In recent years, Volkswagen, Inc., suffered significant financial losses because many of its automobiles were unable to achieve promised fuel economy and satisfy mandated emissions. The cost suffered by Volkswagen best illustrates:

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External product quality failure refers to costs that occur after a product has been delivered to the customer and is found to not meet quality standards or expectations, leading to returns, repairs, or legal actions. Volkswagen's situation, where the automobiles did not meet the promised fuel economy and mandated emissions, leading to significant financial losses, is an example of external product quality failure because the issues were identified after the cars were sold and used by customers.

In Recent Years, Volkswagen, Inc