ABSTRACT
The flawed ‘clean diesel’ strategy proved disastrous for Volkswagen and for the health of many in society. The case explains how the situation arose and the impact on the firm in terms of rectification/legal/regulation costs as well as reputational damage. To this day, the stock price has never recovered to its 2014 peak. The case can be explained as a product of: lax European regulation, toxic culture and leadership, and poor stewardship from major shareholders.
