Volkswagen As A Car Company

1224 Words Nov 22nd, 2015 5 Pages
The company I have chosen for my project is Volkswagen. Volkswagen is in the automotive industry. Volkswagen is a German car company that is best known for the “punch buggy” and their diesel model cars. Volkswagen mostly produces cheap to mid-priced cars. Volkswagen has always been one of the most successful companies in the automobile industry.
Volkswagen has always been a very large competitor in automotive industry, however recently Volkswagen has seen a drop in sales due to a discovery made by the EPA. The EPA found that diesel engine cars made by Volkswagen had a program that lowered emissions readings when the cars were tested. So when the car was tested the reading would show the car was producing a lower amount of emissions then it actually was. Volkswagen recently came out in September and admitted they placed the program in their cars and cheated the emissions testing. More than ten million Volkswagen cars have been effected by this scandal. So what does this mean for Volkswagen?
First off this causes a shift in demand. Because of the news of Volkswagen cheating on emissions testing people aren’t going to trust them or their cars and this is going to cause a decrease in demand. One of the demand shifters that we learned in class was taste and preferences. Taste and preferences is a shifter that would decrease the demand of Volkswagen. Many people buying cars today prefer buying a car that produces less emissions because it’s better for the environment. One of the…
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