We could have predicted this

[sVWatt]

“Volkswagen paid a price for the way in which they handled the recall issue and the fact that they didn’t come out and deal with that issue... in an open, honest and more transparent way.”


Volkswagen Recall Leads to Massive Sales Slump

[Rileyowner]

I agree that, from a public relations perspective, this will stand out as a textbook example of abject failure for many years to come. You have to wonder how fools like the present VWA MD and his predecessor get appointed to their jobs in the first place. No company can survive these days with such a toxic corporate culture where the customer is seen as the enemy.

[wai]

Yes it is a huge hit, but VGA should not be surprised. How they believed they could launch a new model AND fob people off after announcing recalls in other countries but refusing to do this here beggars belief.

The big problem for VGA now is that how it is seen after announcing the recall is in the hands of their dealer network. They are not employees of VGA, but it is how they handle things that will seal the fate of VGA. Some see themselves as the guardians of VGA and believe that by fobbing owners off they are actually doing VGA a favour by saving VGA money. After all, this is what many dealers have been doing for years with the "standard for this type of vehicle" rubbish.

As VW owners we should not take any pleasure in this. Mind you this is only as long as VGA does (through its dealer network) what they say they will do.

As for what will happen to those who should have done things differently, here are the 7 stages of a project.

Stage 1: Uncritical acceptance.
Stage 2: Wild enthusiasm.
Stage 3: Dejected disillusionment.
Stage 4: Total confusion.
Stage 5: Search for the guilty.
Stage 6: Punishment of the innocent.
Stage 7: Promotion of non-participants.

VGA are probably at Stage 5, so we can look for punishment of the innocent and then the promotion of the non-participants

[tigger73]

Good time to buy an new car.... that is if you can get anyone to take your trade-in

[brimway]

My Son's girlfriend had her heart set on a new Golf but was scared off and ended up with a Kia.

I have no sympathy for VGA nor some of its dealers. VGA have adopted a superior, obstinate stance in my recent dealings with them.

[stickshift3000]

I imagine even a PR graduate knows not to impersonate an ostrich...

I feel some satisfaction at VWA's pain after the contempt they've shown some customers.

[99_FGT]

Yes it is a huge hit, but VGA should not be surprised. How they believed they could launch a new model AND fob people off after announcing recalls in other countries but refusing to do this here beggars belief.

The big problem for VGA now is that how it is seen after announcing the recall is in the hands of their dealer network. They are not employees of VGA, but it is how they handle things that will seal the fate of VGA. Some see themselves as the guardians of VGA and believe that by fobbing owners off they are actually doing VGA a favour by saving VGA money. After all, this is what many dealers have been doing for years with the "standard for this type of vehicle" rubbish.

As VW owners we should not take any pleasure in this. Mind you this is only as long as VGA does (through its dealer network) what they say they will do.

As for what will happen to those who should have done things differently, here are the 7 stages of a project.

Stage 1: Uncritical acceptance.
Stage 2: Wild enthusiasm.
Stage 3: Dejected disillusionment.
Stage 4: Total confusion.
Stage 5: Search for the guilty.
Stage 6: Punishment of the innocent.
Stage 7: Promotion of non-participants.

VGA are probably at Stage 5, so we can look for punishment of the innocent and then the promotion of the non-participants

Stage 6 would be anyone looking to upgrade when there is nothing wrong with their car (me for instance)

[VWDSGissue]

I am getting some schadenfreude satisfaction out of the drop in sales. VW have not helped me, with my almost 5yo 80,000Km Passat, with a failed mechatronics unit. Unfortunately, I am planning to sell my lemon Passat, ASAP. I don't know if a trade in, or trying to sell privately, is the best way to go. I did read a comment on that Fairfax page, saying that a VW trade in was refused by a wholesaler - ouch. That is a worry.

[Transporter]

LOL, a good time to get a new car.

I have to agree with Hugo (second comment in the article listed in the first post), that's what he said;

"I hear what you're saying but bear in mind that VW is the third largest automaker in the world. Volkswagen Group (VW) sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen marques; motorcycles under the Ducati brand; and commercial vehicles under the MAN, Scania and Volkswagen Commercial Vehicles marques. Do you think that they give a toss about 1226 fewer sales on the island of Australia?"

[ill0gitech]

Excellent point Transporter.

Some see themselves as the guardians of VGA and believe that by fobbing owners off they are actually doing VGA a favour by saving VGA money. After all, this is what many dealers have been doing for years with the "standard for this type of vehicle" rubbish.

Assuming dealers have indeed been refusing to fix issues to save VGA money - if they are refusing (fair to say there is strong evidence to that) it's unlikely to be because they want to save money for VGA.

Firstly, there are a lot of VW Dealer Principals who unsurprisingly own more than just VW dealerships. And plenty of dealers with combined VGA + [insert other brand(s)] service/warranty departments

Warranty service = labour hours for the dealer (assuming VGA pay)
And there's the rub. VGA have a say in claims and how warranty issues (and complaints about warranty issues) are dealt with.

If dealers refuse to fix issues, it's because they would lose money, not VGA. For instance, if VGA refuse DSG claims without recorded error codes or an ability to replicate. And when something is approved, it's unlikely too many dealer-service centres are going to take shortcuts to save VGA money.
Another example would be the high-oil use issues on Polo 6Rs. Consumption test, consumption test, consumption test, customer gets ****ty - ok, we'll do something.
--
Also - keep in mind that with a new model launching, sales can vary up (old models sell well as they are reduced, EOFY sales offers from) or down (dealers wait on stock, customers wait for specs they want etc).
It's probably a combination of a few factors, but it would be silly for VW to think this has nothing to do with PR.

As for buying a KIA because of VW reliability fears - well, each to their own.

PS: Please do not read this post as pro-VGA at all. It's simply highlighting that dealers aren't typically out to protect third parties that would throw them to the wolves in a heart-beat.