In PR terms, Volkswagen might be giving us a masterclass in crisis response strategy.
The statement by Michael Horn the CEO of Volkswagen USA is in my opinion as good as it gets:
“Our company was dishonest. We have totally screwed up. We must fix the cars to prevent this from ever happening again and we have to make this right. This kind of behaviour is totally inconsistent with our qualities. We are committed to do what must be done and to begin to restore your trust. We will pay what we have to pay.”
From a technical point of view it is very clever because it uses short sentences that cannot be misinterpreted and each one deals with a separate dimension of the scandal – ethical and technical and it deals with actions and financial commitments. Anyone reporting it is almost obliged to quote it in full and in so doing VW gets its message across unfiltered. That, of itself, is solid gold in a crisis.
It’s the strategic aspect that I find admirable.
It is obviously the opposite of the mealy mouthed pseudo apology that has felt the dead hand of a lawyer and that is why it is brilliant from two strategic points of view.
Firstly, it makes it very hard for this story to get any worse for VW so it gives them, as far as they can possibly hope at this point, a solid foundation, not shifting sands. The only way is up.
Secondly and this is where I think they might be being very clever indeed it sets the standard for other auto manufacturers who might be about to find themselves in the same position.
Any other auto brand that is engulfed by this scandal which does not make a similarly comprehensive and unambiguous mea culpa with its commitment to swift financial action, is going to find themself the attention of the media as story unfolds and expands to become one of not only wrongdoing, but corporate cowardice.
It seems unlikely that anyone is going to beat VW for directness and an apparent willingness to deal with this problem and confront their own shortcomings and that gives them a strong hand when the immediate sense of scandal has cleared.
The world isn’t going to stop buying cars, even diesels, and if most if not all brands in the category are swept up in this scandal, then the one that makes the most authentic and fully resourced commitment to solving the problems of its failures will be the one that comes out of it first and can begin re-building its most valuable asset. That means the one best able to capture market share from its category rivals.
It’s a big bet, but there is no halfway house here.
Bravo Volkswagen