Since the emissions controversy, Volkswagen has lost half of its market value according to industry sources and prices of its vehicles are going down rapidly. To further avoid eroding its customer base, here’s what the German auto giant should be doing.
According to news reports, it has been learnt that Volkswagen has already sold approximately 11 million diesel vehicles that are designed to conceal harmful NOx emissions. Additionally, further reports have revealed how another 800, 000 vehicles have been throwing up faulty carbon dioxide readings which is something at least 80 global leaders will be addressing in Paris for climate talks later this month.
Volkswagen has lost close to half of its total market value according to experts and market reports and car prices are dropping dangerously. Experts have outlined the road ahead for Volkswagen based on these findings-
- Total Disclosure- The company should investigate and disclose any other problems that are still in the closet. This will be better with a view towards getting on the road towards fixing the same.
- Fixing issues- Volkswagen should offer refunds to customers or think of a blueprint to solve the problems latent in the vehicles sold to its customers till date.
- Take on Tesla- Volkswagen should take a leaf out of Tesla’s book and focus on technologies of the future instead of resorting to writing code for creating the image of diesel as a cleaner fuel. Such an alternative vision would definitely go a long way towards resurrecting the company’s image.
Volkswagen has earlier issued a press statement stating how it wants to focus on hybrids and electric cars in the future with a view towards scaling up efficiency. Volkswagen is also looking at an all new electric drivetrain of its cars and a high performance Phaeton which should catch on with prospective Tesla buyers. This should be the latent focus of the company going by the $30 billion cash reserves it has. Customer compensation and new technology investment is a two pronged approach that the company must take.