The document summarizes the Volkswagen emissions scandal that unfolded from 2006 to 2015. It began when VW planned to increase its low U.S. market share and decided to install cheat devices to pass emissions tests. In 2013, investigations began after tests found VW diesel vehicles emitted nitrogen oxide at levels over EPA limits. In September 2015, the EPA exposed the scandal, and VW admitted installing software in 11 million vehicles worldwide to cheat emissions tests. The CEO resigned as the company faced lawsuits of $25 billion and a 34% drop in share price wiping out $16 billion in market value.

1. The Largest Automobile Scandal
in the history !

5. Unfolding the VW Scandal
2006
The
planning
2008
Green Car
award
2013
Investigatio
n begins
Sept 18 2015
The
revelation
Fallout
begins
• Planning
started on how
to increase
their low
market share
in U.S.
• Decision to
install Cheat
Device ensues
• VW begins
Clean diesel
push of its
brands in U.S.
• VW Jetta TDI
Wins Green Car
of The Year
• West Virginia
University
Wins the
70000$ grant
for testing
• Publishes 117
page report on
the poisonous
emission
• US EPA exposes
the massive VW
Scandal
• VW admits the
scam publicly
• Affected 11 mil
cars worldwide
for recall
• CEO Winterkorn
resigns
• Share price falls
34% wiping off
$16 billion of
market val in just
3 days of scandal.
• Lawsuit of $25
billion only in USA

7. `

10. The Ripple Effect

11. FINANCIAL IMPLICATIONS

12. 0
0.5
1
1.5
2
2.5
3
3.5
4
2006 2008 2010 2012 2014 2016 2018
D/ERATIO
YEAR
D/E RATIO
-3
-2
-1
0
1
2
3
4
5
6
7
8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NET PROFIT RATIO
006 2008 2010 2012 2014 2016 2018
ROE
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2006 2008 2010 2012 2014 2016 2018
Current ratio
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2006 2008 2010 2012 2014 2016
Inventory Turnover
1
2
3
4
5
6
Dividend per share

13. SOCIAL IMPLICATIONS

14. Reputation of the Volkswagen Group from 2011 to
2017 (index score)

15. VW MANAGEMENT RESTRUCTURE

16. RECONSTRUCTING VOLKSWAGEN’S MANAGEMENT STRUCTURE
1. CEO Winterkorn resigns , Matthias Mueller appointed as the CEO of the VW
Group
2. Restructuring of the Board
3. Commissioned Jones Day- A U.S Based law firm from October 1st, 2015 to carry
out Investigation on Scandal
4. Limited Max Compensation of top executives and other executives : Taken
together, the reductions reflect a cut of up to 40% from the previous maximum
compensation, although minimum salary was increased by up to 30%.

17. VISION 2025
Volkswagen Embraces EVs So You’ll Forget Dieselgate
The “Strategy 2025” announced by
the new CEO was also a symbolic rite
of passage for him to make his mark
on the heels of the last CEO Martin
Winterkorn’s “Strategy 2018.” That
strategy was to become the global
market leader and in qualified terms
it met those goals.
Investment : $ 20 billions for mass-
production of EVs

18. VW Takes Global Sales Crown From Toyota

20. But Europe has always been a Game-changer
USA had always been a long running disaster

21. Questions ??