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  • 14) Case Study - Volkswagen

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    Adarsh Unny
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    1) Volkswagen's CEO had a goal for the company to become the top automaker by 2018 in economic and ecological terms. 2) The EPA and ARB found that Volkswagen had violated emissions standards after tests revealed their diesel vehicles emitted nitrogen oxide at rates 35 times the legal limit. 3) This violation will significantly damage Volkswagen's brand and sustainability strategy, and lead to questions about the company's leadership and governance.

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    1) Volkswagen's CEO had a goal for the company to become the top automaker by 2018 in economic and ecological terms. 2) The EPA and ARB found that Volkswagen had violated emissions standards after tests revealed their diesel vehicles emitted nitrogen oxide at rates 35 times the legal limit. 3) This violation will significantly damage Volkswagen's brand and sustainability strategy, and lead to questions about the company's leadership and governance.

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    © All Rights Reserved
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    13 views2 pages

    14) Case Study - Volkswagen

    Uploaded by

    Adarsh Unny
    1) Volkswagen's CEO had a goal for the company to become the top automaker by 2018 in economic and ecological terms. 2) The EPA and ARB found that Volkswagen had violated emissions standards after tests revealed their diesel vehicles emitted nitrogen oxide at rates 35 times the legal limit. 3) This violation will significantly damage Volkswagen's brand and sustainability strategy, and lead to questions about the company's leadership and governance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Case Study - Questions

    Volkswagen
    CEO Goal - To reach the top of
    1) What would VW next steps? DATA
    automotive industry by 2018 in 2) How can this violations take place? EPA - Environmental Protection
    economic and ecological terms. 3) How will it affect brand and Agency
    sustainability strategy?
    Received news from EPA and ARB ARB - California Air Resource Board
    that they were in violation of 4) What will this mean for company founded in 1967.
    leadership and governance?
    emmissions.
    5) How can damage be repaired with Global car business - 2.5 Trillion
    stakeholders?
    Top 4 made 1/3rd market share - VW,
    6) Cascading effects and what the
    future is for diesel vehicles? Toyota, GM and Ford.

    7) Does CEO stepping down address VW - No 2 behind Toyota


    problem? Whether systematic issues?
    Cultural issues
    Donora death fog lead to Americas
    clean air movement.
    Key
    Players CAA - Clean Air Act in 1963

    Story
    EPA - 1970

    Martin Winterkorn - CEO CAA - Legislative framework for


    Ferdinand Porsche - national air quality standards and
    1934 - Adolf Hitlers motorization of Automotive designer pollution control efforts.
    Germany. Commissioned designer to
    Henrich Nordoff - First
    director
    create a car for family of five that is EPA - Implemented environmental
    Ferdinand Piech - Took over
    affordable regulations.
    in 1993
    John German -Senior Fellow
    Type 1 created. and Co Lead at International 3 Layers of testing
    Council on Clean
    1934 - Factory - 500,000 cars a year. Transportation (ICCT) 1967 - Federal Air Quality Act

    1945 - Factory transferred to British EU Emissions Regulatory Environment


    Military Govt and became essential to - No central independent vehicle
    revival of german economy testing.
    MW issued statement to reassure on
    1949 - Handed over to State of DIESEL Engines 22nd Sept 2015.
    Lower Saxony
    They used a defeat device that activated
    Kyoto Treaty - 1997 and EC 1998 ACEA
    under test conditions but not on roads to
    1950 - Massive improvements agreement reduction in co emissions by
    improve mileage.
    and top exporter but success in 25% in 10 years.
    America difficult cause of size Bosch manufacture.
    Diesel engine advantages and market.
    2015- MW resigned.
    1960 - Change in consumer Management Style
    preferences, ads
    Demanding perfection.
    1968 - 5% of American market Public chastising SUSTAINABILITY
    VW had unusal coroporate structure.
    Over time centralized decision making 2006 - Modern CSR structure
    1972 - Broke world production 2010 - CSR and Sustainability steering
    with CEO.
    record with 15 million cars group. Started publishing new
    Story Contd. sustainbility reports.
    2011- Think Blue. Factory environmental
    1980s - Decline in sales with
    US Market - Highest priority. campaign. LEED Silver award.
    Japanese competition 2013 - Ranked first on Dow Jones
    For US - Engine that could accelerate sustainability index.
    1993 - Lost 1.1 Billion USD quickly and meet strict emission
    standards.
    1999 - After revival new beetle Growth Options Points
    Used BlueTec from Dailmer.
    arrived in 1999. 3rd largest car
    LDonora Death Fog
    maker. VW develop alternative engine - cheaper
    but with problems.
    2002 - Stepped aside, chairman
    2007 - End BlueTec partnership.
    of board and desire to make VW
    No 1 led to firing of two CEO ICCT test determined - Emissions were
    35 times allowable. Tested twice.
    2007 - New CEO (protege)
    Sent reports. VW said technical issues
    but replaced cars had same issues.

    Media scandal.

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