The Volkswagen Scandal

One of the biggest news stories in the past couple of days has been the Volkswagen emissions scandal. They have admitted and apologised about 'rigging' emissions tests to make the brand appear more 'environmentally friendly'. This has not only caused a huge 20 percent plunge in shares, but also is set to cost the company $37500 per car, resulting in a total cost of close to 18 billion dollars.

One of the cornerstones of advertisement is about communicating a truth which is one of the reasons why this could be so detrimental for the brand. To sell products based on a lie is incredibly careless and always likely to backfire. A german newspaper referred to the incident as the "most expensive act of stupidity in the history of the car industry".

In terms of advertising, Volkswagen are usually dominant within the industry thanks to their advertising agency Doyle Dane Bernbach (DDB) creating the revolutionary advertisements of the 1950's and 1960's and some brilliant modern day classics like this one:

A clever Precision Parking advertisement by Volkswagen and DDB.

Being such a giant in both the car and the advertising field, Volkswagen are likely to bounce back from this revelation but it will not be easy. They will have to rebuild the trust with their customers and trust in advertising is crucial.