Final answer:
The failure of the Volkswagen CEO's strategy to switch German plants entirely to a new model can be attributed to factors such as union resistance, dealership confusion, and investments abroad, but not to the continued demand for the Beetle model in the U.S. option (A)
Step-by-step explanation:
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to multiple reasons. However, one of these is not a contributing factor to the failure. The options provided in the question indicate various challenges, including resistance from German unions, confusion among American dealers regarding the origin of the cars, and investments in Skoda autoworks in Czechoslovakia and SEAT in Spain. The continued demand for the Beetle model in the United States is not listed as a reason for the strategy's failure. When analyzing the given reasons, one should consider the historical and competitive context of the global automobile industry along with the economic conditions during the time the strategy was implemented.
Several factors played a role in the reorganization of the automobile industry, including spatial reorganization in the United States, the economic downturn's impact on the U.S. automotive industry, and the lowering of trade barriers which influenced Volkswagen's business decisions. Volkswagen's strategy was likely affected by these overarching trends that shaped the automotive sector, including market competition, unionization levels, and the shifting demand for different types of vehicles due to economic and environmental concerns.