The Blue Team Presents: Final Case Analysis of Volkswagen Alicia - - PowerPoint PPT Presentation

The Blue Team Presents: Final Case Analysis of Volkswagen Alicia Ludwig Justin Kormelink Kristie Harris Albert Royal Tanya Roberts

About Volk lkswagen

“The People’s Car”

• Established in 1937 as Adolf Hitler's desire to allow

Germans to access the same types of vehicles offered to Americans

• Entered the US in 1949
• Record breaking production during the 50’s of the Beetle
• Record sales in 2010
• Impressive Global Marketshare at 11.4%

About Volk lkswagen

The year of 2015 - In the beginning…

• 500,000 employees worldwide
• The largest organization of their industry
• Remarkable Public Brand
• Strong objectives in play to continue upward growth

And they would have gotten away with it too if f it weren’t for these meddling scientist!

Photo courtesy of West Virginia University — WVU researchers (left to right) Hemanth Kappana, Marc Besch, Arvind Thiruvengadam, Greg Thompson and Dan Carder say they were just doing their jobs when they uncovered wrongdoing by Volkswagen.

The Is Issue

And the crisis begins…

• Scandal uncovered by West Virginia University and the

discovery of the “defeat device”

• Biggest crisis in the brand’s history – crumbled their

leadership team

• Customer distrust, disappointment and concerns that

had not been discovered left VW picking up pieces to their once remarkable brand and public image

During the fi first year of f the scandal… Volkswagen’s communication, leadership and financial sustainability

Co Communi mmunication cation

First came denial A year later Docile dialog

Le Leadership adership

Ownership of Responsibility Out with the old In with the new

Fi Financial nancial

Financial Results Civil Penalties Fines Claims and Settlements

Strengths

• Diverse portfolio
• China/Europe
• TOGETHER – 2025 Strategy

Weaknesses

• Public image
• Low US Market Share
• Recall rate
• Lack of electric experience

Opportunities Threats

• Culture change
• Shift to electric
• Rising fuel costs
• Fines/Recalls
• More established brands in

electric

s

OT

Find Findings ings & & Re Recom commendat mendations ions

• Emissions scandal announced and vehicles recalled
• CEO resigns
• 2 yrs with remarkable losses
• Reputation slowly recovering
• Focus on the environment and electric cars
• VW should have admitted the problem sooner

Co Conclusion nclusion

• Highly recommended and reputably company
• Produced high preforming, stylish and affordable
• More profitable in China and Europe
• Know for problems to environment with emission
• Future focus of electric cars to help the environment
• Sales decreased with large losses in 2015 & 2016

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• MarketLine. (2015, April 2). Company profile: Volkswagen AG. Retrieved online: http://web.b.ebscohost.com.proxy.bsu.edu/ehost/pdfviewer/pdfviewer?sid= 3203bfc7-0158-4252-

a43d-37f9a332fed8%40sessionmgr111&vid=54&hid=105. MarketWatch: Financial Services. (2011). Aviva's use of Twitter shows the present and future of social media. Retrieved from DataMonitor.com: http://www.datamonitor.com/store/News/avivas_use_of_twitter_shows_ the_present_and_future_of_social_media%3Fproductid%3D8DE694AF-598E-481D- 8B3B- EA2B0A5F6113&hl=en&gl=us&strip=0&vwsrc=1 Roberts, Adrienne. "Volkswagen Buybacks Fill Showrooms; Trick is Getting Owners to Stay." The Wall Street Journal. 22 February 2017. Web. 15 March 2017. Staff, Cars.com. "VW Diesel Crisis: Timeline of Events." Cars.com. Cars.com, 11

• Jan. 2016. Web. 02 Apr. 2017. <https://www.cars.com/articles/vw-diesel-crisis-timeline-
• f-events-1420681251993/>.

Vella, M., Geler, B., & Luckerson, V. (2015, October 5). A diesel deception at VW shows new curves ahead for carmakers. Time, 186 (13), pp. 9-11.