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 (http://smh.drive.com.au/motor-news/volkswagen-sales-crash-20130703-2pbye.html)

[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 :-D

[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 :-D

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 + service/warranty departments

Warranty service = labour hours for the dealer (assuming VGA pay)
And [I]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.

[Diesel_vert]

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 on the island of Australia?"

Emphasis added.

Not that it provides any justification (well, maybe it does, lol) but I'm sure that goes a long way in explaining why many VW customers in Australia are treated in the manner that they are.

[parso_rex]

Theres a lot more at stake than a couple of thousand cars- way more. The perception out there at the moment is that all the (VW/Audi/Skoda) gearboxes are terrible and the engines aren't much better even though for most of the models this is simply not the case at all. This sort of talk is doing the rounds of pretty much every Oz forum even non-car ones like whirlpool and from here it spreads to colleagues and friends of friends etc.
Chatting about this briefly with my wife and close friend both in PR one heading a VAG line (cant say too much here) and it was basically lets just not even go into detail because its been so badly handled. So is it a case of bad PR department decision or is it a case of the company not wanting to follow the recommendations of their PR department for whatever reason $$ perhaps - It doesn't matter the damage is done now. Bet they won't do it like this again :)

[brimway]

I think their attitude now is....

The damage is done, so if we sh*t on a few of our customers that are not directly protected under the terms of the recall, so be it.

VGA MD John White invited me to contact Customer Care. I did, but the only response I get is a phone call from an administrative staff member who told me that "any modification to your car will void your warranty even if the documented problem predates any modification", actual words!

How can you win? They are a bunch of you know whats.

[mikinoz]

Bought a comfortline Polo for a massive savings this week. A very keen salesman wasn't meeting targets so sharpened price considerably.

Swings and roundabouts. We've all seen stuff like this before but water will pass under the bridge and things will soon be back to normal...

[brimway]

Swings and roundabouts. We've all seen stuff like this before but water will pass under the bridge and things will soon be back to normal...

That makes me feel so much better, thankyou

[Diesel_vert]

Swings and roundabouts. We've all seen stuff like this before but water will pass under the bridge and things will soon be back to normal...

As in, resume normal behaviour and go back to treating their customers indifferently?

I'm sure the optimists amongst the VW customer base would like to think that won't be the case in the future, but time will tell...

[mikinoz]

There are no truly customer focused major product manufacturers or dominant suppliers in any sector. Look at Apple and their warranty conditions and customer relations approach as the next example. From there you can head to Telstra/Vodafone in the services sector.

Good customer service comes from people working for companies that allow them the ability to put a customer first. Sadly that isn't very often anymore - as it costs money.

And before we all get upset. People still buy Toytas despite their issues and VW will still be a middle class aspiration in our fine country so sales will be fine.

[pologti18t]

It's even more disturbing when certain VW owners (with few issues) beat up the issues on non-automotive sites. Continually inflame the issue when their car is seemingly being dealt with effectively. When one issue is address they move onto another issue to continue their tirade. Then they bitch about reduced resale yada yada and wonder why. hmmmm. Nose cut off to spite the face.

See if you can spot one :)
http://forums.whirlpool.net.au/forum-replies.cfm?t=2075298&p=59

The stories I hear about VW owners being mistreated/misunderstood by their dealers I have heard numerous times from people with other makes. I for one had majors issues with a Mazda of all things years ago. It doesn't diminish the problems, but don't think the VW universe is somehow special.

Social Media allows these stories to run completely out of control... running on way after the response from the manufacturer required has been obtained. It's like some power trip for them... they go from "they aren't doing anything" to "they aren't doing it fast enough" to "what are they not telling us", "I don't believe they fixed it " to "they may be fixing issue A but what about issue B".

I admit that certain service centres (of all makes) have definite problems with understanding what problem a customer is having. I also understand that there are A LOT of customers out there that are all passive aggressive. They go straight to social media to vent their spleen with great glee. They always post about the problem... they rarely then post if the problem got fixed. Manufacturers better learn quick how to respond to these threats (and they are to a business)

The only comfort I get is I know a lot will go buy a Mazda, Honda, Toyota and then whinge on social media that the manufacturer has sold them a car unfit for purpose because the car's bluetooth doesn't connect to their iPhone5 ;) </rant>

[Diesel_vert]

There are no truly customer focused major product manufacturers or dominant suppliers in any sector. Look at Apple and their warranty conditions and customer relations approach as the next example. From there you can head to Telstra/Vodafone in the services sector.

Good customer service comes from people working for companies that allow them the ability to put a customer first. Sadly that isn't very often anymore - as it costs money.

And before we all get upset. People still buy Toytas despite their issues and VW will still be a middle class aspiration in our fine country so sales will be fine.

It's a given that cars are not 100% reliable, but when things go wrong, I expect the manufacturer to back their products by providing proper support.

I'm not upset for VW. As a corporation that made an after-tax profit of EUR 22 billion last year, they have plenty of cash on hand to go around.

But I'm sympathetic for the individuals and enthusiasts that post on this forum who have bought a VW and weren't able to receive proper support when their cars had issues.



It's even more disturbing when certain VW owners (with few issues) beat up the issues on non-automotive sites. Continually inflame the issue when their car is seemingly being dealt with effectively. When one issue is address they move onto another issue to continue their tirade. Then they bitch about reduced resale yada yada and wonder why. hmmmm. Nose cut off to spite the face.

See if you can spot one :)
http://forums.whirlpool.net.au/forum-replies.cfm?t=2075298&p=59

The stories I hear about VW owners being mistreated/misunderstood by their dealers I have heard numerous times from people with other makes. I for one had majors issues with a Mazda of all things years ago. It doesn't diminish the problems, but don't think the VW universe is somehow special.

Social Media allows these stories to run completely out of control... running on way after the response from the manufacturer required has been obtained. It's like some power trip for them... they go from "they aren't doing anything" to "they aren't doing it fast enough" to "what are they not telling us", "I don't believe they fixed it " to "they may be fixing issue A but what about issue B".

I admit that certain service centres (of all makes) have definite problems with understanding what problem a customer is having. I also understand that there are A LOT of customers out there that are all passive aggressive. They go straight to social media to vent their spleen with great glee. They always post about the problem... they rarely then post if the problem got fixed. Manufacturers better learn quick how to respond to these threats (and they are to a business)

The only comfort I get is I know a lot will go buy a Mazda, Honda, Toyota and then whinge on social media that the manufacturer has sold them a car unfit for purpose because the car's bluetooth doesn't connect to their iPhone5 ;) </rant>

I tend not to read too much into the comments section of many online articles, or the posts in a forum like Whirlpool.

It is certainly true that other manufacturers are not immune to poor customer service standards, but having said that, VW really dropped the ball on the DSG issue in Australia, amongst other issues.

[hoi polloi]

I tend not to read too much into the comments section of many online articles, or the posts in a forum like Whirlpool.

In most cases Whirlpool = Whingepool

'Nuff said...

[wai]

In most cases Whirlpool = Whingepool

'Nuff said...

Actually that goes for most forums. The thing is that if you have a car (or anything) that does what it says it should do and gives you no trouble at all, you are extremely unlikely to go online and sing the praises of the manufacturer. You only have to look at things like restaurant review sites. Given the number of people who go to restaurants, and then see the number of reviews, the vast majority who have no complaints rarely go on and give a positive review. The same for App reviews. You only go onto a forum to look for a solution for something that is causing you a problem, or for something you don't like and would like to change, or because you want assistance with something.

On the recall, I received my letter on July 2, and today I had a call from VGA in response to an e-mail I sent them in June. Basically, it was to assure me that the mechatronics unit WILL be replaced, no matter what a dealer might say. If this did not happen, then I should get back in touch with VGA.

[ill0gitech]

Actually that goes for most forums. The thing is that if you have a car (or anything) that does what it says it should do and gives you no trouble at all, you are extremely unlikely to go online and sing the praises of the manufacturer.
Spot on - and on any forum, if you praise something - you're accused of being a rep/company employee/ad guy in disguise. Or a "fanboy."
Also - agree with you on the restaurant stuff. Very rare to see really good reviews, but plenty of complaints about the littlest things "it was cold outside, boo" <- well duh
Ditto appliances and other things for the house. Camera forums, if it's even possible, are worse than car forums.

Note: I'm not in anyway associated with any car manufacturer, nor a fanboy. I do own some Apple stuff though, so I guess by the vague definitions of the "intrawebz" I must be an Apple Fanboy. I have a few canon cameras, so clearly that means I'm either cool, or the anti-christ who hates children, puppies, and rainbows.

[Ryan_R]

Shame the new GTI isn't out yet, I'd be lying if I didn't say I was a little envious of some of the deals being done atm

[sVWatt]

Looks like little white lies from VWA coming home to roost.
Local recall only - no longer rings true;

Volkswagen DSG recall extended (http://smh.drive.com.au/motor-news/volkswagen-dsg-recall-extended-20130711-2ps6b.html)

[Greg Roles]

And there in is the heart of the issue, the fact that identical cars / parts have been recalled overseas, over a year ago now in the case of the diesel injectors, yet VW simply ignored the issue here, and charged people handsomely to replace known faults.

I love the brand, and my dodgy diesel ( thankfully now paid off ), but VW are reaping what they have sown. This will be hurting them, people overseas are watching, and the fallout is yet to reach a peak I reckon.

I just feel for people trying to trade / sell their VW for the next several months, it's going to be flat for a while.

[pologti18t]

Looks like little white lies from VWA coming home to roost.
Local recall only - no longer rings true;
Volkswagen DSG recall extended (http://smh.drive.com.au/motor-news/volkswagen-dsg-recall-extended-20130711-2ps6b.html)


Actually, doesn't the article suggest what they believed at the time was true?
Otherwise VW China wouild have recalled the imported cars at the same time as the locally built models.