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News Tip: VW CEO Had to Go, But More Damage Control Needed, Duke Expert Says

On Wednesday, Martin Winterkorn resigned as chief executive of Volkswagen, taking responsibility for an emissions cheating scandal.Quote:“When a company is in severe crisis -- and Volkswagen losing $29 billion in shareholder value in one week certainly qualifies -- it needs to be seen taking decisive action,” said Dorie Clark, an adjunct professor at Duke University’s Fuqua School of Business. “There is no way Martin Winterkorn could have recovered from the damage this scandal inflicted; either he condoned or approved the deception, which is ethically unacceptable, or he didn't know about it, which raises grave questions about his leadership and oversight.“Volkswagen has an enormous amount of damage control they need to do,” Clark said. “For starters, they need to figure out what they're going to do about the 11 million cars affected, and the irate owners that come along with them. Having a new leader at the helm at least signifies they understand the seriousness of the problem, and that a fresh perspective is needed. This is an issue so grave, the company's fate is in the balance. They need someone untarnished to make the necessary hard decisions.”Bio:Dorie Clark is a marketing professor specializing in reputation and crisis management, branding and marketing strategy.For additional comment, contact Dorie Clark at:dorie@dorieclark.comdorieclark.com