How Volkswagen Is Managing Dieselgate and What Their Strategy Should Be

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By Car Brand Experts


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Recently, I recalled a time when I was invited to a wedding, and just prior to the event, it was revealed that the groom had been caught cheating. Would the wedding proceed? Would there be a denial of the situation or a façade of bravery? Or would there be public shaming, followed by an expression of repentance, leading to the conclusion that while traditions were tested, they ultimately remained intact?

This painful memory resurfaced when I learned that Volkswagen was hosting an event in Brooklyn to unveil the latest Passat sedan, including the turbodiesel (TDI) model, on September 21. Notably, this event followed closely on the heels of one of the most embarrassing corporate apologies in recent history concerning its beloved TDI diesel engine.

Earlier that day, intense discussions were undoubtedly happening in both Wolfsburg, Germany, and Herndon, Virginia—Volkswagen’s U.S. headquarters—about whether to move forward with the Passat reveal: Option A.) Cancel the event, avoid discussion of the controversy, and focus solely on the vehicle, or B.) Confront head-on the glaring issue at hand, weighing a decision like the “240-lb-ft torque gorilla” in the room?

Ultimately, the choice was made to fully address the situation.

“In my German words, we totally screwed up,” Michael Horn, CEO of VW U.S., stated at the opening of the event.

His straightforward admission evoked a collective sigh of relief from attendees, who responded with applause for his openness and sincere apology, signaling a readiness to embark on the path to redemption.

This approach exemplifies effective crisis management in public relations. It was a courageous move that allowed VW to regain control of the narrative, which had otherwise spiraled out of control in recent days.

From my experience in public relations for various esteemed organizations, I have learned that when facing adversity, saying “Sorry” can be incredibly challenging.

As Rahm Emanuel once suggested, good crisis management should never go to waste.

Time and effort can easily be lost in crafting ambiguous statements designed to obscure reality. Often, no matter how skilled the spin doctors are, the ultimate outcome can be a total collapse. A crucial lesson I learned is that when trust erodes, only transparency can restore it.

“Our company was dishonest,” Horn admitted. “This company will do everything within its power to make things right.”

This proclamation neutralized the aggression of many journalists who had come ready to critique Volkswagen fiercely.

Over the past few days, numerous articles, blogs, and opinion pieces emerged detailing the controversy surrounding VW’s engine management software manipulation. It is crucial for public relations professionals to remember that public outrage tends to dominate the conversation, and that even valid concerns may easily be overshadowed.

I read many accounts of disheartened journalists reflecting on past experiences where they had driven a VW diesel, comparing the feelings of betrayal to more notorious scandals. The scrutiny was increasing, with the story trending towards the fall of executives and massive fines.

So what should be discussed behind closed doors at the corporate headquarters in Wolfsburg? Here are a few thoughts:

In public relations, context and perspective can be vital tools to regain control of an unruly narrative. Engaging friendly contacts who have influence can help remind various parties of the broader picture, easing the overzealous fixation on negative details.

At its core, this situation is likely solvable through a software patch or mechanical adjustment. Sure, hefty fines and legal settlements are inevitable. It’s likely that someone at a senior level may take the fall. VW may emerge battered but not broken. Comparatively, a scenario involving numerous fatalities due to corporate greed is an entirely different discussion.

In other words, it’s important to redirect focus.

Based on my experiences, the most dedicated supporters are usually the ones who need the least convincing. Many loyal diesel fans in America cherish the advantages of their cars’ torque and fuel efficiency. From academics in Berkeley to NPR journalists, these diesel enthusiasts—most of whom operate genuine, compliant clean-diesel systems—will likely remain loyal regardless of corporate missteps. Leverage their support to engage in social media, comment sections, and personal networks to foster a balanced narrative.

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Additionally, collaborating with other manufacturers involved in the diesel market—like Mercedes and BMW—could prove beneficial. A concerted effort to emphasize the environmental and efficiency advantages of diesel fuel is crucial.

There are many customers who justifiably feel deceived by the recent revelations concerning the questionable software adjustments.

It’s essential to acknowledge those most affected—namely, the customers. Genuine communication will be paramount, coupled with assurance that they will not suffer any financial losses. Thoughtful engagement and compensation can help remedy feelings of betrayal.

While the complete environmental impact is still being assessed, addressing any issues proactively is essential for maintaining diesel’s reputation as an acceptable choice moving forward.

True diesel enthusiasts are understandably disheartened, while shareholders have also felt the repercussions on their investments. With time, these wounds will heal, but it is vital that VW remains steadfast and focused on the larger objectives.

Volkswagen is a powerhouse in the automotive industry, with a rich and respected legacy cultivated over the past century. While sometimes I feel like I’m stating the obvious, it’s worth noting that a brand can absorb some setbacks yet still retain a sturdy reputation. I have seen many companies navigate crises and emerge intact when guided effectively.

A European-based corporation may be inclined to devise an overly complex solution, potentially exuding an air of arrogance. Embracing simplicity and authenticity could yield favorable outcomes for VW. Based on the previous evening’s press conference and Mr. Horn’s display of transparency, it seems they grasp the value of sincerity in navigating these challenges.

As Rahm Emanuel has astutely pointed out, crises should be leveraged for growth when possible. Such circumstances often present unexpected chances for previously conflicting interests to unite. If it leads to collaboration within the diesel sector to rebuild its standing and reassess internal strategies, then that is a positive development. For VW, this storm will eventually pass. However, they now have a unique opportunity to better their corporate responsibilities.

Moreover, the audience at the event likely noted the special touch as VW concluded the evening with a performance by Lenny Kravitz, who reminded everyone that, “Baby, it ain’t over till it’s over.”

Geoff Day has been referred to as everything from a “media pied piper” to “Royal corgi walker,” and he has played a pivotal role in transforming the images of several luxury brands. He currently provides consulting services on reputation and brand management. Previously, he served as the director of communications for Mercedes-Benz USA, DaimlerChrysler in the UK, and as communications director for Scotland.

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