The 2015 Volkswagen ‘Diesel-Gate’ and Its Impact on German Carmakers

Abstract

For many years, the Volkswagen consortium cheated governmental authorities, customers and the public by promising that their Diesel cars had very low emissions whereas these were actually much higher. This chapter discusses the questions if Volkswagen was affected by the Diesel-Gate since 2015 in terms of sales and how this continuing cheating could be explained in terms of organization theory. First, the development of sales, shares, employment and production after 2015 will be analysed concluding that at, a global level, there was an astonishing stability. Second, the main reasons for this continuity of ‘business as usual’ will be studied for Volkswagen and other carmakers who also manipulated their Diesel engines. Finally, the chapter tries to explain management’s acting and reasons.