Cennedi Mill’s Blog post investigates the recent scandal where Volkswagen attempted to follow fraudulent methods to lower their costs and increase their profits. This backfired on them as they suffered in a huge way since the news was released and the whole world witnessed the scandal which led Volkswagen to come into the front page of all the newspapers, but in a negative way.
Volkswagen took a big hit when everyone got to know what they were doing with their vehicles. The fact that they took such a chance with something so critical, surprises me because fuel emissions are something that are looked upon very seriously in every aspect, be it the government, the society, the competitors or the company itself.
The controversy that took place, has impacted all the stakeholders. The consumers are now confused whether they should spend their hard earned money in a VW vehicle instead of all the other options that are available in the market. This will lower the demand for VW vehicles in the market, leading to a smaller sales figure.
The competitors are benefiting majorly as now their demand has increased alot and that will help all of them increase their market share. This will help them go closer to the top position in the industry. The government can earn an additional revenue through the fines that they will charge Volkswagen for the fraudulent act that they pulled off for quite a while.
I strongly believe that no one should try putting so much at risk just to save some money as it will backfire sooner than later. Volkswagen tried to save themselves some money by taking a chance. Even though taking such chances are hard to get away with, Volkswagen risked it and got caught, leading to a major drop in stock prices, market share and customer loyalty. Volkswagen is the 3rd largest automaker in the world, but after this incident, their position on the list will surely be impacted.
Image source:
http://www.shopinsurancecanada.ca/blog/news/volkswagen-emissions-scandal-causes-potential-insurance-problems/
http://www.doyourpart.com/eco-news/scientists-turn-car-emissions-into-power/
