The VW scandal has dominated the headlines of the German daily newspapers, and this is having a direct impact on the brand, according to a survey of VW dealers by Automobilwoche.
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The affair has been extensively reported since the end of June this year, when Helmut Schuster, formerly head of personnel at Skoda, resigned. Former chairman of the VW works council and supervisory board member, Klaus Volkert, personnel manager Klaus-Joachim Gebauer and personnel executive committee member Peter Hartz, followed, amidst allegations of bribery and the hiring of prostitutes on business trips.
The scandal has already cost Volkswagen €5m to hire accountants KPMG to conduct a thorough investigation, but the final cost to the company may be much higher in terms of the damage to its image.
One long-standing Bora [Jetta] driver told the newspaper that after this unappetising affair he can no longer contemplate buying a Volkswagen.
Dealers interviewed by Automobilwoche confirmed that customers have the scandal very much at the front of their minds. One customer linked VW’s higher prices directly to the scandal – “I have to pay €1,200 extra for my Golf compared to an Opel Astra because these men chose to spend their time messing around in Brazil”
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By GlobalDataOne dealer representative told the newspaper that customers are entering dealerships with the latest tabloid pictures under their arm and making fun of the sales people. This gives them enormous power in price negotiations, he said.
