YouGov BrandIndex CEO Ted Marzilli compared the situation to the
unintended acceleration crisis that struck Toyota five years ago,
prompting massive recalls.
"When Toyota had its global recalls back in 2010 and the
company's chairman had to appear in front of Congress, it took more
than a year for them to recover in perception," Mr. Marzilli said
in a statement. "It was also one of the biggest U.S. brand crises
in the last five years. As more news about this [VW] story is
revealed, we could see the scores impacted even more. For Germany,
this is a matter of national pride, so it is not surprising to see
their score take a bigger drop."
Volkswagen's woes started last Friday when news broke that the
automaker had allegedly duped regulators and violated clean air
rules by installing software intended to evade emissions tests.
About 11 million Volkswagen vehicles worldwide have diesel engines
with software "irregularities,"
Bloomberg reported Tuesday, noting that the automaker plans to
set aside 6.5 billion euros ($7.3 billion) in the third quarter to
cover the costs of addressing the issue.
"Our company was dishonest with the EPA, and the California Air
Resources Board and with all of you," Michael Horn, the head of the
VW brand in the U.S., said
Monday night in Brooklyn, New York, where he was revealing a
redesigned version of the slow-selling Passat sedan at an event
featuring rock star Lenny Kravitz. "And in my German words: 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
behavior is totally inconsistent with our qualities."
But the VW brand faces an uphill fight in winning back consumer
trust, according to conversations occurring on social media.
The number of negative tweets involving Volkswagen jumped to
16,070 between Sept. 18 and 21, compared with just 766 negative
tweets in the four days before Sept. 18, according to Amobee Brand Intelligence, a global marketing
technology company that monitors digital content across more than
600,000 sites. Amobee found that 24% of all digital content
engagement around Volkswagen from September 18 to 21 mentioned
"emission." That compares to just 10% of content that mentioned
"emission" Sept. 14 to 17.
The emissions issue affects the Volkswagen-owned Audi A3
vehicle. But consumers appear to be giving the Audi brand a pass so
far on social media, according to Amobee. Audi's negative tweet
sentiment was 8% negative Sept. 18-21, compared with 9% negative
Sept. 14-17. Even though some Audi vehicles use the technology in
question, the issue is "primarily being associated by the digital
audience with the parent company," according to Amobee.
Still, Assaf Henkin, SVP of Amobee Brand Intelligence, said in
an email that "analysis of Volkswagen and Audi reveal that
consumers are paying attention to what these brands do in relation
to the environmental impact of their vehicles. This is an
opportunity for both brands to be transparent with drivers and
leverage paid, earned and owned media to show how they are going to
move forward to address the issue." He added that "Audi is actually
in an optimal position to quickly redeem any negative sentiment
around their brand, where VW may take more time."
A Volkswagen spokeswoman did not immediately respond to an email
Tuesday morning asking about future ad plans.
As of Tuesday morning, Volkswagen continued to run ads on TV,
mostly a spot that broke last week called "Party" that features
celebrities including Adam Scott and touts VW's smartphone
integration technology known as "App-Connect," according to ad
tracker iSpot. Audi, meanwhile, continued to run TV ads using its
"Truth in Engineering" tagline.
The last brand post on Volkswagen USA's
Facebook page came last Thursday and included a video of the
Adam Scott ad, while noting that Mr. Scott "is throwing a party.
Are you on the list?" But some fans commenting on the post were not
in a partying mood. Stated one fan: "As someone who has owned,
driven and loved Volkswagens for more than 40 years, because of
your criminal actions, I will probably NEVER buy another.
#BoycottVW Shame on you." Another fan simply posted: "Das
Cheaters"
-Bloomberg News contributed to this report