One of the leading automobile companies in the world, Volkswagen AG, has been lying and manipulating research data in efforts to promote their diesel vehicles as being “eco-friendly”. Not only is this unethical and unlawful, but it may also be criminal. Matthias Mueller, the Company’s new Chief Executive Officer (replacing Martin Winterkorn), says that the, “people who allowed this to happen… acted criminally” and that the Company is working on creating “a new business culture”. In response to this shocking revelation, Volkswagen is recalling 11 million diesel vehicles to be refitted with legal diesel emission software. Volkswagen is estimating the recall to cost $8.7 billion of the $9.6 billion they have set aside specifically for resolving this matter – a devastating impact to the Company and to their position in the global automobile market. Reverting to the Business Canvas Model that was introduced in class, it would appear that Volkswagen was too aggressive in promoting their Value Propositions – they tried to gain a competitive edge in the market by falsifying data that customers, shareholders and other stakeholders were using to invest in their automobiles or their business. Although Volkswagen is recalling the faulty cars and appears to be taking a step in the right direction, it is going to take months if not years for the Company to regain its credibility.
Sources
- Cremer, Andreas. VW braces for hit to business from emissions scandal. Berlin: The Globe and Mail, 2015. Web. 1 Oct. 2015. <http://www.theglobeandmail.com/report-on-business/international-business/european-business/vw-braces-for-hit-to-business-from-emissions-scandal/article26596874/>.
- Noguchi, Yuki. Volkswagen Owners Wonder Where A Fix Will Leave Them. N.p.: npr.org, 2015. Web. 1 Oct. 2015. <http://www.npr.org/2015/09/30/444719948/volkswagen-owners-wonder-where-a-fix-will-leave-them>.
- Reuters, Thomas. Volkswagen to recall 11 million vehicles as emissions scandal expands. N.p.: CBC News, 2015. Web. 1 Oct. 2015. <http://www.cbc.ca/news/business/volkswagen-emissions-1.3248230>.