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VW DieselgateAnd a strategic response

By,

Team-1 1

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History & Issue Clarification [1]

Impact

$ 32.48 Bn in Fines/Liailities

$ 33.3! Bn in "ecall #ost

$ 8 Bn in rod%ction Loss

2&4 ' Loss in (ales

(toc) dropped * 3+' in a ,ee) and lost 4+' -ar)et

capitaliation

NOx Emission-Diesel Engine Technology

p to 11 0io. Veicles are aected

Aected Diesel ngine ariants 1.2l51.6l52.+l53.+l

#o--%nication gap ao%t te %sage o7 de7eat deices

VW & Made in Germany Brand image

loal War-ing a,areness targeting VW

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Anticipated changes in business environment

!stomersApologiing 7or te -ista)es#o-pensation oered toaected c%sto-ers"ecalling te inoled eiclesost o7 re,or)

ompany !lt!re"eerse rain drain as ,ell asne, :Wo-en; talent(trong and i-proedcorporate co-pliance progra-"eorganiation?@ asorers:assie or actie asorers;&0oilit*

"eg!lation hanges(trong reg%lations>e, e-ission testing-etods

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#T"ENGT$# WE%NE##

T$"E%T#O'O"T(NITIE#

Long istor* (econd largest a%to-oile-ar)et in te ,orld

"easonale price (trong presence gro,t in

#ina (trong 13 rands resence in *rid cars and

-otorsports

0ost cars are not eniron-ent7riendl* d%e to e-ission o7 >?@and #?2

Lo, -ar)et sare in (A andndia

De7a-ation decrease in salesa7ter diesel gate scandal

#anging c%sto-ers needs ncreasing gloal de-and 7or

%s -an%7act%ring AcC%isition o7 ne, co-panies (cope o7 eco&7riendl* eicle

-an%7act%ring #allenges to red%ce >?@

e-ission "oo- 7or social responsiilit*

>e, e-ission standards (trong co-petitors

>e, callenges in tecnicale@pertise

#%rrenc* %ct%ation d%e to!+' earning o7 it reen%eo%tside te e%ro one

SW! Analysis

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Solution Objectives

- Healing of VW Brand will take time! -

b"ectives

Key Problems

=arget 0ar)et cange