Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 11 pages
Data source: Published sources
Topics:
Audi; Audi of America; World of Audi; New World of Audi; Unintended acceleration; Sudden acceleration; 60 Minutes; National Highway Traffic Safety Administration (NHTSA); Audi 5000; Audi A6; US luxury car market; Luxury car manufacturers; Quattro; Sports Utility Vehicle (SUV); Trendsetter programme
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Abstract
In late 1986, Audi AG was accused by a popular television show for a flaw in the Audi 5000 sedan that caused the vehicle to accelerate instead of braking, thereby causing fatal accidents. The allegation was followed by a sharp decline in the sales of Audi cars in America and the company was nearly wiped out from the market. Although subsequent investigations proved that it was drivers? error that caused the accidents rather than vehicular malfunction, the damage had been inflicted on the company. Faced with the daunting task of rebuilding the company?s image and recapturing lost market shares, Audi took a number of steps that revived its sales. By the end of 2004, Audi re-emerged as a strong player in the US luxury car market. The case examines the steps taken by the company to revive its brand image and is a good study of the brand rebuilding exercise of the automaker.
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Abstract
In late 1986, Audi AG was accused by a popular television show for a flaw in the Audi 5000 sedan that caused the vehicle to accelerate instead of braking, thereby causing fatal accidents. The allegation was followed by a sharp decline in the sales of Audi cars in America and the company was nearly wiped out from the market. Although subsequent investigations proved that it was drivers? error that caused the accidents rather than vehicular malfunction, the damage had been inflicted on the company. Faced with the daunting task of rebuilding the company?s image and recapturing lost market shares, Audi took a number of steps that revived its sales. By the end of 2004, Audi re-emerged as a strong player in the US luxury car market. The case examines the steps taken by the company to revive its brand image and is a good study of the brand rebuilding exercise of the automaker.