Electric car offensive
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Car maker Volkswagen is set to change its logo. The reasoning appears twofold: it wants to put the “dieselgate” scandal firmly behind it, and it’s pushing hard into the electric car market. €20bn hard, actually.
It’s easy to understand why Volkswagen would prepare for a strategic shift to zero-emission and self-driving technology. Tigerish Tesla and its space billionaire are fast garnering brand recognition.
Oh, and cheating on diesel emissions tests has cost the German company Us$23bn (and counting) in fines and settlements.
There is no guarantee that tweaking the Volkswagen logo will be effective in erasing the taint of “dieselgate”. This part of Volkswagen’s “makeover” seems a desperate undertaking in brand rehab — much like cutting your hair or buying a new outfit after a breakup.
To regain trust and change perceptions, Volkswagen (and by Volkswagen I mean Porsche family descendants, the German government and labour unions) needs to become more transparent. Power needs to be decentralised and the company somehow needs to reform the insular and hierarchical structure that has been a prevalent part of its business — and that many say was a factor in the cheating scandal.
A recent New York Times article says the company’s unique culture is Where logo change makes sense is when it signals a new direction — an awareness of current trends and the needs of consumers. Volkswagen’s pledge, under new boss Herbert Diess, is an electric variant of each 300 group model by 2030, and in all markets.
According to Jochen Sengpiehl, Volkswagen’s chief marketing officer, the brand is not in good shape compared with previous years, and it has lost some of its emotional appeal by trying to be “too German”.
The goal, then, is to make the company more approachable and less stiff so as to appeal to younger, more environmentally conscious consumers.
By most accounts, sales of electric vehicles by German car makers has been modest. They’re now playing catch-up with electric and hybrid models slated for release over the next two years.
Last month, an EY study revealed that German car makers are now the biggest investors worldwide in electric vehicles, outdoing US manufacturers and Japanese firms.
Germany will this year become the world’s third-largest market for plugin hybrids and electric cars, surpassing Norway.
The take-up, driven by increasing pressure to adopt low-emissions technology amid a backlash against urban pollution, has been powered by additional charging sites and better products, largely made by Tesla.
I can’t see Volkswagen or its German car-maker rivals being too thrilled about getting an ass-whipping at home.