If you were the CEO of VW Group how do you fix this mess?
10-15-2015, 08:15 PM
#1
According to Motor Authority the new CEO of VW North America bit the dust after 14 days on the job. Clearly, some of these guys that were appointed to these positions are spooked.
"Former Skoda CEO Winfried Vahland, who was just announced as the CEO of the Volkswagen Group's new North American Region, has stepped down, the company confirmed this morning. Vahland held the position for just over two weeks, and no successor has been announced. Martin Horn, President and CEO of the Volkswagen brand in North America will remain."
How would you solve this issue? What would you do with our beloved motorsports division? I would try to convince the suits that the demand for GT cars could help mitigate the impending costs from the fines and I would put AP in charge of Performance cars along with motorsports and lift the limitations on GT production for a certain amount of time. I would also do a hurry up offense production evaluation for the rumored 960 mid engine sports car project. Yes, it may take some capital but we already have the motor (918 V-8), and chassis (918 w/o carbon), just design details would need funding. What would you do? Keep in mind you may go to jail if you are to close to the top!
"Former Skoda CEO Winfried Vahland, who was just announced as the CEO of the Volkswagen Group's new North American Region, has stepped down, the company confirmed this morning. Vahland held the position for just over two weeks, and no successor has been announced. Martin Horn, President and CEO of the Volkswagen brand in North America will remain."
How would you solve this issue? What would you do with our beloved motorsports division? I would try to convince the suits that the demand for GT cars could help mitigate the impending costs from the fines and I would put AP in charge of Performance cars along with motorsports and lift the limitations on GT production for a certain amount of time. I would also do a hurry up offense production evaluation for the rumored 960 mid engine sports car project. Yes, it may take some capital but we already have the motor (918 V-8), and chassis (918 w/o carbon), just design details would need funding. What would you do? Keep in mind you may go to jail if you are to close to the top!
10-15-2015, 08:43 PM
#2
Race Director
There is not enough money, profits, or demand for GT cars to even pay interest on the fines.
With all the drama you here on here about scarce allocations, if they were increased 20% over current you'd meet demand. Not saying it's a bad idea to focus more and push the GT cars, but that's not where the big bucks are. They are merely necessary to legitimize the brand.
With all the drama you here on here about scarce allocations, if they were increased 20% over current you'd meet demand. Not saying it's a bad idea to focus more and push the GT cars, but that's not where the big bucks are. They are merely necessary to legitimize the brand.
10-15-2015, 08:54 PM
#3
Three Wheelin'
According to Motor Authority the new CEO of VW North America bit the dust after 14 days on the job. Clearly, some of these guys that were appointed to these positions are spooked.
"Former Skoda CEO Winfried Vahland, who was just announced as the CEO of the Volkswagen Group's new North American Region, has stepped down, the company confirmed this morning. Vahland held the position for just over two weeks, and no successor has been announced. Martin Horn, President and CEO of the Volkswagen brand in North America will remain."
How would you solve this issue? What would you do with our beloved motorsports division? I would try to convince the suits that the demand for GT cars could help mitigate the impending costs from the fines and I would put AP in charge of Performance cars along with motorsports and lift the limitations on GT production for a certain amount of time. I would also do a hurry up offense production evaluation for the rumored 960 mid engine sports car project. Yes, it may take some capital but we already have the motor (918 V-8), and chassis (918 w/o carbon), just design details would need funding. What would you do? Keep in mind you may go to jail if you are to close to the top!
"Former Skoda CEO Winfried Vahland, who was just announced as the CEO of the Volkswagen Group's new North American Region, has stepped down, the company confirmed this morning. Vahland held the position for just over two weeks, and no successor has been announced. Martin Horn, President and CEO of the Volkswagen brand in North America will remain."
How would you solve this issue? What would you do with our beloved motorsports division? I would try to convince the suits that the demand for GT cars could help mitigate the impending costs from the fines and I would put AP in charge of Performance cars along with motorsports and lift the limitations on GT production for a certain amount of time. I would also do a hurry up offense production evaluation for the rumored 960 mid engine sports car project. Yes, it may take some capital but we already have the motor (918 V-8), and chassis (918 w/o carbon), just design details would need funding. What would you do? Keep in mind you may go to jail if you are to close to the top!
While this sounds simple and obviously a lot of layers are involved in this the fix is quite simple....fix the issues in a timely matter and get customers a compensation package to make up for the fraud (several different options would be good here), get dealers and customers confidence again in your product, and just some time. Ultimately they will come out fine but it will take a couple years to put it behind them if they act fast. While admitting fraud is never good and certainly jail time will happen for some, they didn't cause multiple fatalities with this issue. The only thing injured is the reputation and ultimately customers have short term memories both when things are good and when things are bad. Toyota and Chevy were destroyed everyday in media but look at them now.....plugging away as if little happened.
People are overstating the impact to Porsche. Muller will protect his baby as much as possible from the carnage of its drunk parent.
10-15-2015, 09:03 PM
#4
Rennlist Member
There is not enough money, profits, or demand for GT cars to even pay interest on the fines.
With all the drama you here on here about scarce allocations, if they were increased 20% over current you'd meet demand. Not saying it's a bad idea to focus more and push the GT cars, but that's not where the big bucks are. They are merely necessary to legitimize the brand.
With all the drama you here on here about scarce allocations, if they were increased 20% over current you'd meet demand. Not saying it's a bad idea to focus more and push the GT cars, but that's not where the big bucks are. They are merely necessary to legitimize the brand.
10-15-2015, 09:24 PM
#5
There is not enough money, profits, or demand for GT cars to even pay interest on the fines. With all the drama you here on here about scarce allocations, if they were increased 20% over current you'd meet demand. Not saying it's a bad idea to focus more and push the GT cars, but that's not where the big bucks are. They are merely necessary to legitimize the brand.
10-15-2015, 09:30 PM
#6
By all accounts involved Winfried Vahland was expecting much bigger and better things other than NA region CEO. Once passed over for a couple other big spots (CEO VW) he was mentally done and certainly wasn't going to remain to handle the difficult road ahead. While this sounds simple and obviously a lot of layers are involved in this the fix is quite simple....fix the issues in a timely matter and get customers a compensation package to make up for the fraud (several different options would be good here), get dealers and customers confidence again in your product, and just some time. Ultimately they will come out fine but it will take a couple years to put it behind them if they act fast. While admitting fraud is never good and certainly jail time will happen for some, they didn't cause multiple fatalities with this issue. The only thing injured is the reputation and ultimately customers have short term memories both when things are good and when things are bad. Toyota and Chevy were destroyed everyday in media but look at them now.....plugging away as if little happened. People are overstating the impact to Porsche. Muller will protect his baby as much as possible from the carnage of its drunk parent.
10-15-2015, 09:33 PM
#7
Race Director
Originally Posted by FLAT6KING
Great, but how would you manage this situation?
This is like talking about a 911 going head on with a tank. It's gonna get crushed.
Maybe I'm missing the point you're trying to get across.
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10-15-2015, 09:37 PM
#8
Does Porsche have enough capital to get out of the VW corporate umbrella? Last time Porsche tried it backfired so I don't think that will be an option. Would Lamborghini be stupid enough to think they could? Selling off some of the brands may be a way to recover some capital but time will tell.
10-15-2015, 09:39 PM
#9
Why are you trying to come up for ways for Porsche to fix VW's screw up??? All Porsche can hope for is to fight for their independence as much as possible. They will have pressures to help the mothership, but to talk about them expending the GT program to help with VW's mess is kinda useless. Porsche's total profits for the next 5 years couldn't even come close to paying for what this is going to cost the VW group. This is like talking about a 911 going head on with a tank. It's gonna get crushed. Maybe I'm missing the point you're trying to get across.
10-15-2015, 09:39 PM
#10
I would have only accepted the position on the basis the entire board would be replaced. Company needs to entirely win back confidence of customers and investors, tough to do that with the current minor changes. Every position has been replaced with a long-term VW person, place needs fresh blood. Not to mention that recovering from 1 year of no R&D generally sets back product development 4-5 years.
Sell off the star assets (e.g. Porsche), shutdown the unprofitable ones (.e.g Bugatti) and use those proceeds to fix the core businesses while not going behind on R&D. Investors might start to feel like you're doing something strategic and stock starts to recover too, which also means a follow-on offering would be possible to raise more money while not letting the future P&L suffer.
Sell off the star assets (e.g. Porsche), shutdown the unprofitable ones (.e.g Bugatti) and use those proceeds to fix the core businesses while not going behind on R&D. Investors might start to feel like you're doing something strategic and stock starts to recover too, which also means a follow-on offering would be possible to raise more money while not letting the future P&L suffer.
10-15-2015, 09:42 PM
#11
Every position has been replaced with a long-term VW person, place needs fresh blood. Not to mention that recovering from 1 year of no R&D generally sets back product development 4-5 years. Sell off the star assets (e.g. Porsche), shutdown the unprofitable ones (.e.g Bugatti) and use those proceeds to fix the core businesses while not going behind on R&D. Investors might start to feel like you're doing something strategic and stock starts to recover too, which also means a follow-on offering would be possible to raise more money while not letting the future P&L suffer.
10-15-2015, 09:43 PM
#12
Race Director
Originally Posted by FLAT6KING
The title of the thread was you are the CEO of VW Group.......
I don't want to imagine having to fix this issue ..
Too much brainpower for right now. I'm available $$$ if they want me 
no free advice here ..
10-15-2015, 09:48 PM
#13
No worries, I was trying to factor what PAG could contribute to the pot once the fines start coming in and handcuffs go on. I like solving problems, it's the sport of management.
10-15-2015, 09:59 PM
#14
Race Director
Originally Posted by FLAT6KING
No worries, I was trying to factor what PAG could contribute to the pot once the fines start coming in and handcuffs go on. I like solving problems, it's the sport of management.
What they can contribute is more Macan's and mass appeal models. That's the concern. Them pushing forward with cash cows and having the Motorsports division suffer.
There's no real big bucks to be made in the Motorsports cars from a volume perspective. So, will that division suffer? That's the magic question. Lots of R&D and expenses for the return they get. The Motorsports image helps sell Macan's and Cayenne's.
10-15-2015, 10:10 PM
#15
RL Community Team
Rennlist Member
Rennlist Member
I am sorry, and with all due respect, this is an asinine question.
None of us, unless you are on Board of Directors of VW (or hold similar positions n the VW group) knows enough about the situation to properly assess and devise an exit strategy on a global basis with any modicum of intelligence.
What one reads in the popular press is either incomplete, slanted, or written with an agenda.
Making more cars to print money is not a solution. This more than about just paying a fine.
None of us, unless you are on Board of Directors of VW (or hold similar positions n the VW group) knows enough about the situation to properly assess and devise an exit strategy on a global basis with any modicum of intelligence.
What one reads in the popular press is either incomplete, slanted, or written with an agenda.
Making more cars to print money is not a solution. This more than about just paying a fine.