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Impact of the Emission Scandal on the Volkswagen Group 

Impact of the Emission Scandal on the Volkswagen Group 

  • November 2015
  • 71 pages
  • ID: 3398350
  • Format: PDF
  • Frost & Sullivan

Summary

Table of Contents


Impact of the Emission Scandal on the Volkswagen Group : Volkswagen to Focus on Alternate Powertrains and Emerging Markets to Regain Market Leadership
Volkswagen's (VW) concession of corporate malfeasance in circumventing Environmental Protection Agency (EPA) testing in the US has sent the global automotive industry into a tailspin. This research service examines the fallout from the emission scandal and its impact on the Volkswagen group, as well as the wider automotive ecosystem.

Executive Summary—Key Findings

Impact of Volkswagen Emission Scandal: Key Takeaways, Global, 2015 – 2020

An estimated 11Mn Volkswagen vehicles globally are equipped with illegal software code that lets these vehicles to pass the NOx testing cycle of various testing regimes. The affected vehicles are spread across Europe ( Mn), UK ( Mn), USA ( Mn) and rest of the world ( Mn).

Frost & Sullivan analysis estimates the immediate to medium term (2016–2020) economic impact of the diesel emission scandal on VW group will add up to $ Bn in fines from different regulatory authorities, lawsuits, recall cost and losses from underutilization of production facilities. Frost & Sullivan have readjusted 2020 Global Volkswagen sales forecasts to drop by %.

Volkswagen Group’s existing centralized and highly rigid corporate hierarchy to undergo drastic reformation into a more streamlined, de-centralized structure with increased autonomy for the group’s various brands and increased regional autonomy.

Immediate focus of Volkswagen management would be to schedule recalls and fix the 11Mn affected vehicles. A dedicated platform for electrified vehicles (MEB) and increased investments in developing SUVs are indicators of a major product portfolio restructuring.

Immediate focus of Volkswagen management would be to schedule recalls and fix the 11Mn affected vehicles. A dedicated platform for electrified vehicles (MEB) and increased investments in developing SUVs are indicators of a major product portfolio restructuring.

Frost & Sullivan predicts increased collaboration between OEMs in powertrain R&D to minimize the expected rising cost of compliance.



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