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Organisational adaption in the German automotive industry after the emission scandal

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In September of 2015 it was uncovered that the Volkswagen Group (VW) has been manipulating emission tests and statistics on a wide range of its diesel vehicles. This thesis explores organisational adaption of manufacturers from the German automotive industry after the emission scandal with a single case study approach. The results give four main insights. First, German manufacturers did not show a significant operational reaction to the scandal, as neither consumer preferences, nor environmental regulation changed immediately. Second, the emission scandal seems to have reduced uncertainty about future environmental regulations among manufacturers, which led firms to adjust their strategic behaviour. Third, firms re-evaluated and adapted ambidexterity in their organisation. Whereas electric mobility focusses on more exploitative search processes to achieve economies of scale and scope for industrialisation, internal combustion engine (ICE) technology needs more explorative search processes to simultaneously remain compliant with worldwide regulation and maintain a competitive cost position. Fourth, managers showed mixed results regarding the framing of change as either opportunity or threat.

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A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

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