The news this week that Volkswagen has been up to no good in order to evade US emissions rules has many scratching their head. Why? With so much to lose in terms of brand value, stock market valuation, most likely some jobs and their reputation among buyers . . . it really begs the question: “What were you thinking?”
Volkswagen sits at the top of its market segment with over $400 billion in revenue this past year. With the recent merging of Porsche, they assumed that number 1 spot. Here is the ranking of top 10 players in this market.
Since the global market recession in 2008/09, the auto industry sector of The Global 5000 has recovered well with a growth rate (CAGR) of 7.7% over the past five years compared to the market overall of 5.5%. The top 10 including Volkswagen (helped by some acquisitions) has grown even more at 9.4%.
So, here is the market leader in an industry with very high consumer visibility, on a roll in their industry and employing over half-a-million people and a decision was made to put it all at risk. Really?
We will like never know the answer to the question – Why, Volkswagen? It is a real head-scratcher.