Organizational Change Project: VW Group 9: Jacob Myer, Michael Mercier, Cody Mitchell, Yesenia Novoa, Geon Woo No

  • BLUF: To help deal with the emissions scandal, and the weak position of Volkswagen in the American market, Volkswagen will introduce a new truck to the American market called the Amarok.

Strengths and weaknesses

  • Strong presence in China
  • Largest producer and seller of cars in the world
  • Volkswagen Atlas
  • Emissions scandal
  • Scandal cost VW $22.4 billion in market value
  • Dropped sales in U.S.

opportunities and threats

  • Toyota production started in China
  • Fines and prosecution from scandal
  • Company's goodwill damaged
  • Sales of cars and light trucks likely to set record in 2016
  • Cheaper to buy foreign cars in U.S. with dollar appreciation
  • Automobile industry increasing

current status of vw

  • Third largest automobile company in the world
  • Reputation damaged from scandal

proposed change

  • Need to corner the American market
  • Abandon diesels in America
  • Move away from niche brands stigma
  • Enter into U.S. truck market

demand shifters

  • Americans have a desire for trucks and larger SUV's
  • American truck buyers value a powerful engine, fuel efficiency, and reliability
  • Safety is a concern for car buyers
  • Pricing

how will a new truck provide value?

  • Offers quality and innovation of German engineering
  • The Amarok holds true to Volkswagen's identity while still reaching a new market
  • Car like and comfort based interior
  • Beats competition in engine power and fuel efficiency

kotter's change model

  • Sense of urgency within VW
  • Place marketers to run ad campaign
  • Establish plan for 2018 release
  • Communicate plan throughout organization
  • Encourage innovation from within
  • Production and marketing goals
  • Pay based incentives for employees
  • Introduce truck into American market

questions

  • Why do you think Volkswagen doesn't already have a bigger presence in the American market?
  • Has the emissions scandal affected your view of Volkswagen's brand image?
  • Would you consider looking into buying a Volkswagen truck?

Credits:

Created with images by Spanish Coches - "Volkswagen" • elljay - "american flag flag red" • Cubosh - "macro dollar" • Rusfromspb - "macro toyota auto" • MichaelGaida - "auto vw vehicle" • Josch13 - "light bulb at burn" • The National Roads and Motorists' Association - "2011 VW Amarok - SUV" • Rocking Cars - "Volkswagen Amarok Single Cab" • cdu445 - "roundtable light interior design"

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