The Volkswagen Emission Scandal

1234 Words5 Pages
The Volkswagen Emission Scandal Introduction The mistrust between the Volkswagen Company and their customers developed after the scandal associated with the incorrect emission of data and cheating of the system unfolded. The scandal occurred on the eighteenth of September 2015 when it was found that the company had made a car with a turbo that released emission directly into the real word atmosphere. The allegations were genuine and were proved by the Environment Protection Agency in the United States (EPA) (Hotten, 2016).The chief…show more content…
The action has an effect on the loyal customers, suppliers and other stakeholders such as industrial transportation in the US/European economy that have been a pivot point in the value addition to the Volkswagen business. Chief Executive Resignation One of the good response that the company took was supporting the resignation of the then CEO Martin Winterkorn. The CEO resigned and admitted his mistakes of not hindering to the warnings signs about the emission in the year 2004(McLeod, 2016).He also admitted being responsible for the irregularities that caused emission by not been keen on what the employees was doing. The idea of his resignation is quite wise because besides the scandal the company has faced various other challenges under the CEO with the most critical being a drop in the sales of more than 2 percent in the year 2015. Though he initially claimed he was kept out of the loop in this sort of activity has also admitted that the company has “messed up” and it will take a longer span of time to rebuild it image (McLeod, 2016).On this ground the committee supported, and Matthias Muller succeeded him. The new Chief Executive Officer took charge and assured the stakeholders, suppliers, individuals, companies in the supply chain and other affected parties that the company will take the
Open Document