CABC Homepage
New Customer | Sign In
List of Popular Cases Newly Released Cases Faculty of Business and Economics Institutional Users Home Site Map
Advanced Search
 
Topic Index
Industry & Company Index
Most Popular Cases
Newly Released Cases
SME Cases Series
China Cases Series
India Cases Series
IT Industry Transformation Series
Cases in Chinese
Cases in Other Languages
Project SARS Rebound
Case Details:
Email to a friend
Dieselgate ˇV Heavy Fumes Exhausting the Volkswagen Group  
 
Product Ref: 16/572C Company: The Volkswagen Group

Product Type: Case Industry: Automobiles & Components

Related Product(s): Teaching Note
At the end of September 2015, Matthias Mueller stepped in as CEO for the Volkswagen Group, days after Martin Winterkorn resigned over the biggest automotive emissions scandal the world had ever seen. Weeks before, the United States Environmental Protection Agency confirmed the result of investigations proving that Volkswagen had installed software in its most successful diesel engines, which were cheating on the test stand and manipulating results. The successful rapid expansion of Volkswagenˇ¦s TDI models in the US market was based on fraud. Across brands, about 11 million of the Groupˇ¦s diesel vehicles worldwide were later discovered to have had the cheating device installed. This shattered the worldwide brand and developed into a threat to the formerly pristine image of ˇ§Made in Germanyˇ¨ products. Mueller, a veteran of the Volkswagen group, took charge in maneuvering Volkswagen Group out of the crisis, finding technical solutions and regaining the trust of customers, authorities and employees. The Group claimed that the scandal was the result of a chain of errors dating back to 2005. The case illustrates how a failure of proper corporate governance, over-ambitious target-setting and an authoritarian management culture can lead a successful company into crisis. It also leaves us to ponder why a corporate leader in social responsibility could be linked to such a massive scandal.
Functional Area : Production & Operations Management
Social Enterprises & Ethics
Strategy & General Management

Learning Objective: ˇETo examine flaws in corporate governance structure and management leadership
ˇETo analyze ways of managing crisis and discuss preventive measures
ˇETo understand the notion of corporate social responsibility and explore ways to integrate social responsibility throughout an organization
Length: 27 pages Country: Europe
Germany
United States of America

Pub. Year: 2016 Level of Difficulty: 3
         
This product type is available in the following language(s):      English
         
Related Information: N/A
 
Order This Item
Type Language Quantity * Unit Price
Case (16/572C) HK$58 / US$7.5
* Order quantity should include copies that you plan to make
   for class use or distribute for other purposes.
   You will not be shipped hard copies for cases.