Too big to fail. Is Volkswagen systemically important for the German Economy?

Focusing on the implications of Volkswagen's emissions scandal, this essay analyzes whether the company qualifies as systemically important within the automotive industry. It begins with a definition of systemic importance and outlines key indicators that determine this status. The paper also examines historical instances of government intervention in Germany, such as the rescue of Holzmann, to provide context for understanding the potential consequences of a VW failure. The analysis underscores the significance of VW's role in the global market and its impact on the economy.