I think this is a great example of how important company culture is within a business and also how important it is to find people who fit within your company so that it will function as fluidly as possible. Do you think Volkswagen will be able to sell their cars in the United States or do you think they will have to sell their cars in different countries where the emission regulations may not be as strict?
Saturday, September 26, 2015
VW faces 'about the worst situation': Ex-GM exec
As many of you may have heard, Volkswagen was found to have lied about their new engines that have been developed. They made created engines that when they were being tested worked within the boundaries of the legal carbon emission rates. However, the engines that were mass produced and sold to consumers did not meet these standards. Because of this, Volkswagen could potentially face upwards of $18 billion. However, there may be multiple facets how this problem arose to the level that it did. Their former chairperson, Ferdinand Piech, created culture within Volkswagen that was ruled by fear. It was stated that, "Ferdinand Piech ... is a very, very hard dictatorial, my-way-or-the-highway type of person who constantly [was] firing people, threatening people 'you better succeed at this or you're out the door, Lutz said." When you have this kind of culture people will lie and cheat for fear of losing their job. Consequently, Volkswagen does not see any way that they can make these engines work as efficiently as they did while still being within the legal guidelines.
I think this is a great example of how important company culture is within a business and also how important it is to find people who fit within your company so that it will function as fluidly as possible. Do you think Volkswagen will be able to sell their cars in the United States or do you think they will have to sell their cars in different countries where the emission regulations may not be as strict?
https://www.yahoo.com/autos/s/vw-faces-worst-situation-ex-120800972.html
I think this is a great example of how important company culture is within a business and also how important it is to find people who fit within your company so that it will function as fluidly as possible. Do you think Volkswagen will be able to sell their cars in the United States or do you think they will have to sell their cars in different countries where the emission regulations may not be as strict?
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7 comments:
I think this shows the importance of the culture and employees within your business, so that it will function the way it is intended to. I think Volkswagen will have to sell their product in other countries that may not have as high of standards for emissions. With this problem being brought to light, I think the government will keep a close eye on Volkswagen and this may have implications for other automotive producers to be investigated as well to see if their products are within regulation as well.
Lately a lot of people in the media have been pointing at the CEO and blaming him for this fiasco. The statement in the article is proof enough that this was a management issue and it forced employees to make decisions that saved their jobs, but weren't good for the company overall. Hopefully in the future VW will try to instill a management structure more open to communication.
After working in a corporate atmosphere I have realized how much culture can influence a worker's attitude. The fact that Piech was promoting the atmosphere that he was is not good for VW. This atmosphere will have to change for the company to have future success. Leading by fear is no way to lead. It's concerning that this scandal has happened but it was a necessary wake up call. This will probably tighten regulation, which is good for the overall environment. Who knows, maybe other companies where acting as VW did and VW was just unfortunate enough to be caught.
This is why good ethics is much more important than business. Cutting corners and doing things to make yourself look better while economically thriving can ultimately hurt you even more economically. We've seen this with BP as well as ENRON before.
After this event, everyone was blaming the CEO, but I think CEO actually may not know this since this decision is so risky for the company brand .I think this event happened because there was too much pressure for employees to lower the cost.
I think it's a shame that Volkswagen instilled this culture in their business. I think it would have to catch up with them sooner or later. If Volkswagen wants to be a force in the automobile market in the United States, they will have to reinvent their emissions policies.
This is a huge mess up at set back by VW. VW had the reputation of a durable, quality, luxury car and now this image has been tarnished. With the current "green" trend, I just can't see VW making a comeback in America any time soon. They need to completely rebuild their image and start from scratch. I'm not sure how they can do this since they are in the thick of the controversy now.
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