Friday, August 19, 2016
Ignoring Your Best Customers
It is a strange marketing and PR choice to ignore one's best customers yet Volkswagen is doing it in the diesel engine scandal that has overtaken the company. The conglomerate has spent billions settling claims for cheating on its smaller motors, but it has yet to take any action on its larger power plants that went into its Porsche and Audi brands. Porsche owners, particularly, are in a dudgeon over the lack of action on their high-priced vehicles, which are now devalued well below their selling points. Why has Volkswagen not addressed the problem? Probably because handling the fallout of cheating on its smaller engines is taking the company's entire time. However. ignoring one's best customers is never a good idea, especially if one wants to enhance the luxury brands. Volkswagen doesn't have much time left to rectify the situation. Lawsuits are pending and the corporation is not in a good position to defend against them.
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