The Volkswagen Group has witnessed a series of upheavals post the break out of the emissions scandal and other carbon dioxide cheating admissions. This has widely impacted overall sales of the brand and experts fear a long term impact in the future.
The Volkswagen Group has been riddled with a series of problems following its own admission in September that it had installed diesel emissions cheating software in countless vehicles. Earlier this month, the Group also admitted to fudging carbon dioxide emissions for some vehicles. The scandal has definitely taken its toll on the brand’s image and reputation and Volkswagen is set for a long battle ahead as it prepares for internal investigations and is also preparing a programme for cooperation of employees in relation to the scandal.
Volkswagen is also looking ahead at a road filled with lawsuits, fines and other expenditure mounting to billions. This includes vehicle refits and other compensatory measures undertaken in relation to lawsuits and governmental action. This is the biggest business problem faced by Volkswagen in its chequered 78 year history. As a result, sales of the Volkswagen brand have fallen by 5.3% in the first full month of the emissions scandal. Deliveries of Volkswagen brand vehicles have gone down to 490, 000 cars from the high of 517, 400 about a year ago. This was the eighth monthly drop at the biggest automotive division of Volkswagen in terms of revenue and sales according to a statement issued by the carmaker on Friday.
According to sales chief Juergen Stackmann, the Volkswagen brand is going though some challenging times and has to face several tense situations in global markets along with CO2 and diesel issues resulting from the scandal. However, he reiterated the brand’s commitment towards rebuilding customer trust and image.