The Cost of Regaining Consumers’ Trust

May 26, 2022
Technical Staff

On September 18, 2015, Volkswagen Group, Europe’s largest automaker, acknowledged to using unlawful software to cheat U.S. diesel emissions testing, causing the worst business crisis in the company’s 80-year history. By September 2017, the total bill for its emissions-test cheating scandal was estimated to be around $30 billion 1″

It was inconceivable to believe that such a mega scandal was planned and executed away form the approval by one or more senior executives who control VW Group. In 2020, a German court has ruled that Winterkorn must stand trial on a second set of “dieselgate” charges. Earlier this month the former VW CEO and four others were charged over their alleged roles in the emissions scandal. 2. Yesterday, Volkswagen has agreed to pay £193 million to settle 91,000 civil claims in England and Wales related to the “dieselgate” emissions scandal that rocked the German automaker. Claimants in England and Wales will each get more than £2,100 after entering a court action against the car manufacturer 3.

Over the past seven years, the VW Group paid tens of billions of US dollars to claimants globally. Though, it does not seem that the dieselgae scandal is over.

Consumers’ Trust

It is, in our opinion, the most costly loss a corporation suffers as a result of such a massive incident. How would consumers continue to believe VW’s assurances to them? It is insufficient for the VW to convey grief. It will take time, and likely a long time, to restore consumer trust in VW Group products or claims.

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