Market insight discusses what Volkswagen should do to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities
MOUNTAIN VIEW, California, Oct. 6, 2015 /PRNewswire/ -- Volkswagen's concession of corporate wrongdoing in circumventing EPA testing in the U.S. has sent the global automotive industry into a tail spin and substantially pushed back developments in clean diesel technology and internal combustion engines (ICE) by years. The immediate impact of this crisis goes beyond Volkswagen and the U.S. reaching OEMs, many component suppliers, dealerships, regulatory authorities and testing agencies.
To access the full insight on Frost & Sullivan's strategies on the crisis surrounding Volkswagen, please visit: http://bit.ly/1McGXaz.
Frost & Sullivan proposes the following eight strategies Volkswagen can utilize to regain consumer trust, fuel sales volumes and develop sustainable revenue growth opportunities:
- Focus on emerging markets
- Position hybrid and electric powertrain as priorities
- Focus on passenger safety
- Position the company as a pioneer in sustainable mobility and synthetic fuels
- Treat connected cars as a basic and major focal point
- Bring Audi, Porsche, and other brands to the fore
- Increase focus of commercial vehicle business
- Conduct rigorous voluntary emission testing and certification
"The Volkswagen crisis could have far-reaching implications for the future of diesel powertrain, resulting in even more stringent regulations and higher investment costs," said Frost & Sullivan's Automotive & Transportation Senior Research Analyst Arun Chandranath. "Costs for carmakers to comply with emissions requirements could rise and consumers could be turned off by diesel cars."
The automotive industry was prepared for an anti-diesel sentiment with the shift in new technologies making them more efficient and environmentally friendly than some gasoline vehicles. Auto regulators have been more focused on climate change and greenhouse emissions than concerned for public health and air quality. Regulators are under immense pressure to ensure higher standards and to restore credibility.
"Recovery will not be easy for the world's largest auto manufacturer, however transparency and communication is essential for Volkswagen to win back the market and consumer trust," said Chandranath. "Volkswagen's recovery is critical for the overall health of the automotive industry. Currently, Volkswagen is standing trial, but everyone's future is at stake."
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SOURCE Frost & Sullivan