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
