Volkswagen(VW) is a one of the worldwide known organisation in the car industry. VW has many of brands under the group including Audi, Porsche and Bentley, moreover VW also has many top selling products as a Volkswagen brand such as Golf, Jetta and Passat. However, VW made a “huge mistake” on their products in 2015, maybe using “huge mistake” can not enough to describe what VW has been done, cheating could be a more proper word to describe the whole circumstance.
The ugly truth
In September 2015, a scandal was happened from world known car brand VW. according to the BBC news, the Environmental Protection Agency (EPA) found that VW has a device or a software which can detect in diesel engines when the car was being tested. Moreover, VW has admitted they were cheating emissions tests in the US (Hotten, 2015). We all knew VW products which represented a symbol with high quality and high technology. However, this scandal totally destroyed the incredible reputation which VW built by their own since 1937.
This whole scandal thing on VW had a huge impact on their car selling number and their stock in the share market. Of course, everyone knew that VW’s stock will drop because the scandal, but no one knew that VW will take how many loses in their stock. Here have some facts to illustrate the loses that VW has been took after the scandal. According to the Bloomberg news, after VW admitted to cheating on the test that VW’s stock lost almost a quarter of its market (Kresge and Weiss, 2015).
What’s the next step of Volkswagen?
According the Nasdaq news, the VW believes that they can stop the loses after the scadal and turns into making profit by the end of 2016(Boston, 2016).But, why the VW so sure that they can make the profit by the end of 2016? Are VW still has a long way to go to come back to the game after the serious scandal? The truth is that VW has to build some new strategy in the market and in the mean time they need win the trust back from costumers. Therefore, according to the news from Financial Times, VW’s new chief of executive said VW will give US costumers selling their affected cars back to the company and he also said that was a major step forward for the company (McGee, Campbell, 2016). However, the new strategy of VW did not involve rest of other vehicle around the world so as VW did not comment any offer or treatment like VW did at US market. Therefore, the VW’s new strategy or you can call that is a solution for the costumers and there still have some doubts in everyone who owns VW’s vehicle. On the other hand, at least VW took their sincerity to solve the situation even just a small step for the costumers.Maybe, VW will learn the lesson from this scandal and make better products for costumers to win the trust back. After all, VW still is the biggest car maker in the world and also has many loyalty fans to hope that one day VW can be a most reliable brand again.
By Bin-An Hsiao
Boston, W. (2016) VW Looks to Move Beyond Scandal. Available at: http://www.nasdaq.com/article/vw-looks-to-move-beyond-scandal–wsj-20160429-00063
BBC Newsnight (2015) What the VW scandal means for diesel cars – Newsnight. Available at: https://www.youtube.com/watch?v=PyNpn1Z21eE
Hotten, R. (2015) Volkswagen: The scandal explained. Available at: http://www.bbc.com/news/business-34324772
Kresge, N. and Weiss, R. (2015) Volkswagen drops 23% after admitting diesel emissions cheat. Available at: http://www.bloomberg.com/news/articles/2015-09-21/volkswagen-drops-15-after-admitting-u-s-diesel-emissions-cheat
McGee, P., Campbell, P.(2016) Volkswagen pledges to regain consumers’ trust. Available at: http://www.ft.com/cms/s/0/eadc3150-0d17-11e6-ad80-67655613c2d6.html#axzz47NJorG5d