Author(s)

He Li

Corresponding Author

He Li

ABSTRACT

In 2015, the automobile industry experienced one of the most devastating incidents that it has ever witnessed before. The Volkswagen Automobile Company engaged in an emissions scandal that tarnished the name of the company and the industry at large. The company was seeking to expand its market share and in the process decided to use some shortcuts to win more customers. It decided to use a diesel dupe device called a ‘defeat device’ that detected emission tests and altered the performance of the engine to achieve the required results. When the use of the ‘defeat device’ was detected by the Environmental Protection Agency, it was a big blow to Volkswagen, one of the most highly ranked motor vehicle companies in the world, in terms of brand image and profitability. The aim of this paper is to outline the entire scenario as it occurred, the consequences of the company’s actions, and what needs to be done to correct the problem and repair its brand image.

KEYWORDS

Crisis Management, Volkswagen, Diesel Emissions