There has not been much good news for Volkswagen lately – in fact it has been exceptionally bleak.
But then even the best PR people would struggle to put much gloss on situation one German newspaper has described as the ‘the most expensive act of stupidity in the history of the car industry’.
It has been reported the company needs to put aside £4.7 billion to cover the costs of rigging car emissions tests in the US and that half a million cars need to be recalled. This has led to a 20 per cent drop in share prices.
But amidst this dodgy emissions gloom is a small glimmer of positivity – we like the way the company has managed the crisis so far.
That may seem like scant consolation, but when your well-earned reputation and trust in your brand is taking a hammering it is vital you get a firm grip on the crisis.
The world’s largest car manufacturer has done just that, responding quickly and owning up to the problem rather than trying to make excuses.
But what we really like is the tone of voice deployed by the company’s senior executives. Take a look at the language US Chief Executive Officer Michael Horn used in New York earlier this week:
"Let's be clear about this, our company was dishonest, with the EPA (US Environmental Protection Agency) and the California Air Resources Board and with all of you.
"In my German words, we have totally screwed up."
He went on to say: "This kind of behaviour I can tell you from the bottom of my heart is completely inconsistent with our core values."
So why is this so impressive?
Firstly Mr Horn connects with his audience by using the language they are likely to use. ‘Screwed up’ is exactly the sort of phrase you would use talking to friends in a pub.
Honesty is another endearing feature and there is absolutely no attempt at a cover up or signs of spin in his statement. He admits the company has been ‘dishonest’ right at the start.
Finally, he apologised profusely. When you are caught up in a scandal – and it is hard to describe this as anything other than a scandal – then you need to be seen to be contrite. But there is an art to it and it is something CEOs often get wrong – your apology must be seen as genuine. Mr Horn achieves this with the language he uses, apologising from the ‘bottom of my heart’, but also by being open and honest about the issue.
There is no sign of corporate language, jargon or weasel words in anything he says.
And he is not alone. The company’s chief executive Martin Winterkorn said in a video on VW’s website that it had ‘betrayed the trust of millions of people’.
The scandal engulfing Volkswagen, one of the most respected brands in the world, is a reminder any organisation can find itself in a crisis media management situation.
The problem for them is this particular crisis will run for some time – there are calls for an EU investigation into the affair.
Mr Horn and other bosses will need to ensure the company continues to be upfront, honest and apologetic. Senior figures will need to continue to front the response to the crisis and ensure a consistent message.
Any move away from this approach will fuel the distrust caused by deliberately misleading loyal Volkswagen customers.
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