Research About A Company In Trouble Umass Boston Mgt 301 Volkswagen Emission Scandal

1679 words - 7 pages

MGT 330
Course# 3434
Section: 07
Spring 2017
Term Paper
Volkswagen Emission Scandal
Author: Professor:
Ali Diakite Dr. Mohsin Habib
May, 17,2017
Volkswagen Emission Scandal
In the turn of the 20th century automobiles had emerged from the slow paced invention to a high steamed powered machine that transformed the way society moved. Volkswagen a German state sponsored car company was sprung on to the world on May 28 1937. Originally, named Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH was later renamed simply Volkswagenwerk, or “The People’s Car Company later that same year. Initially, the company was Nazi operated by the German Labor Front that built it headquarters in Wolfsburg, Germany. The “people’s car” was a one of Hitler's special projects. His desire was to see it to be innovative, affordable and competitive in the global market.
Determined to create this idea, Hitler highered Austrian engineer Ferdinand Porsche who is best known for creating the first gasoline -electric car, first racing car with mid-engine, rear-wheel drive and ultimately propelling VW later in that century with the VW Beetle. So determined to push his dream of alleviating the VW brand at a Nazi rally he declared that “ It is for the broad masses that this car has been built. Its purpose is to answer their transportation needs, and it is intended to give them joy”. Due to Germany in humane structure, VW was only displayed once in Berlin Motor Show in 1939. Soon after, World War II began. Unfortunately, before a mass spread of their vehicles were to be made their factories were destroyed and left in ruin.
Thanks to the Allies, Volkswagen gain traction in rebuilding their company in hopes to revive the German auto industry. VW sales were not initially high in the US because of its ties to the Nazi regime and the model shape of the vehicle. To amp up Volkswagen image an advertising agency in 1959, Dole Dane Bernbach revamped how the German based vehicle was viewed. This Iconic campaign labeled the rounded shape car as a beetle and took advantage of its distinctive style. Due to these campaign efforts VW became a top selling imported car in the United States. In 1960, the once state owned company had 60 percent of it stocks sold publicly by the German government. By doing this, it allowed Volkswagen to be placed and viewed on a global market. With ingenious marketing style and publically being sold; VW was finally able to surpass some of it troubling past. The Beetle was even able surpass global production set by Ford Motor Company’s Model T that had a record worldwide production of 15 millions cars from 1908 and 1927. Though sales decline in the 70s, VW attempted numerous of ways to rebrand. In 2003, the last original beetle was produced.
Fast Forward to September 2015, Volkswagen finds itself in another image crisis.
The United States Environmental Protection Agency (EPA) cited Volkswagen for violating the Clean Air Act. T...


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