Investors are very unhappy. They have a right to be. After Volkswagen announced that it had cheated on clean air rules in the United States, its market capitalization shrank over $18 billion in just one day. According to an article in The New York Times, the eventual cost could be even higher. Rather than compare this financial loss to those of other transgressing auto manufacturers, however, the point of this article was to compare it to that of BP after the horrific oil spill in the Gulf of Mexico in 2010.
Being a branding professional, and not a financial analyst, I have a different point of view on the topic. While in no way to diminish the devastating impact of the Deepwater Horizon oil spill on peoples’ lives and businesses, on wildlife, and on the environment – it was devastating – I believe that Volkswagen will have a far greater challenge in repairing its brand name than did BP. Here’s why.
September 23, 2015 in News