According to Matthias Mueller, the chief executive officer of Germany’s Volkswagen AG, the largest automaker in Europe, the company’s overall strategy through the next decade will need to be adjusted.
The company has experienced two major crises this year: first the clash between long time CEO Martin Winterkorn and even longer leader, chairman and former chief executive Ferdinand Piech. That one resulted in the latter’s forced retirement. And now last month VW, which is also the world’s biggest carmaker by sales after the first six months, admitted it had cheated US diesel emissions tests and that it also installed the illegal software in up to 11 million cars worldwide. That has wiped out around a quarter of the company’s market value, forced out Winterkorn and could come with a bill of around 35 billion euros for the automaker, according to analysts. Now the firm has “a good chance” to recover from the scandal in the next two or three years, claims the new chief executive officer Matthias Mueller as it refreshes its strategy, conceding more power to brands and regions.
In related news Volkswagen’s managing director in Britain also said in his opinion no more revelations would come as the diesel cheating scandal continues to unfold. “I don’t think there is more to come out, that’s my personal opinion,” commented Paul Willis in front of UK lawmakers. The carmaker is pressed to find answers and those responsible for the rigged engines and numerous reports signal that numerous managers could fall due to their implication or knowledge.