VW and Germany's curse of provincial corporate culture - FT ...
companies are often led by patriarchs, who control everything from big investment decisions to the brand of organic potato served in the canteen. Rulers rather than managers, many do not accept mistakes and failure.For good or ill, Volkswagen is such a company. True, Martin Winterkorn does not share a surname with any of the owners, but in many ways he behaved like a patriarch, working punishing hours and insisting on having his way even over tiny details. It might be one of the world’s largest car companies, but Volkswagen is also the last principality on German soil.
In depth
Volkswagen emissions scandal
VW emissions scandal'
The German carmaker is engulfed in the worst scandal in its 78-year history over findings it manipulated diesel emissions test data in the US and Europe to make its vehicles appear less polluting
Its home town, Wolfsburg, was founded by Adolf Hitler a year after the company itself, which was run by the Porsches and the Piëchs but owned by the Reich. After the second world war, the family and the federal state of Lower Saxony became the main shareholders. Outside investors can buy the shares these days, but they never have a say. The question is not whether you are the right person for the job. It is whether you come from the right stable.
Protected by the Volkswagen-Gesetz, a law that guarantees the influence of Lower Saxony, the principality of Volkswagen has ventured out into the world with no management credo beyond “we are car guys”.
As in former times, the principality’s rulers are inseparable from the territory they rule. Volkswagen owns VFL Wolfsburg, the local soccer club, and runs a theme park called Autostadt. It is a big customer of the local Ritz-Carlton hotel and its restaurant, which has three Michelin stars.
And as in former times, the principal does not step down of his own accord. Displacing him takes blood and intrigue.
The writer is a business journalist based in Berlin
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福斯（Volkswagen）的柴油車排廢數據造假醜聞震驚全球，同時重挫了福斯股價跌逾 40%，公司執行長 Martin Winterkorn 也因此下台，未來福斯更可能面臨高達 180 億美元的罰款和刑事訴訟。所以究竟是誰最先發現了福斯的數據造假呢？答案便是 45 歲的工程師 Daniel Carder，以及他在美國西維吉尼亞大學的5人研究團隊。
For Volkswagen, an $18 billion fine for fiddling emissions tests is not the only worry; investors have other things to be spooked about:http://econ.st/1LJbIUr
ON SEPTEMBER 21st, the share price of Volkswagen (VW), the world's largest carmaker by units produced, fell by 17% in just one day. Investors dumped the firm's...
ECON.ST
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Allegations over cheating on diesel vehicles’ emissions tests will in theory cost Volkswagen up to $18bn in fines. But the damage to VW’s brand — defined by perceived virtues such as trust, engineering excellence and fuel economy — is perhaps the most serious risk to the company.
VW’s shares fell 18.6 per cent on Monday — the third largest decline ever — as analysts struggled to put a price on the US scandal. Europe’s largest carmaker could face a multibillion-dollar fine, plus the cost of recalling and refitting 482,000 vehicles. There is also the possibility of lawsuits over the affair.
Questions are being raised about the future of Martin Winterkorn, VW chief executive, as investors seek clarity on whether the company’s problems are confined to the US, or could have occurred in other regions. The German government on Monday suggested it would investigate the matter.
Investors also want to know if other carmakers have been engaged in similar practices to VW — the share prices of several automobile manufacturers fell on Monday. There is a growing sense of distrust about carmakers’ statements on the performance of their cars, partly because some have been fined by regulators for misleading comments on fuel efficiency.
The US Environmental Protection Agency said on Friday that VW installed “defeat device” software on its diesel cars that meant they would activate emissions control systems for testing, but thereafter the vehicles could release nitrogen oxides at up to 40 times the permitted level.
Defeat devices are illegal in Europe and the US, and Germany’s other leading carmakers sought to distance themselves from the scandal. BMW and Daimler said the accusations made by the EPA did not apply to them, and their shares recovered some of earlier falls on Monday, although both stocks still closed down.
Perhaps the most serious risk to VW is damage to its brand — defined by perceived virtues such as trust, engineering excellence and fuel economy.
The investigation by the EPA represents the biggest scandal at VW since it emerged in 2005 that company cash was used to pay for prostitutes and holidays for labour representatives.
The allegations by the EPA would be damaging for any company but they could not have happened at a worse moment for VW.
Volkswagen shares were down 21% in morning trading Monday as a crisis over alleged cheating on U.S. emissions tests deepened.http://on.wsj.com/VWshares
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