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Essay / Volkswagen Case Study - 728
In addition, Volkswagen has set aside approximately US$7.5 billion to handle repairs and associated claims. Class action lawsuits on behalf of consumers will likely follow to help owners recover the “diminished value” of their vehicles. When a fix is announced, cars are expected to lose performance and experience a corresponding drop in fuel economy. Volkswagen executives are in the hot seat and some are at risk of being fired, including Volkswagen of America CEO Michael Horn. However, U.S. Volkswagen dealers are opposed to the ousting because he is credited with representing their interests to senior management at Volkswagen's headquarters in Wolfsburg, Germany. Horn, a Volkswagen company representative for 25 years, took up his current position in January 2014, just months after the CAFEE study was shared and just three months before the CARB-initiated recall. Although dealers praise Horn for his representation in Wolfsburg, what has not yet been revealed is whether he shared emissions results with senior management in Germany, including the currently deposed.