Could Ruthless Leadership Have Led To The Downfall Of Volkswagen?

Could Ruthless Leadership Have Led To The Downfall Of Volkswagen?

Ferdinand Piëch, the immensely powerful former chief of Volkswagen's supervisory board, is more than likely the root cause of the VW diesel-emissions scandal. Whether he specifically asked for, tacitly approved, or was even aware of the company's use of software to deliberately fudge EPA emissions testing is immaterial.

I sat next to him at an industry dinner in the Nineties, just after the fourth-generation Golf had debuted at the Frankfurt show. I told him, "I'd like to congratulate you on the new Golf. First of all, it's a nice-looking car, but God, those body fits!"


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randy3023randy3023 - 11/5/2015 12:38:07 PM
-3 Boost
The problem is the way Europeans and Asians view class and hierarchy. For some reason, leaders and powerful individuals aren't beholden to scrutiny by the 'underclass', which in this case mostly consisted of upper-level management. Ferdinand Piëch's bullwhip management style would have been questioned in the USA, where he would have been challenged by directors who aren't intimidated by his ego and rank.

These people over there need to remember: everybody is the SAME. Just because you are Ferdinand Piëch, that doesn't make you a goddamn prince. You aren't blessed with exceedingly more capabilities than any one else. If you take the bullwhip out, and hand it over to your upper management — they in turn will use it. The bullwhip is the dictator's solution to everything.





GMCadillacGMCadillac - 11/5/2015 4:54:24 PM
-6 Boost
Thing is, what you just said about the whole hierarchy and stuff, pretty much is the same in America.


GMCadillacGMCadillac - 11/5/2015 5:01:50 PM
-7 Boost
And interestingly, the Asians are far worse when it comes to the whole hierarchical stuff.

How do I know it? Because I've lived in Asia and I know enough about many of Asian countries, and how corrupt many of them are. Why do you think Japan keeps trying to hide their radiation problem in Tokyo which is a FAR WORSE issue than Chernobyl itself?

Reason is simple. Because once people know about it, Japanese know no one will buy their radioactive junk anymore, and practically this will radically make Japan lose their influence in Asia. Who knows, probably Japan will become like Malaysia or Cambodia in 5 years all due to radiation.


TheSteveTheSteve - 11/5/2015 1:20:11 PM
+2 Boost
Yup. The stories have already broken. They're all over the 'Net. VW is ruled through a widespread and toxic corporate culture of fear.

The edict came from the Ivory Tower: "Make those diesels pass the emissions tests or I'll find someone who will." People of all ranks in VW, fearing for their jobs, chose to take a chance and *maybe* get caught later for their misdeeds and *maybe* lose their job later, versus being fired ASAP for speaking the truth: "You can't get what you want at this time. We just don't know how to do it."

But let's not lose sight of the big picture by focusing solely on VW, and solely on their "defeat device" aspect of their emissions scandal. Reports reveal that VW lied on CO2 emissions and on fuel economy too! Dishonesty was part of how they do business.

But if you dig a little deeper (e.g., stories such as this: http://jalopnik.com/did-one-company-spot-volkswagens-diesel-deception-six-y-1737309474) you'll discover that verious companies and individuals have known for years that many cars operate beyond legal emission levels outside of a lab (VW's 2 liter diesels were amongst the worst), but nobody listened. Not the EPA. Not the federal government. It took Dieselgate to bring this issue to light, and into the public's awareness. It took Dieselgate to inspire wide-spread desire to clean up this dirty mess.

Also, the ruckus about illegal NOx levels didn't cause that much concern amongst consumers. It's just a toxic pollutant. What got people up in arms is that VW lied to them regarding fuel economy! An average user will spend $500 more a year on fuel than VW's faked numbers. Yup, people get pissed when their wallet is affected. (Perhaps we should dismiss VW's deliberate understatement of fuel consumption because we all know you can't realistically get those EPA numbers in real world use).

Hopefully, this scandal will result in more transparency and honesty in manufacturing, and in cleaner, more genuinely fuel efficient vehicles.


TomMTomM - 11/5/2015 3:43:17 PM
-1 Boost
That depends on which EPA numbers being used. If you use the numbers posted on the Manufacturers label on each car - many if not most not only can get those numbers - but they do get those numbers. I have had no problem getting close to 10% more mileage on the Highway for instance.

Of course - the numbers we no longer see - the ones generated by the actual lab tests - are much higher - and YOU can get those too - if you only drive under those lab conditions - Ha!


PUGPROUDPUGPROUD - 11/5/2015 1:26:14 PM
+1 Boost
Negotiated with many German companies over the years and this story is right on. You do as you are told or you are out. You will get the results that I want or you are out. Do not question what I say and make sure you never put me in situation where I don't come out on top. I loved telling the underlings I would do just as they say when I met higher-ups and then doing exactly what was in my best interests. It drove them nuts but always led to a better deal.


atc98092atc98092 - 11/5/2015 6:50:55 PM
-2 Boost
Considering I paid under $900 last year to fuel my Passat, exactly why would my bill increase by $500? Even worst case (for the non-SCR cars) you might see a 5% loss in economy. For the SCR cars, like the Passat and all 2015 and later, there will likely be no MPG penalty. AdBlue consumption will increase, probably a lot. I may need to fill the tank every 5000 miles instead of 15,000. At a cost of about $25, that's insignificant.

There is disagreement amongst environmental scientists about how bad NOx really is. In some observed cases, it has actually helped reduce other, more dangerous pollutants from the air.

Breathing large quantities of any combustion byproducts is a bad thing. But make sure you compare apples to apples.

I do believe that VW was run by tyrants. Personally, I hope they can turn it around.


MDarringerMDarringer - 11/5/2015 7:13:15 PM
+1 Boost
The way to build credibility and regain trust would be to replace all of the top management structure of VWAG with non VWAG leadership and I don't mean having the Porsche guy be the VW guy.

Then their cars need a quick replacement with new names, design language, hybrids, PHEV, and EV offerings.




HolydudeHolydude - 11/7/2015 8:25:56 PM
+2 Boost
Germany companies are usually ran by Tyrants, not all, but a lot. Worked in one where the CEO sees himself as Steve Jobs, right... But the culture is indeed brutal, you fuck up once, you're gone. Your department stagnates, you're gone. They want immediate efficiencies.


skytopskytop - 11/8/2015 8:17:38 AM
0 Boost
Power tends to corrupt, and absolute power corrupts absolutely. AS said by barry hussein odumbo.


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