In 2015, Volkswagen, one of the world’s largest automobile manufacturers, found itself embroiled in a scandal that would forever alter the company’s reputation and impact the automotive industry. The scandal, commonly known as “Dieselgate,” involved the company’s use of software designed to cheat emissions tests on diesel vehicles. The fallout from the scandal was immediate, global, and significant. However, Volkswagen’s response—its litigation PR strategy—was a crucial part of how the company managed the crisis, attempted to salvage its reputation, and began the long road to recovery.
The Emergence of the Scandal
It began in September 2015 when the U.S. Environmental Protection Agency (EPA) accused Volkswagen of installing defeat devices in its diesel vehicles, which enabled the cars to pass emissions tests while actually emitting pollutants far beyond legal limits. Over 11 million vehicles worldwide were implicated in the scandal, which severely undermined public trust in the company.
Volkswagen had a history of portraying itself as a company committed to environmental sustainability and innovation. The revelation that it had been intentionally misleading regulators and customers was a devastating blow to the brand. The company faced potential legal action in multiple countries, as well as significant damage to its reputation.
The Role of Litigation PR in the Volkswagen Crisis
Volkswagen’s litigation PR efforts were crucial in mitigating the immediate damage from the scandal. One of the first actions the company took was to acknowledge the issue. In the face of overwhelming evidence, Volkswagen’s CEO at the time, Martin Winterkorn, publicly apologized for the emissions violations. In a press conference, Winterkorn stated, “We have broken the trust of our customers and the public. We will do everything to restore that trust.”
This apology was the beginning of Volkswagen’s public relations strategy. However, it was clear that the company’s communication strategy would need to be much more comprehensive to address the full scope of the crisis. From a litigation PR perspective, the goal was not only to manage the crisis but also to align public messaging with the ongoing legal proceedings. Here are some key strategies Volkswagen employed:
- Apology and Transparency: The initial apology was crucial in establishing Volkswagen’s stance. By taking responsibility for the scandal, the company avoided a defensive posture, which could have led to greater scrutiny and criticism. While the apology was somewhat formulaic, it demonstrated the company’s commitment to addressing the issue. Transparency would be a key theme moving forward in Volkswagen’s litigation PR.
- Commitment to Accountability: Volkswagen’s legal team and PR professionals worked closely to ensure that the company’s public statements were aligned with the legal strategy. At the same time, Volkswagen communicated its commitment to making things right. This included promises to fix the affected vehicles and compensate customers. The company also agreed to invest in developing more environmentally friendly technologies.
- Rebuilding Trust: As part of its litigation PR strategy, Volkswagen’s communications team worked tirelessly to rebuild its reputation over time. This included launching a series of new ad campaigns, showing the company’s ongoing efforts to develop sustainable and environmentally friendly vehicles. They also worked with environmental groups to demonstrate that Volkswagen was committed to making amends.
Impact of Litigation PR on Volkswagen’s Legal Outcomes
While the litigation PR strategy helped the company manage its immediate media and public relations issues, it was clear that the legal ramifications would be far-reaching. In the U.S. alone, Volkswagen faced billions of dollars in fines and compensation payments. The company also had to recall millions of vehicles worldwide and provide compensation to affected consumers. There was also significant damage to the brand’s reputation, leading to a decline in sales and market share.
However, Volkswagen’s litigation PR efforts played a critical role in mitigating the long-term damage. By working to maintain a cooperative relationship with regulators and public stakeholders, Volkswagen helped ensure that it could continue to operate in the markets where it was facing litigation.
A key part of Volkswagen’s PR strategy was aligning its communication efforts with its legal defense. Rather than focusing solely on denying responsibility, Volkswagen communicated its commitment to resolving the issue. This helped the company avoid a more prolonged public relations disaster and created room for negotiation in the courtroom. The PR strategy did not erase the legal liabilities, but it did help the company preserve its ability to do business in the future.
Conclusion
The Volkswagen emissions scandal is a prime example of how litigation PR can play a vital role in managing a crisis. Although the company’s actions were legally indefensible, its ability to craft a strategic public relations campaign helped manage public perception, maintain stakeholder engagement, and eventually move toward a resolution. Volkswagen’s litigation PR strategy was far from perfect, but it demonstrated the importance of transparency, accountability, and long-term reputation management in the face of serious legal challenges.
