Diesel Scandal Already Costing Volkswagen, Audi In Reputation

Only one out of four vehicle owners think favorably of Volkswagen this week, in the wake of the brand’s diesel emissions scandal.

It’s yet another indicator that the brand, which saw three out of four opinions favorable before scandal, faces a long, tough road to earn back consumer trust. Even the companion VW Group automaker Audi, which used the affected engines in one of its models, the A3, has seen its reputation plummet, to 29 percent now, versus 69 percent previously.

The figures are from the California market-research firm AutoPacific, and based on a survey of 500 U.S. vehicle owners.

It’s all due, of course, to Volkswagen’s admission, two weeks ago, that it cheated on U.S. emissions tests, with the installation of a software-based “defeat device” that allowed VW’s so-called Clean Diesel TDI four-cylinder engines to emit up to 40 times the nitrogen oxides allowed by the law.

Volkswagen faces fines, class-action lawsuits, and investigations from many other governments. And as such, it’s a bit different than any safety-related recall, or a quality issue, and difficult for some consumers to see the situation as anything but intentional deceit.

Sales stopped, as have the Clean Diesel cheers

The automaker has stopped selling the affected vehicles, yet it argues that the vehicles are safe to drive (and that might not even be true if you have pollution-based public-health concerns).

For the brand, the results are catastrophic, as they’ve made some loyal legions of buyers incensed and remorseful. Prior to the diesel scandal, three out of four owners had a positive opinion of Volkswagen; in the wake of the scandal, as owners of affected vehicles wait for VW to announce a fix (and reimbursement scheme).

“Volkswagen was a tremendous catalyst in the marketing of diesel engines as being clean and fuel efficient,” said Ed Kim, AutoPacific’s VP of industry analysis. “Their marketing efforts over the past several years not only improved consumer opinions about the performance of diesels in the U.S., but also sold consumers on the environmental friendliness of their vehicles.”