The recent scandal that hit like a tsunami against the German company Volkswagen, has proven to be a catalyst in the sales of many other cars such as the Toyota Prius.  This hybrid car as stated by the company, did not need to cheat on emission tests in order to succeed.

Toyota’s picture ad promoting its eco friendly cars

Instead, the Prius carries a statement of a noticeably lower carbon footprint,  and as also stated by the company, “unprecedented efficiency and environmental performance.  The car also supposedly adds fun to driving, as its internal design adds comfort and sensation to the driver.  The crash of Volkswagen, and Toyota taking advantage of this, ends up as a competitive advantage against other car companies, as Toyota now has over 50% of alternative powered vehicles being sold across Europe.

Toyota’s eco friendly lineup, and plans for the future

Other companies may catch on to the idea that through a companies downfall, their own company may succeed, and thus improve their impact towards consumers, as well as gain market shares more easily, as well as in greater quantities.

References

http://www.irishexaminer.com/motors/motors-features/toyota-adds-a-driving-experience-to-their-growing-green-credentials-357390.html

Tesla, arguably the top electric car in the industry, has recently released its second model, MODEL X.  This luxury car will come with features unavailable in other electric cars, and very rarely seen in the car industry at all.  These include falcon winged doors, highly effective ventilation, as well as many other features that add the the cars uniqueness.

The new MODEL X, deemed the most important Tesla ever

This Focus type strategy centred on the fact that differentiation will make it or break it, is a gamble that the company is willing to make.  The cost to cover the cars production is immense, and the features of the car add to the cost making it a car that is unusually expensive compared to other luxury cars or its class.

Features of the new Tesla MODEL X

The popularity of the car is the factor that will allow the production to go forward, as if individuals see this car as just an overpriced electric car, the model will be discontinued.  To add to this, Tesla had chronic production issues, that might deter customers from purchasing, as it would be a long wait until they actually had possession of the car.  Tesla is risking a very expensive luxury car, with the belief that its new features and uniqueness will be its selling point.

References

http://www.businessinsider.com/the-model-x-is-on-a-crucial-mission-for-tesla-2015-10
http://gazettereview.com/2015/09/tesla-motors-inc-nasdaqtsla-model-x-is-almost-here/

A recall of 11 million cars throughout the world has been put in place after the German carmaker Volkswagen was found cheating its cars on emission tests.  Volkswagen is a large part of the German economy, and thus, the economy took a large hit when this scandal took place.  The car company is believed to recover from this crisis however, many people losing their jobs and the corporation taking a massive hit was not a gamble the company should have made.

The CEO of Volkswagen attending a news conference

Although profits would increase from this scandal if carried out successfully, 750,000 work for Volkswagen and the number is predicted to drop drastically, as individuals in high positions within the corporation are being arrested and quitting their jobs where they stand.  The absolute disregard for business ethics, leading to a failure within the system, as information was kept secretive, led to the inevitable crumble of the company.  The scandal affected not only the company, but those invested in the German economy as a large part of the economy was hurt as Volkswagen was one of the biggest car companies within it.  A risk that is negligent of ethics in business, as well as significantly opposed the operations already intact within a company will lead to its eventual failure.

Some of the many cars that are to be recalled 

References
http://www.bbc.com/news/business-34324772http://www.cbc.ca/news/business/volkswagen-eu-martin-schulz-german-economy-1.3256024