Volkswagen‘s Dieselgate has brought lasting reputational damage to the industry

Zurich, September 15, 2016. One year after U.S. authorities went public against Volkswagen‘s manipulation of Diesel engine emissions the group‘s image on international TV news still displays the same negativity levels (around -70 per cent balance of positive and negative tone).

This is more negative than Toyota during the “self acceleration scandal” (2010), and as negative as BP during the oil spill (2010). Volkswagen’s scandal has left a significant impact on the industry’s perception and gives competitors like Tesla an strong leverage to communicate on new technologies.

Media Tenor International has done a scientific content analysis of international TV news in the U.S., the UK, Germany, Italy, Spain, France, Switzerland, Austria and other countries. Between January 2014 and September 15, 2016. Volkswagen, its competitors and the industry have seen positive and balanced tonality on TV news between 2014 and early 2015. Since then, however, Volkswagen Group’s image has deteriorated with significant radiation on the industry’s perception. “A detailed analysis of image drivers shows especially strong negative impact on the perception of senior management and environmental policy” says Matthias Vollbracht, head of corporate analysis at Media Tenor in Zurich. Significant scandals often lead to changes in consumer behavior and political/regulatory action. Statistics for some markets indicate a declining market share of Diesel engines and loss of market share for Volkswagen Group – in line with academic research*. NGO and courts are pushing to limit Diesel cars in huge cities.

Data basis: 6,434 reports on carmakers on 19 international TV news shows.

*Dewenter, R., U. Heimeshoff und T. Thomas (2016): “Media Coverage and Car Manufacturers’ Sales”, Düsseldorf: DICE discussion paper 215

Contact: Matthias Vollbracht, mThis email address is being protected from spambots. You need JavaScript enabled to view it.