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VOLKSWAGEN EMMISSION SCANDAL

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WHAT WERE THE CRISIS STRATIGIES USED?

WERE THE STRATIGIES EFFECTIVES?

TO UNDERSTAND WHAT AN EFFECTIVE STRATGY IS I USED IMAGE RESTORATION THEORY

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IMAGE RESTORATION THEORY

Two fundamental assumptions

    • Communication is goal directed activity
    • Maintaining favorable reputation is key goal

When to use IRT

    • The accused held responsible for an action
    • Act is considered offenssive

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Theoretical Foundation

Denial

    • Simple denial
    • Shifting blame

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Reduce Offensiveness

    • Comphensation

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Evasion Responsibility

    • Defeasibility

Corrective Action

Mortification

    • Apology

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THE CRISIS:

WHAT VOLKSWAGEN WOULD DO TO SUCCEED

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CARS AFFECTED

2.0 liter diesel vehicle models and model

years with defeat devices:

    • Jetta (2009 – 2015)
    • Jetta Sportwagen (2009 - 2014)
    • Beetle (2013 – 2015)
    • Beetle Convertible (2013 - 2015)
    • Audi A3 (2010 – 2015)
    • Golf (2010 – 2015)
    • Golf Sportwagen (2015)
    • Passat (2012 - 2015)

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CARS AFFECTED

3.0 liter diesel vehicle models and model

years with defeat devices:

    • Volkswagen Touareg (2009 - 2016)
    • Porsche Cayenne (2013 - 2016)
    • Audi A6 Quattro (2014 - 2016)
    • Audi A7 Quattro (MY 2014 - 2016)
    • Audi A8 (2014 - 2016)
    • Audi A8L (2014 - 2016)
    • Audi Q5 (2014 - 2016)
    • Audi Q7 (2009 - 2016)

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ARTIFACTS ANALYZED

First response and resignation Sept 2015

Goodwill Package Nov 2015

NPR Interview 2016

Detroit Auto Show press conference 2016

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FIRST RESPONSE

DENIAL/ SHIFTING BLAME

"Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group.”

CEO Winterkorn

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FIRST RESPONSE

DENIAL/ SHIFTING BLAME

"As CEO I accept responsibility for the irregularities that have been found in diesel engines and have therefore requested the Supervisory Board to agree on terminating my function as CEO of the Volkswagen Group... even though I am not aware of any wrong doing on my part."

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FIRST RESPONSE

DENIAL/ SHIFTING BLAME

"The process of clarification and transparency must continue. This is the only way to win back trust. I am convinced that the Volkswagen Group and its team will overcome this grave crisis."

CEO Winterkorn

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GOODWILL PACKAGE

COMPENSATION

$500 prepaid visa

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$500 VW dealership card

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3 years roadside assistance.

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NPR INTERVIEW

DEFEASIBLITY

Fit what they thought the law was

"Misunderstood"

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DETOROIT AUTO SHOW

APOLOGY

"We all know that we have let down customers, authorities, regulators, and the general public here in America"

CEO Mueller

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LESSONS LEARNED

Why Volkswagens response stratigies were ineffective

    • Resignation usually does not follow a denial
    • Compensation is only effective if comsumers percive it to have value
    • Volkswagen is too large to lack information/knowledge on emmision laws
    • Apology is effective when clear and sincere