The VW disaster: the principles of failure | Prof. Dr. Christian Rieck
Prof. Dr. Christian Rieck Prof. Dr. Christian Rieck
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 Published On Sep 14, 2024

Volkswagen is massively cutting jobs, and a bridge is collapsing in Dresden. These aren't technical problems, but social ones. There are principles of failure, four of which are presented here.

Read more in the book "The Art of Perfect Failure":
https://www.amazon.de/exec/obidos/ASI...

Further sources:
https://www.merkur.de/wirtschaft/sche...

https://www.handelsblatt.com/unterneh...

More about the Honda 750 four and image credits: Honda: https://commons.wikimedia.org/w/index...

►FURTHER INFORMATION FROM TEAM RIECK:

1. Volkswagen and the Challenges of the Automotive Industry

Volkswagen (VW) is currently facing significant challenges. The company has announced that it will pursue a strict austerity program to stabilize its economic situation. This could lead to layoffs for the first time in 30 years.

Some of the main problems include:

Lack of investment in the future: VW has missed important investments in new technologies in recent years, particularly in the area of ​​electric mobility.

Dependency on China: A large portion of VW's revenues come from China, making the company vulnerable to market changes.

Rising development costs: The transition to electric drive systems and competition from China are putting additional strain on profits and sales.

These developments have led to a sense of crisis within the company, and there is intense discussion about how VW can reposition itself to become competitive again.

2. Socio-technical systems

A socio-technical system is the close connection between technical and social or organizational structures. Technology and human decisions influence each other. It is therefore not just about the functionality of technical elements, but also about how they are developed, used, and managed by people. Technical problems, such as the collapse of a bridge, can often be traced back to errors in the social and organizational systems – for example, due to poor management decisions, lack of communication, or incorrect priorities. This creates complex interrelationships between the two areas.

A well-known example of a failed socio-technical system is the case of the aircraft manufacturer Boeing and the problems with the 737 MAX. Here, management decisions and socio-organizational factors, such as the neglect of safety standards in favor of cost savings and time pressure, contributed significantly to technical problems and ultimately to two tragic crashes. Such incidents demonstrate how closely technical and social aspects of a system are intertwined.

3. Dishonesty and Linguistic Manipulation

In political communication, deliberate falsification of terms often occurs to present certain decisions or measures in a different light. A well-known example is the discussion surrounding the heating ban, which is often played around linguistically. Such simplifications or reinterpretations of terms serve to stir up emotions, steer debates, or make unpopular measures appear less drastic. Language plays a central role here, as it significantly influences the public's understanding and perception of political issues.

The Role of the Media
The media plays an important role in disseminating these narratives. They often take up terms coined by political actors and simplify them for reporting purposes, which can lead to complex issues being presented in a simplified or distorted manner. This partially manipulates public opinion by overemphasizing certain aspects or ignoring others. This can influence the political debate and steer citizens' opinions in a certain direction.

►MORE FROM CHRISTIAN RIECK:

*Coming soon! "The Art of Perfect Failure":
https://www.amazon.de/exec/obidos/ASI...

*The current book "How to Outsmart Yourself":
https://www.amazon.de/exec/obidos/ASI...

*The 36 Strategies of Crisis:
Print: https://www.amazon.de/exec/obidos/ASI...
Kindle: https://www.amazon.de/exec/obidos/ASI...

You can find the products I mentioned here: https://www.amazon.de/shop/profrieck

#profrieck #vw #germany

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