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How Volkswagen can recover from the emissions scandal - Frost & Sullivan

Volkswagen Passat GTE 2015

Volkswagen Group has eight strategies it can use to regain consumer trust, push sales volumes and develop sustainable growth.

Following the company’s admission it circumvented Environmental Protection Agency testing in the US and fixed emission results in Euro 5 diesel cars in Europe

Consultancy Frost & Sullivan proposes the following strategies Volkswagen can utilise:

1.        Focus on emerging markets
2.        Position hybrid and electric powertrain as priorities
3.        Focus on passenger safety
4.        Position the company as a pioneer in sustainable mobility  and synthetic fuels
5.        Treat connected cars as a basic and major focal point
6.        Bring Audi, Porsche, and other brands to the fore
7.        Increase focus of commercial vehicle business
8.        Conduct rigorous voluntary emission testing and certification

“The Volkswagen crisis could have far-reaching implications for the future of diesel powertrain, resulting in even more stringent regulations and higher investment costs,” said Frost & Sullivan Automotive & Transportation senior research analyst Arun Chandranath.

“Costs for carmakers to comply with emissions requirements could rise and consumers could be turned off by diesel cars.”

The automotive industry was prepared for an anti-diesel sentiment with the shift in new technologies making them more efficient and environmentally friendly than some gasoline vehicles.

Industry regulators have been more focused on climate change and greenhouse emissions than concerned for public health and air quality.

Regulators are under immense pressure to ensure higher standards and to restore credibility.

“Recovery will not be easy for the world’s largest auto manufacturer.

“However, transparency and communication is essential for Volkswagen to win back the market and consumer trust.

“Volkswagen’s recovery is critical for the overall health of the automotive industry.  Currently, Volkswagen is standing trial, but everyone’s future is at stake.”

> To read the full article visit the Frost & Sullivan website.

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