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Volkswagen
Introduction
Volkswagen can be identified as the second largest car manufacturer worldwide. They are known
for their artistic production of cutting edge vehicles that are widely admired and driven all over
the world. Located in Wolfsburg Germany, Volkswagen has been manufacturing cars in the year
1936 when it was first opened. Given that vehicle around the nineteen thirties were owned by
only the affluent, the company came up with the idea of producing cars that were not only
affordable but also consumed lower fuel as compared to other luxury vehicles like Mercedes.
The brand is also identified due to their production of military vehicles which were used by the
German army during the World War. The company has quite a rich history and has over the years
maintained consistency when it came to the production of fast, reliable and fuel efficient
vehicles. In 2005, Volkswagen was among the top sellers of cars with over two hundred thousand
units sold in North America. The steady rise in sales was carried on to the fiscal year of 2006
where there was a four percentage increase in sales with two hundred and thirty-five vehicles
being sold. This increase was beside the fact that American car manufacturers were incurring
massive losses.
Claim

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One of the major claims is that Volkswagen has a difficult time penetrating new markets where
their competitors have already established a firm grip. A good illustration is that the brand has a
feeble grasp on the United States personal vehicle market. This has seen it make only five
percent sales of their initially estimated figure. Putting into consideration, that the United States
are ranked as the second biggest vehicle manufacturer in the world after Volkswagen.
Another claim that has recently been aired is that that Volkswagen has is that some of the
supercars that they produce the likes of Bugatti and Porsche have quite a massive emission of
carbon dioxide which pollutes the environment. Furthermore, these vehicles are known to be
very inefficient when it comes to fuel consumption. In general, the company has not established
itself to the level of its largest competitors like General Motors and Toyota. In this analysis, we
will get to look at the various facts and figures that go out to justify the claims mentioned above.
Data
From a statistical standpoint, it is estimated that close to forty-five percent of vehicles
manufactured by Volkswagen are viewed to be huge carbon dioxide emitters going by the recent
falsifying of vehicle tests by the same company with the aim of passing them off as anti-pollutant
compliant vehicles. A massive recall of close to five hundred thousand Volkswagen vehicles was
ordered by different regulatory authorities consequently bringing about a stir in the locomotive
industry. Furthermore, close to four hundred and eighty thousand diesel vehicles have been
affected including Beetles, Golfs, Audi A3s as well as TDI Jettas. Additionally, an approximate
penalty of thirty-seven thousand five hundred dollars was placed on each vehicle with emission
defects in the United States.
The actions by Volkswagen as a business entity have prompted penalties amounting to
eighteen billion dollars, and this figure does not include the initial cost of fixing the faulty

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vehicles. Further studies on the actions by Volkswagen show that forty times over expected limit
of a variety of pollution types such as nitrogen oxide which are established to be significant
contributors to respiratory disorders. Additionally, buyers of the Volkswagen Passat have spent
over six thousand eight hundred and fifty-five dollars as compared to standard gasoline vehicles.
The largest region that was affected by the recall of the Volkswagen vehicles is California since
fourteen percent of vehicles recalled originated from this area. This has culminated in a twenty
percent drop in Volkswagen shares in the stock exchange.
Warrant
The statistics mentioned above seek to back up claims levied against the vehicle manufacturer
since it comes out clearly that the falsifying of vehicle inspection reports by the latter is a huge
source of environmental pollution. Additionally, it also came out as controversial that cars that
were much cheaper and had larger engines emitted much less carbon dioxide as compared to
Volkswagen vehicles that claimed to be compliant. The actions by the vehicle manufacturer have
widely prompted recalling of damaged cars all over the world which equally has culminated in
not only the destruction of the ozone layer but also the decline of the economy regarding losses
incurred by members of the society.
Backing
In equal measure, the initial denying of claims raised by different entities all over the world
concerning the faults present in Volkswagen vehicles goes out to show the reluctance by the
company to handle prevailing issues. Moreover, strict rules and regulations that have been put in
place over the years seek to make sure that such an incident does not occur again.
Counterclaim

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On the other hand, Volkswagen has equally developed engineering techniques which play a huge
role in ensuring that it keeps up with changing trends in the industry, hence remaining relevant.
The brand has built a huge market share of the Chinese vehicle market. For this reason, they
come out as worthy competitors for other Vehicle manufacturers in China who are equally
aggressive. Volkswagen has also contributed to the creation of employment. Operating with a
workforce of over three hundred and fifty employees, the company has helped many jobless
people all over the world attain meaningful employment. The high strengths have contributed to
the continued success of Volkswagen regarding making sales. Similarly, the increase in prices of
raw materials used in the production process poses a threat to Volkswagen in that this will
consequently result in the company getting fewer profits as compared to other businesses.
Equally, constant fluctuations in the currency exchange rate globally may lead to losses given
that Volkswagen gets most of its business outside Europe.
Rebuttal
Volkswagens share price index in the market stock should be held for the sole reason that its
competitors are well established and are giving them a run for their money. Holding the shares
will enable them grow exponentially and help them challenge their competitors better while in a
better financial condition. Holding their shares will also help investors make profits when the
prices are stable as compared to when the market is still uncertain. Putting into consideration the
current performance of Volkswagens shares in the market, it would be unwise to sell or buy at
this present moment given that their certainty of the price is not guaranteed. For Volkswagen to
improve its grip on the market, they should partner up with other vehicle manufacturers outside
Europe so as to assist them to reach more customers who ordinarily they would not on their own.

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Doing so will make sure that their vehicles are accepted by new markets and eventually increase
their profits.

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Works Cited
Barrett, S. R., Speth, R. L., Eastham, S. D., Dedoussi, I. C., Ashok, A., Malina, R., & Keith, D.
W. (2015). Impact of the Volkswagen emissions control defeat device on US public
health. Environmental Research Letters,10(11), 114005. Print.
Koplin, J., Seuring, S., & Mesterharm, M. (2007). Incorporating sustainability into supply
management in the automotive industrythe case of the Volkswagen AG. Journal of
Cleaner Production, 15(11), 1053-1062. Print.