My analysis of Volkswagen’s recall.

This November, German carmaker Volkswagen has made an announcement to recall about 2.6 million cars in the world, especially in China, accounting for about 640,000 cars. The reason for the recall is that Volkswagen had found several potential problems in their previous products, including lights, leaking fuel lines and the wrong type of engine oil. Volkswagen expects to double its manufacturing capacity in China to four million cars a year by 2018. However, this recall decreases the growth rate of the car sales in China.

In my opinion, Volkswagen should prevent making another recall again in the further. The recall costed Volkswagen a large amount of money, including the delivery cost, the fixing cost and maybe some subsidies for car owners. In addition, the reputation of Volkswagen was negatively affected by the recall because both the car owners and other consumers who are considering its products are worried about the quality and safety of Volkswagen’s cars. In order to deal with this problem, Volkswagen should improve their production lines. They can use better supervising systems and hire better workers.

Links:

http://www.bbc.co.uk/news/business-24940238

http://online.wsj.com/news/articles/SB10001424052702303289904579197253153734432

http://www.automobilemag.com/auto_recalls/01/volkswagen/

http://www.auto123.com/en/used-cars/recalls/volkswagen

http://www.motortrend.com/used_cars/01/volkswagen/recalls/

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