An Italian perspective of “Dieselgate” related to Volkswagen’s brand image

The purpose of this paper is to analyse the point of view of Italian consumers regarding the emission scandal that involved Volkswagen in fall 2015: the so-called “Dieselgate” scandal. The following research question is investigated in the paper: What are the main Italian reactions towards the VW brand following the Dieselgate scandal? After a review of recent academic literature concerning the awareness of the scandal, customer damage and perceived ethical behavior, more than 290 interviews were conducted between September and December 2015. Despite the strong impact of the scandal, Volkswagen has recorded an increase of + 15.8% in its business result on the Italian market for 2015 compared to 2014 . In fact, Italy is a European country with a fully developed import/export car market displaying several typical cultural features of Southern Europe. The main implication for management is the change of brand image after a global scandal and also following practical steps such as product recalls. Comprehending customers’ reactions to the impact of a scandal is an excellent basis for a better understanding of how to handle a situation of reputation crisis properly. This paper attempts to evaluate the product recall process including company communication as well as the service provided by VW as it is perceived by customers and Italian car drivers in general. The paper will also measure the reaction of consumers regarding the unethical behavior of VW.