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Volkswagen's diesel deceit blow to brand Germany

How can the world's largest carmaker take a compromised sidetrack?

A couple of months ago, Volkswagen had a new crown: it had become the No 1 carmaker - in terms of sales - in the world (for the first six months in 2015), edging out Japanese auto major Toyota. This was a huge achievement; Toyota, that had been in the driver's seat, straight up, since 2008 (with a blip in 2011 because of the tsunami in Japan), and that has been credited with putting an end to the reign by American carmakers like General Motors (what's more, on American roads!), was a big hump to cross over.
But Volkswagen - that has brands like Audi, Bentley, Porsche and Lamborghini, other than the flagship VW in its varied portfolio - did it like an easy rider, and German efficiency and design were hailed as the new signposts on the highway. And now suddenly, the company is under a dark cloud.
CEO Martin Winterkorn has just resigned over charges that his company was compromising with diesel emissions standards in the US, a charge that has been extended to cover the European market as well. and now it seems its petrol emissions standards are being questioned too. It's all happening at the same time, alongside dire speculations about the future of Volkswagen, its share prices and the number of lawsuits its legal department will have to field (already hordes of VW owners have started filing legal proceedings, and corporate lawyers look set for a dream run).
As things get murkier, charges and counter-charges are being traded freely within the company, thereby exposing more chinks in the armour. Many members of senior management are desperately trying to pass the buck and wriggle out of the sordid spotlight, while others are claiming they had no idea all this was happening; while some more say they were "acting in the best interests of the company".
A bit rich, right? At a time when environment and safety concerns are overriding, how can the world's largest carmaker take a compromised sidetrack? Worse, how can it deceive its customers and its shareholders? "The world's biggest carmaker admitted last week that it deceived US regulators in exhaust emissions tests by installing a device to give more positive results," said a BBC report that straightaway put the dead brakes on the company profile.
Now is the time for the reverse drive, when Volkswagen needs to re-start everything on a slate that will need major cleaning up. Even so, it will be difficult for the 'Made in Germany' brand to get back in gear. For a long time to come. The Volkswagen scandal is prompting environmental bodies - like ClientEarth, for instance - to demand for a review on emissions performances of all industry players. There may be a can of worms waiting to blow up in the auto sector.