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In 2015, the EPA instructed Volkswagen, a reference in electric vehicles, to install software in its diesel vehicles that would allow it to bypass the emissions tests. Investigations by European regulators followed and the company tried to cover up the scandal, with executives fired and paying $30 billion in fines and damages. This is a blatant example of deliberate violations of corporate law, with a mass brand looking hopelessly damaged.
A few years later, the company is considered a reference in electric vehicles. New eletric cars from VW, Audi and Porsche are selling well, and Electrify America, the infrastructure company formed as part of VW's settlement with the authorities, has implemented an extensive and growing charging network across the United States.
Company had to change to maintain reference in electric
It's one of the most impressive facelifts in the company's history – but VW didn't do it alone. In 2016, the company formed a sustainability committee of nine experts from a variety of fields to help it transform itself from a polluting pariah to a pioneer in gasless propulsion.
Members of the Sustainability Board include Margo Oge, former EPA executive and author of “Driving the Future” and numerous articles on clean vehicles, driver for Tesla and “a big fan of reducing transport emissions”. In a recent article for Forbes, which I strongly recommend you read in full, Ms. Oge describes her groundbreaking work at the Mass Sustainability Council.
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- Replacing an electric car's battery will be cheaper than repairing a combustion engine, study reveals
- Honda launches new motorcycle in Brazil: low displacement, affordable price and impressive details make the ADV 160 a great promise for 2024 in the Brazilian market!
- 100% National? It seems not! The first Brazilian hybrid car will be produced in China! The company had promised 4 THOUSAND jobs in Brazil
To its credit, VW's new leadership understands that substantive action is needed - firing executives, paying some fines and returning to normal operations is not the way forward.
The Sustainability Council outlined a series of three key strategic changes, widely embraced by VW's leadership: Technological change: “Diesel has become 'radioactive' and the only viable way for VW to save its brand and comply with global emissions regulations more stringent is to adopt electric vehicle technology.” Policy changes: “Volkswagen has lost all credibility with regulators and policymakers.
To restore its official reputation and benchmark in electric, the company has had to change its standing with regulators and NGOs in all major markets and become a champion of ambitious standards that reduce pollution and increase development. EVs instead of fighting political leaders and regulators.
Cultural change: A Volkswagen it needs to drive a cultural shift to become a more ethical, collaborative, and purpose-driven company that can learn from failure.
