The Great Automotive Makeover - The Role of Marketeers After Dieselgate

Controversies and errors aren’t uncommon in the automotive industry, with the most notable controversies involving mass recalls of vehicles. From the Takata seatbelt scandal of the 90s to Toyota’s unintended acceleration crisis in the 2000s, there are various examples of mistakes that have been made by different car manufacturers. But perhaps the biggest scandal of all is still being played out: Dieselgate.

What is Dieselgate?

The Dieselgate scandal began in 2015, when Volkswagen were accused of artificially manufacturing the results of emission tests in an attempt to make their vehicles appear more environmentally friendly than they actually were.

Fast forward ten years, and many other high-profile manufacturers have joined Volkswagen in legal battles, all accused of the same crime. By June 2020, it’s believed that the scandal had cost VW a staggering $33.3 billion in fines, penalties and settlements as a result of diesel emissions claims.

While the short term impact is clearly financial, the long term impact could be much worse. Have consumers lost trust in the industry as a whole? And has the reputation of these brands been damaged beyond repair?

While the answers to questions like these are yet to be determined, it’s clear that a certain group of people have a mammoth task on their hands in the years to come: marketeers.

Those responsible for promoting and marketing car brands—whether that’s a brand caught up in the scandal or not—possibly have the world’s hardest job. After all, why should customers believe a word that automotive brands say? 

This article will aim to highlight the role of marketing teams in the future of the automotive industry. It’s clear that a makeover is required, but is it too late?

How does this impact the future of electric vehicles and brands like Tesla, which have gone all in on sustainability? While Volkswagen’s marketing team scrambles to save one of the world’s biggest PR disasters, the scandal may have presented those responsible for marketing EVs with an open goal.

What Changed After Dieselgate?

The consequences of Dieselgate came in many forms. There was the obvious impact on brand, reputation and credibility suffered as a result of the scandal and the brands involved in Dieselgate were at the centre of negative headlines and bad PR stories.

Then there were the legal and financial consequences. Lawsuits and penalties led to huge financial expenses that are still rising to this day. It could be argued that the value of current/future stock was also negatively impacted by the scandal, leading to further financial losses.

It’s also worth considering how consequences weren’t limited to the brands named in the scandal. The car industry as a whole suffered from the negative headlines, and the whole sector had to reconsider its approach to marketing and communications.

The Rebranding of the Auto Industry

As is often the case after a scandal, the automobile industry was in need of a makeover to get consumers back on side. The extent to which brands were involved in the scandal determined how much of a rebrand they required. 

For example, Volkswagen responded with what can only be described as a brand overhaul. A new logo was at the centre of a new brand identity, which involved a whole new strategy around advertising as a result of a change in CEO. 

The new strategy from Volkswagen promised to prioritise people over products and tried to make the brand warmer, more approachable and more genuine at a time when trust was at an all-time low.

VW’s approach was mirrored across the industry as a whole. You may still see now that brands are focusing less on features and more on things like innovation and responsibility. Electric car brands have benefited enormously from this shift, with their responsibility claims appearing far more genuine than those coming from brands that have been offering harmful internal combustion engine (ICE) vehicles for the past 100 years.

In some ways, brands like Tesla, which had gone all in on electric cars, could be seen as the saviour for the wider industry. Consumers switched to seeking electric vehicles due to these brands and, in the process, many have forgotten about the scandal. While EV manufacturers benefited most from this change in consumer behaviour, they didn’t have the sheer brand size of other manufacturers.

Even though credibility was at rock bottom for many of these legacy brands, consumers still knew they were offering a quality product. This shift in consumer preference, coupled with a long-standing history of quality, opened up a redemption opportunity for automotive brands like VW and Mercedes. 

The focus of these brands has now shifted to electric and hybrid vehicles, and marketing for these vehicles often plays on nature or even the future.

Ethical Marketing

The shift towards ethical marketing isn’t exclusive to the promotion of cars. But given the impact of Dieselgate, the automotive industry was crying out for a more ethical approach to marketing. As a result, storytelling isn’t backed by claims that can’t be verified, but by transparent data. 

KPIs have also needed to take a different shape. For the short term, brands have prioritised rebuilding trust over sales figures, which are obviously going to be significantly down post-scandal.

This new approach also plays into the hands of younger consumers. Millennials and Gen Z place far more importance on ethics than previous generations have. According to studies, 87% of Gen Z consumers believe companies should be acting responsibly around social and environmental issues.

Final Thoughts

The impact of Dieselgate shouldn’t be underestimated. While scandals have rocked the automotive industry before, most scandals are the result of accidental mistakes. Dieselgate however was the result of purposeful manipulation and deception. Where most scandals damage the credibility of certain brands, Dieselgate impacted the whole industry.

Subsequently, marketing teams were forced into a difficult position of rebuilding the credibility of brands, and it appears they are doing a rather good job. The automotive industry of 2025 has taken on a futuristic approach, one that is backed by credible claims.

Author Bio

Toby Patrick is a freelance writer who covers all things business. His writing often discusses the latest news and trends from a variety of industries.