Summary: Volkswagen Diesel Scandal: Dieselgate
MGMT 3512
Corporate Governance
Exam 1
Prepared by:
Can Işıl
Volkswagen Diesel Scandal – Dieselgate
Summary
Volkswagen is a German Automotive giant established back in ‘30s which has
over hundred production facilities across 27 countries around the world. In 2016
VW became the largest automaker by overtaking long leading Toyota with 10.3
million vehicles. It currently controls many other brands such as Audi, Bentley,
Bugatti, Lamborghini, Porsche, Seat, Skoda, Ducati, MAN and Scania operating in
different segments.
Volkswagen pioneered many technologies over the years such as TDI (Turbo
Diesel Injection) engines which become strategically important assets for the
company due …show more content…
Piech dragged Audi almost single-handedly with a series of engineering
innovations such as four wheel drive system “Quattro” and direct injection
system which is the heart of the TDI – Clean Diesel engines. For nine years while
he was CEO of the VW group he exhausted three Audi CEOs and only person who
lived up to his expectations was the Martin Winterkorn. But other members of
his team including a former GM purchasing manager did actions backfired
disastrously. VW payed fines or actions to recover totaled billions of dollars but
none of the dirt stuck to Piech. He presented himself as a maligned titan too busy
with higher things to worry about such grubby little matters and this team
decided to select technology A instead of B due to fact that B was developed
mainly by Daimler AG and Piech was trying to prove out that there is a better
way.
It was at the same time that VW decided to develop a diesel engine for US market
and they have received a public warning with a $1.1 million about emissions
compliance of vehicles produced in ’99 and ’00 causing a recall of 329000 cars …show more content…
Although VW published a fix with a software and hardware update to make the
existing vehicles compliant to regulations many of the customers did not
satisfied with the results admitting that their vehicles lost their second hand
value and fix caused many drivability issues therefore VW pushed by the courts
to buy back the affected vehicles.
Also VW as part of its dieselgate settlement ordered to put $2 billion towards
investing in projects that promote zero-emissions technology. It seems that
super-fast charging stations will wisely to be the first leg of that investment.
Personal Thoughts
VW being one of the biggest companies in the automotive industry and having
access to all kinds of resources to develop a viable product to market should not
have ended up with such a big fraud. VW had chance to pioneer every possible
technology combined with their superior German image which already provides
enough ease to access any market with any new technology with big ambitions.
Also VW’s success created a big demand for diesel powered compact vehicles
such that other major OEMs followed a similar path to remain competitive in
Corporate Governance
Exam 1
Prepared by:
Can Işıl
Volkswagen Diesel Scandal – Dieselgate
Summary
Volkswagen is a German Automotive giant established back in ‘30s which has
over hundred production facilities across 27 countries around the world. In 2016
VW became the largest automaker by overtaking long leading Toyota with 10.3
million vehicles. It currently controls many other brands such as Audi, Bentley,
Bugatti, Lamborghini, Porsche, Seat, Skoda, Ducati, MAN and Scania operating in
different segments.
Volkswagen pioneered many technologies over the years such as TDI (Turbo
Diesel Injection) engines which become strategically important assets for the
company due …show more content…
Piech dragged Audi almost single-handedly with a series of engineering
innovations such as four wheel drive system “Quattro” and direct injection
system which is the heart of the TDI – Clean Diesel engines. For nine years while
he was CEO of the VW group he exhausted three Audi CEOs and only person who
lived up to his expectations was the Martin Winterkorn. But other members of
his team including a former GM purchasing manager did actions backfired
disastrously. VW payed fines or actions to recover totaled billions of dollars but
none of the dirt stuck to Piech. He presented himself as a maligned titan too busy
with higher things to worry about such grubby little matters and this team
decided to select technology A instead of B due to fact that B was developed
mainly by Daimler AG and Piech was trying to prove out that there is a better
way.
It was at the same time that VW decided to develop a diesel engine for US market
and they have received a public warning with a $1.1 million about emissions
compliance of vehicles produced in ’99 and ’00 causing a recall of 329000 cars …show more content…
Although VW published a fix with a software and hardware update to make the
existing vehicles compliant to regulations many of the customers did not
satisfied with the results admitting that their vehicles lost their second hand
value and fix caused many drivability issues therefore VW pushed by the courts
to buy back the affected vehicles.
Also VW as part of its dieselgate settlement ordered to put $2 billion towards
investing in projects that promote zero-emissions technology. It seems that
super-fast charging stations will wisely to be the first leg of that investment.
Personal Thoughts
VW being one of the biggest companies in the automotive industry and having
access to all kinds of resources to develop a viable product to market should not
have ended up with such a big fraud. VW had chance to pioneer every possible
technology combined with their superior German image which already provides
enough ease to access any market with any new technology with big ambitions.
Also VW’s success created a big demand for diesel powered compact vehicles
such that other major OEMs followed a similar path to remain competitive in