II. Situational Analysis
III. Theoretical background
IV. Conceptual Model
V. Research Design
VI. Sources
I. Rational:
According to James R. Healey (2011), reporter for USA Today, customers have lost confidence in Volkswagen’s quality. Volkswagen has been subjected to a real loss in the perception of its customers regarding its cars quality.
This situation results mainly from a quality problem. In fact, according to Marty Padgett (May 14, 2007), for the website www.thecarconnection.com: “The CEO of Volkswagen of America admits the company generated a lot of ‘venom’ with the massive quality problems it experienced earlier this decade.”
This position is emphasized by a Hallmark representative who observed: “Volkswagen representatives point out that the company's scores are improving, which is true. But so is almost everyone else's. Shame on us that we haven't moved up the ranking.”
Volkswagen had difficulty recognizing the problem as evinced by Trahan’s 2010 position on this matter. He was effectively thinking that the brand did better that it got credit for.
Nevertheless, according to James R. Healey (2011), for USA Today, the company now seems to be taking the problem seriously since the beginning of 2011. "We have some trouble in IQS that we have to fix" remarked Trahan earlier this year.
In the 2011 IQS, Volkswagen owners reported an average of 131 problems per 100 cars, putting the company into a tie with Mini for 29th among 32 brands. The best was Lexus at 73/100, and the worst was Dodge at 137/100. Volkswagen’s score in 2010 was slightly worse than Dodge’s in 2011 at 135/100. That said, the company is still struggling to improve his score. According to the 2010 IQS report, Volkswagen score was only slightly worse than the 2011 one, with 135 problems per 100 cars.
Historically, Volkswagen has been known for the quality of its cars; quality is measured by a car’s reliability and its ability to make life easier for