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Teaching Note Details:
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Dieselgate ˇV Heavy Fumes Exhausting the Volkswagen Group  
Product Ref: 16/572TN Company: The Volkswagen Group

Product Type: Teaching Note Industry: Automobiles & Components

Related Product(s): Case
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: 20 pages Country: Europe
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
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