Dieselgate Delirium

The Forgetful Consumer

Employees look under the hood of a Volkswagen Golf R automobile in the used car sales area of the Volkswagen AG showroom in Berlin, Germany, on Thursday, Aug. 6, 2015. In Europe, the longest stretch of economic growth for the 19 countries using the euro has put auto sales on more solid footing in countries where Volkswagen dominates. Photographer: Krisztian Bocsi/Bloomberg via Getty Images
All good under the hood?
  • Why it matters

    Why it matters

    • The diesel emissions scandal has badly damaged the reputation for quality and integrity Volkswagen labored decades to build.
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  • Facts

    Facts

    • Consumers who decide to boycott a product or service usually return because ease and convenience trump outrage.
    • Business history is filled with stories of companies that emerged stronger from brand-damaging crises, including Deutsche Telekom and Amazon.
    • Volkswagen has weathered serious public relations disasters in the past, including board level controversies and a scandal involving workers’ councils and brothels.
  • Audio

    Audio

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Black Friday fell on September 18, 2015.

The world’s largest automaker and one of Germany’s most powerful companies, Volkswagen was plunged into crisis when the corporate fraud masking its diesel exhaust emissions problem created a turning point for the brand.

Now, the company is on the hook for billions, but perhaps more importantly, it has shattered the reputation for high quality and reliability that Volkswagen spent decades building.

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