Don’t Try This at Home…or Abroad

Testing brand equity to destruction.

2008 VW Routan. Image: autonews.com

For almost half a century, Volkswagen has occupied a sweet spot in the global automotive market. It might be described as semi-premium, but that prosaic term hardly does justice to its achievement in developing and sustaining an image amongst the car buying public that places the marque consistently half a step higher than its mainstream competitors.

The brand equity, as marketing types would say, is of enormous value to the company. It has allowed Volkswagen to get away with producing some distinctly sub-standard products(1), ignore often middling scores in reliability and customer satisfaction surveys, and even recover relatively unscathed, in reputational if not financial terms, from the Dieselgate scandal that might have been an existential threat to other, less well regarded marques.

Occasionally, however, Volkswagen has pushed its luck too far and the market has pushed back hard. One such event was its attempt to Continue reading “Don’t Try This at Home…or Abroad”