Business Case Studies, Restructuring / Turnaround Strategies Case Study, Volkswagen,Bernd Pischetsrieder's Turnaround Efforts

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Restructuring / Turnaround Strategies Case Study

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Case Title:

Volkswagen: Bernd Pischetsrieder's Turnaround Efforts

Publication Year : 2004

Authors: P S Phani Kumar, T Phani Madhav

Industry: Telecommunications

Region:Germany

Case Code: RTS0025

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Volkswagen has been Europe's leading carmaker with many successful models. However, the company seemed to be losing ground since 2002, witnessing stagnant sales and declining profits. The company is besieged with problems on many fronts: (1) labour problems; (2) ageing models; (3) brand cannibalisation due to overlapping models; and (4) increased competition. Bernd Pischetsrieder, who succeeded Ferdinand Piech as Chairman, initiated efforts to turnaround the company.

Pedagogical Objectives:

  • To discuss the reasons for the decline in the company's performance
  • To discuss the turnaround efforts of Bernd Pischetsrieder.

Keywords : Volkswagen; Bernd Pischetsrieder; Restructuring / Turnaround Strategies Case Study; Brand cannibalization; Overlapping models; Ferdinand Piech; Labour problems; Ageing models; Turnaround

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