Volkswagen's crisis sparked by "cheat devices" found on its diesel vehicles has many industry observers wondering if the brand is permanently damaged. Indeed, with every day that passes without a fix in place, VW's loyal customer base is left twisting in the wind. The uncertainty especially is having an impact on the resale values of affected vehicles. According to an analysis of dealer auction data by car shopping destination Edmunds.com, from September 1 to October 9, prices of VW diesel vehicles dropped 6.5% after the crisis broke on September 18.
But Volkswagen is not the first automotive brand to step into its own mess, and it undoubtedly won't be the last. Automakers in the past have successfully navigated themselves through ugly, high-profile safety recalls, bankruptcies, and other PR disasters, even when armies of talking heads spelled doom. There are lessons that VW can learn in each of those cases, and the company would be wise to study those lessons carefully to guarantee its own future.
Read the rest of Jessica Caldwell's insight into Volkswagen crisis at http://www.forbes.com/sites/joannmuller/2015/10/29/history-points-to-a-light-at-the-end-of-the-tunnel-for-volkswagen/.