & Answer

The Volkswagen No*Gate Case Solution

Analysis: What Happened

Volkswagen is the biggest car manufacturer company (in volume) of the European continent and it is well known for producing high quality and stylish vehicles. It was established in 1946. Most people would agree that Volkswagen is a very influential car manufacturer. In South America, there’s a big market for Volkswagen trucks and buses.

Volkswagen (VW) had admitted to the United States regulators that it had consciously and intentionally installed “defeat devices” in many of its diesel cars, which enabled the cars to cheat on federal and state emissions tests. The discovery had encouraged the U.S. Environmental Protection Agency (EPA) to halt final certification of VW’s 2016 diesel models, and VW itself had been brought to stop the sales of its 2015 models.

Volkswagen scandal offers useful insights regarding the management of a critical incident. This case was a violation of utilitarian theory where maximum happiness of people are prioritized. The managers can better understand what consumers are discussing, following which they apply appropriate recovery strategies. We do not evaluate all the data prior to the start of the recall incident and compare with the events that occurred as the scandal unfolded. A longer time period would help generate deeper insights. We are still in the early stages of text mining and sentiment analysis, but we believe that early findings can help the firms in enhancing or boosting the time and costs associated with a brand crisis.

The biggest thing is that the managers should immediately focus on the recovery strategies of an incident, and aim to neutralize the negative opinions, which is expressed in the surrounding of the brand. In this way, managers can accelerate the shift in conversation from the incident itself and limit the potential damage.

Action Plan – What Should Be Done

The action plan of Volkswagen is to overtake Toyota as the largest car manufacturer in the world in the sense of volume, we aim for technological leadership in the industry and competitive profitability while also striving to be an excellent employer. We want to make electric drives, digital connectivity and autonomous driving for more intelligent and safe for your environment.

The world of mobility will change fundamentally by electric drive and fully-networked transportation with autonomous drive will determine how we move around in future. With the new Group strategy “NEW AUTO – Mobility for Generations to Come”, the Volkswagen Group will be a significant driver of this transformation and accelerate its realignment from vehicle manufacturer to a leading, global software-driven mobility provider. A company that is redefining mobility while also doing business climate neutrally and conscientiously. The development of sustainable, connected, safe and tailored mobility solutions for future generations.

Apologize

First of all, the company needs to reassure its current investors and customer by apologizing to them, which could also reassure the company’s transparency and culture of openness, for which Volkswagen CEO Martin Winterkorn, issued a recorded video apology message on Sept 22 2015. He also showed that he was unaware of the scandal.

Internal Inquiry

Volkswagen BOD should conduct the internal investigation to find out the culprit behind the scandal and the approval management of the carbon-emission testing software. In addition to this CEO must resign from the post because he is responsible for the overall outcomes of the company and it is an ethical responsibility for him to accept the responsibility for the issue.

Termination of Accused Employees

After the internal inquiry/investigation the Volkswagen management should terminate all the employees or the persons held responsible of the scandal because their actions defaulted the company’s current goodwill among customers and investors. The company should also publish their termination letter to get their interest back in the general public………………………..

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