Skip to main content

Eight ways Volkswagen can regain their customers’ trust

In the light of Volkswagen's concession of corporate wrongdoing in circumventing EPA (Environmental Protection Agency) testing in the US, Frost & Sullivan has proposed eight strategies the company can utilise to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities. Frost & Sullivan says developments in clean diesel technology and internal combustion engines (ICE) have been substantially pushed back by years. The immediate impact of this crisis goes beyond Volkswa
October 6, 2015 Read time: 2 mins
In the light of 994 Volkswagen's concession of corporate wrongdoing in circumventing EPA (Environmental Protection Agency) testing in the US, 2097 Frost & Sullivan has proposed eight strategies the company can utilise to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities.

Frost & Sullivan says developments in clean diesel technology and internal combustion engines (ICE) have been substantially pushed back by years. The immediate impact of this crisis goes beyond Volkswagen and the US reaching OEMs, many component suppliers, dealerships, regulatory authorities and testing agencies.

It proposes that Volkswagen should: Focus on emerging markets; Position hybrid and electric powertrain as priorities; Focus on passenger safety; Position the company as a pioneer in sustainable mobility and synthetic fuels; Treat connected cars as a basic and major focal point; Bring 2125 Audi, 1656 Porsche, and other brands to the fore; Increase focus of commercial vehicle business; Conduct rigorous voluntary emission testing and certification.

“The Volkswagen crisis could have far-reaching implications for the future of diesel powertrain, resulting in even more stringent regulations and higher investment costs,” said Frost & Sullivan Automotive & Transportation senior research analyst Arun Chandranath. “Costs for carmakers to comply with emissions requirements could rise and consumers could be turned off by diesel cars.”

The automotive industry was prepared for an anti-diesel sentiment with the shift in new technologies making them more efficient and environmentally friendly than some gasoline vehicles. Auto regulators have been more focused on climate change and greenhouse emissions than concerned for public health and air quality. Regulators are under immense pressure to ensure higher standards and to restore credibility.

“Recovery will not be easy for the world’s largest auto manufacturer, however transparency and communication is essential for Volkswagen to win back the market and consumer trust,” concludes Chandranath. “Volkswagen’s recovery is critical for the overall health of the automotive industry.  Currently, Volkswagen is standing trial, but everyone’s future is at stake.”

More information on Frost & Sullivan’s insight into the Volkswagen crisis can be found on their %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 oLinkExternal website Visit registration page false http://ow.ly/T3Kw4 false false%>.

For more information on companies in this article

Related Content

  • Automated traffic enforcement – speed or greed?
    December 9, 2015
    US research and education charity Frontier Centre for Public Policy has released Speed or Greed: Does Automated Traffic Enforcement Improve Safety or Generate Revenue?, a study on the effects of automated traffic enforcement (ATE). Report authors Hiroko Shimizu and Pierre Desrochers state that the decline of road fatalities by 58 per cent is largely due to better engineered vehicles, seat belts and other safety measures. Although there is little credible evidence, the report says some ATE supporters a
  • Over 100 micro-mobility vehicles will be launched by 2018
    April 11, 2012
    As the cost of global congestion inches towards the $1 trillion mark, key economies including Europe, North America, Japan and China amongst others prepare for a green-commute blueprint. Some 16 of the key automotive OEMs are working on more than 110 short distance vehicles, with approximately 50 models being already production ready. The remaining 60 are in concept stage, but expected to become production ready by 2020. The emergence of such micro-mobility vehicles is expected to fight congestion, ease par
  • Compass4D workshop
    February 28, 2014
    The next Compass4D combined workshop and showcase event on the real deployment of ITS takes place at the Automotive Campus in Helmond in the Netherlands on 4 April. The workshop will discuss the actions needed to deploy ITS: What cities should do and what they expect from the industry; The role of European, national and local authorities; and the appropriate business models to guarantee a successful C-ITS deployment. The workshop will also show some of the ITS services for safer and cleaner transport in
  • ITS World Congress hosts European Commission’s 3rd ITS Conference
    September 26, 2012
    On 22 October 2012 the European Commission is organising its 3rd Conference on Intelligent Transport in Europe within the framework of the 19th ITS World Congress at Messe Wien, Room Stolz 1&2 and foyer Stolz. The main objective of the conference is to provide and discuss results of the ITS Action Plan and to present the status of the implementation of the ITS Directive 2010/40/EU. Additionally, the presentations will address legal issues for ITS deployment as well as European multimodal journey planners.