Friday , November 24 2017

VW Hit Too Hot To Handle

Yusuf Awadh Al-Azmi
Yusuf Awadh Al-Azmi

The football match between FC Bayern Munich and the German Cup champion VfL Wolfsburg was going well for the latter team which had scored one goal during the first half of the match. However, during the second half of the match, the coach of FC Bayern Munich Pep Guardiola pushed the Polish striker Robert Lewandowski who managed to score five goals within nine minutes. Such a feat is rare not just in the history of the Bundesliga but in the history of football.

Even though this team from the Lower Saxony state was unable to handle these successive goals from the opposing team, the crisis witnessed in that state was much harder to handle than the five goals of Robert Lewandowski, when several tragic incidents started occurring successively with the Volkswagen Group.

The scandal against Volkswagen Group was worsening and strikes were being scored against the German motor giant. Following the huge fine of $17 billion imposed on the company’s branch in USA for cheating on emission tests which negatively impacted the environment, the company’s CEO Martin Winterkorn submitted his resignation when the crisis worsened. Few days later, CEO of the Porsche unit, which is affiliated to the company, Matthias Muller was appointed to take up the position of Winterkorn based on the decision of Notables Council.

The value of Volkswagen’s share has decreased by 19 percent and the future of the company seems to be spiraling towards a deep dark tunnel because of the lawsuits expected to be filed against it.

We should not forget that Volkswagen Group is the second biggest motor company in the world after Toyota in terms of car production. It is the top motor company in Germany and contributes to the German tax treasury to a large extent. A huge number of German personnel work in the company; according to some reports, about one fifth of the jobs in Germany are provided by this company.

Considering the fact that the current period is the darkest in the history of Volkswagen Group, it is necessary for the new CEO Matthias Muller to tackle the issue courageously and transparently. He has to open all files to the investigators, as the company has lost a large amount of money and is facing several accusations. However, it will be able to recover as it is a huge company.

It is better not to stand idle in tackling this crisis and wait for more successive strikes. A plan has to be allotted fast to deal with this issue, as it is linked with the reputation of Germany and the motor industry throughout the world. Muller must work professionally and form a clever legal team to save whatever can be saved instead of losing everything to this crisis.

The company must restructure its branch in the USA even it means that the operations have to be suspended temporarily until the concerned administration manages to implement effective solutions for dealing with the crisis.

The strike against the Volkswagen branch in the USA was harder than the five goals scored by the Polish striker Robert Lewandowski which made the fans of VfL Wolfsburg sad.

By Yousef Awadh Al-Azmi

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