In 2016 Volkswagen (VW) became the world’s largest automaker in car production, surpassing Toyota to take its title. However, this title can quickly change in a short amount of time. Not only is the car industry highly competitive, but all is not well at Volkswagen. In early 2017 the automaker pled guilty to three criminal felony charges that included defrauding the U.S. government, violating environmental regulations, obstructing justice, engaging in wire fraud, and violating import regulations. It agreed to pay $2.8 billion in criminal charges, only a small portion of the total costs it will have to pay to resolve this scheme. Worse still, VW’s reputation has been dealt such a blow that it will likely take years to recover. As a global firm, VW has lost the trust of regulators, which will be a major obstacle in future global relationships.
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