Historical Context and Current Challenges

Volkswagen's troubles can be traced back to its origins in the 1930s and its rise to prominence through the success of models like the Beetle. However, the 2015 emissions scandal severely damaged its reputation, leading to colossal fines and a loss of consumer trust, particularly in the United States. The pandemic further exacerbated Volkswagen's difficulties, as Germany's economy lagged and energy costs soared due to geopolitical tensions, particularly the Russia-Ukraine conflict. Moreover, transitioning to electric vehicles poses additional hurdles for Volkswagen, including the end of EV subsidies and increasing competition from other automakers that have become more adept at catering to consumer preferences.